Financial Secretary Paul Chan on Sunday said more future investment is needed to strengthen Hong Kong's economic recovery, even as the SAR's financial reserves are under strain.

In his blog, Chan said that the public’s expectations, society's needs and evolving geopolitics have brought new challenges in preparing the upcoming budget.

"The constraints in financial resources would not stop the government from making long-term planning for Hong Kong's development. I am confident and hopeful about the city's future," he wrote.

Chan will announce this year's budget on Wednesday.