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.)

Ends/Wednesday, February 25, 2026
Issued at HKT 11:25

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