Month: September 2025

Source: Hong Kong Information Services

Chief Executive John Lee said in his 2025 Policy Address that the Government will continue striving to deepen Hong Kong’s international economic and trade networks by exploring the signing of new investment agreements with different countries.

He highlighted that the Government will examine signing new investment agreements with Saudi Arabia, Bangladesh, Egypt and Peru.

Mr Lee pointed out that an Economic & Trade Office (ETO) in Kuala Lumpur will be established this year to deepen economic and trade promotion in the Association of South East Asian Nations (ASEAN) and neighbouring countries, and will also expand the ETO coverage to Latin America and Central Asia.

To promote digital trade, the Government will introduce a legislative proposal next year for the digitalisation of business-to-business trade documents.

Moreover, the Trade Single Window will be expanded progressively to cover more trade documents.  The Government, together with the Mainland’s General Administration of Customs, will work to connect the single windows of Hong Kong and the Mainland, and explore the feasibility of extending the existing “Single Submission for Dual Declaration” Scheme to include other trade documents and transport modes. The Government will also discuss the possibility of connecting the single windows with ASEAN.

To promote commodity trading, half rate tax concessions for commodity traders will be provided to set up businesses in Hong Kong, driving demand for shipping and professional maritime services.  Legislative amendments will be made in the first half of next year.

Deepening connections with the Guangzhou Futures Exchange and other commodity markets in the Mainland will contribute to the internationalisation of the country’s commodity market, Mr Lee emphasised.

He added that the Government will set up the Strategic Committee on Commodities, led by the Financial Secretary. It will bring together industry representatives with the aim of strengthening the top-down design and long-term strategy of the city’s commodity policy.

As an international shipping centre, Hong Kong will establish a comprehensive “rail-sea-land-river” Intermodal Transport System connecting to the inland region. With that goal in mind, Mr Lee explained that the Government is actively extending Hong Kong’s cargo sources, promoting intermodal cargo transport from the Mainland’s inland provinces and cities to international markets through Hong Kong via rail, sea, land and river. 

To strengthen Hong Kong’s leading position in high value-added maritime services, the Government will amend the Merchant Shipping (Registration) Ordinance next year to render the registration processes more flexible and digitalised. It will also step up promotion of tax concessions and enhance the marine insurance business.

Additionally, the Chief Executive stated that the Port Community System, to be launched in January next year, will provide a cargo tracking function and connect sea, land, and air transport networks, bolstering trade and capital flows digitally.

To support the city’s modern logistics development, the Government will release the findings of the planning study on the development of modern logistics clusters in Hung Shui Kiu/Ha Tsuen New Development Area this year. It will invite expressions of interest from the industry next year and draw up tender conditions.

To reinforce Hong Kong’s role as an international aviation hub, the Government has taken forward the expansion of Airport City development, Mr Lee indicated.

The construction of AsiaWorld Expo Phase 2 has begun and is expected to be completed in 2028. The Airport Authority will invite expressions of interest in the development of a yacht bay and its ancillary facilities early next year. Such facilities will be completed in phases starting in 2028. 

In parallel, it is moving ahead with the construction of a logistics park in Dongguan, to help boost the use of Hong Kong air cargo services for transporting goods to and from the Mainland.

Furthermore, starting in October, exemptions from the Air Passenger Departure Tax will be expanded to include passengers travelling to Hong Kong for transit by sea or land.

Regarding Hong Kong’s legal and dispute resolution services, Mr Lee made it clear that the Government fully supports the work of the International Organization for Mediation (IOMed), and will organise international conferences, professional training, internships and other programmes to help Hong Kong’s young people and legal professionals work with the IOMed, nurturing more international mediation professionals for the city.

Moreover, the Department of Justice will construct the Hong Kong International Legal Service Building adjacent to the IOMed headquarters. The building will house facilities such as the headquarters of the Hong Kong International Legal Talents Training Academy, as well as international legal and dispute resolution services institutions.

The Deputy Secretary for Justice is tasked with promoting Hong Kong’s legal services and will collaborate with other professional service sectors, such as accounting and finance, to support Mainland enterprises wishing to expand overseas, Mr Lee specified.

Source: Hong Kong Government special administrative region

Chapter VIII 

Promote the Integrated Development of Culture, Sports and Tourism

174. The Government will continue to advance the integrated development of culture, sports and tourism, generating fresh economic momentum and raising Hong Kong’s global appeal.

(A) East-meets-West Centre for International Cultural Exchange

175. The Culture, Sports and Tourism Bureau (CSTB) published the Blueprint for Arts and Culture and Creative Industries Development last year, setting out clear directions for the long-term development of arts and cultural policies to consolidate Hong Kong’s position as the East-meets-West centre for international cultural exchange. We will develop a premium arts trading hub and promote the diverse development of the West Kowloon Cultural District (WKCD) and local cultural and creative industries. We will also refocus the performance venues, develop flagship arts and cultural projects, intensify promotion of intangible cultural heritage (ICH), and introduce commercial elements to enrich LCSD facilities and events.

Develop a Premium Arts Trading Hub

176. Hong Kong is among the world’s top three arts trading centres. We will step up our efforts to build Hong Kong into a global premium arts trading hub, attracting more international auction houses, galleries, and professionals to establish a presence here. Measures include:

(i) Develop an arts ecosystem at the Airport City to host arts studios, galleries, and dealers under one roof, supported by large-scale arts storage and related facilities.

(ii) Enhance our international arts trading platform by deepening collaboration with Art Basel, thereby consolidating the position of Hong Kong as the exclusive host city in the region.

(iii) Engage the industry to carry out studies on taxation, financing, talent, and related areas of arts trading to explore policy measures applicable to Hong Kong.

177. The WKCD will take forward the development of the arts trading ecosystem and introduce the following measures next year:

(i) Discuss leasing strategies with the developer of Artist Square Towers to attract more arts trading enterprises, including galleries, insurance companies, and family offices, to lease space in the towers, scheduled for completion in 2026-27.

(ii) Establish an international collaboration network for arts conservation, and provide professional training and internship opportunities.

(iii) Expand training for talents in curation, conservation, arts administration, and other fields systematically.

Diverse Development of the West Kowloon Cultural District

178. The WKCD is the most significant arts and cultural infrastructure investment in Hong Kong. The WKCD Authority will:

(i) Organise more high-profile international events, including the second Hong Kong International Cultural Summit and the Annual Conference 2026 of the Association of Asia Pacific Performing Arts Centres.

(ii) Tour exhibitions overseas and in the Mainland to showcase exhibitions and collections of M+ and Hong Kong Palace Museum. M+ will also co-organise exhibitions with internationally renowned museums. More Mainland tours of “The Impossible Trial”¹¹ will be organised to develop the musical into a long-running classic.

(iii) Commission the WestK Quay at the end of this year to enhance the WKCD’s accessibility and foster the complementary development of arts and culture, entertainment and tourism.

(iv) Establish the WestK Academy to provide professional training for arts and cultural organisations and practitioners from Hong Kong, overseas, and the Mainland.

Foster the Development of Local Cultural and Creative Industries

179. Last year, I announced plans to develop Hong Kong into a fashion design hub in Asia. This year, Hong Kong Fashion Fest will promote digital fashion and sustainable fashion in collaboration with Paris Fashion Week and Milan Fashion Week.

180. Over the past three years, films funded by the Cultural and Creative Industries Development Agency (CCIDA) through the Film Development Fund have accounted for nearly 30% of Hong Kong films box office receipts. The CCIDA will enhance publicity, exchanges, and business matching overseas and in the Mainland.

181. The CCIDA proactively assists Hong Kong cultural and creative designers in producing more cultural and creative products with Chinese and Hong Kong cultural features, and in the incubation of local cultural IP. It will continue to support the enhancement of the Asia IP Exchange Portal, to strengthen support for local original works to enter the Mainland and international markets.

Refocus the Performance Venues and Promote Performing Arts Mega Events

182. With the opening of the Kai Tak Sports Park (KTSP), the Government has announced the enhancement of the positioning of various performance venues. The Hong Kong Coliseum will be refocused to prioritise concerts, the East Kowloon Cultural Centre will promote long-running performances and arts technology, and the Sha Tin Town Hall Auditorium will prominently feature Cantonese opera.

Develop Signature Arts and Cultural Flagship Projects and Strengthen the Promotion of Intangible Cultural Heritage

183. In the past two years, the Government has developed signature arts and cultural flagship projects to attract locals as well as tourists, including the Hong Kong Pop Culture Festival, the Asia+ Festival, the Chinese Culture Festival, the Hong Kong Performing Arts Expo and Hong Kong ICH Month. The Government will continue to strengthen the promotion of district-based ICH, promoting “ICH Around Town”.

Introduce Market-based Business Models to Enhance the Services of the Leisure and Cultural Services Department

184. We will introduce market-based business models into designated LCSD facilities to provide more diverse value-added activities. These include leasing out museums on their closing days for commercial or private use, opening up more venues for hire, introducing paid guided tours for visitor groups, and developing more cultural and creative products to enhance visitor experience and operational efficacy. We will also explore the feasibility of engaging the market to enhance the operations of the Lei Yue Mun Park holiday camp and selected beaches, promoting the development of recreational, leisure, and aquatic hotspots.

(B) “Tourism is Everywhere”

185. As of August this year, the overall visitor arrivals had reached 33.2 million, a significant increase of 12% over the same period last year. The CSTB will enhance the development of tourism products and initiatives with local and international characteristics, realising the motif of “tourism is everywhere”. We will also actively explore new visitor sources, improve visitor arrival arrangements, enhance immigration experience, and develop the yacht economy.

Develop the Yacht Economy

186. With 1 180 kilometres of shoreline and 263 islands, Hong Kong is well-positioned to become a yacht hub in Asia. We will enhance amenities for the yacht industry and promote prime yacht tourism:

(i) Provide approximately 600 additional yacht berths at the ex-Lamma Quarry, the Aberdeen Typhoon Shelter expansion, and the Hung Hom Station waterfront projects.

(ii) Promote the development of the yacht bay at the Airport City, providing more than 500 additional berths, including berths that can accommodate superyachts over 80 metres in length.

(iii) Relax the requirements for visiting yachts and develop a Dynamic Yacht Monitoring System, allowing visiting yachts to anchor at government designated waters and navigate in a safe and orderly manner, without having to reserve berths at privately-operated yacht clubs or piers.

(iv) Enhance the Electronic Business System to allow one-stop, pre-submission of arrival information from visiting yachts for preliminary vetting by relevant departments.

(v) Authorise relevant Mainland organisations to conduct examinations for local yacht masters, and offer short-term training courses to help visiting yacht masters of visiting yachts from the Mainland obtain qualifications for navigation in Hong Kong waters. These measures will be extended to visiting yachts from overseas in due course.

(vi) Promote the systemic development of the Guangdong-Hong Kong-Macao individual travel scheme for yachts, and co-operate with the Guangdong Provincial Government on facilitation measures for the northbound travel of yachts from Hong Kong and southbound travel for yachts from the Mainland.

Develop “Mega Events + Tourism”

187. We will attract visitors to extend their stay in Hong Kong and revisit again by interweaving an array of cultural festivals, tourism projects and mega events, promoting the development of “mega events + tourism”.

188. Hong Kong Disneyland will upgrade its facilities upon its 20th anniversary this year. The Government will also continue to lead Ocean Park’s collaboration with the Hong Kong Tourism Board (HKTB) in rolling out more themed events and products to sustain the craze for giant pandas. With next year being the Year of the Horse, the HKJC will organise celebrations and performances under the theme of horse to promote horse racing tourism.

189. To support the hosting of mega events, the Fire Services Department will introduce a facilitation measure for the Temporary Place of Public Entertainment Licence by conducting compliance inspections of fire safety requirement via video conferencing for venues with lower safety risks.

Develop Cruise Tourism

190. Hong Kong’s cruise tourism continues to thrive, with an anticipated increase of about 20% this year in the number of ship calls to Hong Kong compared with last year. Following an ongoing review of the terms and conditions of the tenancy agreement to boost the appeal and competitiveness of the terminal, the CSTB will begin a tender exercise for the operator of the Kai Tak Cruise Terminal by the end of this year.

Develop “Ecology + Tourism”

191. The Government will launch the “Four Peaks” tourism project proposed by the Working Group on Developing Tourist Hotspots and improve facilities in country parks. In addition, it will construct new facilities such as a tree-top adventure, an open museum of historical relics, and novel campsites.

192. We will also explore suitable means to connect rural attractions such as traditional villages and fields, ancestral halls and study halls, as well as folk activities etc., enriching visitors’ experience of rural eco-tours through strolling and cycling.

Promote Local Thematic Immersive Tours

193. We will develop a variety of new tourist attractions, such as promoting the red tourism route of “Chinese Cultural Celebrities Rescue”; creating thematic floral gardens in the 18 districts; and promoting various immersive tour projects, including Hong Kong’s industrial brand tourism, Old Town Central, Kowloon City, Victoria Park Bazaar and the opening of the former Yau Ma Tei Police Station for public visits. We will also open up the frontier closed areas at Mai Po and Starling Inlet for visitors.

194. The HKTB will stage an enhanced version of the Hong Kong Wine & Dine Festival to step up worldwide promotion of Hong Kong’s bar and restaurant offerings, positioning the city as an international culinary hub. We will aestheticise Lan Kwai Fong and the surrounding streetscape in phases to foster “community-making”. The HAD will also refine application guidelines to facilitate the operation of home-stay lodgings and holiday camps in rural areas. In addition, the DEVB will facilitate the conversion of village houses into home-stay lodgings or community eateries.

Establish Hong Kong as the Most Sought-after Destination for Premium Visitors

195. We will offer tailor-made luxury tours for high-spending visitors, and work with the industry to offer sophisticated itinerary planning, concierge services, and premium experience.
Proactively Develop the Middle East and ASEAN Tourism Markets and Facilitate Halal Certification

196. To further promote Muslim tourism, we will strengthen our strategy of “accreditation, education, and promotion”, encouraging the industry to provide more Muslim-friendly facilities and food options. The HKTB will launch a funding scheme, beginning today through the end of next year, by providing a half-rate certification fee subsidy, capped at $5,000, for restaurants that have acquired Halal certification.

Enhance Immigration Experience

197. To enhance visitors’ immigration experience, we will implement a “collaborative inspection and joint clearance” mode at the new Huanggang Port and the Sha Tau Kok Port under redevelopment, relax the eligibility criteria for frequent visitors wishing to use the e-Channel service, and establish Hong Kong’s first “contactless clearance” pilot checkpoint at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port, which enables immigration clearance via facial recognition technology.

198. We will implement a new “Outstanding Services Award Scheme”, covering various tourism service industries, to commend merchants and industry practitioners for their outstanding products and services, and promote the hospitable culture through mass media.

(C) Promote Sports Development

199. The Government is fully committed to ensuring the successful delivery of the 15th National Games (NG) competition events in Hong Kong. We will also promote sports development by supporting elite sports, maintaining Hong Kong as a centre for major international sports events, enhancing professionalism in sports, developing sports as an industry, and promoting sports in the community. Efforts will be made to continuously improve the functionality and positioning of sports venues, enhance the governance of national sports associations (NSAs), strengthen support for athletes, and step up publicity in the community.
Ensure the Successful Delivery of the National Games

200. Co-hosted by Guangdong, Hong Kong and Macao for the first time, the 15th NG as well as the National Games for Persons with Disabilities and the National Special Olympic Games (NGDSO)¹² will be held in November and December 2025 respectively. We will spare no effort in staging the competitions to be held in Hong Kong, and work with Guangdong and Macao to make the 15th NG and NGDSO a success. We have collaborated with the industry to roll out various tourism products related to the Games, and have also arranged for local free television broadcasts to relay the competitions, allowing the public to cheer on the athletes.

Promote Synergy among Sports Venues

201. The KTSP plays a pivotal role in promoting sports mega events and developing sports as an industry. We will leverage its strengths to drive “sports + mega events” development.

202. We will review the positioning of the Hong Kong Stadium (HKS) to complement the KTSP and leverage the HKS’s existing facilities to support sports development, such as serving as office space for NSAs, organising matches and related training, and hosting large-scale sports events.

203. To attract more world-class players to compete in Hong Kong, we have agreed on a multi-year partnership arrangement with LIV Golf, one of the most important golf tours in the world.

Enhance the Governance of National Sports Associations and Strengthen Support for Athletes

204. The review of the provision of direct financial support for elite athletes has been recently completed. The Government will continue to provide financial support for athletes so that they can concentrate on their training within a more financially stable context. Training efficacy will be enhanced by capitalising on the R&D outcomes of sports medicine.

205. The Sports Federation and Olympic Committee of Hong Kong, China will prioritise collaboration with NSAs that have relatively established governance frameworks, expedite the implementation of the Code of Governance and establish a governance paradigm. The Government will strive to support Asian or international sports associations to establish presence in Hong Kong through NSAs, while encouraging NSAs to participate in the work of these associations to strengthen the city’s international voice and influence.

¹¹ An original musical from Hong Kong commissioned by WestK and co-produced with the Hong Kong Repertory Theatre.

¹² The 12th National Games for Persons with Disabilities and the 9th National Special Olympic Games.

(To be continued.)

Source: Hong Kong Information Services

Chief Executive John Lee unveiled multipronged measures in his 2025 Policy Address for cementing Hong Kong’s status as an international financial centre.

Strengthening stock market

By helping Mainland technology enterprises raise funds through Hong Kong’s Technology Enterprises Channel, Hong Kong can strengthen financial support for China’s development as a science and technology powerhouse, the Chief Executive pointed out.

Moreover, Hong Kong will optimise the regimes for listing on the Main Board and issuing structured products, consider enhancements to the listing requirements for companies with weighted voting right structures, and explore shortening the stock settlement cycle to “T+1”.

He added that the city will encourage overseas enterprises to seek secondary listing in Hong Kong; support China Concept Stock companies to return from overseas markets, with Hong Kong as their preferred destination; and press ahead with the inclusion of a renminbi (RMB) trading counter under Stock Connect’s Southbound trading for Hong Kong stocks.

World-leading bond market

To consolidate Hong Kong’s position as a bond market hub, Mr Lee said the Monetary Authority’s (HKMA) “CMU OmniClear” will collaborate with Hong Kong Exchanges & Clearing (HKEX) to explore centralised management and the cross-collateralisation of assets by investors on a single platform. Meanwhile, Hong Kong will establish connections with markets in Switzerland and the United Arab Emirates, and promote the use of offshore Chinese Government Bonds as collateral in clearing houses.

In addition, he noted that the Securities & Futures Commission (SFC) is studying the feasibility of an innovative electronic bond-trading platform built and operated by market participants. It is also promoting the establishment of a commercial repo market and a central counterparty regime in Hong Kong to improve market liquidity.

Furthermore, Hong Kong will continue discussions with Mainland institutions on introducing offshore treasury bond futures in Hong Kong. The city will also expand the variety of interest rate derivatives under Swap Connect, promote the development of over-the-counter derivatives, and explore the launch of the cross-boundary RMB repo business in collaboration with the Mainland.

Additionally, the SFC, HKMA and HKEX will step up market outreach efforts, with a view to encouraging enterprises to issue corporate bonds in Hong Kong.

The SFC and HKMA will set out the details of these measures in the Fixed Income & Currency Roadmap to be published, Mr Lee added.

Vibrant currency market

To enhance the liquidity and global reach of the offshore RMB market in Hong Kong, the Chief Executive said in his Policy Address that the HKMA will introduce an RMB Business Facility, providing enterprises with the longer-term RMB financing required for trade, daily operation and capital expenditure, so as to support the use of RMB in the real economy.

“The HKMA will also explore measures to facilitate foreign exchange quotations and transactions between RMB and other regional currencies in Hong Kong.”

On top of that, he remarked that the Government will issue more RMB bonds and consider settling government expenditure in RMB under suitable circumstances.

Int’l gold trading market

The Chief Executive announced in his Policy Address that he had accepted the Working Group on Promoting Gold Market Development’s five recommendations, which will then be implemented by the Financial Services & the Treasury Bureau:

(i) support Airport Authority Hong Kong and financial institutions to establish gold storage facilities, with a target gold storing capacity of over 2,000 tonnes in three years, propelling Hong Kong into a regional gold reserve hub;

(ii) encourage gold traders to set up or expand refineries in Hong Kong, and explore with the Mainland the feasibility of processing supplied materials in the Mainland to produce refined gold for exporting to Hong Kong for trading and delivery;

(iii) establish a central clearing system for gold in Hong Kong, and invite the Shanghai Gold Exchange’s participation in preparation for mutual market access;

(iv) offer a greater variety of gold investment vehicles, and support the development of new investment products; and

(v) support the setting up of a trade association for the gold industry, with a view to establishing an exchange platform with the Government and regulators, stepping up promotional efforts, attracting clients along Belt & Road, and strengthening talent training.

Int’l risk management centre

To encourage the participation of insurance funds in infrastructure financing, Mr Lee unveiled in the Policy Address that the Government will amend the legislation next year to lower capital requirements for infrastructure investment and provide concessions for local projects. It will also promote the development of exclusive captive and reinsurance business, encouraging the market to introduce more insurance products such as those related to cross-boundary elderly care, cross-boundary driving and low-altitude economy.

Int’l asset, wealth management centre

Mr Lee noted: “Hong Kong is expected to become the world’s largest cross‑boundary wealth management centre in the next few years.”

To this end, he said the city will enhance the preferential tax regimes for funds, single family offices and carried interest to attract more funds to establish a presence in Hong Kong. In addition, the SFC will promote the inclusion of real estate investment trusts (REITs) under mutual market access to increase the liquidity of REITs in the Mainland and Hong Kong.

“We will also facilitate the enhancement of the Qualified Foreign Limited Partnerships mechanism, in particular by collaborating with Qianhai and Shanghai to attract more foreign capital to the Mainland’s private capital market. The Hong Kong Investment Corporation will nurture local private equity and hedge fund institutions with good potential through direct or co-investment.”

Furthermore, adjustments will be made to the New Capital Investment Entrant Scheme.

Mr Lee elaborated: “The scheme will be enhanced, raising the maximum amount of investment to be counted from $10 million to $15 million for the purchase of non-residential properties with no transaction price threshold. As for the purchase of residential properties, the investment to be counted will continue to be capped at $10 million, but the transaction price threshold will be lowered from $50 million to $30 million.”

Green, sustainable finance

To fuel fintech development, the Chief Executive said the HKMA will continue to take forward Project Ensemble, including encouraging commercial banks to introduce tokenised deposits, and promoting live transactions of tokenised assets. The authority will also assist the Government in regularising the issuance of tokenised bonds, and encourage banks to strengthen risk management through the supervisory sandbox.

“We are implementing a regime for stablecoin issuers and formulating legislative proposals regarding licensing regimes for digital asset dealing and custodian service providers.

“The SFC is studying the possibility of offering a wider range of digital asset products and services to professional investors with the prerequisite of sufficient investor protection in place.

“The SFC will also introduce automated reporting and data surveillance tools to build a line of defence against risks associated with digital assets in Hong Kong.”

As regards green and sustainable finance, Mr Lee highlighted that Hong Kong will deepen pilot co-operation with the Greater Bay Area carbon market.

“Working with relevant Mainland regulatory departments and authorities, the Government will study issues surrounding the country’s participation in the international carbon market, including the formulation of voluntary carbon credit standards and methods, as well as the registration, trading and settlement of carbon emission reduction.”

Source: Hong Kong Information Services

Chief Executive John Lee revealed in his 2025 Policy Address that Hong Kong will enhance the building of an international education hub by measures such as increasing the number of places for non-local students to study in the city on a self-financing basis and the provision of student hostels.

Starting from the 2026-27 academic year, the enrolment ceiling for self‑financing non‑local students of each funded post‑secondary institution will be raised from the level currently equivalent to 40% of local student places to 50%, while the over‑enrolment ceiling of self‑financing places of funded research postgraduate programmes will be increased from 100% to 120%.

On increasing student hostel supply, the Government launched the Hostels in the City Scheme in July to facilitate the market in converting existing commercial buildings into student hostels by obviating the need for rezoning and allowing excessive plot ratio be retained. 

Effective today, cases involving redevelopment of original commercial buildings into new student hostels can also enjoy the facilitation measures under the scheme. 

The Government will also earmark new sites this year for building new hostels and will invite the market to submit expressions of interest.

To attract more international teaching and research talents and students, Mr Lee said the Education Bureau (EDB) will establish the Task Force on Study in Hong Kong, bringing together the University Grants Committee (UGC), the Innovation, Technology & Industry Bureau, the Hong Kong Talent Engage (HKTE), post‑secondary institutions, Economic & Trade Offices, the Mainland Offices etc. to step up the promotion of higher education in Hong Kong. 

Relevant measures include rolling out the “Hong Kong: Your World‑class Campus” large‑scale publicity campaign to promote Hong Kong’s quality resources in areas such as academic studies, scientific research and international co‑operation.

The UGC will provide funding support of $40 million for the eight funded universities to enhance publicity, as well as teacher and student recruitment overseas and in the Mainland. 

Meanwhile, the EDB will take the lead in encouraging post‑secondary institutions to organise more summer study tours to attract non‑local senior secondary school students.

It will also encourage post‑secondary institutions to roll out more high value‑added “Study Tour in Hong Kong” activities to promote the “Study Tour in Hong Kong” brand.

In addition, the Government will advance the development of universities of applied sciences to deepen collaboration with leading enterprises in the Mainland and overseas, fostering industry‑education collaboration and joint promotion. 

Separately, the Government will continue exploring with Mainland authorities the implementation of the mutual recognition of sub‑degree level qualifications between Hong Kong and the Mainland, which aims to facilitate cross‑boundary job‑seeking and the pursuit of further studies by graduates of vocational and professional programmes in both places.

The EDB will, on a trial basis, allow schools under the Direct Subsidy Scheme to apply for increasing the number and size of classes, expanding their intake of non‑local students with student visas to study on a self‑financing mode.

The Government will also promote the international recognition of The Hong Kong Diploma of Secondary Education Examination (DSE).

The EDB will strengthen efforts to crack down on the unauthorised provision of DSE programmes or the operation of “shell schools”. 

Apart from setting up a reporting mechanism, the bureau also conducted unannounced inspections, and further clarified the registration arrangements for private candidates taking the DSE in the coming year. 

It will also formulate the Code of Practice for Private Schools and publish the Private School List within this year, with a view to improving the standards of school operation.

Mr Lee added that the Government will support the development of international schools and continually enhance the professional standards of teachers and the quality of programmes.

The EDB has set aside $2 billion in the Quality Education Fund to support digital education in primary and secondary schools and will release the Blueprint for Digital Education in Primary and Secondary Schools in 2026. 

Regarding nurturing talents, Mr Lee highlighted that the Government attaches great importance to youth development.

He added that the Government will enhance the talent policy to attract technical professionals with specified skills to Hong Kong, promote the flow of talents between the industry and academic sectors, and strengthen the HKTE’s efforts in talent attraction and support.

This will help build Hong Kong into an international hub for high‑calibre talents, he said.

A Young Talent Training Programme will be launched to provide more opportunities for young people to participate in the internships of international organisations and attend international conferences. 

Mr Lee also revealed that the Youth Post hostel will officially open this year. Along with providing affordable accommodation for young people from the Mainland and overseas, the Youth Post plans to organise about 100 youth activities of different types encompassing culture, arts, sports and other elements in its five‑year operation period, promoting exchanges between young visitors and Hong Kong youth.

On developing a talent pool, the Chief Executive said over 230,000 people have come to Hong Kong for work and development since the implementation of an array of new talent admission policies by the current‑term Government.

Among the various schemes, the Top Talent Pass Scheme (TTPS) has recorded an application rate as high as 55% for extension of stay. 

He pointed out that the TTPS talents granted an extension of stay are of high‑calibre. They are mainly employed in the innovation and technology, as well as financial sectors in Hong Kong, and 95% receive a monthly income higher than the local median income. 

Mr Lee explained that the TTPS contributes about $34 billion a year to the local economy, equivalent to approximately 1.2% of the city’s gross domestic product.

On top of that, the Government will launch the Innovation & Technology Talents Exchange Scheme for Industry & Academic Sectors, encouraging university professors to engage in corporate research and development activities for a better grasp of industry needs. 

Senior management of technology enterprises and technical experts will be invited to teach and help develop curriculum, strengthening the collaborative development of Hong Kong’s industry, academic and research sectors.

Source: Hong Kong Government special administrative region

Chapter VII  

Promote the Integrated Development of Education, Technology and Talents

134. The integrated development of education, technology and talents is a foundational and strategic pillar for progress in the new era. It enables Hong Kong to build rich talent resources, knowledge reserve, and capacities for scientific and technological innovation, thereby enhancing our competitiveness.

(A) Build an International Education Hub

135. With a distinctive competitive edge in post-secondary education, Hong Kong is the only city worldwide that hosts five universities ranked among the world’s top 100. We will accelerate construction of the Northern Metropolis University Town, promote the “Study in Hong Kong” brand, develop universities of applied sciences (UASs), and propel our city towards becoming an international hub for post-secondary education and high-calibre talents.

136. We are committed to enhancing the quality of education in Hong Kong, fostering the all-round development of students, and providing more diverse, high-quality learning opportunities and experiences to nurture a broad pool of competent and knowledgeable talents. Hong Kong boasts a high-quality primary and secondary education system that offers diversified curricula and is highly competitive on the global stage. The Hong Kong Diploma of Secondary Education Examination (DSE) has been recognised by 1 100 higher education institutions worldwide. We will intensify our efforts to promote the DSE’s international recognition, attract more outstanding teachers and students from around the world to come to Hong Kong, and support the development of international schools. We will also continually enhance the professional standards of teachers and the quality of programmes, while strengthening digital and technology education.

Post-secondary Institutions

Relax Restrictions on Admission of Self-financing Students

137. Universities in Hong Kong are highly popular, with a double-digit year-on-year increase in the number of self-financing non-local applicants. The Government currently provides 15 000 funded places for local students. This number will not be reduced, ensuring the current enrolment situation of local students in subsidised programmes remains unchanged. On the other hand, the number of non-funded places for non-local students to study in Hong Kong on a self-financing basis will be permitted to increase. Starting from the 2026/27 academic year, the enrolment ceiling for self-financing non-local students of each funded post-secondary institution will be raised from the level currently equivalent to 40% of local student places to 50%; and the over-enrolment ceiling of self-financing places of funded research postgraduate programmes will be increased from 100% to 120%.

Increase Student Hostel Supply

138. The Government launched the Hostels in the City Scheme in July to facilitate the market in converting existing commercial buildings (including hotels) into student hostels by obviating the need for rezoning and allowing excessive plot ratio be retained. Effective today, apart from cases involving the conversion of commercial buildings, cases involving redevelopment of original commercial buildings into new student hostels can also enjoy the facilitation measures under the scheme, including retaining excessive plot ratio. The Government will also earmark new sites (zoned as commercial or otherwise) this year for building new hostels, and will invite the market to submit expressions of interest.

Attract More International Teaching and Research Talents and Students

139. The EDB will establish the Task Force on Study in Hong Kong, bringing together the University Grants Committee (UGC), the Innovation, Technology and Industry Bureau (ITIB), the Hong Kong Talent Engage (HKTE), post-secondary institutions, ETOs, the Mainland Offices etc. to step up the promotion of higher education in Hong Kong. Relevant measures include:

(i) Roll out the “Hong Kong: Your World-class Campus” large-scale publicity campaign to promote Hong Kong’s quality resources in areas such as academic studies, scientific research and international co-operation.

(ii) Provide funding support of $40 million by the UGC for the eight funded universities to enhance publicity, as well as teacher and student recruitment overseas and in the Mainland. The EDB will also take the lead in encouraging post-secondary institutions to organise more summer study tours to attract non-local senior secondary school students.

(iii) Encourage post-secondary institutions to roll out more high value-added “Study Tour in Hong Kong” activities to promote the “Study Tour in Hong Kong” brand.

Advance the Development of Universities of Applied Sciences

140. The Government has granted the UAS designation to two universities, putting into practice the principle that “every trade has its masters”. We will encourage UASs to deepen collaboration with leading enterprises in the Mainland and overseas, fostering industry-education collaboration and joint promotion. The Alliance of UASs in Hong Kong will explore the feasibility of co-operating with leading polytechnic institutions in Guangdong Province to jointly establish a GBA exchange platform.

Implement the Arrangement on Mutual Recognition of Vocational and Professional Qualifications with the Mainland

141. We will continue exploring with Mainland authorities the implementation of the mutual recognition of sub-degree level qualifications between Hong Kong and the Mainland. This aims to facilitate cross-boundary job-seeking and the pursuit of further studies by graduates of vocational and professional programmes in both places.

Primary and Secondary Schools

Allow Schools under the Direct Subsidy Scheme to Apply for Increasing the Number of Non-local Students

142. The EDB will, on a trial basis, allow schools under the Direct Subsidy Scheme to apply for increasing the number and size of classes, expanding their intake of non-local students with student visas to study on a self-financing mode.

Promote the International Recognition of the Diploma of Secondary Education Examination

143. We will promote the international recognition of the DSE to various sectors through a range of education exhibitions and activities overseas and on the Mainland, enabling DSE candidates to have more options for further education.

144. The EDB will strengthen efforts to crack down on the unauthorised provision of DSE programmes or the operation of “shell schools”. We have set up a reporting mechanism, conducted unannounced inspections, and further clarified the registration arrangements for private candidates taking the DSE in the coming year. In addition, we will formulate the Code of Practice for Private Schools and publish the Private School List within this year, with a view to improving the standards of school operation.

Develop International Schools

145. The EDB has allocated two vacant school premises for international school development. The Government has also reserved sites in the Northern Metropolis for the development of international schools.

146. We encourage international schools to increase their admission quotas. We will also remove barriers and ease restrictions, allowing quality international schools to build new facilities and enhance existing ones, including student boarding facilities, at their school sites on a self-financing basis.

Promote Digital Education

147. The EDB has set aside $2 billion in the Quality Education Fund (QEF) to support digital education in primary and secondary schools and will release the Blueprint for Digital Education in Primary and Secondary Schools in 2026. This will encompass strategies such as optimising the interface between primary and secondary curricula of Information Technology and I&T education, setting out an “AI literacy” learning framework, incorporating AI education into the core curriculum, enhancing AI training for teachers, and introducing corporate resources.

Enhance the Quality of Teaching and Learning

148. The QEF will introduce a new stage of the dedicated funding programme for publicly-funded schools, under which the cumulative funding ceiling for publicly-funded schools and eligible kindergartens will be raised to enhance the quality of education. Schools will also be encouraged to strengthen promotion in areas such as values education, financial education and entrepreneurial spirit through various funding programmes.

(B) International Innovation and Technology Centre

149. With tremendous potential in technology development, Hong Kong ranks third globally in “Technology”, in the World Digital Competitiveness Ranking. The Shenzhen-Hong Kong-Guangzhou cluster ranks first in the 2025 Global Innovation Index Ranking of the World’s Top 100 Innovation Clusters. With three major I&T parks and five key R&D institutions as the framework, we will propel I&T development, pool global talents and make full use of Hong Kong’s R&D platform to support the development of aerospace science and technology. We will also promote the development of new industrialisation, press ahead with the low-altitude economy, support people-oriented scientific research, and facilitate leading I&T enterprises to establish a presence in our city.

Improve the Strategic Layout of Innovation and Technology Infrastructure

150. The ITIB is taking forward the set-up of two pilot lines by the Hong Kong Microelectronics Research and Development Institute. Preparatory work for the establishment of the Life and Health Technology Research Institutes and the Hong Kong Artificial Intelligence Research and Development Institute will be completed within next year.

Accelerate the Development of New Industrialisation

151. The Government (the ITIB) will provide industry-ready use cases and adopt the “scenario-based investment promotion” approach. It will also facilitate leading or influential I&T companies to develop businesses in Hong Kong. Relevant measures include:

(i) Expedite the development of the third InnoHK research cluster, with the focus on sustainable development, energy, advanced manufacturing and materials. The R&D centres under the cluster will be established in the first half of 2026.

(ii) Relax the application threshold for the New Industrialisation Acceleration Scheme by lowering the minimum total project cost from $300 million to $150 million and providing funding on a matching basis for the employment of relevant technical personnel, encouraging the establishment of more smart production facilities. We will also consider providing necessary support measures for individual enterprises.

(iii) Launch the I&T Industry-Oriented Fund in 2026-27. The Government will endeavour to channel market capital to invest in emerging and future industries of strategic importance.

Support People-oriented Scientific Research

152. During my visit to Hangzhou’s “Six Little Dragons” in Zhejiang, I was aware of a new technology that enables a breakthrough benefitting people with amputations. Prostheses incorporating new R&D technologies are embedded with sensors that can detect neural signals transmitted from muscles to control prosthetic movements without having to implant any device or wiring. With some training, wearers of these prostheses are able to perform daily activities such as writing or playing musical instruments. The Government will support people-oriented scientific research through the Innovation and Technology Fund to introduce prostheses built with new R&D technologies. A two-year scheme will be introduced to grant full subsidies to amputees in Hong Kong for the configuration and use of the high-tech prostheses free of charge, enabling them to benefit from new technologies.

Promote the Development of a Low-altitude Economy Ecosystem

153. The Government will forge ahead with building a competitive low-altitude economy ecosystem, to propel Hong Kong as an Asia-Pacific hub for innovative low-altitude applications.

Formulate an Action Plan

154. We will formulate the Action Plan on Developing Low Altitude Economy to advance Hong Kong as a major hub for low-altitude applications through institutional innovations and technological breakthroughs. Relevant measures include:

(i) Improve civil aviation legislation and regulatory framework, including formulating dedicated legislation for unconventional aircraft weighing over 150 kilograms, to lay the foundation for developing the standardisation of the low-altitude economy.

(ii) Enhance core infrastructure facilities by designating spectrum by the end of the year, as well as facilitating early planning and deployment of facilities such as vertiports, air route networks, satellite positioning, three-dimensional spatial data systems and a smart, low-altitude traffic-management system.

155. We will further encourage higher education institutions and enterprises to make use of existing funding schemes to promote relevant R&D and its applications, review relevant talent development, and support the industry and universities in organising more training to promote the low-altitude economy. Last year, InvestHK hosted the inaugural Hong Kong Low Altitude Economy Forum, attracting over 250 local and overseas industry stakeholders. We will continue to encourage the hosting of flagship events to showcase the business opportunities of the low-altitude economy and an innovative, efficient and secure low-altitude economy ecosystem.

Enhance the Regulatory Sandbox

156. The first batch of Regulatory Sandbox pilot projects was announced in March. We will regularise the operation of more mature application scenarios, and roll out the advanced low-altitude economy “Regulatory Sandbox X” pilot projects to cover application scenarios that are technically more complex, such as cross-boundary routes and passenger-carrying, low-altitude aircraft.

Develop Low altitude Economy Insurance Products

157. The insurance industry has set up a task force to develop low-altitude economy insurance products for various application scenarios, drawing reference from the data of the Government’s Regulatory Sandbox. The IA will forge closer ties with the industry to meet demands.

Promote the Development of Aerospace Science and Technology and Support Space Economy

158. Our country has designated commercial aerospace as a strategic emerging industry. Hong Kong has an advantage in internationalisation and possesses strong scientific research capabilities, with various universities participating in national aerospace projects. This, coupled with our financing advantages, allows us to promote the development of aerospace science and technology, supporting the space economy.

159. The Government has set up the Hong Kong Space Robotics and Energy Centre under the InnoHK research clusters to support our country’s Chang’E-8 mission. The Innovation and Technology Support Programme Special Call on Aerospace Technology has allocated over $100 million to support six university R&D projects. In parallel, the Commerce and Economic Development Bureau (CEDB) is exploring how to streamline the vetting of licence applications for Low Earth Orbit satellites and will promote 6G application. The HKIC will also pursue investment in areas related to commercial aerospace and the space economy.

(C) Regional Intellectual Property Trading Centre

Promote Intellectual Property Trading

160. Intellectual property (IP) is a legally protected intangible asset and the cornerstone of encouraging I&T development and creativity. Hong Kong ranks sixth globally on the criterion for “intellectual property rights”, an improvement of six places since the current-term Government took office. We will push forward measures in IP financing, valuation and protection, and strengthen external promotion to boost IP trading.

Bolster Intellectual Property Financing

161. The CEDB and the Intellectual Property Department (IPD) will collaborate with the HKMA to launch an IP financing sandbox to assist pilot sectors (particularly the technology sector) in leveraging IPs for financing with the support of the banking, insurance, valuation, legal and other professions.

Patent Valuation Services and Subsidies

162. Upon the official operation of the Hong Kong Technology and Innovation Support Centre, by the end of this year, the Government will support the centre in providing local small and medium I&T enterprises with patent evaluation based on national standards, and launching a two-year pilot programme to subsidise patent valuation as a reference for credit financing.

Protect Intellectual Property Rights

163. Following the completion of the public consultation on enhancement of the Copyright Ordinance regarding the protection for AI technology development in September last year, the Government will formulate a code of practice in respect of relevant legal principles and prepare a legislative proposal. We are also reviewing the local registered designs regime for consultation by the end of the year.

External Promotion

164. The Government and the HKTDC will promote IP financing in the Business of IP Asia Forum 2025. The IPD will also nominate local enterprises to compete for the China Patent Award jointly organised by the China National Intellectual Property Administration and the World Intellectual Property Organization.

(D) Nurture Talents

165. The Government attaches great importance to youth development. We will enhance the talent policy to attract technical professionals with specified skills to Hong Kong, promote the flow of talents between the industry and academic sectors, and strengthen the HKTE’s efforts in talent attraction and support. This will help build Hong Kong into an international hub for high-calibre talents.

Promote Youth Development

Youth Training and Development

166. To better equip our young people, broaden their international horizons and cultivate a holistic outlook, we will launch a Young Talent Training Programme. We will provide more opportunities for young people to participate in the internships of international organisations and attend international conferences. We will also introduce a new media thematic internship programme in the Mainland, strengthen the Youth Financial Education Programme, and launch new mediation workshops to enhance young people’s understanding of the mediation industry.

Facilitate International and Mainland Exchanges for Local Youths

167. The HYAB will continue to implement the HYAB Funding Scheme for Youth Exchange in the Mainland and the HYAB Funding Scheme for International Youth Exchange, and encourage young people from the Mainland and overseas to visit Hong Kong on exchange. In addition, the eight youth uniformed groups of the Security Bureau’s disciplined and auxiliary services departments will proactively organise international and Mainland exchange activities.

Foster Diverse Exchanges and Experiences through the Youth Post

168. The Youth Post hostel¹â�° , converted from the Kai Tak Community Isolation Facility, has commenced operation on a trial basis and will officially open this year. Along with providing affordable accommodation for young people from the Mainland and overseas, the Youth Post plans to organise about 100 youth activities of different types encompassing culture, arts, sports and other elements in its five year operation period, promoting exchanges between young visitors and Hong Kong youth.

Provide More Interactive Spaces for Young People

169. The first phase of the renovation work of the new interactive space for young people at Youth Square in Chai Wan, and the physical platform for interaction for Youth Link members in Nam Cheong, will be completed by the end of this year, providing venues for young people to expand their networks.
Develop a Talent Pool

Talent Admission Policies

170. Since the implementation of an array of new talent admission policies by the current-term Government, over 230 000 people have come to Hong Kong for work and development. Among the various schemes, the Top Talent Pass Scheme (TTPS) has recorded an application rate as high as 55% for extension of stay. TTPS talents granted an extension of stay are of high-calibre. They are mainly employed in the I&T and financial sectors in Hong Kong. Of them, 95% receive a monthly income higher than the local median income of about $20,000, and 50% earn a monthly income nearly double that amount. This reflects a strong demand for TTPS talents and the market’s willingness to offer higher salaries to attract them. The TTPS contributes about $34 billion a year to the local economy, equivalent to approximately 1.2% of our GDP.

171. The majority of talents admitted to Hong Kong under the various schemes are very young, with 70% of them under the age of 40, helping ease the challenges of an ageing population.

172. Hong Kong’s ranking in relation to global talents is rising steadily, climbing 12 places in two years to the fourth place globally this year, ranking first in the Asia Pacific region. This reflects that our talent policy is on the right track and effective, and is one of the important driving forces for economic development. The Government will continue to implement talent policies to ensure our long-term competitiveness to drive sustained economic growth.

Strengthen Talent Exchanges among the Industry, Academic and Research Sectors

173. The Government will launch the Innovation and Technology Talents Exchange Scheme for Industry and Academic Sectors, encouraging university professors to engage in corporate R&D activities for a better grasp of industry needs. Senior management of technology enterprises and technical experts will also be invited to teach and help develop curriculum, strengthening the collaborative development of our industry, academic and research sectors.

¹â�° The Youth Post project is named “Runway 1331”.

(To be continued.)

Source: Hong Kong Information Services

Chief Executive John Lee today unveiled a key plan in his 2025 Policy Address that calls for formulating preferential policy packages to attract more enterprises to set up in Hong Kong with a view to promoting high-quality development.

Mr Lee said that the Financial Secretary will lead the relevant policy bureaus, departments and public organisations in formulating packages of preferential policies that include land grants, land premiums, financial subsidies, and tax incentives, to attract high value-added industries and high potential enterprises to set up in Hong Kong.

He explained that the Office for Attracting Strategic Enterprises and Invest Hong Kong can use the policy packages flexibly during negotiations with enterprises on settlement details, then report to the Financial Secretary for approval.

The Government will also explore the establishment of a more flexible mechanism, including allowing the Chief Executive and the Financial Secretary to introduce tax incentives that comply with international standards.

Mr Lee pointed out that to consolidate Hong Kong’s status as an international aviation hub, the Government has reached an agreement of intent with a leading European aeronautic services company to operate in Hong Kong.

The company will provide aircraft dismantling, as well as recycling and trading services of high value parts. This, he emphasised, will drive the development of industries such as trading, insurance, financing and leasing, creating new job opportunities through the sector’s value chain.

The company will also collaborate with the Hong Kong International Aviation Academy to provide talent training in relevant professions.

With regard to the development of the new energy industry, the Government will develop a sustainable aviation fuel (SAF) industry chain. It will work with the Mainland authorities to enable a local enterprise, one of the world’s major SAF suppliers, to develop its business in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), covering upstream collection of raw materials, the setting up of production plants and large-scale production, to dovetail with the specified target SAF consumption ratio for flights departing from the Hong Kong International Airport by 2030.

Additionally, the Government will formulate hydrogen standard certification, establish public hydrogen filling facilities on Hong Kong Island and in Kowloon, press ahead with more trial projects, and develop the GBA Hydrogen Corridor in collaboration with the Guangdong Province.

The Chief Executive highlighted that Government is pushing forward the construction of Hong Kong’s first large-scale electric vehicle battery recycling facility at the EcoPark, which is expected to commence operation in the first half of 2026.

To promote the development of the life and health technology industry, the Government will set up the Hong Kong Centre for Medical Products Regulation and submit a legislative proposal on regulating medical devices in 2026. Apart from expediting the “1+” mechanism for new drugs, the Government will also promote the standardisation of clinical data within the GBA and establish a real world data platform, helping pharmaceutical companies bring innovative drugs to the Mainland and international markets more quickly.

In terms of the development of the Artificial Intelligence (AI) and data science industries, the Government has earmarked $1 billion for the establishment of the Hong Kong AI Research & Development Institute in 2026, to facilitate upstream AI research and development (R&D), the midstream and downstream R&D outcome, and the expansion of use cases.

The Government will promote AI applications in government services. The Digital Policy Office will roll out various AI applications in respect of data analysis, customer service and document processing to promote extensive application in departments, while ensuring security and controllability.

Furthermore, the Government will promote AI business applications. The Monetary Authority, in collaboration with Cyberport, has launched the second cohort of the AI Sandbox initiative to promote AI applications to more financial institutions. The authority is also developing an AI model evaluation approach to step up testing on the system security of financial institutions. 

Meanwhile, the Development Bureau will provide subsidies to encourage the application of AI in private sector construction works. The Department of Justice will also establish an interdepartmental working group to review the legislation needed to support a wider application of AI.

The Chief Executive added that the Government will put up for tender a site of about 10 hectares at Sandy Ridge in the North District this year for the development of a data facility cluster. It will provide advanced computing power facilities, promoting the development of data and AI related industries.

Source: Hong Kong Information Services

As he delivered his 2025 Policy Address today, Chief Executive John Lee announced the establishment of the Committee on Development of the Northern Metropolis under his leadership with the aim of speeding up the development of the area.

Mr Lee pointed out that the committee, under which three working groups will be set up, will be tasked with streamlining administrative workflows and removing unnecessary barriers and restrictions.

The Working Group on Devising Development & Operation Models, which will be led by the Financial Secretary, will formulate development and operation models for industry parks in the Northern Metropolis, taking into account their nature and scale.

There will be dedicated companies, or statutory or non-statutory bodies for various industrial parks, and public-private partnership approaches will be devised. The working group will also explore shifting from “highest bidder wins” model to industry linked “two envelope approach” for tendering, and devise financing schemes including equity, bonds, government injections, and “provision of land as a form of capital participation”.

The Chief Secretary will lead the Working Group on Planning & Construction of the University Town. The working group will set up a research task force to conduct field trips on the successful models of university towns elsewhere, seeking views from local, Mainland, and other internationally renowned universities.

It will also explore the way forward to deeply integrate industry development with the academic sectors where Hong Kong has an edge, alongside the strategies for attracting leading universities and research institutes in the Mainland and overseas to establish a base in the city.

Three batches of sites for the Northern Metropolis University Town will be available for use  – Hung Shui Kiu in 2026, Ngau Tam Mei in 2028 and New Territories North New Town in 2030 – at the earliest.

The Working Group on Planning & Development will be responsible for managing the end-to-end process from planning to implementation. Led by the Deputy Financial Secretary, the working group will comprise a dedicated project supervision office to strengthen the co-ordination and supervision of the approval process.

The Policy Address also outlines measures to streamline administrative procedures concerning the Northern Metropolis development.

The measures include the introduction of the Fast Track Processing System, under which superior construction methods from different places will be adopted to integrate successful construction technologies, materials and equipment from the Mainland and overseas.

A “phased development” approach will also be implemented on a trial basis. Specifically, pilot low density facilities, such as retail, entertainment and convention and exhibition facilities will be developed initially to attract businesses before long-term development is rolled out.

Additionally, a land use review for Au Tau will be launched to capitalise on the development potential brought by the Northern Link. The Government will consider a larger proportion of private housing in the area around Sha Po at Au Tau Station for development into a new development area. 

Other streamlining measures include flexible land grant arrangements which encourage enterprises to set up businesses and invest in the area, and allowing land owners in the Northern Metropolis to voluntarily surrender land planned to be resumed by the Government to offset the amount payable for in-situ land exchange or large-scale land disposal in new development areas. A “pay for what you build” approach will be adopted to reduce the cost of land premiums in the Northern Metropolis.

The Chief Executive said that dedicated legislation will be introduced to speed up the Northern Metropolis development, empowering the Government to devise simplified statutory procedures for a number of issues.

Such matters include setting up statutory industry park companies and providing them with dedicated channels for funding; managing the cross-boundary flow of people, goods, capital, data and biological samples in designated areas; speeding up the approval of building plans; relaxing permitted uses in outline zoning plans and fine-tuning development parameters; and expediting compensation payment for land resumption.

In regard to expediting transport infrastructural development, Mr Lee noted that construction works of Kwu Tung Station and Hung Shui Kiu Station are proceeding in full swing for completion in 2027 and 2030 respectively to dovetail with the development of the Northern Metropolis.

Furthermore, he stated that the Government has signed the Part 1 Project Agreement with the Mass Transit Railway Corporation, adding that it will concurrently develop the Northern Link Spur Line in combination with the Main Line, achieving simultaneous commissioning by 2034 or earlier.

Source: Hong Kong Government special administrative region

(C) International Shipping Centre

113. Hong Kong is one of the busiest ports in the world. Being a leading “catch-up port”⁹ renowned for its fast customs clearance and high efficiency, underpinned by a maritime service ecosystem with more than 1 200 companies, Hong Kong is ranked fourth among the world’s international shipping centres. The Government will expand the cross-provincial freight transport network, build a commodity ecosystem, drive the port’s green transformation and digitalisation, and better harness our advantages in high value-added maritime services.Support Modern Logistics DevelopmentImprove the Greater Bay Area’s Intermodal NetworkInternational Legal HubStrengthen the Promotion of Hong Kong Legal Services

Source: Hong Kong Information Services

Chief Executive John Lee announced in the 2025 Policy Address that the Government will establish a Heads of Department (HoDs) Accountability System, strengthen the performance appraisal system for civil servants and set up an Artificial Intelligence (AI) Efficacy Enhancement Team to further enhance governance.

Mr Lee explained that the HoDs Accountability System aims to render the political accountability required of Secretaries of Departments and Directors of Bureaus in policy formulation, and the administrative accountability required of civil servants in implementing policy initiatives better articulated with each other, with clarification of their respective roles.

The system will also drive HoDs to establish an effective management team and operating systems, thus enhancing departmental efficiency.

Additionally, its goal is to identify the deficiencies whenever a problem occurs in a department, putting in place improvements, attributing responsibility to the appropriate parties, and taking administrative or disciplinary actions against those responsible in accordance with the civil service management regime. 

Investigations will be divided into two tiers. If the problems are of a general nature, the investigation should be taken up by the HoD concerned.

If a serious problem occurs in a department or the problem is widespread or a repetitive, systemic one, or there are indications that the HoD concerned is implicated in the problem, the investigation will be carried out by an investigation panel set up specifically under the HoD Accountability System.

The panel should be independent from the Government, such that the investigation will be impartial and independent.

Furthermore, in addition to having the ability to examine civil servants of all ranks to ensure that the investigation is thorough, the panel should be familiar with the general operation of the Government to ensure the investigation is completed efficiently.

Also, the panel should be a standing team to be called upon, ensuring its certainty and readiness.

To achieve such a goal, the Government will expand the existing functions of the Public Service Commission to enable it to conduct investigations. 

Mr Lee also announced that the Civil Service Bureau is tasked with conducting a study to develop a more rigorous performance appraisal system for civil servants that reflects and differentiates the performance levels of staff more effectively.

In addition, an AI Efficacy Enhancement Team will be set up to further enhance the Government’s efficacy.

Apart from co‑ordinating and steering government departments to apply AI technology effectively to their work, the team will also explore process re‑engineering and promote technological reform in departments.

The team will be led by the Deputy Chief Secretary, with the Secretary for Innovation, Technology & Industry and the Commissioner for Digital Policy serving as the Deputy Leader and Secretary General respectively. 

The Government will also invite a representative from the private sector to serve as another Deputy Leader, to bring in new perspectives and front‑line market experience.

The team will examine with government departments their need for reform, with priority given to departments with greater interface with the public. Departments may also initiate a request to the team for prioritised assistance in enhancing their efficiency.

The Chief Executive emphasised that the Hong Kong Special Administrative Region Government will, as always, maintain the constitutional order of the Hong Kong SAR as stipulated under the Constitution and the Basic Law, ensuring the steadfast and successful implementation of “one country, two systems”.

The Hong Kong SAR will devote all efforts in preparing for the general election for the eighth‑term Legislative Council to be held on December 7, ensuring that the election is conducted in a fair, just, honest, safe and orderly manner.

On promoting patriotic education, this year marks the 80th anniversary of victory in the Chinese People’s War of Resistance against Japanese Aggression and in the World Anti‑Fascist War. 

Mr Lee highlighted that the Government has organised a series of large‑scale commemorative activities for the public to gain a deeper understanding of the spirit of unity and resilience displayed by Chinese people in the fight for peace. 

The Government will also collaborate with Shenzhen to promote a new red educational route, under the theme of “Chinese Cultural Celebrity Rescue” history.

Meanwhile, the Education Bureau will integrate patriotic education into daily learning and teaching, including popularising the “Love Our Home, Treasure Our Country” series of activities, promulgating the final version of the Values Education Curriculum Framework, and optimising the curriculum frameworks for the senior secondary Chinese history and history subjects.

Source: Hong Kong Government special administrative region