'Improve Govt-run Markets To Rein In Link Reit'

Liberal Party lawmaker Tommy Cheung has expressed reservations about a proposed law to limit rent increases at Link Reit shopping malls, saying rental levels should be decided by the market.

The draft bill was put forward by pro-establishment legislators Regina Ip and Alice Mak, who suggest capping rents with a formula that takes into account property values, median monthly household income and inflation.

But Cheung, who represents the catering industry, said a better option is for the government to introduce competition by improving its own shopping malls and wet markets.

"They [the government] have a lot of wet markets which the FEHD [Food and Environmental Hygiene Department] is managing. They are not doing a very good job," he said.

Pan-democratic lawmaker Au Nok-hin said he, in principle, supports the idea of legislation to regulate Link Reit, but said the draft law doesn't deal with the fact that a lot of shops in public housing estates were sold to businesses that don't serve the needs of residents.