Chief Executive John Lee said on Tuesday that clear key performance indicators (KPIs) must be set for the development and operation of the West Kowloon Cultural District, adding that government money must be spent carefully.

He made the comment ahead of the weekly Exco meeting after the chairman of the West Kowloon Cultural District Authority, Henry Tang, said museums at the arts hub may have to reduce the days they are open unless more funds are secured in the next year or so.

Lee said the government is in communication with the authority regarding viable funding options.

"We have high expectations of the successful operation of the West Kowloon Cultural District, and it has been creating value for Hong Kong," he said.

"In many areas, it has been doing a job which satisfies the expectations and wishes of the community and the government, but we want to ensure that there will be a long-term viable financing plan with good KPIs."

Lee added that the district was designed to be self-financing following its initial endowment from the government.