Fast-tracking innovation and technology development is a core feature of the 2026-27 Budget, unveiled Wednesday by Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region.
Chan said Hong Kong would be stepping up support measures, including computing power, land, and capital, to enhance the city’s influence as a global source of original innovation.
“Hong Kong’s strengths in innovative scientific research and commercialisation of research outcomes lie in our internationalised qualities, strong research capabilities, support of the financial sector and a rich pool of high-calibre talents,” Chan said.
He added that the government was pressing ahead with the industrialisation of artificial intelligence and deepening its integration across various industries, while encouraging wider AI application, referred to as AI+, with an initial focus on life and health technology and embodied AI.
“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,” Chan explained. “We are making proactive efforts to align with the National AI+ Initiative by promoting ‘industries for AI’ and ‘AI for industries’ through application.”
The financial secretary highlighted that the Hong Kong Artificial Intelligence Research and Development Institute Company Limited will come into operation in the second half of this year to promote AI+ development and the transformation of R&D outcomes, and to advise the Government on relevant matters.
Prof Sun Dong, Secretary for Innovation, Technology and Industry, echoed the need for a holistic development of AI+.
“When you talk about AI, you cannot just talk about AI research, or just talk about the infrastructure, we have to do it together,” said Dong. “Actually, that is what we have been doing in the past three years. Everything is very important.”
Central to the government’s efforts to promote I&T is the San Tin Technopole area within the Northern Metropolis development.
“The San Tin Technopole will provide a large piece of land which can help accelerate the commercialisation of R&D results and provide industrial space for prototyping, pilot and mass production,” Chan noted.
He proposed injecting $10 billion (US$1.28 billion) as initial capital to take forward the development, while leveraging market resources to accelerate the progress.
Chan also earmarked $10 billion (US$1.28 billion) to accelerate the development of the Hetao Hong Kong Park by engaging the market to expedite the disposal of the remaining land parcels under Phase 1 development, providing key infrastructure, further strengthening support for start-ups, and establishing a venture fund.
Chan set aside about $220 million (US$28 million) to establish the first national manufacturing innovation centre in Hong Kong.
This, he said, reflects the government’s commitment to implementing the Co-operation Agreement on the Development of New Quality Productive Forces and the Promotion of New Industrialisation, signed with the Ministry of Industry and Information Technology to promote industrial collaboration.
The Budget also sets out support measures for various technology-related emerging industries. Among them is the aerospace industry. The Office for Attracting Strategic Enterprises will take the lead to identify aerospace enterprises to develop in Hong Kong. Also, the Hong Kong Exchanges and Clearing Limited would review the relevant listing requirements to facilitate and attract the listing of aerospace enterprises in Hong Kong.
Noting that low earth orbit satellites can support the development of high-end industries, Mr Chan said the Government would proactively expand telecommunications infrastructure, streamline the relevant licensing regime and promote future 6G applications.
Meanwhile, the $10 billion (US$1.28 billion) Innovation and Technology Industry-Oriented Fund, introduced by the government to channel market capital to invest in emerging fields of strategic importance, such as life and health technology, AI and robotics, as well as future industries, is expected to commence operation within this year.
“The key is to popularise the understanding and use of AI by all levels of society,” Chan said.
