LCQ8: Promoting development of new industrialisation
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Question:
The Innovation and Technology Commission announced in June this year the introduction of an enhancement to the New Industrialisation Funding Scheme (NIFS) (the enhancement measure) whereby applications seeking funding support of no more than $2.8 million will be processed according to the newly established streamlined procedures to speed up the process of approving applications. In this connection, will the Government inform this Council:
(1) as the 2022 Policy Address envisaged subsidising the setting up of more smart production lines in Hong Kong under NIFS with the target of increasing the cumulative number of smart production lines by four times from about 30 back then to over 130 in five years, of the current progress in achieving the target; whether the authorities will consider raising the target number of smart production lines in the light of the progress in achieving the target;
(2) of the specific details of the streamlined procedures under the enhancement measure; whether it has estimated the extent to which the processing time for applications will be shortened after the introduction of the enhancement measure compared with that before the enhancement, and of the number of manufacturers as well as small and medium enterprises which are expected to benefit from the enhancement measure; and
(3) how the authorities will leverage and strengthen the advantages and solid foundations of traditional industries (such as the textiles and garment industry), and support their upgrading and transformation through the integration of innovation and technology, so as to promote the development of new quality productive forces and new industrialisation according to local conditions?
Reply:
President,
My reply to various parts of the question raised by Hon Tan is as follows:
(1) It is our target to have at least 130 smart production lines supported under the New Industrialisation Funding Scheme (NIFS) by 2027. Since the launch of the NIFS, 66 applications involving over 100 production lines were supported by the New Industrialisation Vetting Committee (the Committee). The projects cover various sectors such as food manufacturing and processing (including health food), textiles and clothing, construction materials, medical devices, biotechnology, nanofiber materials, new energy, pharmaceutical products (including Chinese medicine), electronics, printing, equipment and parts, and green technology, etc. The implementation progress is on track so far. The Innovation and Technology Commission (ITC) will continue to review the progress and various arrangements under the NIFS, and will consider adjusting the key performance indicators timely having regard to actual circumstances.
(2) The latest enhancement measure for the NIFS aims to speed up the approval process of applications seeking funding support of no more than $2.8 million by streamlining the relevant documentation requirement and assessment procedures. Depending on the number of applications received, the ITC will increase the frequency of the Committee meetings as appropriate, and to submit the applications to the Committee for consideration and approval by circulation if needed.
Currently, the ITC informs the NIFS applicants of the vetting results within 35 working days on average upon receipt of full information, including the necessary supporting documents and supplementary information. We anticipate that the average processing time can be further shortened following the implementation of the enhancement measure.
Since the launch of the NIFS, approximately 40 per cent of the applications seek funding support of no more than $2.8 million. The ITC anticipates that a number of applicant companies will benefit from the new enhancement measure, accelerating the establishment of more smart production lines in Hong Kong.
(3) New quality productive forces has to be developed according to actual circumstances and local conditions, which facilitate the upgrading and transformation of traditional industries with competitive advantages with the use of innovation and technology (I&T), while simultaneously improve the development ecosystem for new industrialisation.
We are committed to promoting the upgrading and transformation of the traditional manufacturing industry with the use of I&T through a series of policies and measures. These include enhancing the NIFS to support more manufacturers in transforming to smart production, as well as launching the two-year "Pilot Manufacturing and Production Line Upgrade Support Scheme" this year to provide funds to local manufacturers on a matching basis, encouraging them to adopt smart production technologies and upgrade their production lines. Furthermore, we will commence a study within this year on the medium to long-term development of new industrialisation in Hong Kong to explore the upgrading and transformation of the traditional manufacturing sector with the use of I&T and accelerate the development of new industrialisation.
By leveraging I&T to upgrade and transform the traditional manufacturing industry, we will advance new industrialisation more comprehensively. Through technological innovation driving industry innovation, we will foster the development of an I&T industry system, strengthen an institutional mechanism supporting new industry development, and enhance Hong Kong's competitiveness with a view to implementing the strategic deployment set out in the Hong Kong Innovation and Technology Development Blueprint.
Ends/Wednesday, July 30, 2025
Issued at HKT 11:10
Issued at HKT 11:10
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