On Wednesday, Carrie Lam Cheng Yuet-ngor presented her first policy address since taking office as chief executive of the Hong Kong Special Administrative Region in July, making clear that her focus is on improving people's livelihoods.

The snapshot of the policies she presented clearly showed that she knows what Hong Kong needs to remain competitive and prosperous — good governance, an innovative economy and high-quality talent, as well as practical measures such as tax cuts and more subsidized housing.

Words such as technology and innovation were peppered throughout her speech as urgent requirements if Hong Kong is to reinvent itself for the new era. And with this in mind, the government intends to support eight key areas to help the SAR catch up in the innovation and technology race.

Her address also showed she recognizes that there is no better way to revive Hong Kong's fortunes than by taking full advantage of the opportunities presented by the national development strategies.

So while introducing policies to encourage Hong Kong to become a "smart city" and hotbed for technology and innovation, her government will also implement tailor-made policies to help Hong Kong assume an important role in the Belt and Road Initiative and the development of the Guangdong-Hong Kong-Macao Bay Area.

And in a welcome move to heal the generational divide in the SAR, she said the government will seek to address young people's concerns about education, jobs and home ownership, and encourage their participation in public policy discussions.

Initial reactions to Lam's policy address indicate Hong Kong society appreciates her bid to take a proactive and holistic approach to solving the SAR's problems.