Source: Hong Kong Government special administrative region
LCQ17: Promoting energy saving and carbon reduction in government departments and public organisations
Question:
The National 15th Five-Year Plan proposes to accelerate the comprehensive green transformation of economic and social development, and establishes the “dual carbon” targets of achieving carbon peaking before 2030 and carbon neutrality before 2060. The HKSAR Government has likewise taken forward four major decarbonisation strategies under Hong Kong’s Climate Action Plan 2050, namely “net-zero electricity generation”, “energy saving and green buildings”, “green transport” and “waste reduction”, to align with the national direction. Furthermore, the Government has amended the Buildings Energy Efficiency Ordinance to include public facilities under the mandatory energy audits conducted once every five years, and has promulgated the Strategy of Hydrogen Development in Hong Kong to launch local trial projects on hydrogen as fuel. In this connection, will the Government inform this Council:
President,
To align with the national “dual carbon” targets, the Government strives to achieve carbon neutrality before 2050 and reduce the total carbon emissions from the 2005 level by half before 2035. In addition to formulating territory-wide policies, the Government has adopted a “whole-government” approach to managing the operation of government departments and has taken forward various measures in our bid to achieve decarbonisation.
In consultation with the Transport and Logistics Bureau and the Innovation, Technology and Industry Bureau (ITIB), our reply to the question raised by the Hon Hung Kam-in is as follows: Besides, in response to the long-term goal of carbon neutrality set out by the Government under the Hong Kong Climate Action Plan 2050, a number of public organisations (such as the Hospital Authority (HA) and the Hong Kong Housing Authority), tertiary institutes, and secondary and primary schools have also increased the use of RE at their respective premises.
(2) To assist government bureaux and departments (B&Ds) in setting emission reduction targets and implementing emission reduction measures in a more scientific way, the Government promulgated in 2017 the “Carbon Management in Government Buildings” circular which requires all major government buildings to undergo regular carbon audits, the results of which should be disclosed to the public through the publication of annual environmental performance reports or other means. B&Ds will follow up on the implementation of practicable carbon reduction measures based on the recommendations in the carbon audit reports. Owing to the differences in the nature and operating conditions of various B&Ds, it would be difficult to formulate a one-size-fits-all decarbonisation solution and target that are applicable to all departments. We will actively explore the application of hydrogen gensets at government construction sites. As for the its application as backup power supplies in suitable government buildings and hospitals, the feasibility will be further studied subject to the results of further safety assessments and actual operational needs. The Government will continue to uphold the principle of advancing with prudence, and review the effectiveness of the trial projects through the Inter-departmental Working Group. Taking into account technological maturity and economic viability, we will formulate the next development blueprint in due course, and make good use of existing resources and relevant funds to support suitable applications as well as research and development projects, thereby promoting the development of hydrogen energy in Hong Kong.
Besides, hydrogen vehicles offer the advantages of electric vehicles, such as zero emission and minimal noise pollution, while also providing higher energy capacity and longer driving range. However, relevant technologies are still under trials or at an early stage of development, hydrogen fuel cell (HFC) vehicles have no competitive edge for small-and-medium sized and short-to-medium ranged vehicles at this moment. Therefore, the Government is currently focusing on promoting electric vehicles, which have more mature technologies and supporting infrastructure, to drive the green transformation of vehicles in Hong Kong. At the same time, the Government will also support trials of hydrogen vehicles. As Hong Kong is a compact city, the daily travel distance of most of the vehicles is relatively short. It would be more appropriate for Hong Kong to focus on exploring the development of hydrogen heavy vehicles and hydrogen cross-boundary vehicles.
At present, three HFC street washing vehicles operated by the Food and Environmental Hygiene Department under the Government fleet are undergoing operational trials. The Government will collect data and gather experience of the three HFC street washing vehicles and review the operation of other HFC vehicle trial projects to further assess the future plan for the promotion of hydrogen vehicles and the arrangement for resource allocation.
In addition, the Marine Department (MD) has launched the first pilot project for methanol-powered vessels under the Government fleet, involving the building of two methanol-powered vessels for the MD. The vessels are expected to enter into service in 2029.
(5) To promote the trials of HFC heavy vehicles, the Government launched a funding scheme under the New Energy Transport Fund (the NET Fund) in December 2024 and earmarked HK$100 million in the first phase to provide funding support for local companies for the procurement of HFC heavy vehicles, establishment of hydrogen refilling facilities and hydrogen fuel expenses during the trial period.Issued at HKT 12:45
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HKUST and consortium of French companies ink pact to advance low-carbon retrofit via new investment model
Source: Hong Kong Government special administrative region – 4
Invest Hong Kong (InvestHK) today (July 8) welcomed the signing of the first works contract and a second-phase Memorandum of Understanding (MOU) between the Hong Kong University of Science and Technology (HKUST) and a consortium of French companies, marking a progressive step that translates the low-carbon retrofit partnership commenced in September 2025 into concrete action.
Signed by HKUST, Schneider Electric and Veolia, the works contract sets a retrofit pilot in motion at the Lee Shau Kee Business Building on the HKUST campus. It adopts a groundbreaking Energy Performance Contract (EPC) model, under which both French companies finance the upfront investment, to be recovered over a 15-year term through verified energy savings, while HKUST bears no construction or equipment costs. At its heart is an AI-powered system that senses real-time classroom occupancy and adjusts the cooling mechanism automatically, keeping users comfortable while cutting wasted energy. The project is expected to be completed within 24 months.
As well, HKUST, Bouygues-Dragages and Veolia signed the second-phase MOU that aims to extend the collaboration beyond the initial building to student residences and other campus blocks. It will also explore innovative financing mechanisms to support the broader retrofitting across Hong Kong. Together, these two agreements move the partnership toward a scalable, data-oriented, and market-driven model for decarbonising the city’s built environment.
These latest initiatives build upon the publication of the Team France Green Paper by a coalition of French diplomatic, trade, and commercial entities in Hong Kong back in April 2024 – collectively known as Team France – dedicated to accelerating the city’s path to carbon neutrality by 2050. Supported by the strategic advisory of the Consulate General of France in Hong Kong and Macau and the facilitation of InvestHK, this groundwork led to a pilot retrofit partnership with HKUST in 2025.
Officiating the signings, the Consul-General of France in Hong Kong and Macau, Ms Christile Drulhe, said, “After the signing of the first-phase MOU last year, I am delighted to see HKUST and our partners in Team France press ahead and turn ambition into action through this pioneering project. By leveraging the HKUST campus as a pilot to drastically reduce energy consumption and French investment as a test case of public-private partnership, this initiative powerfully demonstrates how French innovation and Hong Kong excellence can accelerate the low-carbon transformation of our built environment.”
The Director-General of Investment Promotion of InvestHK, Ms Alpha Lau, said, “Carbon neutrality is crucial to communities and businesses alike, while offers immense business opportunities. This collaboration highlights how world-class European green technology aligns with Hong Kong’s targeted green ambitions. In this groundbreaking pilot, we do not just facilitate investment but also help build an addressable sustainability market that connects government, industry, academia, research and investment.”
Acting President of HKUST, Professor Tam Kar-yan, said, “Our partnership with Team France began in 2025 with an MOU to explore opportunities in building decarbonisation and retrofitting. That MOU laid a strong foundation for what we formalise today: a performance-based model defined by measurable outcomes and clear accountability under this EPC. We are moving from intention to implementation, and through a second-phase MOU with Team France, expanding collaboration to the broader retrofit initiative, reflecting HKUST’s enduring commitment to decarbonisation, energy efficiency, and a net-zero future.”
Given that over 90 per cent of Hong Kong’s existing buildings are expected to still be standing in 2050, the retrofit sector offers substantial opportunities for European and international companies to invest, innovate, and grow, while contributing to the high-quality development of the city.
Speech by FS at LEAP East 2026 Opening Ceremony (English only)
Source: Hong Kong Government special administrative region – 4
Following is the speech by the Financial Secretary, Mr Paul Chan, at the LEAP East 2026 Opening Ceremony today (July 8):
Your Excellency Minister Alswaha (Minister of Communications and Information Technology of Saudi Arabia, Mr Abdullah Alswaha), distinguished guests, ladies and gentlemen,
Good morning, and welcome to Hong Kong.
I am delighted that this very first LEAP conference held outside Saudi Arabia is in Hong Kong. We are honoured that you have chosen us as your partner for this new chapter. With some 35 000 participants from over 30 countries and territories, this turnout speaks volumes about the global appeal of LEAP East and the strength of our shared vision.
This conference builds on the deepening ties between Saudi Arabia and Hong Kong across finance, technology, infrastructure and trade, forged through frequent high-level interaction and visits by senior officials and business delegations. My sincere thanks to Minister Alswaha and his team, both for their leadership and for making the journey to Hong Kong. While you are here, I hope you will find time to enjoy the very best of our hospitality.
Today, I would like to focus my remarks on two questions: why Hong Kong is an ideal base for innovation; and how Hong Kong and Saudi Arabia – and the wider Middle East region – can seize the opportunities before us, together.
Hong Kong’s value proposition
Hong Kong is perhaps the only city in the world that connects seamlessly to both the Chinese Mainland and the rest of the world at the same time. Working under the common law system, we have robust protection for intellectual property. As a free port, capital, goods, talent and data freely flow in and out of this city. Simple, low tax is a standing feature of our regime. And we are one of the safest, most stable cities anywhere in the world. These are the foundations on which businesses, talent and creativity thrive.
We have built a burgeoning innovation and technology ecosystem, with a growing pipeline of promising start-ups and future unicorns. With strong support under the National 15th Five-Year Plan, Hong Kong is fast emerging as a leading international innovation hub. The Secretary for Innovation, Technology and Industry will share more shortly, so allow me to set out the bigger picture – how we support innovation, anchored in three key strategies.
First: “Finance+” and vibrant capital markets
Innovation needs capital, and Hong Kong is where capital and ideas meet. This is the heart of our “Finance+” strategy – using finance as a powerful enabler to drive the real economy.
Our capital markets are growing not only in scale, but also in breadth and depth. Hong Kong topped the world in IPO (initial public offering) in 2025, with 119 listings raising some US$35 billion, including many world tech champions. This year, the momentum is even more promising. We are a destination of choice for emerging Chinese and international technology companies to raise funds for global expansion. This is a genuine win-win: Companies can tap our active markets to fuel R&D and scale up at home and abroad, while investors gain direct access to the enormous upside of China’s innovation-led growth.
This is aided by our various “Connect” schemes, where international investors can access high-quality Mainland enterprises, while Mainland investors can invest in companies listed in Hong Kong.
Public markets, of course, are only part of our success story. Our venture capital and private equity ecosystem is managing over US$230 billion, second only to the Chinese Mainland in Asia.
And for frontier technologies that call for patient capital, the Hong Kong Investment Corporation – our Government’s investment flagship – has already invested in more than 200 projects, attracting over eight dollars of co-investment by international long-term capital for every dollar it invests. With an initial capital of around US$8 billion, and further injections planned later this year, it will continue to back companies looking to grow from Hong Kong into the international arena.
Fintech, in particular, is an important part of this strategy. In Hong Kong, we embrace digital assets because we see their potential to make transactions more efficient, more inclusive, and at lower costs. At the same time, we balance pro-innovation policies with regulation, keeping them within proper guardrails – so that the sector can grow with credibility, while investors and the public are protected.
Second: harnessing “AI+”
Parallel to our “Finance+” strategy is our focus on AI, which is a major engine of innovation. We have an AI+ vision: to develop AI as a strategic industry in its own right, while harnessing it as a powerful enabler across different sectors of the economy.
Hong Kong has everything it takes to build AI into a powerful industry – computing power, algorithms, data, application scenarios, talent and capital. Across every sector, from finance and industry to healthcare and education, AI is already being put to work. At the government level, we have established the Committee on AI+ and Industry Development Strategy, bringing together leaders from industry and academia to explore how AI can best transform our key sectors.
At the same time, we spare no efforts in nurturing talent and raising digital literacy through our AI Training for All initiative, because we believe our community must know how to work with AI – using it to create value, while staying alert to its potential risks.
Third: integrating technology, talent, education and industry
Our third strategy is to bring technology, education, talent and industry closely together, fostering a virtuous cycle in which one reinforces another.
The centrepiece here is the Northern Metropolis. Bordering Shenzhen, it will be home to multiple innovation and technology parks, including the Hetao area. Over there, people, goods, capital, data, and even biosamples will move efficiently across the border. It will create a truly unique cross-boundary innovation space, and an ideal base for international AI, biotech and other cutting-edge industries to conduct research, test the outcomes and deploy them at scale, hand in hand with Mainland partners.
In the western part of the Northern Metropolis, we are also developing a 1 000-hectare university town district, where leading universities, research institutes and enterprises will sit side by side, in a vibrant community where research outcomes can move quickly from the laboratory to the real world, and scale up.
Which brings me to the deepening collaboration within the cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). What makes the GBA so special is the way it weaves capital, innovation, higher education, talent and industry development into a single, integrated whole.
The Shenzhen-Hong Kong-Guangzhou cluster ranks first in the world for innovation, and its supply chains are equally impressive. A robotic company in the GBA, for instance, can source almost every component it needs within half an hour’s drive. With Hong Kong’s international financial centre at its core, the GBA indeed offers something no other region can: the combined strengths of a global financial hub, an innovation powerhouse and an advanced manufacturing base – backed by an affluent population of 88 million, and a potential market of 2.1 billion across China and Southeast Asia.
Working with Saudi Arabia and the Middle East
Ladies and gentlemen, there is enormous potential for us – Hong Kong and Saudi Arabia – to do more together. Both of us are gateways to our respective regions, and our capital markets are already linked – through mutual listings of exchange-traded funds, a milestone I was privileged to witness two years ago.
We warmly welcome Saudi and Gulf enterprises to leverage Hong Kong’s capital markets – through listings, bond issuance, asset management, or other partnerships. Let Hong Kong be your international fundraising and risk-management platform, connecting you with investors and markets across Asia and beyond.
Your ambitious transformation agenda, Vision 2030, inspires me on every visit. Hong Kong is precisely the gateway and platform where proven frontier technology and advanced manufacturing businesses from the region can settle in Saudi Arabia and expand across Europe and Africa. I plan to lead a delegation to Saudi Arabia again later this year, bringing leading companies in infrastructure, green tech, healthcare and advanced manufacturing, plus professionals in the finance, investment and professional services sector, to explore concrete projects that will advance your goals and deepen our partnership.
Closing
In the end, it all comes down to friendship and connection – between people, between ideas, between capital and opportunity. That is what LEAP is about: building those connections across regions and across cultures, on the basis of trust and friendship.
On that note, I wish this conference every success, and I am particularly delighted to note that this conference will continue to be held in Hong Kong in the coming three years. I am confident that the partnership between Hong Kong and Saudi Arabia will be even stronger in the many years to come. Thank you very much.
LCQ2: Operation of GREEN@COMMUNITY
Source: Hong Kong Government special administrative region – 4
Following is a question by the Hon Julia Lau and a reply by the Under Secretary for Environment and Ecology, Miss Diane Wong, in the Legislative Council today (July 8):
Question:
In early 2013, the Government announced the development of five pilot Community Green Stations in different parts of the territory, which were officially named GREEN@COMMUNITY in mid-2014, to promote environmental/green education and to enhance the collection network of recyclables. Currently, there are 12 Recycling Stations, 82 Recycling Stores and around 600 Recycling Spots, as well as over 100 sets of smart recycling bins, across the territory. In this connection, will the Government inform this Council:
(1) of the Government’s annual provision for the GREEN@COMMUNITY project in each of the past three financial years; the actual operating expenditure, and the percentage of rental expenses therein; and
(2) given that in its reply to a question raised by a Member of this Council on April 30 last year, the Government indicated that the Environmental Protection Department was reviewing the tender arrangements and requirements for GREEN@COMMUNITY facilities, for example, by introducing different types of operators for Recycling Stores to reduce costs through enhanced competition; relocating some Recycling Stores to suitable government facilities and making greater use of smart recycling devices to gradually transform the operation of Recycling Stores into self-service recycling facilities, so as to reduce the rental expenses and operating costs, of the relevant progress?
Reply:
President,
Since its establishment, the community recycling network GREEN@COMMUNITY has shouldered the mission of fostering a waste reduction atmosphere, promoting a green lifestyle, and strengthening environmental education. It is dedicated to cultivating public awareness of environmental protection and encouraging sustainable lifestyles to take root within the community.
In 2015, the Environmental Protection Department (EPD) launched the Recycling Stations project, operating fixed community recycling centres to serve as regional hubs, and promote environmental protection through educational activities. Since 2020, the EPD has progressively set up (i) Recycling Stores, operating at fixed locations across 18 districts in Hong Kong; (ii) Recycling Spots, using street booths operating at regular schedules and locations to serve areas without fixed recycling facilities; and (iii) smart recycling bins, which not only facilitate self-service recycling for the public but also enable more efficient planning of recyclable collection services. By reaching into Public Rental Housing (PRH) Estates and clusters of single-block building, we provide convenient and efficient recycling services for the general public. Our service focus has gradually evolved from education and outreach to popularisation. At present, the GREEN@COMMUNITY network has expanded to over 800 collection points, comprising 12 Recycling Stations, 82 Recycling Stores, around 600 Recycling Spots, and over 140 sets of smart recycling bins.
To achieve the goal of “Zero Landfill” by 2035 as planned and to continue promoting waste reduction at source, the Government is taking forward a five-year waste reduction and recycling plan. This plan includes the progressive upgrading and transformation of GREEN@COMMUNITY to ensure that the recycling system, with GREEN@COMMUNITY as its backbone, is more user-friendly and cost-effective.
My reply to the question raised by the Hon Julia Lau is as follows:
(1) Operational expenditure and share of rental expenses in the past three financial years
The operation of GREEN@COMMUNITY facilities is funded by the Government, involving various expenses including the procurement and installation of recycling equipment, maintenance and repair, collection and transport of recyclables, incentives (such as gifts or GREEN$ points) to encourage public participation in recycling, and educational and promotional activities.
The amount of recyclables collected by GREEN@COMMUNITY increased from about 27 000 tonnes in 2023 to about 47 500 tonnes in 2025, an increase of over 75 per cent. This reflects that the expansion of facilities has effectively enhanced the coverage and effectiveness of recycling services.
Furthermore, 50 Recycling Stores in PRH estates have been progressively commencing services since the second quarter of 2023. Meanwhile, to enhance the overall cost-effectiveness of GREEN@COMMUNITY operations, the EPD has been gradually relocating some Recycling Stores to government facilities. These measures have led to a year-on-year decrease in the share of rental expenses for the relevant facilities.
The EPD disburses operating fees to the operators of the GREEN@COMMUNITY facilities based on the services provided, operational performance, and the actual amount of recyclables handled. The operating expenditures of the GREEN@COMMUNITY project were $313 million in 2023-24 and $480 million in 2025-26. Over the same period, the share of rental expenses (only applicable to Recycling Stores) decreased from 21 per cent to 11 per cent. Details are set out in the Annex.
(2) Tendering arrangements, rental costs and enhancement of service models
The EPD has reviewed and finalised the tendering arrangements and requirements for GREEN@COMMUNITY, and has implemented various measures to enhance competition and reduce costs, with a view to using public resources more efficiently while expanding recycling services. The measures mainly focus on three aspects: (i) introducing competition and refining contract models; (ii) relocating to government facilities to reduce rental expenses; and (iii) extending service hours and promoting self-service recycling.
Introducing competition and refining contract models
In terms of contract arrangements, the EPD, for the first time, allowed private enterprises to participate in the bidding for the contracts of 12 Recycling Stores in early 2025. The market response was very enthusiastic, with over 60 bids received. The operating expenditure of these contracts was on average about 20 per cent lower than that of the previous contracts awarded between 2021 and 2022, demonstrating that introducing competition can effectively reduce operating costs.
In November 2025, the EPD consolidated 22 contracts for the 50 PRH estate Recycling Stores into 14 contracts. Through regional synergy and the sharing of backend workshops, the operating expenditure of these new contracts is expected to be on average about 30 per cent lower than that of the previous contracts awarded between 2023 and 2024.
Relocating to government facilities to reduce rental expenses
In terms of reducing rental expenses, the EPD has been actively relocating some Recycling Stores to government facilities with higher patronage. For example, GREEN@ABERDEEN in the Southern District was relocated to Aberdeen Market in May 2023. GREEN@HUNG SHUI KIU in Yuen Long District and GREEN@LUEN WO HUI in the North District were relocated to Hung Shui Kiu Environmental Hygiene Complex and Luen Wo Hui Market for operation in September and December 2025 respectively. GREEN@ON YU locating in On Yu Road Environmental Hygiene Complex in Sai Kung, is expected to commence operation within 2026. It will also provide storage space for Recycling Stores nearby, thereby reducing the need to rent additional workshops.
Extending service hours and promoting self-service recycling
In terms of service models, the daily service hours of all Recycling Stores have been extended from 10 hours to 13 hours. The extended service hours make it more convenient for working citizens to participate in recycling. In addition, self-service time slots have been introduced to reduce manpower requirements and enhance operational efficiency.
Five-year waste reduction and recycling plan: district-based consolidation and smart transformation
With the continued expansion of recycling facilities and investment of resources, recycling services need to move towards smart and systematic upgrading. To this end, the Government has launched a five-year waste reduction and recycling plan in this financial year. This includes the phased conversion of all 82 Recycling Stores into 24-hour self-service smart recycling facilities. The first 24-hour self-service smart Recycling Store is expected to commence operation in the third quarter of 2026 to test the operation workflow, collect operational data and gain experience. The smart transformation of the remaining Recycling Stores is expected to be progressively completed within 2027.
Meanwhile, the EPD will, based on the situation across 18 districts, consolidate the GREEN@COMMUNITY facilities currently operated by different organisations into district-based community recycling networks, with a single operator responsible for the operation of all recycling points, door-to-door collection services and logistics arrangements within each district. This will create economies of scale, enhancing overall operational efficiency and cost-effectiveness. We are currently preparing the relevant tender documents.
In addition, the EPD plans to progressively expand the deployment of smart recycling bins to more PRH and private housing estates, making recycling more convenient for the public. We will also leverage information technology and big data analytics to develop a more efficient smart recycling logistics system, optimising operations and logistics processes, further reducing costs, and establishing a more efficient community recycling network for Hong Kong.
Thank you, President.
Local man convicted and jailed for possessing duty-not-paid cigarettes
Source: Hong Kong Government special administrative region
Local man convicted and jailed for possessing duty-not-paid cigarettes
Customs officers intercepted a 60-year-old man for inspection at the Chung Ying Street Checkpoint in Sha Tau Kok on June 24. Upon inspection, a total of 700 duty-not-paid cigarettes were found on him and in his shoulder bag, with an estimated market value of about $3,500 and a duty potential of about $2,300. He was subsequently arrested.
Customs welcomes the sentence. The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of the offence.
Customs reminds members of the public that under the DCO, cigarettes are dutiable goods to which the DCO applies. Any person who imports, deals with, possesses, sells or buys illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.
Members of the public may report any suspected illicit cigarette activities to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hkIssued at HKT 17:25
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Hong Kong Customs arrests sole proprietor of hobby shop
Source: Hong Kong Government special administrative region – 4
Hong Kong Customs yesterday (July 7) arrested a hobby shop sole proprietor on suspicion of engaging in wrongly accepting payments in the course of selling hobby products, in contravention of the Trade Descriptions Ordinance (TDO).
Customs earlier received a number of reports alleging that someone sold hobby products through his/her own online shop, an online marketplace with instant-messaging software, but failed to supply the ordered goods within the specified date or a reasonable period after accepting payments from customers. Also, no refund was offered in a timely manner. As of yesterday, the reports received by Customs involved 13 customers and 276 hobby products, with the total monetary amount involved being about $238,000.
After investigations, Customs officers yesterday arrested a 31-year-old man suspected to be connected with the case. He is the sole proprietor of the hobby shop.
An investigation is ongoing. The arrested man has been released on bail pending further investigation.
Customs reminds traders to comply with the requirements of the TDO. Under the TDO, any trader commits an offence if at the time of acceptance of payment, the trader intends not to supply the product or intends to supply a materially different product, or there are no reasonable grounds for believing that the trader will be able to supply the product within a specified or reasonable period. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.
Meanwhile, consumers should make orders through reputable traders. After purchasing the products, consumers should keep the transaction documents, such as records of communication, receipts of payment, etc, as a basis of a complaint in the future.
Members of the public may report any suspected violations of the TDO to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).
ICAC continues to combat corruption on all fronts charting new milestones for the Country and Hong Kong
Source: Hong Kong Government special administrative region – 4
The following press release is issued on behalf of the Independent Commission Against Corruption:
The Independent Commission Against Corruption (ICAC) will actively align with the 15th Five-Year Plan of the Country in combating corruption and fully co-operate with the Hong Kong’s First Five-Year Plan to continue advancing its anti-corruption work, charting new milestones for the Country and Hong Kong, according to its latest annual report.
Tabling the 2025 ICAC Annual Report at the Legislative Council today (July 8), Member of the Legislative Council and Member of the ICAC’s Advisory Committee on Corruption the Hon Chan Yung, noted that last year, the Commission continued to adopt its “three-pronged” strategy in fighting corruption through law enforcement, prevention, and education, bringing fruitful results. The ICAC also actively promoted international co-operation, making significant contributions to the global anti-corruption cause.
Hong Kong’s probity situation remained highly acclaimed by international ranking institutions. In the “Corruption Perceptions Index 2025” released by Transparency International, Hong Kong was ranked 12th out of 182 countries and territories, rose five places from the previous year to the second place in Asia.
In the 2025 ICAC Annual Report, the ICAC Commissioner, Mr Woo Ying-ming, remarked that the Recommendations of the CPC Central Committee for Formulating the 15th Five-Year Plan for Economic and Social Development, which provided a top-level design and strategic blueprint for the Country’s development over the next five years, will be of great significance and impact to Hong Kong. The ICAC will actively align with its anti-corruption work to promote a culture of probity and fully co-operate with the Hong Kong Special Administrative Region (HKSAR) Government’s five-year plan to ensure that Hong Kong aligns with national policies with integrity.
“The ICAC will continue to combat corruption through robust law enforcement to safeguard Hong Kong’s rule of law. With our anti-corruption mission as our driving force, the ICAC will actively align with the national development strategy and support the Chief Executive and the HKSAR Government in improving the executive-led system. The Commission will stand firm to advance its anti-corruption work, charting new milestones for the Country and Hong Kong,” Mr Woo noted.
In 2025, the ICAC received a total of 1 780 non-election-related corruption complaints, representing a decrease of 14 per cent compared to 2024. Public trust in the Commission remained strong, as approximately 70 per cent of the overall corruption complaints were non-anonymous. The ICAC Annual Survey published last year showed that 98.7 per cent of respondents stated they had not come across corruption personally in the past year, consistent with the findings over the past decade.
In the public sector, the civil servants remained clean and honest. The ICAC completed 67 assignment studies for government departments and public bodies as part of a sustained effort to reduce corruption risks in public administration. The ICAC has been working closely with heads of departments to strengthen internal governance and improve overall effectiveness.
As for the private sector, the industries receiving the most corruption complaints remain a priority focus for the ICAC. Regarding the building management and maintenance subsector, the ICAC took the lead in hosting the first-ever Building Management Summit in Hong Kong in June 2025, aiming to gather all stakeholders, including relevant government departments and organisations, to jointly address these issues of public concern.
Following the Wang Fuk Court Fire in Tai Po, the public concerned more about issues relating to building management and maintenance, leading to an increase in corruption complaints. The ICAC has allocated additional resources to focus on handling these cases. The Commission will continue to co-operate closely with relevant government departments and regulatory bodies to combat corruption, bid-rigging, and other illegal activities in building renovation projects. It will also intervene early to alert flat owners to the risks of bid-rigging when contracts are awarded, thereby intercepting potential illegal activities and safeguarding the benefits of flat owners.
Regarding the finance and insurance subsectors, the ICAC has been advancing the “Banking Industry Integrity Charter” (BIIC). As of the end of 2025, all 165 licensed and restricted licence banks in Hong Kong had joined the BIIC. As for the construction subsector, the ICAC uncovered corruption and fraud in a private residential project in May 2025 and subsequently provided a series of corruption prevention recommendations to the Buildings Department.
On the integrity education and publicity front, the ICAC is committed to continuous innovation, creating an immersive anti-corruption education experience. Following the opening of the Café “1974”, the ICAC Exhibition Hall was fully renovated, extensively incorporating technological elements to attract both the public and tourists.
In promoting international anti-corruption co-operation, the ICAC actively played the role of a “super connector” in recent years. Through a “going global and bringing in” dual strategy, the ICAC shared Hong Kong’s anti-corruption experience with global partners, supporting the Country’s strategy of building a “Clean Belt and Road”. During the year, the ICAC signed Memoranda of Understanding with anti-corruption agencies of various “Belt and Road” countries, further expanding its networks in Europe and the Middle East under the initiative.
Meanwhile, the ICAC continued to promote probity values and an integrity culture through the “Anti-Corruption Tripartite Partnership” forged among the Commission, the International Association of Anti-Corruption Authorities (IAACA) and the Hong Kong International Academy Against Corruption (HKIAAC), leveraging Hong Kong’s advantages of “one country, two systems”.
In October 2025, Mr Woo was invited for the first time as President of the IAACA to attend the Group of 20 Anti-Corruption Working Group Meeting in South Africa. Mr Woo shared anti-corruption experiences while establishing strategic collaborations with anti-corruption counterparts.
The ICAC successfully transformed the HKIAAC into an international anti-corruption training platform. During the year, the HKIAAC organised 20 international training programmes, attracting about 1 800 participants from anti-corruption and related agencies around the world, effectively telling the good stories of Hong Kong’s rule of law and anti-corruption journey. The HKIAAC also conducted 11 local professional training programmes, which were attended by over 800 senior managers and professionals from various sectors.
To foster international anti-corruption collaboration, the ICAC further deepened its co-operation with the United Nations Office on Drugs and Crime (UNODC). For example, the ICAC is co-developing the Guide on Corruption Risk Management in Prison Systems with the UNODC, the ICAC also supported development of the Global Operational Network of Anti-Corruption Law Enforcement Authorities under the auspices of the UNODC, and jointly hosted the “Coding4Integrity Asian Youth Anti-Corruption Hackathon” with the UNODC and the IAACA.
Charting a new road ahead, Mr Woo noted that the anti-corruption journey is always marked by a series of tough battles. The ICAC will persistently innovate anti-corruption strategies, enhance professional competence, and embrace innovative technologies to improve work effectiveness and efficiency.
2025 ICAC Annual Report: www.icac.org.hk/icac/annual-report/2025/.
Welcome remarks by SITI at LEAP East 2026 Opening Ceremony (English only)
Source: Hong Kong Government special administrative region – 4
Following are the welcome remarks by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the LEAP East 2026 Opening Ceremony today (July 8):
Your Excellency Minister Alswaha (Minister of Communications and Information Technology of Saudi Arabia, Mr Abdullah Alswaha), Financial Secretary, Mr Paul Chan, distinguished guests, ladies and gentlemen,
Welcome to Hong Kong! It is my great pleasure to join all of you today for the LEAP East 2026 – the first time the LEAP technology conference is being held outside the Kingdom of Saudi Arabia. I would like to thank Your Excellency Minister Alswaha for extending LEAP from Saudi Arabia to Hong Kong. The Hong Kong Special Administrative Region (SAR) Government is honoured to support this landmark international event.
Standing here today, I am reminded of my duty visit to Saudi Arabia in 2024 and the pleasant experience at LEAP in Riyadh, where the first ever Hong Kong Pavilion was set up there. My visit was of course very impressive. It set in motion the new chapter for the innovation and technology (I&T) collaboration between Hong Kong and Saudi Arabia.
Today, as we are hosting LEAP East in Hong Kong, we are delighted to welcome over 340 speakers, 450 exhibitors, over 400 investors, and over 35 000 visitors from 30 countries and regions, together strong participation from 14 provinces and cities from the Chinese Mainland. Don’t forget this is the first time the LEAP organises technology conference outside the Saudi Arabia. This international gathering reflects the rising global I&T momentum, and Hong Kong is proud to serve as a “super connector” and “super value-adder” for international exchanges.
Guided by the Hong Kong I&T Development Blueprint promulgated in 2022, we are now building a comprehensive I&T ecosystem with strategic focus on life and health technologies, AI and robotics, as well as advanced manufacturing and energy and so on. Our vision remains very clear – to develop Hong Kong into an international I&T centre. Now please allow me to update you on Hong Kong’s latest I&T scene.
Being home to five of the world’s top 100 universities, Hong Kong is internationalised with strong R&D (research and development) capabilities. Our flagship InnoHK research platform now has supported 38 laboratories in collaboration with more than 30 world-renowned universities and research institutes from 12 economies, in collaboration with many research scientists from different parts of the world. Now the research laboratories have put together over 3 000 international talents. The laboratories focus on several important areas in addition to life and health technologies, robotics and AI. The new laboratories has recently expanded to sustainable development, advanced manufacturing, energy and materials. We welcome the top universities and research institutes from Saudi Arabia and around the world to join us on this meaningful journey.
Our digital infrastructure is also advancing rapidly to support future AI growth. In addition to Cyberport’s AI Supercomputing Centre, which I mentioned at LEAP 2024, the Sandy Ridge Data Facility Cluster under construction now will provide computing power of 180,000 PFLOPS around 2032, a thirty-six-fold increase that will position Hong Kong as an international data hub.
At the same time, Hong Kong’s strategic innovation platforms are taking shape. The Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone opened last December, together with its extension, San Tin Technopole, are integral pillars of our nation’s overarching strategy to build a self-reliant, world-class innovation and technology ecosystem.
The HKSAR Government’s commitment to I&T is further demonstrated through funding support, including three so-called HK$10 billion funding initiatives, more than USD3.8 billion in total. These include the Research, Academic and Industry Sectors One-plus Scheme to accelerate commercialisation of R&D outcomes; the New Industrialisation Acceleration Scheme to support smart production facilities; and the I&T Industry-Oriented Fund, a fund-of-funds to channel more market capital into the emerging strategic industries.
Our efforts are bearing fruit. The number of start-ups in Hong Kong has surged by 40 per cent since 2021, reaching 5 200 in 2025. The Shenzhen-Hong Kong-Guangzhou innovation cluster, ranked first globally in the Global Innovation Index 2025. Hong Kong ranked fourth globally in the World Digital Competitiveness Ranking 2025, and what is more, ranked second globally in the World Competitiveness Yearbook 2026.
Saudi Arabia’s Vision 2030 has opened extraordinary opportunities for technological development, digital transformation, and new industries. Under “one country, two systems”, Hong Kong enjoys the unparalleled advantages of strong support from our Motherland while remaining closely connected to the world. We are the ideal gateway for Mainland enterprises to go global, and for overseas, including Saudi Arabian, Middle East enterprises to venture into the GBA (Guangdong-Hong Kong-Macao Greater Bay Area) and the boarder Mainland market. With our global network, pivotal role in the Belt and Road Initiative, and position within the GBA’s 88-million-population market, Hong Kong is uniquely placed to support overseas companies seeking global collaboration, R&D collaboration, and access to Chinese and Asian markets. Indeed, in the past several years, we have facilitated nearly 700, leading or high-potential I&T enterprises to establish or expand their presence in Hong Kong.
Ladies and gentlemen, innovation is ultimately creating meaningful value and contributing to the betterment of humankind. Hong Kong stands ready to work with partners from Saudi Arabia, the Middle East, and around the world to build new bridges and shape a sustainable, innovative future. I invite you to experience our vibrant I&T ecosystem and explore the opportunities that await. Hong Kong offers inspiration at every hour, and I hope you will feel it throughout your stay in Hong Kong.
Finally, may I wish LEAP East every success. I wish we work together, leap forward, and make significant strides together. Thank you very much.
LCQ12: Strategies and measures for developing visitor sources
Source: Hong Kong Government special administrative region – 4
Following is a question by the Hon Yiu Pak-leung and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (July 8):
Question:
There are views suggesting that the successive completion and commissioning of the Three-runway System and Terminal 2 at the Hong Kong International Airport (HKIA), coupled with the steady implementation of the Southbound Travel for Guangdong Vehicles (STGV) policy, has brought major development opportunities to Hong Kong’s tourism industry. The Government must seize the aforesaid opportunities to enhance the layout of the air route network, develop a diversified portfolio of visitor source markets and strive to attract more transfer and transit passengers to stay in Hong Kong. In this connection, will the Government inform this Council:
(1) of the total number of passengers handled by HKIA in 2018 and in each year from 2023 up to the second quarter of 2026; and among them, of the respective numbers of local passengers, Mainland passengers, passengers from other places, and passengers transferring and transiting through Hong Kong, with a tabulated breakdown of the above figures;
(2) as the Chief Executive proposed in the 2024 Policy Address to support HKIA to explore new destinations and flights, particularly to enhance co-operation with civil aviation counterparts from Belt and Road countries, of the new direct-flight destinations introduced by Hong Kong and the respective numbers of weekly flights to and from such destinations during the period from 2025 to June 2026;
(3) as the Chief Executive proposed in the 2025 Policy Address that the Government would forge more new air services agreements and expand traffic rights with South America, Central Asia, Africa, the Middle East, etc, as the priority target regions, whether the authorities have any plans to join hands with airlines, hotels, the tourism industry, etc in formulating external publicity strategies targeting the aforesaid new visitor source markets and launching products that appeal to visitors from those markets; if so, of the details; if not, the reasons for that;
(4) as the Government has increased the Air Passenger Departure Tax (APDT) from $120 to $200 per passenger with effect from October 1, 2025 and extended the scope of passengers exempted from APDT payment, of the APDT revenue and the number of passengers exempted from APDT payment since that date, with the figures set out by month;
(5) given the progressive increase in the volume of passengers transferring and transiting at HKIA and their proportion in the overall passenger throughput of HKIA, apart from the Airport Authority Hong Kong, whether the Government has launched any specific publicity plans, or what such plans it will launch in the future, to proactively promote the latest scope of APDT exemption to other places and roll out tourism products dedicated to passengers transferring and transiting at HKIA; if so, of the details; if not, the reasons for that; and
(6) as the expansion arrangements of STGV announced by the Guangdong and Hong Kong Governments on June 8, 2026 are expected to attract more high-spending consumer groups from cities in the Guangdong-Hong Kong-Macao Greater Bay Area to use HKIA in Hong Kong, whether the Government has any plans to formulate dedicated publicity strategies for users of STGV, “Park & Fly” and “Park & Visit”, and to join hands with the tourism, retail and catering sectors in launching targeted tourism products with local characteristics; if so, of the details; if not, the reasons for that?
Reply:
President,
The Government has always been committed to promoting the development of the aviation and tourism industries, and has implemented various measures to attract and facilitate passengers from around the world and the Chinese Mainland to visit Hong Kong via Hong Kong International Airport (HKIA), thereby promoting local economic development. In consultation with the Culture, Sports and Tourism Bureau, the Financial Services and the Treasury Bureau and the Airport Authority Hong Kong (AAHK), our reply to the question is as follows:
(1) According to the statistics provided by the AAHK, the distribution of passenger at HKIA in 2018 and from 2023 to the second quarter of 2026, is tabulated below:
| Year | Passenger volume (million passenger trips) | ||||
| Arrival/departure passengers | Transfer and transit passengers | Total passenger volume | |||
| Local passengers | Mainland passengers | Other passengers | |||
| 2018 | 23.7 | 12.1 | 18.3 | 20.5 | 74.7 |
| 2023 | 17.7 | 5.3 | 8.4 | 8.0 | 39.5 |
| 2024 | 21.5 | 7.3 | 12.8 | 11.4 | 53.0 |
| 2025 | 21.9 | 8.0 | 14.8 | 16.3 | 61.0 |
| 2026 (Jan-May) (Note) | 8.6 | 3.7 | 6.5 | 8.8 | 27.7 |
Note: The figures are provisional and subject to confirmation by airlines.
(2) and (3) The Government has all along been working closely with the AAHK to strategically attract airlines to add new destinations and increase flight frequencies through outreach teams, incentive schemes and policy facilitation measures. For example, the AAHK launched the Air Network Development Programme in June 2024, which provides financial incentives to encourage airlines to launch new routes and increase flight frequencies on existing routes. As at end of May 2026, the Programme has attracted 40 airlines to launch 89 new routes covering Asia, Europe, North America and Africa, as well as to increase flight frequencies on 14 existing routes.
HKIA currently serves a total of 223 destinations. From 2025 to date, HKIA has added a total of 43 new destinations (including those in Chinese Mainland, Pakistan, Japan, Indonesia, India, Laos, Greece, Latvia, Korea, Kazakhstan, Cambodia, Norway, Malaysia, Czechia, Serbia, Italy, Germany, Australia, and Romania). These destinations are served by a total of 96 weekly scheduled passenger and cargo flights, as well as non-scheduled passenger and cargo flights or charter services.
To attract non-local airlines (in particular those from regions such as South America, Central Asia, Africa and the Middle East) to resume and/or launch new routes, the AAHK has engaged with various airlines to explore the possibility of resuming and/or launching new routes. Among these efforts, Etihad Airways resumed its Hong Kong-Abu Dhabi service in November 2025. Additionally, Delta Air Lines recently resumed its direct flight services to Los Angeles after an eight-year hiatus. Furthermore, the AAHK earlier signed a Memorandum of Understanding with Fly Khiva Group of Uzbekistan, under which both sides agreed to strengthen exchanges and co-operation in areas such as developing a comprehensive passenger and cargo air transport network, enhancing operational and service standards, sustainable development and talent training.
(4) The Air Passenger Departure Tax (APDT) has been increased from $120 per passenger to $200 with effect from October 1, 2025. The new tax rate is applicable to air tickets purchased on or after that date, and the scope of exemption has been extended to passengers who arrive and depart Hong Kong by air on the same or following calendar day; and passengers who arrive Hong Kong by other means through immigration control and depart from Hong Kong by air on the same or following calendar day.
Following the implementation of the abovementioned new measures, the monthly figures for APDT revenue and the number of passengers exempted from APDT (as at April 30, 2026) are as follows:
| Month | APDT Revenue (Note 1) ($hundred million) |
Number of passengers exempted from APDT (Note 2) (‘000) |
| October 2025 | 2.17 | 920 |
| November 2025 | 2.26 | 860 |
| December 2025 | 2.94 | 980 |
| January 2026 | 2.99 | 1 030 |
| February 2026 | 3.04 | 1 090 |
| March 2026 | 3.14 | 1 130 |
| April 2026 | 3.66 | 1 120 |
| Total | 20.20 | 7 130 |
Note 1: The administrative fees paid to the airlines and helicopter company (operators) has been deducted from the amount.
Note 2: The figures include eligible airline passengers who have been automatically exempted by the operators’ ticketing system, as well as passengers who had submitted applications through the APDT refund platform and were granted the exemptions. Passengers who were eligible for exemption but did not apply for a refund have not been included.
(5) As a regional tourism and aviation hub, Hong Kong sees many visitors transiting through the city each year. With the enhanced visa arrangements for inbound visitors launched by the Chinese Mainland, the Hong Kong Tourism Board (HKTB) will fully leverage Hong Kong’s role as a “super connector” linking the Chinese Mainland and overseas markets to strategically explore more business opportunities.
The HKTB has consolidated information on various tourism products for inbound, outbound, and transit visitors on its one-stop travel information platform Discover Hong Kong, which provides itinerary planning and travel route guides for brief stopovers in Hong Kong. These guides cover dining, retail, attractions, culture and citywalks, etc, encouraging visitors to seize the opportunity to explore Hong Kong before departure and enhancing the travel experience of transit passengers during their stay. Meanwhile, the HKTB collaborates with the trade to launch promotional travel packages tailored for high-potential markets, featuring special offers on airlines, hotels, dining, attractions and transport, so as to further strengthen Hong Kong’s competitiveness as a transit hub.
(6) The Governments of Guangdong and Hong Kong have expanded Southbound Travel for Guangdong Vehicles (Southbound Travel Scheme) since mid-2026 from the initial four applicable cities to all nine Chinese Mainland cities within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA); increased the daily travel booking quota of entry into urban area from 100 vehicles to 200 vehicles; and introduced the “Park & Visit” service to allow Guangdong travellers to park their vehicles and enter Hong Kong via the passenger clearance building at the Hong Kong Port of the Hong Kong-Zhuhai-Macao Bridge.
In tandem with the expansion of the Southbound Travel Scheme, the Government has been encouraging the hotel, tourism and retail sectors to offer promotional packages covering shopping, parking and accommodation for self-drive travellers entering urban area, which in turn attract travellers under the Southbound Travel Scheme, especially travellers staying overnight and family travellers, to stay for spending and sightseeing in various districts in Hong Kong. In addition, the AAHK has stepped up its publicity efforts targeting travellers from the GBA. As regards the “Park & Fly” service, since its launch, the AAHK has collaborated with Chinese Mainland travel platforms, car owners’ associations and airlines to promote the service and related user guides through social media, key opinion leaders, and interviews by Chinese Mainland media. As regards the forthcoming “Park & Visit” service, the AAHK will continue to adopt the aforementioned promotional approach, and will explore joint promotional initiatives with its business partners in Lantau, with a view to attracting GBA travellers to drive into Hong Kong, visit different attractions and communities after arrival, and thereby promote the development of local tourism, retail and catering sectors.
LCQ3: Sustainable development of public museums
Source: Hong Kong Government special administrative region
LCQ3: Sustainable development of public museums
Question:
There are views that on the premise of not affecting public services, public museums should proactively expand diversified revenue channels. In this connection, will the Government inform this Council:
(1) whether it has compiled statistics on the (i) income, (ii) expenditure, (iii) total attendance, and (iv) average facility utilisation rate of all museums under the Leisure and Cultural Services Department (LCSD) and the West Kowloon Cultural District (WKCD) Authority respectively in each of the past five years;
(2) of the respective annual remuneration of the top five senior management personnel of the Hong Kong Palace Museum and M+ since the official commencement of operations; moreover, as it is reported that over 10 self-service donation kiosks will be installed at various venues across the WKCD starting from the 1st of this month to encourage members of the public to support the development of arts and culture, whether it knows the expenditure on purchasing such donation kiosks, the estimated maintenance costs, and the estimated amount of donations to be received in the next three years; and
(3) of the latest progress, costs involved and expected economic gains of the authorities’ introduction of market-based business models into museums under the LCSD; whether there are plans to promote collaborations between museums under the LCSD and private enterprises for strategic brand crossovers and franchising, so as to develop more diversified revenue sources?
Reply:
President,
Museums play a vital role in cultural inheritance and social education. The Government continuously reviews the development and future plans of the 15 museums under the Leisure and Cultural Services Department (LCSD), in order to meet the general public’s need for museums and art appreciation. Meanwhile, to promote the diverse development of Hong Kong’s local cultural ecosystem, the Government drives the development of the West Kowloon Cultural District (WKCD) project, providing the West Kowloon Cultural District Authority (WKCDA) with a one-off upfront endowment of $21.6 billion and the development rights of the land within the WKCD for constructing and operating the WKCD project on a self-financing basis.
My reply to the question raised by the Hon Chan Pui-leung is as follows:
(1) The public mission of museums under the LCSD is to preserve and promote tangible and intangible cultural heritage. In addition to organising exhibitions on various subjects, such as visual arts, history, culture, science and technology, the museums also actively provide broad access to cultural education and services (such as lectures, demonstrations, workshops and roving exhibitions). Since August 2016, with the approval of the Legislative Council, the Government has been offering free admission to permanent exhibitions of museums, while charging a modest admission fee for the permanent exhibitions of the Hong Kong Science Museum and the Hong Kong Space Museum to meet their operational needs. This arrangement is in line with the practice adopted by public museums in the Chinese Mainland, where permanent exhibitions are generally open to the public free of charge. Although LCSD museums are not operated primarily for profit, they actively generate revenue from various sources, including tickets sales for film screenings, licence fees from shops and cafes, rental charges for hiring facilities, and sales of cultural and creative products.
As for the WKCD, both M+ and the Hong Kong Palace Museum have proactively expanded their revenue streams. A number of exhibitions and cultural and creative products of the two museums have been well-received by the public. Currently, admission income, sponsorships, and commercial revenue (including venue hiring, cultural and creative products), each accounts for about one-third of the total income. The combined income of the two museums in 2025-26 increased by more than 20 per cent compared to the previous year.
Detailed data of the museums under the LCSD and the WKCDA are set out in Annex I.
(2) There are a total of seven senior executives in the two museums of the WKCD, with the total remuneration expenditure amounting to approximately $20.9 million in 2025-26. When determining the pay adjustment, the WKCDA takes into account multiple factors, including Hong Kong’s market pay and economic conditions, the staff turnover rate and financial position of the Authority, and the work performances and existing pay positions of the executives. Please refer to Annex II for details.
Fundraising income is one of the most important income sources of the WKCD and accounts for about one-third of the overall recurrent operating income. In 2025-26, the fundraising income of the WKCDA reached $219 million, representing an increase of over 30 per cent compared to the previous financial year. The WKCDA draws on the experience of overseas cultural institutions in attracting individual donations, and installed self-service donation kiosks in the museums, performing arts venues and other venues in the WKCD since July 1 this year, to facilitate the public to support the WKCD in promoting arts and culture development. There is no additional cost implication to the WKCDA, as the self-service donations kiosks are developed and manufactured by a technology company which will also cover the operating expenses. The objective of the WKCDA is to foster public support and participation in the development of arts and culture, and the self-service donation kiosks primarily solicit small donations which are not expected to account for a substantial proportion of the overall fundraising income.
(3) The 2025 Policy Address has announced that the LCSD will introduce market-based business models in designated facilities to provide more diverse value-added activities. These include leasing out museums on their closing days for commercial or private use and opening up more venues for hire. In this connection, the LCSD invited the submission of Expressions of Interest (EOIs) in end 2025 regarding the introduction of a market-oriented operation model at relevant facilities. A total of 14 EOIs were received. The respondents included organisations engaged in event or advertising planning, as well as property development companies, among which a number of concepts and proposals were of reference value. The LCSD increased the number of venues available for hire in the tender in response to the suggestions made in the EOIs and invited tenders in April 2026 for introducing market-based business models at 26 designated LCSD facilities, such as the Hong Kong Museum of Art and the Hong Kong Science Museum. It is anticipated that operators will be appointed by the end of 2026. The associated revenue and costs will be subject to the monthly fee levels proposed by the successful bidders, and the actual expenses involved in the activities. Following the implementation of the initiative, the LCSD will continuously assess its economic benefits.
The LCSD has all along welcomed crossover collaborations with corporations and commercial brands, aiming to leverage their branding impact to promote museum activities and programme. Crossover products previously launched through collaborations between the LCSD museums and commercial brands include phone cases, food products, and brick sets. Looking forward, the LCSD will continue to explore more collaborative initiatives under market-based business models. Thank you, President.
Issued at HKT 14:09
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