Hong Kong’s de facto central bank, the Hong Kong Monetary Authority (HKMA), is set to implement cost-cutting measures in 2026 as part of the city’s broader efforts to tackle its growing fiscal deficit, according to local media reports.
The HKMA plans to trim its general operating expenses by 5% based on the 2025 budget and will not create any additional staff positions, the Hong Kong Economic Journal reported, citing unnamed sources.
In a statement to Bloomberg, the HKMA affirmed its commitment to fiscal prudence, noting that its budget and staffing plans are always made with both operational continuity and long-term strategy in mind.
These anticipated reductions align with the Hong Kong government’s wider push to curb spending amid a sluggish economy. Measures include workforce downsizing and a freeze on civil servant salaries. Financial Secretary Paul Chan has forecast a return to a budget surplus between 2026 and 2027.
Other financial regulators in the city are also tightening their belts. The Mandatory Provident Fund Schemes Authority cut its expenditures by 2% in the 2024–25 fiscal year and plans an additional 2% reduction in 2025–26, along with a freeze on new hires.
Meanwhile, the Securities and Futures Commission had initially proposed a 2.1% salary increase for its staff earlier this year but later scrapped the plan due to budget constraints, according to its latest annual report.
