CE's speech in delivering "The Chief Executive's 2025 Policy Address" to LegCo (8)

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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 hostel¹⁰ , 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.

¹⁰ The Youth Post project is named "Runway 1331".

(To be continued.)

Ends/Wednesday, September 17, 2025
Issued at HKT 12:44

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