Author: MIL-OSI Publisher

Source: Hong Kong Government special administrative region – 4

The following is issued on behalf of the Transport Advisory Committee:

     The Chairman of the Transport Advisory Committee (TAC), Professor Wong Sze-chun, welcomed the long-term plans and strategies for advancing transport development set out in the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) (Hong Kong’s First Five-Year Plan) and the Chief Executive’s 2026 Policy Address (Policy Address) delivered by the Chief Executive today (September 16).

     Professor Wong said, “The Hong Kong’s First Five-Year Plan and the Policy Address complement each other in transport strategy and infrastructure development, providing a clear medium- and long-term outlook for Hong Kong’s land transport development and helping to lay a solid foundation for the city’s future economic growth.

     “The Hong Kong’s First Five-Year Plan adheres to an infrastructure-led approach development model, expediting heavy rail and road projects related to the Northern Metropolis and cross-boundary connections. Proposals to overcome the technical limitations of conventional heavy rail construction in the smart and green mass transit system projects, so as to address the transport challenges posed by Hong Kong’s unique terrain, are highly forward-looking.
 
     “Numerous specific transport infrastructure projects in the Policy Address are equally anticipated, including the full commissioning of Route 6 within this year, as well as the successive commissioning of the Northern Metropolis Highway (San Tin Section), the Tsing Lung Bridge, and various heavy rail projects in the future. The TAC is also pleased to note the policy measures to enhance the application of transport technology, which fully demonstrate the Government’s firm commitment to improving transport efficiency and optimising the commuting experience of the public.

     “The TAC will continue to provide professional advice to the Government on various transport policies and measures, and fully support the Government’s efforts in implementing initiatives to build and enhance our transport system.” 

Source: Hong Kong Government special administrative region – 4

Chapter V  Expedite the Development of the Northern Metropolis

183. The land area and projected population of the NM account for about one-third of Hong Kong’s total. No longer merely a blueprint, it has begun to deliver tangible results and will gradually enter its maturity phase.

184. The NM will rise as an important strategic vehicle for advancing high-quality post-secondary education, integrating I&T and industry, and pooling international high-calibre talent. It will become a major platform for Hong Kong’s deepening engagement with the GBA and integration into and serving the overall national development. It also serves as a new engine to develop new quality productive forces.

185. To foster the integrated development of education, technology and talent, the NM will take the university town as the main focus of its development, converging the five elements of education, technology, industry, talent and a suitable living environment. We will drive the NM’s high-quality development, while facilitating the infrastructure links between the NM and the Harbour Metropolis to improve Hong Kong’s spatial planning.

(A) Northern Metropolis University Town

Drive the Northern Metropolis Development with University Towns and Leading Industry Development through Technology

186. We will develop three university towns, which are the San Tin, Hung Shui Kiu and Ta Kwu Ling university towns in the NM, based on the concept of town area comprising campus area, technology area, industry area and living community area, and planned around “One Town, Five Elements” (education, technology, industry, talent and urban development), to drive the overall development of the Northern Metropolis University Town (NMUT). “Education–industry–urban development” will power the synergistic development of “technology–industry”, establishing a talent hub for the GBA and the world. We will build high-quality university towns that are suitable for education, research, innovation and living. Adopting the strategic positioning that integrates the four pillars of “talent cultivation, scientific research, transformation of outcomes, industry development”, we will drive the synergistic development among the Government, industries, academia, research and investment sectors, in a bid to achieve the integrated development of education, technology and talent.

187. The campus areas of the three university towns in San Tin²¹, Hung Shui Kiu²² and Ta Kwu Ling²³ amount to about 300 hectares. Together with the surrounding technology areas, industry areas and living community areas, the overall planned areas of the three university towns will exceed 1 000 hectares.

188. The San Tin University Town will focus on the development of medicine, life and health technology, AI, robotics, microelectronics and emerging industries, with its campus area covering the land near the future Northern Link’s San Tin Station and Ngau Tam Mei Station. Its technology area and industry area will cover the Loop Hong Kong Park and San Tin Technopole. The Loop Hong Kong Park, which opened in 2025, is home to the established GBAICTI, which has been in operation. The GBAICTI is wholly owned by the Government, with the University of Hong Kong as the operator. The GBAICTI works in collaboration with the Greater Bay Area International Clinical Trials Center, located in the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, to promote medical innovation and clinical trial development. It also houses a biobank, jointly managed by the HA and the Chinese University of Hong Kong. Building 1 of the Loop Hong Kong Park, scheduled for completion by the end of the year, will be positioned as the flagship project for launching of the NMUT, bringing together the frontier research capabilities of leading local and non-local universities and institutions, including InnoHK and other new initiatives. It will promote interaction and connection between universities, R&D and industries. In line with its strategic positioning, the building will be named “Loop Academy One”, which reflects the tripartite mission anchored by academia, with R&D a core part, and underpinned by technology. In addition, the Hong Kong Jockey Club Charities Trust will allocate $3 billion to support the construction of another integrated teaching and scientific research building. It will focus on educational and scientific exchange, as well as the cultivation of scientific research talent, and will make available its facilities for other institutions to use. The two buildings will complement one another, marking the start of a new chapter in the development of the NMUT.

189. The Government will invite the Hong Kong-Shenzhen Innovation and Technology Park Limited and the San Tin Technopole Company Limited to join the development of university towns and participate in related construction works, so as to accelerate such projects.

190. The campus area of the Hung Shui Kiu University Town and its adjoining technology and industry areas (including Hung Shui Kiu Industry Park, the Lau Fau Shan Digital Technology Hub, Yuen Long InnoPark and the MRDI) will be developed as a “Centre for Applied Post-secondary Education in Smart Manufacturing and Global Talent Cultivation”. This year, the Government will invite applications from post-secondary institutions for the construction of campuses to kick-start Hung Shui Kiu University Town campus development.

191. The Ta Kwu Ling University Town will integrate arts and “blue-green” development elements. It will support comprehensively the development of emerging and traditional industries, as well as new industries. Strategic space will also be reserved for future development needs, establishing a university town with a unique style that integrates the “One Town, Five Elements”, along with an arts and leisure ecosystem.

Innovation-driven Industry-academia-research Collaboration across Institutions

192. The Working Group on Planning and Construction of the University Town, led by the Chief Secretary for Administration, will be upgraded to become the Committee on Construction and Development of the University Town, and include non-official expert members. The Committee will provide high-level steer with respect to the long term strategic development of the NMUT, while promoting inter-departmental collaboration, and facilitating the development of an internationally competitive university town.

193. The Committee will explore measures to facilitate and incentivise NMUT institutions to pursue the transformation of research outcomes. They include providing funding for technology transfer, introducing accelerators and incubators, and channelling capital input to promote the institutions’ commercialisation and marketisation of research outcomes.

194. To dovetail with the development of the NMUT, and raise Hong Kong’s scientific research capabilities, the Government will support the capacity expansion and enhancement of post-secondary education:

(i) Gradually increase the number of UGC-funded research postgraduate places by around 30% from the current level of 7 200 to 9 600 in the 2030/31 academic year, so as to support the vibrant development of basic research in Hong Kong.

(ii) Starting from the 2027/28 academic year, gradually increase the annual quota of the Hong Kong PhD Fellowship Scheme from 400 to 550 places by the 2029/30 academic year.

(iii) Starting from the 2027/28 academic year, an additional funding of $20 million per academic year will be provided to support knowledge transfer, thereby accelerating the transformation of innovative outcomes.

(iv) Starting from the 2029/30 academic year, $40 million a year will be provided under the Fund for Innovative Technology-in-Education to promote the widespread use of AI and emerging technologies in the higher education sector.

(B) Promote Development of Innovation and Technology and Industries

The Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone

195. Since the Loop Hong Kong Park was officially commissioned last December, over 100 I&T enterprises and institutions have been gradually moving in. The two wet laboratory buildings have been fully leased. The results of the two open tender exercises for the eight land parcels in the remaining batches of Phase 1 will be announced by the end of the year.

196. To implement “institutional innovation and alignment of rules and mechanisms” at Hong Kong Park and Shenzhen Park for realising the development concept of “one river, two banks” and “one zone, two parks” of the co-operation zone, the Government will advance the cross-river connection project on the western side of the Loop and related construction, and proactively facilitate the efficient, convenient and safe flow of researchers and data between the two parks of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone.

Establish the National Manufacturing Innovation Centre

197. The HKSAR Government and the Ministry of Industry and Information Technology (MIIT) signed the Co-operation Agreement on Advancing the Joint Establishment of Manufacturing Innovation Centre by the Ministry and Hong Kong in July, preparing for the establishment of Hong Kong’s first national manufacturing innovation centre, which the MRDI will take the lead in operating. The MRDI has moved into the Microelectronic Centre in Yuen Long. Its two pilot lines, focusing on the R&D and trial production of third generation semiconductors, are being set up in full speed with a target for commencing operation by the end of the year.

San Tin Technopole

198. The Government has established the San Tin Technopole Company Limited, which will adopt a multi-pronged approach for leveraging market forces in expediting land formation for the development of the 210-hectare I&T land.

Hung Shui Kiu Industry Park

199. The Hung Shui Kiu Industry Park Company Limited (Park Company) established by the Government is working to attract enterprises and investments. It has entered into substantive negotiations with several established companies, including those in areas of advanced construction, and testing and certification. The Park Company is also engaging with the Authority of Qianhai of the Shenzhen Municipality and will sign an MoU to establish a mutually beneficial collaboration model, capitalising on their combined industry strengths.

Sandy Ridge Data Facility Cluster

200. The construction works of the Sandy Ridge Data Facility Cluster have begun. The computing power of the cluster is expected to reach 180 000 peta-floating point operations per second by 2032. That is equivalent to 36 times Hong Kong’s current computing power. It will support the development of Hong Kong’s intelligent computing industry. Its estimated cumulative investment is expected to reach at least $23.8 billion.

201. The Government will inject $1 billion into the Artificial Intelligence Subsidy Scheme to support the AIRDI in applying high-performance computing power for frontier research, accelerating innovative breakthroughs. We will assess the market demand for computing power, adopting “high efficiency computing power, stable electricity supply, low-carbon transition” as our core direction. This will optimise the operation of Hong Kong’s data centres and city-level layout of computing power, supporting the healthy development of the intelligent computing industry.

Advanced Construction Industry Park

202. We have earmarked 30 hectares of land in the NM to develop a large-scale, advanced construction industry park. It will accommodate steel reinforcing bar prefabrication yards and innovative concrete batching plants. The industry park will also introduce facilities for promoting testing and certification of Modular Integrated Construction (MiC) and Multi-trade Integrated Mechanical, Electrical and Plumbing (MiMEP), as well as R&D of the construction methods and their training, production and demonstration. In the first half of 2027, the Government will invite the market to submit expressions of interest for the development of an advanced construction industry park of about 10 hectares in Yuen Long South, with a view to commencing the tendering process for the first batch of land no later than the first half of 2028.

(C) Build a Northern Metropolis Ideal for Living, Work and Travel

Commencement of All Nine New Development Areas in the Northern Metropolis

203. Development of the NM is well underway. A cumulative total of about 120 hectares of “spade-ready sites” have been produced up to 2025-26, while no less than 200 hectares of “spade-ready sites” will be produced in 2026-27 and 2027-28.

204. Among the nine NDAs in the NM²⁴, construction works have begun at four of them: Kwu Tung North/Fanling North, Hung Shui Kiu/Ha Tsuen, Yuen Long South and San Tin Technopole and the Loop. Together, they involve about 800 hectares of land. Site formation and infrastructure works for the fifth NDA (Ngau Tam Mei) will start in the first half of next year, with “spade-ready sites” available progressively, starting at the end of 2028.

205. As for the remaining four NDAs, we will begin statutory planning and related procedures for Lau Fau Shan NDA this year, and progressively next year for the over 200-hectare Priority Development Area (including part of the university town) of Ta Kwu Ling NDA, Au Tau NDA and part of Ma Tso Lung NDA.

Enhance Development Speed and Efficiency

206. The Government will expedite innovative and diverse development to accelerate the development and attract industries to the NM. Various measures proposed in last year’s Policy Address, including the “Pay for What You Build” Pilot Scheme, flexible land-grant arrangements and the arrangement of allowing land owners to voluntarily surrender land to offset payable land premiums, have been implemented in an orderly manner.

207. Following the August award of tender under large-scale land disposal in Hung Shui Kiu/Ha Tsuen NDA, we will launch the tender for the second pilot area in Fanling North at the end of the year at the earliest.

208. The Government will continue to streamline procedures to cut the time and costs of the NM development:

(i) Chaired by the Deputy Financial Secretary, the Working Group on Planning and Development co-ordinates departments to expedite approval processes. Measures include using a digital platform to shorten the approval time for works projects by three to six months; reducing the time for the first approval for building plans of new railway projects by half to 30 days; boosting the bearing capacity of rock layers in foundation designs to save about $1.4 billion in the construction costs of NM public housing; and introducing time limits on approval processes and an escalation mechanism for private developments.

(ii) The Government will adopt a framework procurement model to increase cost effectiveness, and other mechanisms such as Early Contractor Involvement to shorten construction time.

(iii) The Environmental Protection Department (EPD) will expand the application scope of the Hong Kong Environmental Database, consolidating over 200 environmental datasets and optimising planning with AI. The database significantly reduces the time needed for the environmental impact assessment (EIA) process to about 15 to 24 months from 36 to 48 months, significantly improving project efficiency and reducing costs²⁵. For the NM-related projects, the time needed for the EIA process is targeted at about 15 to 20 months.

Introduce Dedicated Legislation for the Northern Metropolis

209. The Government is working to secure passage of the Northern Metropolis Development Bill in the LegCo this year, and will submit the first batch of five pieces of subsidiary legislation to cover town planning processes, land compensation, building works approval, noise control and cross-boundary flows of people, streamlining procedures to accelerate NM development and facilitating industry operation.

Step Up Efforts to Attract Enterprises and Investments and Intensify Industry Development

210. The Government has implemented the mechanism on preferential policy packages to attract enterprises and investments, as announced in last year’s Policy Address. The cross-departmental committee, led by the Financial Secretary, will consider factors such as resources invested by the enterprises, related economic benefits and development potential, to formulate dedicated preferential policy packages. These may cover land grant, land premium concession, financial subsidies and tax concessions, attracting international and national brands and strategic enterprises to establish business operations in Hong Kong. The committee is now reviewing relevant applications from strategic emerging industries, including aerospace and new materials, to establish business operations in Hong Kong.

211. The FSTB plans to introduce an amendment bill into the LegCo by year-end, providing preferential tax rates of 5%, or half-rate, for selected enterprises operating in key sectors such as finance, advanced manufacturing, R&D in I&T, headquarters activities and logistics and supply chain management.

212. The HKIC will continue, through investments, to mobilise market resources, supporting enterprises in establishing a presence in the NM and other GBA cities.

Step up Efforts to Attract Long-term Capital Investment to the Northern Metropolis

213. The Northern Metropolis Financial Advisory Taskforce, jointly established by the HKMA and the Hong Kong Association of Banks in April, will explore public-private partnership approaches and financing arrangements for NM development with the Government and industry park companies. The 23 banks participating in the Taskforce will offer tailored financing solutions for companies moving into the NM, so as to provide precise support for the NM development.

214. The IA will implement lowered capital requirements for eligible investment in infrastructure at the end of the year, releasing more insurance capital to participate in Hong Kong’s infrastructure projects, including the NM development.

Achieve Higher Living Standards in the Northern Metropolis

215. For subsidised sale-flat (SSF) projects in the NM to be completed from 2031-32 onwards, the HKHA will increase the proportion of larger flats (those with a saleable area of about 45 square metres or more) from 20% to 25%. The public can enjoy more spacious housing, raising their overall living quality.

Establish the New Territories North Cluster

216. The HA will plan the establishment of the New Territories North Cluster from 2027 onwards, and press ahead with the construction of an integrated teaching and research hospital in Ngau Tam Mei. It will assess the need and feasibility of constructing Hung Shui Kiu Hospital.

Cultural Facilities in the Northern Metropolis

217. The LCSD will develop various cultural facilities in the NM, with construction of the Hong Kong Conservation Repository (formerly the Heritage Conservation and Resource Centre) in Tin Shui Wai and the New Territories East Cultural Centre in Fanling expected to be completed in 2028 and 2030 respectively.

Promote Urban-rural Integration

218. The Government has announced the launching of the $200 million NM Urban-rural Integration Fund. Applications will be invited and the first batch of projects approved next year, capitalising on community wisdom to promote rural tourism.

219. We will publish the Guidelines on Promoting Urban-rural Integration in the NM within this year. The first signature project to be launched next year, the “San Tin Timewalk”, will link attractions with features of traditional rural architecture as well as historical and cultural heritage, creating distinctive landmarks and tourist attractions in collaboration with villagers.

Advance Transport Infrastructure

220. The Government is conducting an investigation for the Northern Metropolis Highway. It will prioritise the San Tin Section to serve NDAs, including Kwu Tung North, San Tin Technopole and Ngau Tam Mei, with the target of inviting tenders for the main construction works next year. Suitable national and overseas design standards, alongside advanced construction technologies, will be adopted, with a view to bringing forward the commissioning of the San Tin Section by two years to 2034.

221. The Government will take forward the Tsing Lung Bridge project at the southern end of Route 11, aiming for commissioning in 2033, to meet north south transport demands arising from the NM development.

222. Kwu Tung Station is expected to begin operation next year and become the 100th heavy rail station. As for Hung Shui Kiu Station, an MiC method will be adopted to enhance speed and efficiency, with commissioning of the station targeted for 2030.

223. We will present a preliminary proposal for the southern extension of the Hong Kong Shenzhen Western Rail Link next year to strengthen connectivity between HKIA and the NM, as well as the Mainland.

²¹Located in the San Tin Technopole and Ngau Tam Mei New Development Areas (NDAs).

²²Located in the Hung Shui Kiu/Ha Tsuen NDA.

²³Located in the Ta Kwu Ling NDA (formerly known as the New Territories North New Town).

²⁴The nine NDAs are Kwu Tung North/Fanling North, Hung Shui Kiu/Ha Tsuen, Yuen Long South, San Tin Technopole and the Loop, Ngau Tam Mei, Lau Fau Shan, Ta Kwu Ling, Ma Tso Lung and Au Tau.

²⁵Take one of the road works in the NM as an example. By using the database to compare alignment proposals, the project team has reduced the affected ecologically sensitive area by nearly 70% while shortening the tunnel section length from about five kilometres to 0.8 kilometres, substantially reducing the project cost (about $40 billion) and its environmental impact.

(To be continued.)

Source: Hong Kong Government special administrative region – 4

(E) International Hub for High-calibre Talent

145. Last year, Hong Kong placed fourth in the World Talent Ranking and third globally in education competitiveness, with five universities among the world’s top 100. We will promote the integrated development of education, technology and talent, and improve strategic co-ordination and implementation mechanism, while strengthening the roles of institutions, research institutes, innovation platforms and enterprises in attracting and nurturing talent. We aim to cultivate talent in a co-ordinated manner for technological innovation, industry development and national strategic needs. We will also improve the process for identifying, selecting and nurturing young innovation talent. A targeted approach will be adopted to attract those with the skills required for the development of our country and Hong Kong. We will also strengthen our strategies in drawing overseas talent in a more proactive manner, and establish the “Study in Hong Kong” brand. These initiatives will enhance our competitiveness and build Hong Kong into an international hub for high-calibre talent.

Deepen the Development of an International Education Hub and Establish the “Study in Hong Kong” Brand

146. To promote post-secondary education in Hong Kong and attract outstanding students from around the world, the EDB has established the Task Force on Study in Hong Kong, and organised the first “Study in Hong Kong Week”, as well as the largest-ever Asia-Pacific Association for International Education 2026 Conference and Exhibition. The first International Symposium of the Alliance of Universities of Applied Sciences (UAS) was also held, bringing global education leaders together to exchange views on critical issues and the latest trends in post-secondary education.

147. The Government makes every effort in developing Hong Kong into an international hub for post-secondary education and high calibre talent through the following measures:

(i) Drive the “Hong Kong: Your World-class Campus” international promotion and organise exhibitions in target areas (such as countries and regions along the B&R).

(ii) The University Grants Committee (UGC)-funded universities plan to organise more than 160 recruitment activities in the Chinese Mainland and overseas in the 2026/27 academic year to attract outstanding students from around the world.

(iii) Extend for two years the pilot arrangement of including graduates from the GBA campuses of Hong Kong universities under the Immigration Arrangements for Non-local Graduates. This will allow more outstanding talent to remain in Hong Kong or come to our city for employment.

Promote the Quality and Quantity Development of Student Hostels

148. The Hostels in the City Scheme, launched by the DEVB and the EDB in July 2025, has removed barriers and eased restrictions to encourage the market to convert or redevelop existing commercial buildings into student hostels on a self-financing and privately-run basis. Since the launch of the Scheme, 41 applications have been confirmed, securing the provision of about 10 800 bed spaces. The DEVB will put the first student hostel site up for sale this financial year.

149. The thriving development of the private student hostel market reflects stakeholder confidence in Hong Kong’s education. The EDB will support the Hong Kong Direct Subsidy Scheme Schools Council in formulating the Code of Practice for Operating Student Hostels. It will set standards for accommodation, hygiene, safety and warden arrangements for compliance by operators intending to provide accommodation facilities for non-local students (especially minors), so as to ensure suitable living conditions for incoming students.

Promote the Development of Schools under the Direct Subsidy Scheme and International Schools

150. The EDB will continue to take forward the “Direct Subsidy Scheme (DSS) Expansion”, while strengthening publicity and attracting overseas students to encourage more DSS schools to admit non-local students. To date, 48 DSS schools have been allowed to participate in the programme. They will begin their intake of new overseas students progressively from September this year.

151. To meet society’s demand and support talent development, the Government plans to allocate sites in the NM or other areas next year for the development of international schools.

Enhance Visa Arrangements for Talent

152. To focus our efforts in attracting the necessary talent for Hong Kong’s development, and to promote talent exchange and training, we will:

(i) Consider adding more talent categories relating to AI application to enrich the Talent List. The current list covers 60 professions in short of local talent (including finance and healthcare, as well as I&T).

(ii) Relax the requirements on extension of stay under the Top Talent Pass Scheme (TTPS) for technology start-up talent. Incoming talent who establish start-up businesses in Hong Kong may face significant uncertainty when applying for extension of stay due to their lower income from unstable business during the initial stage of operation. Proprietors of technology start-ups supported by designated public sector organisations will be exempted from requirements such as providing proof of company income when applying for extension of stay under the TTPS, to facilitate their development in Hong Kong.

(iii) Expand the Immigration Facilitation Scheme for Invited Persons by extending its coverage from the current Member States of the ASEAN to countries and regions in Central Asia and the Middle East, and allowing all bureaux and departments to issue invitations under the Scheme. This will promote economic and trade interactions and exchanges.

(iv) Introduce a new visa category to allow non-locals to participate in short-term training programmes in Hong Kong, as recognised by bureaux and departments, advancing Hong Kong’s development into a regional training hub.

Chapter IV Leverage Hong Kong’s International Advantages

(A) Deepen the Development of an International Legal and Dispute Resolution Services Centre

153. Hong Kong gives full play to the unique advantages of its bilingual common law system with both Chinese and English under “one country, two systems”, contributing to the upholding of the impartial and reasonable international rule of law and order, with its dispute-resolution rules and mechanisms aligned with international standards. Hong Kong will also provide first-class international professional legal services for Mainland enterprises to “go global”. It will do so by enhancing its diversified and high-end dispute resolution services, including litigation, arbitration and mediation, pooling top legal talent and promoting closer alignment of rules and mechanisms in the GBA.

Build a Global Capital of Mediation to Support the Work of the International Organization for Mediation

154. The Government will continue to render full support to the work of the IOMed headquartered in Hong Kong, including holding the Governing Council meeting for IOMed’s Contracting States and the annual forum in Hong Kong by year’s end. To include the IOMed as a dispute-resolution option in agreements, priority will be given to government contracts involving international commercial matters and international agreements to which the HKSAR is a party. We would welcome the IOMed to accept and handle disputes in emerging industries, including commodity trading and the space economy.

155. The Government will continue promoting “mediate first” to resolve disputes, including continuing to implement the incorporation of mediation clauses in all government contracts.
Expand the Mediation Culture

156. The Pilot Scheme on Community Mediation has been providing mediation skills training for property management personnel to help them resolve neighbourhood disputes, such as those arising from water seepage in buildings. To foster harmonious neighbourhood relations, the Home Affairs Department (HAD) will introduce a three-tier mechanism for resolving building management disputes next year:

(i) Tier I: District Council (DC) members will make early intervention to work with neighbours over building management issues and concerns, seeking to resolve disputes through amicable negotiations.

(ii) Tier II: If the issues remain unresolved, DC members will refer the parties concerned to the professional mediation services established by the HAD, including the Free Mediation Service Scheme for Building Management¹⁷, the Panel of Advisors on Building Management Disputes¹⁸ and the Building Management Dispute Resolution Service¹⁹, enabling all parties to resolve their disputes in a time- and cost-saving manner.

(iii) Tier III: If the issues still cannot be resolved satisfactorily, consideration may be given to take cases to court.

157. The Housing Bureau (HB) and relevant organisations will jointly introduce the “Pro-bono Mediation Service Scheme for the Basic Housing Unit Regime” by year’s end to resolve disputes between stakeholders and enable the orderly implementation of the Basic Housing Unit (BHU) regime.

158. To protect consumers’ rights and interests, the Consumer Council will launch a pilot scheme on mediation to help consumers and traders resolve consumer disputes.

159. The DoJ has accepted the seven recommendations made by the Working Group on Mediation Regulatory System. The Government will introduce a bill into the LegCo by the end of the year, allowing the parties involved to apply for the appointment of mediators by the Hong Kong Mediation Accreditation Association Limited when they fail to reach a consensus on the choice of mediators.

Support the International Institute for the Unification of Private Law in Establishing a Presence in Hong Kong

160. This year marks the centenary of the establishment of the International Institute for the Unification of Private Law. We will strive for the establishment of its inaugural overseas liaison office in Hong Kong. This will mark its first ever presence outside its seat in Rome since its founding, highlighting Hong Kong’s strategic position.

International Commercial Court

161. The Government supports the Judiciary in advancing the development of the International Commercial Court and inviting judges from other common law jurisdictions to adjudicate international commercial cases through more efficient procedures, with a view to complementing Hong Kong’s existing international arbitration and mediation services and further consolidating Hong Kong’s status as a major jurisdiction for handling international commercial litigation.

Advance the Construction of the Hong Kong International Legal Service Building

162. The DoJ is pressing ahead with the preparatory work for the construction of the Hong Kong International Legal Service Building, with construction targeted to begin by the end of next year. The building will become a new landmark of Hong Kong’s international legal hub, attracting international legal and dispute resolution services institutions to set up business as well as organise international conferences, exchanges and training activities in Hong Kong, thereby promoting the development of related industries.

Hong Kong International Legal Talents Training Academy

163. Since its launch, the Hong Kong International Legal Talents Training Academy has collaborated with about 30 international legal organisations, central ministries and professional bodies, providing training for more than 5 000 legal professionals.

164. The academy will organise a wider variety of programmes, explore conducting research on cross-jurisdictional topics covering common law and other legal systems and organise high-end international seminars on a regular basis. This will support its development into a legal capacity-building centre for our country and the international community, particularly for B&R countries, as well as a hub for the training, exchange and gathering of high-calibre legal talent.

Enhance Hong Kong’s Status as World’s Most Preferred Arbitration Seat

165. Hong Kong, together with Singapore, was ranked the second-most preferred seat for arbitration globally in the 2025 International Arbitration Survey. Hong Kong also retained its position as the most preferred seat for arbitration in the Asia-Pacific region. With its world-renowned arbitral institutions, coupled with experienced arbitrators and a globally recognised arbitration framework, Hong Kong has built a widely trusted arbitration ecosystem.

166. The DoJ will draw reference from the recommendations of the Working Group on Arbitration Law Reform and strive to complete legislative amendments for the Arbitration Ordinance within next year, as part of our ongoing efforts to enhance Hong Kong’s arbitration legal framework.

167. The Government will continue to implement, in collaboration with the legal and sports sectors, the Pilot Scheme on Sports Dispute Resolution, exploring co-operation opportunities with international and regional sports associations to develop Hong Kong into an international sports dispute resolution centre.

(B) Develop a Regional Intellectual Property Trading Centre

168. To ensure solid legal protection of outcomes from R&D, innovation and cultural and creative efforts, the Government continues to promote its patents, trademarks, registered designs and copyright regimes, strengthen the in-house examination capacity under the original grant patent (OGP) system and make registration more efficient and convenient. The Government also promotes intellectual property (IP) valuation and financing, reduces IP trading costs and nurtures talent skilled in IP management and commercialisation. The Government will continue to work towards consolidating the foundations for Hong Kong’s development as a regional IP trading centre.

Promote Intellectual Property Valuation and Financing

169. Success cases have progressively been recorded since the launch of the IP financing sandbox²⁰ last year, unlocking a new financing channel for enterprises holding quality IP assets. We will, based on market response, prepare to launch the next phase of the sandbox with broader participation and more practical applications.

170. The Business of IP Asia Forum, scheduled for November this year, with IP financing as the theme, will bring together experts from different places to pursue development opportunities.

Develop and Expand the Patent Examination Team

171. The Intellectual Property Department will continue to develop and expand its patent examination team and strengthen its in-house examination capacity for OGP applications in major technology fields. The department will roll out pilot facilitation measures for the relevant OGP applications next year.

Launch the Hong Kong Intellectual Property Academy

172. The Hong Kong Intellectual Property Academy will be officially launched in the fourth quarter of this year. It will provide more systematic on-the-job, talent-training programmes with a higher level of recognition, raising the IP literacy of practitioners in sectors such as technological innovation, cultural and creative, commerce and industry, and professional services.

Formulate a Regulatory Framework for Local Patent Agents

173. The Government has completed an industry consultation on the framework for regulating local patent agency services and the key issues involved. The industry generally supports the setting up of a registration regime for patent agency services, and agrees that professional titles and qualification requirements for registration should be provided for. A public consultation will be launched this year, and specific legislative proposals will be formulated next year.

Reduce Intellectual Property Trading Costs

174. The Government will introduce a bill this year to implement tax-deduction arrangements for capital expenditure incurred for purchasing IP rights, or for the licence to use IP rights, in a bid to support IP trading’s development.

Deepen Top-level Planning

175. The Government will establish the “Strategy Committee on Intellectual Property Trading Development”. It will bring together representatives from innovation, technology and the creative industries, as well as from commerce and industry, IP professional services and other sectors, to assist the Government in formulating strategies and support measures for the promotion of IP trading.

(C) Develop an East-meets-West Centre for International Cultural Exchange

176. Since the promulgation of the 14th Five-Year Plan, our country has expressly supported Hong Kong’s development as an East-meets-West centre for international cultural exchange. Hong Kong has a unique background as a cultural melting pot of East and West. Over the years, Hong Kong has served as a bridge linking China and the international community. The Government will expand the scale of arts and culture and the creative industries, while reinforcing Hong Kong’s role as an international arts trading platform.

Support the West Kowloon Cultural District in Boosting the Development of the Cultural Industry

177. The West Kowloon Cultural District (WKCD) is Hong Kong’s significant and strategic cultural infrastructure investment and one of the world’s largest cultural hubs. In 2025, it attracted more than 17 million visitors. The WKCD has entered into nearly 50 collaborative agreements with renowned arts and cultural institutions around the globe, and successfully brought numerous exhibitions and performing arts programmes to the Mainland and overseas.

178. Scheduled to open next year, the WestK Performing Arts Centre will feature four performance venues built to the highest international theatre standards, including “Dancehouse”, the first dedicated venue for dance art in Hong Kong. An extraordinary line-up of performances will be presented in its inaugural year, featuring the world premiere of a large scale production by the resident company, as well as Hong Kong’s debuts of internationally acclaimed dance, theatre and Broadway shows, and major co-productions with local and overseas art groups.

179. Over the next two years, the Hong Kong Palace Museum will take its precious collections on overseas tours, Australia and Uzbekistan included, bringing traditional Chinese culture to global audiences.

Advance the Establishment of a Premium Arts Trading Hub

180. Hong Kong is among the world’s top three arts trading centres. To consolidate and enhance our advantages, the Government will complete a study on arts trading centres within this year. The WKCD is also set to welcome its first Mainland arts auction house later this year. The newly established WestK Academy will organise an international fellowship programme for auctioneers with a Mainland trade association and offer courses on Chinese arts and heritage conservation.

Reform the Funding Mechanism for Arts Groups

181. To promote sustainable development and the industrialisation of performing arts, we will inject $200 million into the Arts and Sport Development Fund (Arts Portion). While maintaining the current overall funding level for major performing arts groups (MPAGs), a funding and in-and-out mechanism tied to performance and artistic merit will be introduced. This will encourage innovation among MPAGs and provide opportunities for medium-sized arts groups with consistently outstanding performance to become MPAGs.

Construct a Second Campus for the Hong Kong Academy for Performing Arts

182. The Hong Kong Academy for Performing Arts ranked 10th globally and first in Asia in the 2026 QS World University Rankings for Performing Arts. The academy is taking forward the temporary campus extension in Chai Wan and its long-term plan to construct a second campus in the NM.

¹⁷Free professional mediation services provided by accredited professional mediators.

¹⁸Free advisory services where professionals offer neutral, authoritative and professional advice.

¹⁹Free dispute resolution services steered by a retired judge/judicial officer.

²⁰The IP financing sandbox provides a collaborative and risk-controlled environment for banks, enterprises and professional service sectors to jointly test IP financing arrangements.

Source: Hong Kong Government special administrative region

(D) International Innovation and Technology Centre

Application and Risk Management of Artificial Intelligence107. The SFC will foster a deeper understanding within the sector through training and development of regulatory technologies in collaboration with I&T enterprises.

Source: Hong Kong Government special administrative region – 4

(C) International Trade Centre

75. Hong Kong was ranked the world’s fifth-largest entity in merchandise trade in 2025, two places up from the previous year, according to the “Global Trade Outlook and Statistics” report, published by the World Trade Organization (WTO). We will consolidate and enhance Hong Kong’s status as an international trade centre, playing a greater role in the high-level opening up of our country.

Deepen the Work of the GoGlobal Task Force

76. Since the Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) was established last October, it has provided assistance, including listing and raising capital in Hong Kong, aligning with overseas standards, acquiring industry certifications and fulfilling compliance requirements for more than 340 Mainland enterprises. About 30% of them position Hong Kong as their regional/international headquarters or corporate treasury centre (CTC).

77. In June, I led a delegation, which included representatives of Mainland enterprises, to visit Central Asia, where we met with local enterprises to open up business opportunities. Many of the Mainland companies successfully matched with local partners for collaborative projects. The GoGlobal Task Force will continue to help enterprises expand their businesses into Central Asia.

78. The GoGlobal Task Force will further consolidate Hong Kong’s role in helping Mainland enterprises establish their presence abroad. It will:

(i) Deepen collaboration with trade associations of both places to provide more targeted support services to Mainland enterprises.

(ii) Strengthen collaboration with professional organisations to train talent for the GoGlobal initiative and enhance professional services.

(iii) Extend the Cross-sectoral Professional Services Platform, adding a new sector to provide environmental, social and governance (ESG) services, with a view to leveraging Hong Kong’s international expertise to assist Mainland enterprises in meeting the requirements of their target markets.

(iv) Enhance the platform’s matching function to encourage connections between Mainland enterprises and Hong Kong professional service providers, and keep track of the effectiveness of individual cases.

79. The IA will promote the development of a specialty insurance business that aligns with the real economy to diversify and manage risks for enterprises to “go global”.

80. The Government will continue to assist the local media to expand their network beyond Hong Kong, telling the good stories of Hong Kong.

Build a High Value-added Supply Chain Services Centre

81. As our country improves the comprehensive overseas services system and guides the orderly development of cross-border industry and supply chains, it creates enormous opportunities for Hong Kong. Since announcing the building of a high value-added supply chain services centre in the 2024 Policy Address, the Government has been enhancing strategies to encourage Mainland enterprises to leverage Hong Kong as their supply chain services centre.

82. Hong Kong will better align with our country’s modern industrial system, including driving the upgrade and transformation of traditional industries, as well as cultivating emerging pillar industries, in order for enterprises to take advantage of our strengths in international finance, trade, shipping, scientific research, branding, design and exhibitions, as well as our global network, to connect with overseas supply chains and launch international businesses.

Encourage More Financial Institutions to Set Up Headquarters in Hong Kong

83. Mainland financial institutions with stronger capital strength and higher level of compliance and internal control standards are encouraged to set up international headquarters in Hong Kong, on the premise of compliance with laws and regulations in a risk-controlled manner and voluntary commercial participation, to consolidate their businesses and management functions outside the Mainland. We support major Chinese securities firms’ plans, in compliance with laws and regulations, to increase capital for their subsidiaries in Hong Kong, and utilise Hong Kong as a booking centre for risk management and capital market operations.

Encourage Enterprises to Establish Corporate Treasury Centres and Sourcing Centres in Hong Kong

84. The Government has completed its review of tax concessionary measures applicable to CTCs, as well as a public consultation on recommendations to provide pre approved CTCs and their associated companies with additional tax benefits and flexibilities. An amendment bill is expected to be introduced into the LegCo in the first half of 2027.

85. A tax concession of 5%, or half-rate, may be offered under the preferential policy packages on attracting enterprises and investments, depending on the investment plan of individual enterprises and their actual contribution to Hong Kong’s economy. This will attract high value-added enterprises to set up headquarters or regional headquarters in Hong Kong to manage their supply chain and sourcing businesses.

Strengthen Innovation and Technology Enterprises

86. The Government launched the Pilot Innovation and Technology Accelerator Scheme in January. It was designed to accelerate the growth of innovation and technology (I&T) companies, by attracting professional I&T enterprise service providers with proven track records in and beyond Hong Kong to set up accelerator bases in Hong Kong.

87. One of them has set up an accelerator base at Cyberport, serving nearly 100 member enterprises, including eight listed companies with a total market value exceeding $180 billion. Focusing on key industries such as AI, embodied intelligence and robotics, new energy and new materials, and biomedicine, the company assists I&T companies in going global by leveraging Hong Kong’s I&T ecosystem, application scenarios, capital markets and overseas networks.

88. The Green Tech Fund also supports Hong Kong research institutions and companies in conducting research and development (R&D) in Hong Kong and the Mainland to develop low-carbon technologies with commercialisation potential, helping more green technologies and products to go global.

Empower the Transformation and Upgrading of Traditional Industries through Supply Chain Services

89. The Development Bureau (DEVB) has signed a co-operation agreement with the relevant Mainland organisation to establish a collaborative mechanism for construction standardisation and jointly formulate the GBA construction standards. This will help local and Mainland construction companies venture into the global market by making good use of Hong Kong’s strengths in areas such as testing and certification. Advanced construction technology will be showcased by organising international conferences and large-scale events, reinforcing Hong Kong’s position as an international infrastructure centre.

90. The Government will establish the Task Force on High Quality Development of Textile and Fashion Industry, to be led by the Secretary for Commerce and Economic Development. It will enhance collaboration between government and industry representatives to pursue high-quality development of the textile and fashion industry in areas including I&T, fashion design, supply chain management, sustainable development and brand promotion, as well as nurturing talent, thereby assisting the industry to connect with Mainland and overseas markets.

Pursue the Comprehensive Upgrade of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)

91. Following the signing of an amendment agreement under the framework of CEPA in 2024, which further liberalised trade in services with the Mainland, the Commerce and Economic Development Bureau (CEDB) will sign a Memorandum of Understanding (MoU) with the Ministry of Commerce and continue to jointly pursue the comprehensive upgrade of CEPA, with a view to deepening co-operation with the Mainland services sectors, as well as further expanding the Mainland market access and liberalised areas.

Expand International Economic and Trade Network

92. We will continue to deepen our ties overseas, including the European, American, ASEAN and Middle East markets, while actively exploring emerging markets such as Central Asia and Africa, and focus on economies of high potential and strategic importance, with a view to forging closer economic and trade co-operation.

93. With the Economic and Trade Office (ETO) in Kuala Lumpur having officially commenced operation, the four ASEAN-based ETOs will deepen Hong Kong’s trade and investment promotion in ASEAN and neighbouring Asian countries.

94. We are exploring the establishment of an ETO in Kazakhstan, and in the meantime leveraging the existing networks of the ETOs, the Hong Kong Trade Development Council (HKTDC) and InvestHK to step up trade and investment promotion work in priority Central Asian countries.

95. We signed an investment agreement with Bangladesh just last week, and will work towards signing investment agreements with Qatar and Peru as early as possible. We are negotiating new investment agreements with Saudi Arabia and Egypt. We are also exploring new investment agreements with Kazakhstan and Uzbekistan.

Promote the Development of Digital Trade

96. Upon coming into full operation, Phase 3 services of the Trade Single Window will provide a single consolidated platform for submission of import and export declarations and cargo information regarding different transport modes, to help the trade improve efficiency and reduce operating costs.

97. The Government will expand the “Single Submission for Dual Declaration” Scheme with the General Administration of Customs of the People’s Republic of China to cover more trade documents and transport modes, and advance connectivity with ASEAN’s Single Window. The Trade Single Window will also connect with the HKMA’s Commercial Data Interchange (CDI) in mid 2027, facilitating banks in making reference to trade data for processing financing applications.

98. The Government will introduce, within this year, a bill on facilitating the digitalisation of “business to business” trade documents, to reduce the administrative costs of businesses and improve traceability of trading activities.

99. The HKMA will explore further applications of tokenised deposits, including collaborating with the Mainland to study trade-financing use cases, with pilot transactions to be completed by the end of the year.

Promote the Development of Convention and Exhibition Industry

100. The Government is taking forward the Wan Chai North Redevelopment project, as planned, for the expansion of the Hong Kong Convention and Exhibition Centre and related facilities⁸. A task force to be led by the Deputy Financial Secretary will be set up to steer the project. The HKTDC will submit a proposal on the development approach of the project to the Government early next year.

101. The Government has earmarked $100 million to attract high-quality, large-scale international exhibitions with new elements to Hong Kong. The first such international flagship exhibition brought to Hong Kong will be held in November, centred around super yachts, as well as premium lifestyle elements, and featuring international leading brands.

⁸All users in the sites of the Wan Chai Government Offices Compound and the Kong Wan Fire Station in Wan Chai North will be moved out within 2028.