MIL Asia Pacific Publishing Engine

Source: Hong Kong Government special administrative region – 4

Sustaining Momentum and Accelerating Economic Development

28. Hong Kong’s economy has grown for three consecutive years, with overall sentiment steadily turning positive. Mega events are drawing visitors to Hong Kong, and international conferences have brought together global political and business leaders, fostering deeper exchanges and collaboration:

(a) More buoyant asset markets: The stock market has shown encouraging momentum, with total market capitalisation rising to $50 trillion. IPO activities were also vibrant. Sentiment in the residential property market has turned positive. Total bank deposits exceeded $19 trillion as at the end of last year, increasing by 12 per cent year-on-year, with capital continuing to flow in. The asset management sector is also faring well, with net fund inflow of $357 billion to funds domiciled in Hong Kong. Hong Kong ranked third globally and first in the Asia Pacific in the Global Financial Centres Index. Hong Kong is expected to become the world’s largest cross-boundary wealth management centre in one to two years.

(b) Accelerated convergence of enterprises and talents: The Office for Attracting Strategic Enterprises (OASES) has attracted over 100 strategic enterprises to establish in Hong Kong. Among them, 51 have been listed, and 76 set up their global or regional headquarters in Hong Kong, bringing in about $60 billion of investment and creating around 22 000 jobs. Invest Hong Kong assisted 560 enterprises in establishing or expanding their operations in Hong Kong last year, which is expected to generate about $70 billion of investment and create over 10 000 jobs. The number of companies in Hong Kong with Mainland or overseas parent companies and the number of start-ups in Hong Kong both rose by 11 per cent, hitting new highs. As regards talent attraction, the Top Talent Pass Scheme has drawn over 100 000 global elites to Hong Kong. We will continue to proactively attract investments and talents, injecting fresh impetus into Hong Kong’s economy; 

(c) Strengthening international connections: The establishment of the International Organization for Mediation in Hong Kong has further strengthened our status as the centre for international legal and dispute resolution services in the Asia-Pacific region. International conferences and exhibitions such as the Belt and Road Summit, Asian Financial Forum, Hong Kong FinTech Week, Hong Kong Maritime Week and InnoEx each drew thousands of global political, business and industry leaders. This year, we will sustain our efforts in deepening international connections, for instance, the Asia-Pacific Economic Cooperation Finance Ministers’ Meeting will be held in Hong Kong for the first time;

(d) Soaring visitor arrivals drawn by mega events: Visitor arrivals approached 50 million last year, increasing year-on-year by 12 per cent, with non-Mainland visitors recording a growth of 15 per cent. Hong Kong boasts an extensive line-up of mega events. The National Games as well as the National Games for Persons with Disabilities and the National Special Olympic Games, which we co-hosted with Guangdong and Macao last year, enhanced Hong Kong’s capability to organise large-scale sports events and deepened integration and collaboration among GBA cities. Less than a year after its commissioning, Kai Tak Sports Park has achieved the highest ticket sales in Asia and ranked third globally for its main stadium, registering the highest gross income of any stadium in Asia. In the coming year, mega cultural and sports events will follow one after another, showcasing Hong Kong’s unique glamour; and

(e) Accelerating the development of the NM: Being a new engine for long-term development, the NM will inject fresh economic impetus into Hong Kong and support our new “South-North dual engine (finance-I&T)” industry pattern. We are accelerating its development through various measures, including adopting a large-scale land-disposal approach in land allocation and expediting the bringing in of enterprises and industries, as well as establishing two dedicated companies for San Tin Technopole and Hung Shui Kiu Industry Park respectively. We plan to introduce a dedicated legislation for the NM in the middle of this year.

Proactively Aligning with the 15th Five-Year Plan

29. The Recommendations for Formulating the 15th Five-Year Plan (The Recommendations) delineate the overall approach, strategic goals and major initiatives for our country’s development in the next five years. It is a strategic blueprint for setting out the direction of the full implementation of Chinese modernisation.

30. The Recommendations also give explicit support to Hong Kong in better integrating into and serving the overall national development, consolidating and enhancing its status as an international financial, shipping and trade centre, while developing into an international I&T centre and an international hub for high-calibre talents. Hong Kong can contribute in various key areas: 

(a) Contributing to building a modernised industrial system and accelerating high-level scientific and technological self-reliance of our country: With strong basic research capabilities, Hong Kong possesses unique edge in AI, life and health technology, fintech, as well as new materials and new energy. Being an international financial centre, Hong Kong will drive “Finance+”, capitalising on our financial sector to better serve the real economy and industries with competitive edge, and pressing ahead towards mutual empowerment of finance and I&T. In so doing, we can leverage our strengths to serve the country’s needs;

(b) Proactively participating in our country’s development in promoting high-standard opening up: Hong Kong possesses unique institutional strength under “one country, two systems”. With our efficient aviation, shipping and logistics services, we serve as a “super connector” and “super value-adder” to help enterprises go global and bring in external investments, fostering two-way trade and investment; and 

(c) Bringing together high-calibre talents from across the globe: Hong Kong’s world-class universities and internationalised environment are conducive to attracting and bringing in top global talents in various sectors, particularly leading experts in the scientific research field from around the world. We will keep nurturing local talents, aligning with the integrated development of “Education, Technology and Talent” of our country.

31. The Chief Executive will lead a cross-bureau, cross-departmental task force for Hong Kong to proactively align with the 15th Five-Year Plan, and for the first time, to formulate Hong Kong’s five-year plan. We will integrate more actively into and serve the overall national development. With the synergy between a capable government and an efficient market, we aim at driving high-quality, high value-added and diversified economic growth. 

International Innovation and Technology Hub

32. Technology changes are reshaping the global economic landscape and generating new consumption demand and investments, while fostering the integration of industries across boundaries. Technological innovation is driving industrial innovation profoundly.

33. Hong Kong’s strengths in innovative scientific research and commercialisation of research outcomes lie in our internationalised qualities, strong research capabilities, support of financial sector and a rich pool of high-calibre talents. We are stepping up support measures such as computing power, land and capital, together with GBA cities’ well-developed advanced manufacturing, to enhance our influence as a global source of original innovation.

Artificial Intelligence + (AI+)

34. We are pressing ahead with the industrialisation of AI and deepening its integration across various industries, while encouraging wider AI application, thereby achieving the target of adoption and utilisation by all.

Committee on AI+ and Industry Development Strategy

35. The application of AI technology is swiftly driving the process of industrial transformation. New technologies, new industries and new products are quickly emerging. I will establish and chair the Committee on AI+ and Industry Development Strategy to formulate strategies and create favourable conditions for AI to empower the transformation and development of industries. The committee will comprise experts, academics, enterprises and industry park companies with an initial focus on life and health technology and embodied AI.

Empower Industries through AI

36. In respect of basic research and development (R&D), the InnoHK Research Cluster has so far funded 16 laboratories specialising in AI and robotics technologies. Their research focuses on technologies like AI-driven robotics which could widely apply to industries such as healthcare, logistics, smart manufacturing and construction.

37. The $3 billion AI Subsidy Scheme launched by the Government has approved around 30 R&D applications in the fields of large language models, new materials and biomedicine, etc., to enhance local AI research standards and application.

38. We are making proactive efforts to align with the National AI+ Initiative by promoting “industries for AI” and “AI for industries” through application. The Hong Kong Artificial Intelligence Research and Development Institute Company Limited will come into operation in the second half of this year. The company aims to promote AI+ development and transformation of R&D outcomes. It will also advise on matters such as the governance framework and regulatory regime for AI development.

39. The Hong Kong Monetary Authority (HKMA) and Cyberport have recently commenced trials for the second cohort of sandbox, focusing on “AI vs. AI” strategies for promoting secure and responsible AI application in the banking sector.

Computing Infrastructure

40. Hong Kong’s overall computing power has now reached 5 000 petaFLOPS, laying an important foundation for supporting AI development.

41. The data facility cluster at Sandy Ridge, which can provide a gross floor area of 250 000 square metres, will further enhance Hong Kong’s overall computing power. The tender result of the site will be announced shortly. The cluster will render crucial support for data and computing power required by the use of AI.

AI Training for All

42. AI brings new opportunities to society and employment market. The key is to popularise the understanding and use of AI by all levels of society.

43. We will invite public organisations to organise, in collaboration with technology enterprises and tertiary institutions, AI application courses, seminars and competitions targeting students, young people and members of the public for enhancing their AI awareness and application skills, and to be responsible AI users. We will allocate $50 million to take forward this initiative.

44. In the 2025/26 to 2027/28 triennium, the University Grants Committee (UGC)-funded universities will introduce a total of 27 undergraduate programmes related to STEAM, including AI, creative industries, data science, etc. As regards self-financing post-secondary institutions, AI-related programmes will be given priority to be included in the Study Subsidy Scheme for Designated Professions/Sectors starting from 2027/28 academic year. Meanwhile, the Vocational Training Council (VTC) also includes AI application in the compulsory modules on Information Technology for all of its Higher Diploma programmes.

45. The Employees Retraining Board (ERB) will be upgraded as Upskill Hong Kong, providing various types of skill-based training courses, including AI application, thereby enhancing the competitiveness of the local workforce.

46. The Quality Education Fund has earmarked $2 billion to take forward digital education in primary and secondary schools by offering school-based AI education programmes and subsidising students to participate in related activities. We also provide AI training for teachers.

Data Utilisation

47. To further enhance the utilisation of data within the Government, we will allocate additional resources to the Census and Statistics Department (C&SD) to expand its consulting and analysis services on data science for bureaux and departments, with a view to identifying pain points in operations and proposing corresponding solutions.

48. The C&SD will launch a new online platform for interactive data dissemination service next month. Through integrating different types of statistical data, this platform enables enterprises and the public to conduct cross-subject analysis. A natural language data query feature will be introduced into the platform in the third quarter.

Empower Public Services through AI

49. Various departments are proactively leveraging AI and related technologies to promote digital intelligence for enhancing the standard of public services. For example:

(a) Traffic management: The Transport Department will explore the setting up of a traffic management platform integrating the use of big data analytics and AI, allowing comprehensive monitoring of real-time traffic conditions and enhancing management efficiency;

(b) Employment services: To provide better services for job seekers and employers, the Labour Department will utilise AI to optimise job matching;

(c) Flood alert: The Drainage Services Department (DSD) will enhance its smart flood forecast and alert system. Besides, the DSD has developed an AI large vision-language model to analyse the images captured by street cameras, thereby speeding up emergency response; and

(d) Landslide risk assessment: To enhance the Landslip Warning system, the Civil Engineering and Development Department will consolidate Hong Kong’s rainfall data, landslide records and man-made slope data this year for conducting real-time and dynamic landslide risk assessment.

50. The Government has set up the AI Efficacy Enhancement Team to co-ordinate and steer government departments to apply AI, conduct process re-engineering and enhance efficiency. We will allocate $100 million for introducing leading technologies from the industry so as to accelerate digital intelligence transformation of the Government.

51. The Civil Service College will collaborate with the Digital Policy Office to provide AI training for civil servants to better grasp the relevant knowledge.

(To be continued.)

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Chan Hoi-yan and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (February 25):

Question:

     Currently, both conventional and spiral roundabouts can be found on Hong Kong’s roads. There are views that these two types of roundabouts differ significantly in terms of road markings, right-of-way priority and other arrangements, which could lead to disputes or even traffic accidents. Furthermore, the Transport Department (TD) launched a pilot scheme on spiral roundabouts in 2004. More than 20 years have now passed, yet no comprehensive evaluation report on the scheme’s effectiveness has been made public. In this connection, will the Government inform this Council:

(1) of the current number of roundabouts across the territory, with a breakdown by type of roundabout (e.g. conventional, spiral and other types such as hybrid lane-guidance designs);

(2) of the number of traffic accidents that have occurred at roundabouts in each of the past 10 years, with a breakdown by type of roundabout;

(3) as it has been reported that the Government has introduced spiral roundabouts progressively in various districts in recent years, on what criteria or justifications the TD has based its decision to convert conventional roundabouts into spiral roundabouts at specific road sections;

(4) of the following information in respect of each roundabout across the territory that has been converted from conventional to spiral: (i) the year of conversion, (ii) its location, (iii) the number of traffic lanes, and (iv) the number of accidents that occurred in the past year, together with a comparison of that figure with the number of accidents in the year prior to its conversion;

(5) of the results of the Government’s effectiveness evaluation concerning the specific operation of spiral roundabouts;

(6) whether the TD has plans to comprehensively standardise the usage and right-of-way priority arrangements for roundabouts, with a view to reducing road disputes and the risk of traffic accidents; if so, of the details; if not, the reasons for that; and

(7) whether it has plans to reduce the risk of traffic accidents at roundabouts through other feasible measures, such as reducing the number of lanes at large roundabouts or systematically installing real-time adaptive traffic signal systems at those with heavy traffic flows?

Reply:

President,

​Roundabout is a common design of road intersection in Hong Kong. Generally speaking, roundabouts enable smooth passage of vehicles from various directions under varying traffic volumes. My response to the question raised by the Hon Chan Hoi-yan is as follows: 

(1), (2) and (4) There are currently about 260 conventional roundabouts in Hong Kong (comprising approximately 175 small roundabouts and around 85 two- or three-lane roundabouts) as well as 27 spiral roundabouts on public roads. The number of traffic accidents that have occurred at two- or three-lane conventional roundabouts and spiral roundabouts over the past decade is provided in Appendix 1. Spiral roundabouts are generally two-lane roundabouts. Appendix 2 sets out details of all spiral roundabouts in Hong Kong, including the year of conversion, location, number of accidents in the year prior to conversion, and the number of accidents in 2025. As traffic conditions and the road environment vary by location and over time, it is not appropriate to directly compare accident figures across different roundabouts.

(3) and (5) Between 2004 and 2017, the Transport Department (TD) implemented a phased trial scheme involving 10 conventional roundabouts converted into spiral roundabouts. The scheme concluded in 2017, with findings showing that both spiral and conventional roundabouts have distinct advantages in terms of operation and traffic safety, serving different functional purposes. When designing individual roundabouts, the TD selects the most appropriate configuration based on factors such as the size of the roundabout, the number of traffic lanes and entry/exit points, and overall traffic volume. In specific traffic contexts, such as uneven distribution between inner and outer circulatory lanes or a high proportion of right-turning movements requiring adjustments, the road marking system of spiral roundabouts can guide drivers in the inner lane to exit more easily. This, in turn, improves the utilisation of the inner circulatory lane and enhances overall traffic efficiency.

(6) and (7) The TD continuously monitors and analyses traffic accident data at roundabouts, and formulates and implements road improvement measures as needed, such as optimising road markings, signage and driver visibility. At roundabouts with high vehicle volumes, the TD also considers introducing dedicated lane for left-turn movements or implementing other enhancements, such as installing traffic signals, to improve traffic flow and reduce collision risks.

The installation of the Real-time Adaptive Traffic Signal System (RTATSS) at signalised roundabouts involves greater technical complexity than at conventional signalised junctions. This is because the system must simultaneously detect and process traffic circulating within the roundabout as well as traffic waiting to enter from each approach lane. The TD is currently implementing RTATSS at conventional signalised junctions (i.e. those not designed as roundabouts), and the data collected will support future reviews on the feasibility of extending the system to signalised roundabouts.

Moreover, the TD will continue to collaborate with the Road Safety Council and the Hong Kong Police Force in carrying out various publicity and educational campaigns to promote road safety. These initiatives include disseminating information on the safe use of roundabouts through various channels, such as social media platforms.

Source: Hong Kong Government special administrative region – 4

     Following is the full text of the Speech on the 2026-27 Budget delivered by the Financial Secretary, Mr Paul Chan, to the Legislative Council today (February 25):

President, Honourable Members and fellow citizens,

     I move that the Appropriation Bill 2026 be read a second time.

Introduction

2. Today is the ninth day of the Chinese New Year, and the city is still brimming with festive spirits. The bustling New Year fairs, the buzzing Night Parade and the dazzling fireworks display above Victoria Harbour have echoed the vigour and vitality symbolised by the Year of the Horse.

3. Over the past year, as a result of the booming economy and capital market, our tax revenue has increased. Coupled with the reinforced fiscal consolidation programme gradually bearing fruit, our public finances have improved sooner than expected. The Operating Account has returned to a surplus this financial year. After taking into account the proceeds from bond issuance, the Consolidated Account has also returned to balance ahead of schedule. All these have enabled us to suitably reinforce support for the people and small and medium enterprises (SMEs) within our means.

4. This year marks the beginning of the National 15th Five Year Plan. The stable and high-quality development of our country is always our strongest backing. Our country’s sustained high-standard two-way opening-up, coupled with scientific and technological innovation, have presented us with new opportunities. We must embrace the 15th Five-Year Plan with an innovative mindset, fostering new quality productive forces in accordance with local conditions. Leveraging our edge of having close connectivity with the Mainland and the world, and with a large pool of talents, we will facilitate enterprises in opening up new markets. We expect Hong Kong’s economy to sustain good momentum this year.

5. The theme of this Budget is: “Driving High-quality, Inclusive Growth with Innovation and Finance”. I will elaborate on this a little later.

Economic Situation in 2025

6. The global political and economic landscape is fraught with complication and volatility. The United States (US) waged a tariff war early last year, precipitating a sharp escalation in global trade tensions. As the US reached preliminary trade agreements with various economies and achieved consensus with China on key economic and trade matters, trade frictions eased, allowing the global economy to continue expanding.

7. Technological transformation and the rapid development of artificial intelligence (AI) have spurred a fresh wave of investment enthusiasm and driven product demand. Asia, especially China, serves as an important engine propelling global economic growth. Furthermore, the resumption of interest rate cuts by the US since September last year has bolstered performance of the investment and capital markets. The International Monetary Fund (IMF) projects global economic growth of 3.3 per cent for 2025, which is broadly in line with that of 2024.

8. Hong Kong’s economy was buoyant last year. External trade remained strong, private consumption rebounded, and fixed investment accelerated. The overall economy grew by 3.5 per cent in the year, marking the third consecutive year of expansion.

9. Boosted by robust demand for electronic-related products, total exports of goods from Hong Kong grew by 12 per cent in real terms, with particularly notable increases in exports to the Chinese Mainland and the Association of Southeast Asian Nations (ASEAN).

10. Exports of services rose by 6.3 per cent. Visitor arrivals surged by 12 per cent, while cross-boundary financial services and traffic saw sustained growth.

11. On domestic demand, private consumption expenditure rose by 1.7 per cent for the year, reversing the downward trend from the second quarter of 2025. Amid continuing economic expansion and a recovering residential property market, growth in overall investment expenditure accelerated to 4.3 per cent.

12. The labour market gradually stabilised in the latter half of the year. The seasonally adjusted unemployment rate stood at 3.8 per cent in the fourth quarter. Employment earnings showed sustained growth, with the median monthly employment earnings of full time employees increasing by 4.2 per cent year-on-year in the fourth quarter.

13. Inflation remained mild. Netting out the effects of the Government’s one-off measures, the underlying inflation rate was 1.1 per cent last year.

14. The stock market delivered a stellar performance. The Hang Seng Index rose by 28 per cent over the year. The daily turnover surged by 90 per cent to a historic high of close to $250 billion. Capital raised through initial public offerings (IPOs) exceeded 2024 by more than two times to over $280 billion, ranking first globally.

15. The residential property market saw increases in both prices and transaction volumes. Market activities have been active since last March, with total transactions reaching a four year high of nearly 63 000 for the year. Property prices rose by 3.3 per cent for the year, ending a three-year decline, while rental prices rose by 4.3 per cent in the year. Transaction volume for non-residential properties rebounded, while the declines in rentals and prices narrowed.

Economic Outlook for 2026 and the Medium Term

16. Entering 2026, global trade tensions have moderated, and economic activities continued to expand in major economies. The Chinese Mainland will be the leading contributor to global economic growth, serving as the key driver for both regional and global economic momentum. The steadfast development of our country will continue providing firm support for Hong Kong.

17. Our country will implement more proactive macro policies this year, expanding domestic demand, and steadfastly advancing high-quality development, while maintaining reasonable economic growth. This will lay a strong foundation for the 15th Five Year Plan period, and generate propitious conditions for Hong Kong’s economic growth.

18. Driven by investments in AI and other new technologies, the demand for related products continues to underpin the trade expansion in Asia. Market expectations of further interest rate cuts in the US would bolster investor confidence. The IMF forecasts moderate growth for the global economy this year.

19. Benefitting from these factors, Hong Kong’s exports of goods should sustain decent growth. Exports of services will also continue to increase, driven by increasing visitor arrivals and demand for financial services.

20. Domestic demand will grow steadily. A stable labour market and rising household incomes will drive private consumption, while improvement in business sentiment, coupled with expectations of interest rate cuts, will boost asset markets and investments.

21. Nevertheless, the international environment remains complex and intricate. With the major advanced economies still frequently shifting their trade and economic policies, uncertainties will continue to loom over global trade. A slower-than-expected pace of US rate cuts could hamper the optimism currently underpinning the global financial market.

22. Based on our assessment of the current global and local economic situations, we forecast that Hong Kong’s economy will grow by 2.5 per cent to 3.5 per cent this year.

23. As for prices, external price pressures are in check. With the local economy continuing to expand, inflation this year is expected to be moderately higher than last year. We forecast the underlying inflation rate and the headline inflation rate this year to be 1.7 per cent and 1.8 per cent respectively.

24. In the medium term, protectionism will persist in some major economies, while fragmentation of the global economy will continue. Nevertheless, the rise of the “Global South” and the reshaping of the global trade and investment landscape will unlock new markets and new growth areas for Hong Kong.

25. This year marks the beginning of the 15th Five-Year Plan. Hong Kong will proactively align with the 15th Five-Year Plan, better integrate and serve the overall national development, and continue to proactively participate in development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

26. The current-term Government is committed to expanding economic capacity and enhancing competitiveness, expediting the development of the Northern Metropolis (NM), driving growth through talents and innovation and technology (I&T) and developing new quality productive forces tailored to local circumstances for promoting high-quality economic development.

27. We forecast that Hong Kong’s economy will grow on average by three per cent per annum in real terms from 2027 to 2030, with the underlying inflation rate averaging two per cent a year.

(To be continued.)

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Yiu Ming and a written reply by the Secretary for Education, Dr Choi Yuk-lin, in the Legislative Council today (February 25):
     
Question:
 
     There are views pointing out that with the accelerated development of the Northern Metropolis, New Territories North (NTN) will become a key hub for innovation, technology, and residential development in Hong Kong. This is expected to attract a large influx of professionals from the Mainland and overseas, leading to a significant increase in demand for quality education in international, private, or Direct Subsidy Scheme (DSS) schools. However, there is currently only one international school in NTN, located in Sha Tau Kok, that offers secondary school curriculum, and there are also relatively few DSS schools in the area. In this connection, will the Government inform this Council:
 
(1) whether it has compiled statistics on the current numbers of international and DSS schools (including primary and secondary schools) located in NTN and the respective numbers of school places offered; of the respective numbers of applicants for admission to these schools and the actual numbers of students enrolled in each of the past three years;
 
(2) whether it has assessed the gap between demand and supply for international and DSS schools in NTN based on the data mentioned in (1), and the potential impact of such a gap on attracting Mainland and international talents; if so, of the details; if not, the reasons for that;
 
(3) whether it has plans to introduce more international and DSS schools in NTN; if so, of the estimated number of additional school places; and
 
(4) whether it will adopt measures (such as allocating vacant school premises, providing land concessions and financial support, or streamlining the application procedures for establishing schools) to encourage existing international or DSS schools to expand into NTN, or to attract renowned overseas international school groups and local quality school sponsoring bodies to establish branch schools in NTN; if so, of the details; if not, the reasons for that?
 
Reply:
     
President,
 
     The Government is committed to meeting the demand for education from non-local families living in Hong Kong. Regarding primary and secondary education, all children aged 6 to 15 who are eligible to enrol in public sector schools, including dependants of persons permitted to stay under various talent admission schemes, can receive free and quality primary and secondary education in public sector schools. Direct Subsidy Scheme schools (DSS schools) and private schools (including international schools) are also members of Hong Kong’s diversified education system and provide parents and students with different choices.
 
     Regarding the question asked by the Hon Yiu Ming, our reply is as follows:
 
     The provision of school places in international schools and DSS schools is planned on a territory-wide basis. These schools are free to admit students from all districts across Hong Kong. At present, there are 53 international schools (including one special school) and 78 DSS schools in Hong Kong. In the 2025/26 school year, international schools (excluding a special school) provided about 48 400 school places and admitted around 44 700 students. The number of students represents around 92.4 per cent of the total places provided, leaving some 3 700 surplus places available to meet demand. For DSS schools, they provided about 73 100 school places and admitted around 66 000 students. The number of students represents around 90.3 per cent of the total school places provided, leaving some 7 100 surplus school places available to meet demand.
 
     The Education Bureau (EDB) commissions a consultancy study once every few years on the provision of international school places at primary and secondary levels in Hong Kong. The consultancy study report published in early 2024 forecasted that by the 2028/29 school year, Hong Kong would have some 4 400 surplus school places among international schools. When there is a projected shortfall of international school places, the Government would allocate greenfield sites or vacant school premises (VSPs) at nominal premium or rent for international school use via an open and competitive bidding process, so as to increase the provision of international school places.
 
     The Chief Executive announced in the 2025 Policy Address that the EDB had allocated two VSPs for international school development via the School Allocation Exercise, thereby increasing some 1 000 international school places in the short term. To meet long-term needs, the Government has also reserved sites in the Northern Metropolis for the development of international schools. Moreover, the EDB encourages existing international schools to increase their admission quotas. The EDB 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. We will release land in an orderly manner according to actual circumstances so as to enable quality international schools to construct campuses and increase school places, thereby supporting the long-term development of the international school sector.
 
     As for other publicly-funded schools (including DSS schools), the EDB will periodically review the supply and demand for school places across districts and plan ahead accordingly. For instance, the EDB will reprovision schools to districts with an estimated greater demand for school places, thereby facilitating students’ access to education.

Source: Hong Kong Government special administrative region

International Financial Centre

90. The global political and economic landscape is undergoing profound transformations. Despite the complex and ever-changing external environment, Hong Kong’s financial market has performed strongly and our financial system remains robust. We will continue to consolidate our existing strengths, tap into emerging fields, strengthen market systems and risk control and deepen financial co operation in the GBA. By doing so, we will enhance Hong Kong’s role as an international financial centre on all fronts and contribute to the national strategic goal of “accelerating China’s development as a financial powerhouse”. We will also leverage our strengths in finance to drive industry development, i.e. “Finance+”. 

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region – 4

​Following is a question by the Hon Augustine Wong and a written reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (February 25):
 
Question:
 
     Some members of the construction industry have relayed that in recent years, the Government has been launching works projects at varying paces, and the timing of tendering for various projects is unevenly distributed, resulting in the industry being caught in the predicament of “dying from overeating one moment and dying from starvation the next”. Regarding the tendering arrangements for public works projects of various government departments and projects undertaken by non-governmental organisations (NGOs) through entrustment or subvention (NGO projects), will the Government inform this Council:
 
(1) of the following information in respect of the public works projects of various government departments and the NGO projects in each of the past three years: (i) the number of tenders invited, (ii) the number of successful tenders, (iii) the number of unsuccessful tendering, (iv) the total value involved in the award of contracts, (v) the average number of days taken from the closure of tender exercises to the award of contracts and, (vi) the time taken for the five projects which had taken the longest time, together with a breakdown by government departments and NGOs;
 
(2) whether the Government has plans to further shorten the tendering process, such as by enhancing the e-Tendering System and expediting the assessment of tenders; if so, of the details; if not, the reasons for that; and
 
(3) given that during the debate on the Members’ motion on “Reviewing the priorities for public works to ensure enhanced speed and efficiency of key projects” in this Council on July 16 last year, the Secretary for Development indicated that the Government had made a Medium Range Forecast of the capital works expenditure for the next few years, which was meant to avoid drastic fluctuations in the volume of public works projects and to provide government departments with an indicator for arranging the priorities of projects, whether the Government will, in planning public works projects, further maintain communication with the industry and, where practicable, adjust the timing for launching the projects to tie in with the overall resources and capacity of the construction industry, thereby avoiding drastic fluctuations in construction volume; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     The reply to the three parts of the question raised by the Hon Augustine Wong is as follows:
 
(1) The procurement of works projects involves a number of procedures, including tender invitation, tender evaluation and approval of tender recommendation, etc. Sufficient time must be allowed to ensure that the entire evaluation process is conducted in a rigorous and comprehensive manner.
 
     With regard to tender invitation, we are required to comply with the relevant requirements of the Agreement on Government Procurement of the World Trade Organization (WTO GPA). Where the estimated contract value exceeds the threshold (Note) stipulated under the WTO GPA, the tender invitation period must be no less than 40 days. For contracts that are more complex in nature or of higher value, the tender invitation period may be extended as needed. For contracts with an estimated value below the above threshold, although they are not subject to the WTO GPA requirements, we generally allow a tender invitation period of no less than three weeks, so as to enable bidders to have sufficient time to fully understand various works requirements and assess the associated risks for preparing competitive tenders.
 
     As regards tender evaluation, we generally adopt the two-envelope system. The evaluation is conducted in two stages: we will first assess tenderers’ technical competence and past performance, followed by considering their tender prices. During the process, clarification may be sought from tenderers in regard to their submissions, and legal advice may be obtained where necessary to confirm the validity of the tenders. The whole evaluation process typically takes about 2.5 to three months to complete.
 
     For the past three financial years (i.e. 2022/23 to 2024/25), statistics on works tenders conducted by government departments and non-governmental organisations, including (i) the number of tenders invited, (ii) the number of successful bids (i.e. the number of contracts awarded), (iii) the number of tenders not awarded, (iv) the total value of contracts awarded, and (v) the average number of days from tender closing to contract award, are presented in the Annex. Approximately 80 per cent of the works projects were awarded within five months from the tender closing date.
 
     For the five projects that took the longest time from tender closing to contract award, the duration ranged from 17 to 23 months. Given special circumstances, these projects required a longer processing period, with the main reasons summarised below:
 
(i) For one of the projects, as the tender prices submitted by the tenderers had exceeded the budget, the department concerned had to revise the design of the building foundation and engage all bidders for negotiations. The bidders were then invited to adjust their tender prices having regard to the revised design. Additional time was hence required to complete the relevant procedures;
 
(ii) For three football pitch refurbishment projects, tenderers were required to propose an artificial turf system in their tenders. As the system involved product patents, the department concerned had to request supplementary information from the tenderers a number of times and verify, through legal advisers, whether the proposed manufacturers were the patent holders. This led to a longer tender evaluation period as compared with typical works projects; and
 
(iii) For one of the projects, its funding application had to be considered and approved at a later meeting of the Public Works Subcommittee (PWSC) and the Finance Committee (FC) of the Legislative Council respectively, having regard to project priorities. Consequently, the processing time was extended.
 
(2) From time to time, the Government introduces new measures to expedite the procurement process of public works projects, so that works contracts can be awarded as early as possible. Such measures include:
 
(i) In September 2020, the Financial Services and the Treasury Bureau issued an internal circular requiring Controlling Officers, under normal circumstances, to adopt parallel tendering arrangement (viz. tender invitation for a project may commence prior to the approval of funding) when procuring works contracts. This arrangement enables works contracts to be awarded promptly after funding approval is obtained from the FC. It also helps works departments prepare more accurate project cost estimates for vetting by the PWSC and the FC, while expediting the procurement process.
 
(ii) In June 2022, the Development Bureau (DEVB) launched an electronic tendering system for public works projects, applicable to works contracts requiring approval by the Public Works Tender Board or the Central Tender Board. In addition to enhancing procurement efficiency, the system streamlines procedures by eliminating the cumbersome workflow associated with the handling of traditional paper-based tenders. We plan to enhance the system’s functionality, including exploring the use of AI to support tender evaluation, thereby further improving efficiency.
 
(iii) Procuring departments also organise pre-submission briefings to contractors, reminding them of the key tender requirements, thereby avoiding delay to the tender evaluation process due to spending time on clarifications with tenderers. Furthermore, whenever more serious errors are identified in tender submissions, we will communicate with the industry through contractors’ associations to help improve the quality of tenders.
 
(3) All along, we maintain close communication with the construction industry, engaging regularly with different stakeholders (including the Construction Industry Council, major contractors’ associations, and consultant associations, etc) to understand the industry’s needs and formulate appropriate measures to help address the challenges. In fact, the Government has been maintaining a high level of capital works expenditure over the years.

     In addition, forecast of public works tenders for the coming year is regularly published and updated in the electronic tendering system of the DEVB and on the websites of various works departments. This facilitates contractors in grasping relevant information earlier for planning and preparation of their tender submissions.
 
Note: According to the prevailing requirements, public works contracts with an estimated value exceeding $52,124,001 are subject to the requirements of the WTO GPA.

Source: Hong Kong Government special administrative region – 4

The following is issued on behalf of the Education Commission:

The Chairman of the Education Commission, Dr David Wong, today (February 25) welcomed the measures on education proposed by the Financial Secretary in the 2026-27 Budget.

Dr Wong said, “Education is the cornerstone of talent cultivation and is particularly crucial in building Hong Kong into an international hub for high-calibre talent. As the Chairman of the Education Commission, I am pleased to note the Hong Kong Special Administrative Region Government attaches great importance to education. After considering the overall public fiscal situation, the Government continues to invest substantially in education, optimising the use of resources to focus on enhancing the quality of education and turning Hong Kong into a magnet for vibrant talent. The recurrent expenditure on education has increased by 28 per cent over the past decade. With allocations reaching $102.3 billion for recurrent education expenditure in 2026-27, it accounts for around 17.1 per cent of the total government recurrent expenditure. These figures clearly demonstrate the continued strong support for the education sector in public resource allocation. Regarding the optimisation of resource utilisation, I welcome the Education Bureau (EDB)’s efforts to remove barriers and ease restrictions through streamlining administration for school subsidies to enable more flexible and efficient use of resources. I trust that the education resources will be deployed effectively to achieve maximum benefits.”
 
Dr Wong added, “I fully support the Government’s ongoing efforts to advance the digitalisation of education, including the promotion of digital education and artificial intelligence training on all fronts, to cultivate more innovation and technology talent for the digital era. Regarding higher education, I look forward to the Government’s proactive development of the Northern Metropolis University Town through site allocation and support earmarking $10 billion in loans for the University Grants Committee-funded universities and the universities of applied sciences to support new campus development and construction, further advancing Hong Kong’s development into an international education hub.

“I firmly believe that the EDB will maintain close communication with stakeholders, and jointly elevate Hong Kong’s education quality as well as nurturing more elite talent, thereby contributing to the high-quality development of Hong Kong and our nation,” Dr Wong said.

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Chu Lap-wai and a written reply by the Secretary for Education, Dr Choi Yuk-lin, in the Legislative Council today (February 25):

Question:
 
     In the light of public concerns about patriotic education, last year the Education Bureau (EDB) announced one after another the optimised senior secondary Chinese History and History Curriculum Frameworks, the updates to the Curriculum Framework of National Security Education in Hong Kong and the Curriculum Framework of National Security Education in the Citizenship and Social Development, as well as the implementation of the Primary Humanities starting from the 2025/26 school year with enrichment in the elements of Chinese culture, national history and national geography. In this connection, will the Government inform this Council:
 
(1) to implement the aforesaid initiatives, of the total number of training sessions the EDB has conducted for the relevant teachers so far, and the number of participants and total training hours involved; how the authorities will evaluate the effectiveness of such training, and whether the authorities have formulated further plans to enhance the relevant teacher training; if so, of the details; if not, the reasons for that;
 
(2) regarding the selection of teachers to teach the aforesaid subjects, whether the authorities have provided or have plans to provide guidance for schools to ensure that the relevant teachers are virtuous and able, possessing both professional knowledge and patriotism, thereby preventing the curriculum from deviating from its original intent; if they have provided or have plans to provide such guidance, of the details; if not, the reasons for that;
 
(3) whether it will consider requiring teachers to undergo relevant training and pass an assessment before being permitted to teach subjects related to national education and national security education; if so, of the details; if not, the reasons for that; and
 
(4) how it evaluates the effectiveness of implementing national education and national security education in schools to promote patriotic education, and whether it has conducted or has plans to conduct relevant inspections to ensure that schools achieve the objectives of patriotic education in terms of supervision and management, curriculum content and teaching methods; if it has conducted or has plans to conduct inspections, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     The EDB has been adopting a “multi-pronged and co-ordinated” approach to promote patriotic education in recent years. This includes continuously optimising the curriculum, developing learning and teaching resources, providing teacher training, and organising a wide range of engaging life-wide learning activities for students, for supporting schools in a comprehensive, all-round, interdisciplinary, and cross-key stage manner to integrate patriotic education into daily learning and teaching. It aligns with the Patriotic Education Law of the People’s Republic of China, clearly addressing the concerns about patriotic education in society, as well as enabling students to inherit the national spirit and strengthen their sense of nationhood.
 
     Continuously optimising the curriculum to enable students to gain a richer and more comprehensive understanding of various aspects of our country’s development such as history, culture, economy, technology, and political system, as well as national conditions, national geography, the Constitution, the Basic Law, and national security, constitutes a key strategy for schools in promoting patriotic education. Therefore, the EDB announced the updated Curriculum Framework of National Security Education in Hong Kong (Curriculum Framework) and the national security education curriculum frameworks for 27 subjects last year; began to implement Primary Humanities; and announced the optimised curriculum frameworks for senior secondary Chinese History and History, enriching the curriculum with elements related to patriotic education such as Chinese culture, national history, and national geography. This enables students to acquire knowledge of our country, and foster their emotional identification and connection with our country, nurturing them to become good citizens of our country with a strong sense of nationhood from an early age.
 
     The consolidated reply to the question raised by the Hon Chu Lap-wai is as follows:
 
     To promote patriotic education, teachers’ professional competence is of paramount importance. As always, schools would arrange teachers to teach different subjects based on their abilities, expertise, experiences, and qualifications. At the same time, aligning with curriculum optimisation, the EDB continues to provide in-service professional training for teachers to enhance their professional capacity and facilitate curriculum implementation in schools.
 
Provide professional training to tie in with national security education
 
     To tie in with the announcement of the updated Curriculum Framework and the 27 curriculum frameworks of National Security Education for subjects (covering eight Key Learning Areas (KLAs) and the subject of Citizenship and Social Development) in 2025, the EDB arranged 12 briefing sessions from June 2025 to January 2026 to share with stakeholders, including representatives of school sponsoring bodies, school supervisors, principals and teachers, on the major updates and highlights of the Curriculum Framework and elucidate how the elements of national security education and patriotic education can be incorporated into various KLAs. In addition, in the 2025/26 school year, the EDB provides no less than 1 000 training places on national security education for teachers. From September to December 2025, nearly 160 training activities related to national and national security education were organised across various KLAs and subjects through delivery modes including face-to-face and online courses, study visits, experience sharing sessions, and learning circles, with over 15 600 attendances. These aim to enhance the professional knowledge and competence of teachers of different subjects, reminding them to align with the intended aims of the curriculum for more effective implementation of national security education.
 
Provide professional training to tie in with Primary Humanities
 
     The newly introduced Primary Humanities has been implemented at Primary 1 and Primary 4 starting from the 2025/26 school year, and will be fully extended to all levels by the 2027/28 school year to strengthen patriotic education from an early age. To facilitate schools in implementing Primary Humanities, the EDB continues to provide diversified teacher training activities, including professional development programmes on national history, national geography, and the latest development of our country, enabling teachers to fully understand the intent and content of the Primary Humanities curriculum, as well as relevant pedagogies. Since the 2023/24 school year, the EDB has offered approximately 32 000 training places for teachers. The EDB also organises the Primary Humanities Learning Circle, allowing teachers to enhance their professional capability through experience exchange, lesson observation activities, and experience-sharing sessions. By January 2026, about 150 primary schools have participated. In addition, the EDB has provided new Primary Humanities Onsite Workshops for all schools in the 2024/25 and 2025/26 school years, with 210 schools participating by January 2026, benefiting approximately 5 600 principals and teachers.
 
Provide professional training to tie in with the optimised senior secondary Chinese History and History subjects
 
     The optimised senior secondary Chinese History and History curriculum frameworks were announced in October 2025, and the EDB held the school briefing sessions on the curriculum frameworks of the two subjects in the same month, with a total of over 550 participating teachers. The optimised senior secondary Chinese History and History curricula will be implemented in September 2027. The EDB will provide no less than 1 500 teacher training places in the 2026/27 school year. The training programmes will cover areas such as curriculum interpretation, knowledge enrichment, strategies for learning, teaching and assessment, as well as curriculum leadership and planning, to help teachers comprehensively enhance their pedagogical effectiveness and support schools in implementing the optimised curricula.
 
     Promoting patriotic education has become a routine task for schools and a shared responsibility of teaching staff at all levels. Teachers, regardless of the subjects they teach, need to understand national conditions and the latest development of our country so as to help students develop a proper understanding of our country, nurturing a new generation that loves our country and home. The duration of the aforementioned training sessions is about two to three hours each in general, and teachers of relevant subjects can enrol. The EDB collects teachers’ feedback on professional training through questionnaires. The questionnaire results show positive feedback from teachers, and the EDB will continue to optimise teacher professional training with reference to their views.
 
Test requirement
 
     Starting from the 2023/24 school year, all newly-appointed teachers in publicly-funded schools and kindergartens joining the Kindergarten Education Scheme (including newly-joined teachers and teachers changing schools) are required to obtain a pass result in the Basic Law and National Security Law Test in order to be considered for appointment to ensure that teachers will have a correct and basic understanding of the Basic Law and the Hong Kong National Security Law. Furthermore, starting from the 2020/21 school year, the core training programmes for newly-joined teachers and teachers aspiring for promotion have included contents about the Constitution, the Basic Law, and the Hong Kong National Security Law, with an aim of strengthening teachers’ commitment to the rule of law. In addition, the EDB has organised the Thematic Course on “Reinforcing the Rule of Law” for principals and teachers, helping them to better understand Hong Kong’s constitutional status and legal system, as well as their responsibility in safeguarding national security.
 
Providing specific administration guidelines for schools
 
     The fundamentals of national security education are to develop in students a sense of belonging to the country, and an affection for the Chinese people, which are inseparable from patriotic education. Upon implementation of the Hong Kong National Security Law, the EDB has issued detailed administration and education guidelines to schools in a timely manner, requiring schools to establish school-based mechanisms and formulate appropriate measures in accordance with their school-based circumstances and needs, with a view to preventing and suppressing acts and activities that endanger or are detrimental to national security. In addition, schools are required to submit annual reports and work plans to the EDB to report on the implementation of school-based measures on safeguarding national security and promoting national security education. Besides, the EDB will continue to review the implementation status and effectiveness of the relevant measures through various channels, such as school visits and daily communications with schools, while providing timely advice and instructions as needed.
 
Ongoing school inspections
 
     Additionally, in recent years, the EDB has strengthened focus inspections on national education, with an emphasis on assessing schools’ planning, implementation and evaluation in areas such as leadership and co-ordination of national security education and promotion of Chinese culture, the history and geography of our country and life-wide learning activities (including Mainland exchanges). Feedback and suggestions for improvement are provided to facilitate continuous school development. As in previous years, the EDB will consolidate findings from school inspections each school year, and regularly share inspection findings and promote good practices on the effective implementation of national education through the adoption of a whole school approach, thereby enhancing the quality and effectiveness of national education.
 
     With strong support from the EDB and proactive implementation by schools, patriotic education has been smoothly promoted in schools. A whole-school participation approach has been adopted to plan and promote the related work, including integrating patriotic education with subject learning content, organising more diverse life-wide learning activities, and making good use of the campus environment to create a conducive atmosphere. Schools’ efforts in promoting patriotic education are commendable, and the results are evident to all.

Source: Hong Kong Government special administrative region