Entry into music with Rediffusion Television
As a teenager who wanted to explore pop music, Lai joined a band performing in a nightclub, where he first met Joseph Koo. In 1973, he entered a songwriting contest hosted by TVB, coming in third place behind Koo and James Wong Jim. By 1975, Lai had become the music director for Rediffusion Television. That year, he gained popularity as the co-host of the variety show, Nancy & Michael (Chinese: 家燕與小田; Jyutping: gaa1 jin3 jyu5 siu2 tin4), sharing hosting duties with actress Nancy Sit.
During his time at Rediffusion, Lai worked on various theme songs for the channel's television dramas. With lyricist Jimmy Lo, who started working at the television station in 1978, Lai composed many theme songs that placed in the RTHK Top 10 Gold Songs Awards during the late 70s and early 80s. The theme song for the 1979 television series Reincarnated placed in the top 10 of the Gold Songs Awards of that year. The following year, three compositions by Lai and Lo appeared in the top 10 of the 1980 Gold Songs Awards: "Tear Drops on a Journey" (Chinese: 人在旅途洒淚時; Jyutping: jan4 zoi6 leoi5 tou4 saa2 leoi6 si4), "Decrepit Dream" (Chinese: 殘夢; Jyutping: caan4 mung6), and "Drama of Life" (Chinese: 戲劇人生; Jyutping: hei3 kek6 jan4 saang7). In addition, the Lai-composed song "Unable to Find an Excuse", from the series Hong Kong Gentlemen, won Jimmy Lo the inaugural Best Lyrics Award at the 1981 Gold Songs Awards.