Category: MIL-OSI

Source: Hong Kong Government special administrative region

Chapter VII  

Promote the Integrated Development of Education, Technology and Talents

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

(A) Build an International Education Hub

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

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

Post-secondary Institutions

Relax Restrictions on Admission of Self-financing Students

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

Increase Student Hostel Supply

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

Attract More International Teaching and Research Talents and Students

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

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

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

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

Advance the Development of Universities of Applied Sciences

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

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

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

Primary and Secondary Schools

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

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

Promote the International Recognition of the Diploma of Secondary Education Examination

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

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

Develop International Schools

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

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

Promote Digital Education

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

Enhance the Quality of Teaching and Learning

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

(B) International Innovation and Technology Centre

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

Improve the Strategic Layout of Innovation and Technology Infrastructure

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

Accelerate the Development of New Industrialisation

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

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

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

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

Support People-oriented Scientific Research

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

Promote the Development of a Low-altitude Economy Ecosystem

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

Formulate an Action Plan

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

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

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

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

Enhance the Regulatory Sandbox

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

Develop Low altitude Economy Insurance Products

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

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

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

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

(C) Regional Intellectual Property Trading Centre

Promote Intellectual Property Trading

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

Bolster Intellectual Property Financing

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

Patent Valuation Services and Subsidies

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

Protect Intellectual Property Rights

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

External Promotion

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

(D) Nurture Talents

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

Promote Youth Development

Youth Training and Development

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

Facilitate International and Mainland Exchanges for Local Youths

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

Foster Diverse Exchanges and Experiences through the Youth Post

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

Provide More Interactive Spaces for Young People

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

Talent Admission Policies

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

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

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

Strengthen Talent Exchanges among the Industry, Academic and Research Sectors

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

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

(To be continued.)

Source: Hong Kong Information Services

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Hong Kong Information Services

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Hong Kong Government special administrative region

(C) International Shipping Centre

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

Source: Hong Kong Information Services

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region

Chapter V 

Integrate into the Overall National Development

77. As the world’s second-largest economy, our country contributes more than one-third of global economic growth, representing the greatest opportunity for Hong Kong’s development. We will fully integrate into the overall national development, capitalising on national strategies such as the GBA and high-quality co-operation under the B&R Initiative. In addition, this year is the preparatory year for the national 15th Five-Year Plan. Leveraging Hong Kong’s unique advantages, we will contribute to the national development, and deepen international exchanges and co-operation by connecting with the Mainland and the world. We will also attract more enterprises to use Hong Kong to expand overseas, thereby creating business opportunities and economic returns.

(A) “Bringing in and Going Global”: Hong Kong as a Platform for Overseas Expansion

78. China’s external direct investment exceeded RMB 1 trillion last year, underscoring the growing global demand for “Made in China” products. Mainland enterprises are accelerating their pace to “go global”.

79. With a shift in strategic focus, Mainland enterprises are proactively exploring emerging markets. The Government will capitalise on the advantages of Hong Kong as an export platform to unlock new areas for economic growth. Mainland enterprises going global can establish Corporate Treasury Centres (CTCs) and regional headquarters in Hong Kong for cross-boundary settlement, remittance, financing and related functions. They can also tap Hong Kong’s professional high value-added supply chain services in fields such as accounting and law to help them explore overseas markets. In addition, they can leverage Hong Kong’s strengths in marketing to connect with global buyers and build international brands.

80. In last year’s Policy Address, I announced that we would develop Hong Kong into a high value-added supply chain service centre, attracting more enterprises to establish a presence in Hong Kong and expanding our headquarters economy. In 2024, Hong Kong was home to more than 1 400 regional headquarters of non-local enterprises, over 300 of which were from the Mainland.

81. I will establish a one-stop platform by mobilising Hong Kong’s overseas offices, including those under InvestHK and the Hong Kong Trade Development Council (HKTDC), as well as Hong Kong offices in the Mainland, and set up the Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) to encourage Mainland enterprises to use Hong Kong in expanding their businesses overseas. The Secretary for Commerce and Economic Development will steer the work of GoGlobal Task Force and co-ordinate various bureaux, departments and agencies in formulating proposals for enterprises looking to go global. Details are as follows:

(i) The HKMA will encourage the banking sector, especially banks in the Mainland, to establish regional headquarters in Hong Kong, where Hong Kong’s strengths can help them expand into markets such as Southeast Asia and the Middle East, thereby providing more comprehensive cross-boundary financial solutions.

(ii) To attract more Mainland enterprises to establish CTCs in Hong Kong, we will complete a study on tax concessionary measures to be further enhanced in the first half of 2026.

(iii) The HKMA has signed a memorandum of understanding with the Public Investment Fund of Saudi Arabia to establish a US$1 billion new investment fund, catering to enterprises in Hong Kong and other GBA cities looking to expand into Saudi Arabia.

(iv) The HKMA will collaborate with organisations such as the Hong Kong Association of Banks, the Hong Kong General Chamber of Commerce and the Federation of Hong Kong Industries to lead delegations of banking representatives and SMEs to explore business opportunities in Southeast Asian markets such as Vietnam, pooling industry strengths to support the “going global” platform.

(v) The Government will leverage the strengths of Hong Kong’s exhibition industry and consolidate our position as the ideal platform for Mainland brands to “go global” and for “bringing in” brands from around the world. We will also support the trade to organise more events conducive to brand development.

(vi) We will promote the development of carbon audit services to assist enterprises going global to meet international requirements and standards on green trade in respect of carbon emission reduction.

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

(B) Deepen International Exchanges and Co-operation

83. We will actively invite the Asian Infrastructure Investment Bank to set up an office in Hong Kong. The Hong Kong Exchanges and Clearing Limited (HKEX) will also deepen co-operation with Southeast Asian exchanges, attracting Southeast Asian issuers to seek secondary listings in Hong Kong and encouraging asset management companies to issue products in their local markets, thereby spurring asset allocation in our market.

84. The Belt and Road Office will co-ordinate local public organisations and institutes to help train the personnel of B&R countries. It will also strive for more opportunities to match commercial projects in B&R markets with Hong Kong professional service sectors.

85. We support our country to promote the participation in green co-operation with B&R countries by, among other things, jointly setting up a B&R Green Development Co-operation Platform in Hong Kong with the B&R Initiative International Green Development Coalition. The Environmental Protection Department will set up a B&R sustainable green development training centre in Hong Kong in 2026, providing training courses for the personnel of B&R countries. The Hong Kong Jockey Club (HKJC) will support the initiative with funding of $100 million. In addition, we will support local professional organisations� to promote green building assessment tools among B&R countries.

86. The Government will invite members of the Silk Road Maritime Association� to hold a summit during Hong Kong Maritime Week next year, promoting its participation in the B&R shipping brand.

87. This year and next, we will organise the World Internet Conference Asia-Pacific Summit and InnoEX; the inaugural Hong Kong Fixed Income and Currency Forum; the INTERPOL General Assembly; the GBA Conference on Inheritance, Innovation and Development of Traditional Chinese Medicine; the Association of National Olympic Committees General Assembly; the Asia-Pacific Association for International Education Conference and Exhibition; and the first Research Summit of the Research Grants Council. We will also establish the Hong Kong International Correctional Services Response Tactics Training Academy to enhance international exchanges and professional training. The Government will support local universities and professional organisations in their bids to host more international academic and professional conferences and publish influential academic journals. The Government will also participate in and promote I&T collaboration with various international and regional organisations, such as the International Organization for Standardization.

(C) Development of the Greater Bay Area

88. As one of its core cities, Hong Kong plays a vital role in driving the GBA’s development. It also plays an irreplaceable part in our country’s reform and opening up. The Government will continue to lead the entire community to dovetail with national strategies and integrate into the country’s overall development in a more proactive manner. We will also strengthen mutually beneficial co-operation with Guangdong and Macao and deepen co-ordinated development.

89. We will continue to deepen our co-operation with Guangdong and Macao, forging closer convergence of our respective rules and mechanisms to enhance the flow of people, goods, data and capital. Relevant measures include:

(i) Develop the HKIA Dongguan Logistics Park. Upon security screening and cargo acceptance in Dongguan, Mainland cargo can be transported directly to the HKIA for transhipment, significantly reducing operating costs. This is the most successful model of GBA co-operation. Phase 1 development’s permanent facilities will be completed in stages, starting from the end of this year. The preliminary study for Phase 2 development is also set to commence this year, including the introduction of more high value-added logistics and cross-boundary e-commerce facilities.

(ii) Promote a panel of GBA arbitrators and a platform for GBA commercial mediation and arbitration to lower enterprises’ costs of cross-boundary dispute resolution.

(iii) Extend cross-boundary ambulance transfer arrangements with the governments of Guangdong and Macao, including two-way ambulance transfers and expansion to cover designated hospitals in Zhuhai and Nansha.

(iv) Enhance Cross-boundary Credit Referencing and the Shenzhen-Hong Kong cross-boundary data validation platform to facilitate Hong Kong banks’ credit assessment of Mainland residents and enterprises in Hong Kong.

(v) Continuously enhance the Payment Connect, expanding to use cases for remittance related to people’s livelihood. The Government will improve disbursement arrangements for portable cash assistance next year, so that Hong Kong elderly recipients retiring in Guangdong and Fujian Provinces may opt to receive Government assistance directly through their bank accounts with designated Mainland banks.

(vi) Work with exchanges in the GBA to develop commodity trading, carbon trading and other businesses. The HKEX, a controlling shareholder of the Qianhai Mercantile Exchange, will continue to strengthen mutual co-operation for the development of the offshore spot soybean market. Core Climate, the carbon marketplace of the HKEX, will collaborate with pilot carbon markets in the GBA to explore cross-boundary trade settlements on a trial basis.

(vii) Boost collaboration between the HKIC and the Guangdong Government to help Hong Kong’s enterprises with high technology content, such as biotech and health tech start-ups, to strengthen cross-border industry chain development. Nansha will be the key base for the first phase.

(viii) The Financial Services and the Treasury Bureau (FSTB) is working with Shenzhen and Qianhai to promote digital finance development and support deeper integration of technology and finance between Shenzhen and Hong Kong. Measures are expected to be announced later this year.

â�µ The Hong Kong Green Building Council and the BEAM Society.

â�¶ The Silk Road Maritime Association was co-founded in 2018 by three large enterprises, the China COSCO Shipping Group, the Fujian Provincial Communication Transportation Group and the Xiamen Port Holding Group. The association aims to build an international integrated logistics service focused on shipping and foster economic and trade co-operation and development of countries and regions along the Maritime Silk Road. To date, the association has more than 330 members, including shipping companies, port enterprises, logistics companies and trade establishments, as well as members from upstream and downstream industries such as finance, insurance and technology.

(To be continued.)

Source: Hong Kong Government special administrative region

Chapter IV 

Industry Development and Reform

Source: Hong Kong Government special administrative region

Chapter III  

Accelerate the Development of the Northern Metropolis

43. The Northern Metropolis, our city’s strategic development area bordering Shenzhen, covers a land area and planned population intake accounting for about one-third of Hong Kong’s total. It therefore represents a substantial source of economic value and development potential, creating many jobs and boosting productivity. While the Government has been accelerating the development of the Northern Metropolis for the past three years, I remain deeply concerned about its progress, given the sheer size of the area and the magnitude of the investment required.

44. To further develop our economy and improve people’s livelihood, we must speed up the Northern Metropolis development. Accordingly, I have decided to raise the level of decision-making by establishing the Committee on Development of the Northern Metropolis under my leadership³. The committee will be tasked with streamlining administrative workflows and removing unnecessary barriers and restrictions. Embracing a new mind-set, we will adopt safe, cost-efficient, and time-saving construction methods, materials, and equipment from different jurisdictions. We will also introduce dedicated legislation to accelerate the development of the Northern Metropolis.

(A) Establish the Committee on Development of the Northern Metropolis

45. With the overall planning of the Northern Metropolis, it is now the optimal juncture to expedite the development of the area, bringing in industries and major projects. I will establish and chair the Committee on Development of the Northern Metropolis, under which the following three working groups will be set up:

(i) Working Group on Devising Development and Operation Models: led by the Financial Secretary, the working group will formulate development and operation models for industry parks in the Northern Metropolis, taking into account their nature and scale. This will include setting up one or more dedicated companies, or statutory or non-statutory bodies, for various industrial parks, devising public-private partnership approaches such as the Build-Operate-Transfer model. It will also explore shifting from “highest bidder wins” to industry-linked “two-envelope approach” for tendering. We will devise a range of financing schemes, including equity, bonds, government injections, and “provision of land as a form of capital participation”. The Development Bureau (DEVB) is conducting policy study to set up an industry park company for about 23 hectares of industry land at Hung Shui Kiu. The recommendations will be announced this year after reporting to the working group.

(ii) Working Group on Planning and Construction of the University Town: led by the Chief Secretary for Administration, the working group will study the development mode for the Northern Metropolis University Town. It will set up a research task force to conduct field trips on the successful models of university towns elsewhere, seeking views from presidents and representatives of local, Mainland, and other internationally renowned universities. It will also explore the possible way forward to deeply integrate industry development with the academic sectors where Hong Kong has an edge, alongside the strategies for attracting leading universities and research institutes in the Mainland and overseas to establish a base in Hong Kong.

Three batches of sites for the Northern Metropolis University Town will be available for use in 2026 (Hung Shui Kiu), 2028 (Ngau Tam Mei) and 2030 (New Territories North New Town) respectively at the earliest. The working group will make recommendations on the positioning and vision regarding the development of these sites to devise a clear, industry-led approach. The land in the Hung Shui Kiu/Ha Tsuen New Development Area (NDA), for example, will integrate with nearby, high-end professional services as well as vocational and professional education and training facilities for joint development. The land in Ngau Tam Mei can dovetail with the overall innovation and technology (I&T) development of the San Tin Technopole and the Loop, among others, life and health technology industries, and to be used for joint development with the third medical school and an integrated medical teaching and research hospital.

(iii) Working Group on Planning and Development: led by the Deputy Financial Secretary, the working group will be responsible for managing the end-to-end process from planning to implementation, co-ordinating and consolidating such aspects as planning, engineering, land, transportation and environmental protection, to promote industry anchoring, create job opportunities and enhance productivity. A dedicated project supervision office will be established under the working group to strengthen the co-ordination and supervision of the approval process, imposing time limits and phased reporting, to accelerate progress.

(B) Remove Barriers and Ease Restrictions to Streamline Administrative Procedures

46. The Government will streamline administrative procedures, removing barriers and restrictions. Relevant measures include:

(i) Introduce the Fast Track Processing System, adopting superior construction methods from different places, and integrate successful construction technologies, materials and equipment from the Mainland and overseas, in a bid to reduce construction costs and time.

(ii) Implement a “phased development” approach on a trial basis with reference to the Mainland’s “1.5-level development” concept. Specifically, pilot low-density facilities, such as retail, entertainment and convention and exhibition facilities will be developed initially to attract businesses, bringing income and footfall to the area to create momentum before long-term development is rolled out. We will invite market feedback on such approach of phased development for the commercial sites in Hung Shui Kiu.

(iii) Adopt diverse models such as in-situ land exchange and large-scale land disposal to promote market participation and expedite development.

(iv) Employ flexible land-grant arrangements, encouraging enterprises to set up businesses and invest in the area. Sites granted as tenancy instead of land lease may have a term exceeding seven years to provide greater flexibility. Depending on industry policies, open tendering, restricted tendering or direct land grants may be adopted.

(v) Allow land owners in the Northern Metropolis to voluntarily surrender land planned to be resumed by the Government to offset the amount payable for in-situ land exchange or large-scale land disposal in NDAs. This will promote market participation in the development.

(vi) Adopt a “pay for what you build” approach to reduce the cost of land premiums in the Northern Metropolis. In lease modifications, subject to the condition of the land parcels involved, owners will be allowed to pay the required premium according to the actual built floor area and use, rather than the maximum floor area based on the maximum plot ratio under the current planning regime. We will also consider allowing developers to pay land premiums in phases, according to the development scale.

(vii) Commence a land use review for Au Tau, to capitalise on the development potential brought by the Northern Link. We will consider a larger proportion of private housing in the area around Sha Po at Au Tau Station for development into an NDA. We will engage the Mass Transit Railway Corporation Limited (MTRCL) to conduct the review, announcing its results next year.

47. Where appropriate, we may also apply the above administrative measures to areas outside the Northern Metropolis.

(C) Dedicated Legislation to Accelerate the Development of Northern Metropolis

48. I will introduce dedicated legislation to accelerate the development of Northern Metropolis, empowering the Government to devise simplified statutory procedures for issues including setting up statutory industry park companies and providing them with dedicated channels for funding; managing the cross-boundary flow of people, goods, capital, data and biological samples in designated areas, to attract research institutes and high-end manufacturers to establish a presence in Hong Kong; speeding up the approval of building plans; relaxing permitted uses in outline zoning plans (OZPs) and fine-tuning development parameters; and expediting compensation payment for land resumption.

(D) Expedite the Development of the Loop

49. The Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone (the Co-operation Zone) is located on both sides of the Shenzhen River, comprising Shenzhen Park and Hong Kong Park. Leveraging the advantages of “one zone, two parks”, the Co-operation Zone will promote collaboration between the two parks in the development of I&T.

50. The construction of the first three buildings in Phase 1 of the Hong Kong Park of the Co-operation Zone (Hong Kong Park) has been completed. Tenants from life and health technology, microelectronics, new energy, AI and other pillar industries are gradually moving in. The construction of the other five buildings will be completed progressively from 2027.

51. The Government will roll out parcels of the remaining land in Phase 1 this year. We will complete Phase 2 planning for the development scale and distribution of industries to finalise Hong Kong Park’s overall layout and consider offering work spaces flexibly to companies under the “moving in while construction is underway” approach. That will enable them to move in earlier without having to wait for the completion of the entire park’s construction.

(E) Development Outline for the San Tin Technopole

52. The San Tin Technopole, spanning some 210 hectares� of land for I&T, will serve as a strategic base for the I&T industry. The Government will publish the Conceptual Outline of the Development Plan for the Innovation and Technology Industry in the San Tin Technopole this year. It will cover top-level planning, industry positioning and layout, the co-ordinated development of land parcels, and the strategies for channelling market resources to invest in the development.

(F) Expedite Transport Infrastructural Development

53. To dovetail with the development of the Northern Metropolis, construction works of Kwu Tung Station and Hung Shui Kiu Station are proceeding in full swing for completion in 2027 and 2030 respectively. Adopting an innovative mind-set, the Government has signed the Part 1 Project Agreement with the MTRCL. It will concurrently develop the Northern Link Spur Line in combination with the Main Line, achieving simultaneous commissioning by 2034 or earlier.

54. Cross-boundary railway projects will lead to the comprehensive integration of metro networks in Hong Kong and Shenzhen, significantly enhancing the GBA’s infrastructure connectivity and boosting industry’s confidence in setting up operations. We are pressing ahead with the Hong Kong-Shenzhen Western Rail Link (Hung Shui Kiu-Qianhai) project and have invited expressions of interest from contractors and operators on the Hong Kong section of the project.

³ The existing Steering Committee on the Northern Metropolis will be discontinued.
â�´ Not including the 87-hectare Hong Kong Park.

(To be continued.)

Source: Hong Kong Government special administrative region

Chapter II  

Steadfastly and Successfully Implement “One Country, Two Systems” and Strengthen Our Governance Systems

(A) Resolutely Implement the “One Country, Two Systems” Principle “One Country, Two Systems” Remains Unchanged

10. As President Xi Jinping pointed out, “One Country, Two Systems” possesses its distinctive institutional strengths and strong vitality, is a good system that sustains the long-term prosperity and stability of Hong Kong and Macao. It is a good system that facilitates endeavours to build China into a great country and achieve national rejuvenation, and it is a good system for ensuring peaceful coexistence and mutual benefit between different social systems. So we must stay committed to this cause.

11. We will continue to fully, faithfully and resolutely implement “One Country, Two Systems”, “Hong Kong people administering Hong Kong” and a high degree of autonomy. “One Country, Two Systems” is the best institutional arrangement for maintaining Hong Kong’s long-term prosperity and stability. The more firmly the “One Country” principle is upheld, the greater the strength the “Two Systems” will be unleashed.

12. Being a global metropolis, Hong Kong has remained an open, inclusive, safe and stable city underpinned by the rule of law since our return to the Motherland 28 years ago. With an ever-expanding influence internationally, Hong Kong is rated the world’s freest economy, as well as an advanced and business-friendly city. These fully demonstrate the notable institutional strengths and great vitality of “One Country, Two Systems”.

13. Hong Kong has solid backing from the Motherland, enjoying far-reaching opportunities brought by national development, from the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to the Belt and Road (B&R) Initiative. Meanwhile, as an international city with its distinctive role of connecting to the rest of the world, Hong Kong also has infinite room for development.

14. The Hong Kong Special Administrative Region (HKSAR) Government will, as always, maintain the constitutional order of the HKSAR as stipulated under the Constitution and the Basic Law, ensuring the steadfast and successful implementation of “One Country, Two Systems”.

Safeguard National Security

15. The fundamental premise of “One Country, Two Systems” is to safeguard sovereignty, security and development interests of our nation.

16. Since the implementation of the Hong Kong National Security Law five years ago, we have overcome turmoil and unrest, and maintained safety and stability in our society. Hong Kong has transitioned from chaos to order and is now advancing from stability to prosperity. The HKSAR Government will continue to steadfastly safeguard national sovereignty, security and development interests, while thoroughly adopting the Holistic Approach to National Security. We will remain vigilant at all times, prevent and mitigate risks, and ensure the long-term stability and safety of Hong Kong.

17. We will continue to enhance the legal system and enforcement mechanism for safeguarding national security, doing our utmost to ensure that laws are observed and strictly enforced to bring offenders to account, so as to prevent, suppress and impose punishment for acts and activities endangering national security.

18. The Government will spare no effort in promoting national security education. Since its opening a year ago, the National Security Exhibition Gallery has already attracted over one million visitors. More than 3 300 national security education district tutors have been trained to promote national security messages in the community.

Implement “Patriots Administering Hong Kong”

19. With the improved electoral system and district governance system of the HKSAR, the principle of “patriots administering Hong Kong” has been fully implemented. The HKSAR Government has held six important elections, including the recent Election Committee Subsector By-elections.

20. The HKSAR will devote all efforts in preparing for the general election for the eighth-term Legislative Council (LegCo) to be held on 7 December this year, ensuring that the election is conducted in a fair, just, honest, safe and orderly manner.

Improve Governance at District Level

21. As part of the reforms to improve district governance, the Government set up the Steering Committee on District Governance and the Task Force on District Governance in July 2023. They are chaired by the Chief Secretary for Administration and the Deputy Chief Secretary for Administration respectively, with the aim of strengthening co-ordination to address issues such as environmental hygiene, community beautification, facility development and community services more effectively.

22. The Home and Youth Affairs Bureau (HYAB) and the Home Affairs Department (HAD) will continue to lead District Councils (DCs), the “three district committees”¹ and Care Teams to proactively harness local strengths to foster compassion and vibrancy within the community.

(B) Patriotic Education

Commemorate the 80th Anniversary of Victory in the Chinese People’s War of Resistance against Japanese Aggression and in the World Anti-Fascist War

23. This year marks the 80th anniversary of victory in the Chinese People’s War of Resistance against Japanese Aggression and in the World Anti-Fascist War. The HKSAR Government has organised a series of large-scale commemorative activities, including exhibitions, film screenings and library events, for the public to gain a deeper understanding of the spirit of unity and resilience displayed by Chinese people in the fight for peace. We will collaborate with Shenzhen to promote a new red educational route, under the theme of “Chinese Cultural Celebrity Rescue” history, so as to enhance understanding among people of Hong Kong and tourists of the history of the War of Resistance in Hong Kong.

24. We will comprehensively review and conduct restoration and protection work on historic sites relating to the participation of the Communist Party of China in the War of Resistance in various districts, with a view to integrating them into tourism routes and educational activities.
Promote Chinese Culture

25. The Government will give full play to the role of the Chinese Culture Promotion Office. This includes curating the Chinese Culture Festival and exhibitions of the General History of China series as signature projects, and spearheading the establishment of a museum to showcase the development and achievements of our country, as well as the Chinese Culture Experience Centre. The Office will also continue to launch a broad spectrum of community-oriented initiatives to promote Chinese culture.

Promote Activities and Facilities on Patriotic Education

26. The Government will promote patriotic education facilities in the Mainland, making them the patriotic education bases of the HKSAR to encourage more students and young people to visit.

27. We will establish close connection with patriotic groups to unite efforts in organising more patriotic education activities.

Strengthen Students’ Affection for and Sense of Belonging to the Country

28. The Education Bureau (EDB) will integrate patriotic education into daily learning and teaching. We will popularise the “Love Our Home, Treasure Our Country” series of activities, continuously strengthen the Constitution and Basic Law Student Ambassadors Training Scheme, design itineraries for students to experience the founding history of our country, and conduct focus inspections on national education. We will also continue to provide professional development and activities for teachers and students that tie in with the updated national security education, promulgate the final version of the Values Education Curriculum Framework, and optimise the curriculum frameworks for the senior secondary Chinese History and History subjects.

(C) Further Enhance Governance

Establish the Heads of Department Accountability System

29. Since assuming office, I have been constantly taking forward reforms to build a “result-oriented” government. In the World Competitiveness Yearbook 2025, Hong Kong ranked second globally in “Government efficiency”, reflecting well on Hong Kong’s civil servants being an outstanding team, and the reforms introduced by the current-term Government, alongside the concerted efforts of the civil service.

30. Nevertheless, given the large number of executive departments and officers in the Government, problems inevitably occur in individual departments. The causes behind them must be identified in good time and rectified to prevent them from undermining the overall trust that society places in the Government, and to avoid causing injustice to the overwhelming majority of our civil servants, who are dedicated to their duties.

31. I believe that effective management is of utmost importance. Senior civil servants are all responsible for management. I have therefore been considering ways to strengthen their sense of responsibility to enhance the overall management standard of the departments. After considerations, I believe that the most direct and effective way is to strengthen the accountability of the HoDs by clearly emphasising that HoDs are tasked to build a strong management team, and lead their senior civil servants to jointly manage staff and operation systems. While HoDs have always been responsible for the work of their departments, the Government has not yet institutionalised overall accountability. Establishing a Heads of Department Accountability System (the HoD Accountability System), therefore, is of critical significance. The details are as follows.

Aims

32. Establishing the HoD Accountability System has the following primary aims:

(i) To render the political accountability required of Secretaries of Department and Directors of Bureau in policy formulation, and the administrative accountability required of civil servants in implementing policy initiatives better articulated with each other, with clarification of their respective roles.

(ii) To drive HoDs to establish an effective management team and operating systems, eliminating bottlenecks and plugging shortfalls, improving workflow on an ongoing basis, and continuously enhancing departmental efficiency.

(iii) To identify the deficiencies whenever a problem occurs in a department, putting in place improvements, attributing responsibility to the appropriate parties, and taking administrative or disciplinary actions against those responsible in accordance with the civil service management regime. The consequences include warnings, reprimands, not being granted a salary increment, relegation in rank, reduction in salary, compulsory retirement and even dismissal.

The Investigation Mechanism

33. Investigations will be divided into two tiers, in accordance with the severity of the problems identified:

(i) Tier I: if the problems are of a general nature, the investigation should be taken up by the HoD concerned. They will be responsible for identifying the deficiencies of the department and putting in place improvements, taking forward administrative or disciplinary actions against the officers who have underperformed or engaged in misconduct in accordance with the civil service management regime.

(ii) Tier II: if a serious problem occurs in a department or the problem is widespread or a repetitive, systemic one, or there are indications that the HoD concerned is implicated in the problem, the investigation will be carried out by an investigation panel set up specifically under the HoD Accountability System. The panel will identify the deficiencies of the department and attribute responsibility to the appropriate parties. It should be independent from the Government, such that the investigation will be impartial and independent. It should be able to examine civil servants of all ranks to ensure that the investigation is thorough. It should be familiar with the general operation of the Government, to ensure that the investigation is completed efficiently. It should be a standing team to be called upon, ensuring its certainty and readiness.

Independent Panel of Investigation

34. To achieve the aforementioned aims, I will expand the existing functions of the Public Service Commission² to enable it to conduct investigations. Independent of the Government and in operation for many years, the commission is conversant with the management system of the civil service. Its current statutory functions include advising the Chief Executive on matters affecting the public service (including disciplinary cases of civil servants). The existing functions of the commission do not cover investigation. Extending its functions to include investigation, and inviting experts or government officials not related to the department being investigated to participate, can ensure both the independence and impartiality of the investigations concerned as well as the efficiency of the investigation, thereby achieving the four requirements set out in paragraph 33(ii).

35. The Government will make subsidiary legislation under the Public Service Commission Ordinance to implement the above proposal.

Activation Mechanism

36. When a situation as described in paragraph 33(ii) occurs in a department, the relevant Director of Bureau must report it to the Secretary of Department concerned. Upon obtaining the latter’s agreement, the Director of Bureau should activate the Tier II independent investigation mechanism. The Secretary of Department concerned can also, on their own initiative, direct the relevant Director of Bureau to activate the investigation mechanism.

Strengthen the Performance Appraisal System for Civil Servants

37. The overall performance of civil servants is fundamental to the effectiveness of departments. A fair and honest assessment of staff performance can encourage good-performers to strive for excellence, and suitably handle staff who have under-performed or misconducted themselves. In this connection, establishing an effective performance appraisal system will help HoDs enhance the overall effectiveness of the departments, raise the morale of good performers, assist those with room for improvement to improve their capability, and handle the small number of staff involved in misconduct in a fair manner.

38. The Civil Service Bureau is tasked to conduct a study developing a more rigorous performance appraisal system that reflects and differentiates the performance levels of staff more effectively.

39. Apart from assessing the performance of senior civil servants (including HoDs) in accordance with the existing mechanism, Secretaries of Department and Directors of Bureau will need to supervise the senior civil servants under their charge to properly perform personnel management work for staff at all ranks, including performance appraisal, posting, promotion and discipline.

Set up an AI Efficacy Enhancement Team

40. The application of AI in the work of the Government can effectively enhance efficiency. The Census and Statistics Department, for example, has applied AI technology to examine trade data and retrieve financial information from the financial statements and announcements of thousands of listed companies for statistical compilation. This has resulted in an exponential surge in efficiency. The 1823 services also use AI technology to recognise automatically voice enquiries from members of the public, and help draft written responses, reducing about 30% of the processing time.

41. To further enhance the efficacy of the Government, I will set up an AI Efficacy Enhancement Team to co-ordinate and steer government departments to:

(i) Apply AI technology effectively to their work.

(ii) Explore process re-engineering to keep pace with the times.

(iii) Promote technological reform in departments to improve efficacy.

42. The team will be led by the Deputy Chief Secretary for Administration, with the Secretary for Innovation, Technology and Industry and the Commissioner for Digital Policy serving as the Deputy Leader and Secretary General respectively. The team will also invite a representative from the private sector to serve as another Deputy Leader, to bring in new perspectives and front-line market experience. The team will examine with government departments their need for reform, with priority given to departments with greater interface with the public. Departments may also initiate request to the team for prioritised assistance in enhancing their efficiency.

¹ Area Committees, District Fight Crime Committees and District Fire Safety Committees.

² The Public Service Commission, consisting of a Chairman and two to eight members, is a statutory body established under the Public Service Commission Ordinance. Its functions include advising the Chief Executive regarding the public service and matters affecting the conduct and discipline of public officers; the Ordinance also empowers the Chief Executive in Council to make regulations.

(To be continued.)