LCQ20: Supporting in-service employees' technological transformation
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Question:
In the 2026-2027 Budget, the Government announced that it would launch the $10 billion Innovation and Technology Industry-Oriented Fund within this year, and at the same time put forward the goal of "AI training for all". There are views that in addition to hardware upgrades and software development, enterprise change management (i.e. cultivating the mindset and skills among in-service employees to accept, learn and apply the relevant emerging technologies) is also key to driving the successful digital transformation of employees, but many small and medium enterprises have limited resources and budgets, making it difficult to promote technological training for employees. In this connection, will the Government inform this Council:
(1) whether it currently provides any relevant funding schemes targeted at the "technological transformation" of general employees to support them in undergoing digital upskilling training during the period of technological transformation; if so, of the details; if not, whether it will formulate such schemes in the future; and
(2) whether it will consider including an express clause in the funding schemes related to technological transformation that requires enterprises applying for funding to set aside a certain proportion of funding specifically for upgrading the skills of in-service employees, so as to ensure that training resources can seamlessly meet the needs of actual posts; if so, whether the Government will consider developing monitoring standards (such as the number of employees receiving training and the hours of relevant training courses completed by such employees) in the future to monitor the compliance of the relevant enterprises with the clause; if not, whether the Government has formulated other measures to ensure that when using public funds to take forward technological transformation, enterprises can utilise the relevant funding to provide training and support to employees?
Reply:
President,
The National 15th Five-Year Plan emphasises promoting the full integration between technological innovation and industrial innovation, developing new quality productive forces, and building a modern industrial system. Innovation and technology (I&T) is the key engine for accelerating high-quality economic development in the future of Hong Kong, and Hong Kong is formulating strategies that suit the local conditions and its own development needs. While supporting the development of industries with strategic significance and in which we enjoy clear advantages, the Government has been assisting local enterprises in their technological transformation through various funding schemes and initiatives, as well as supporting employees in undergoing digital and other I&T upskilling training, thereby generating new quality productive forces to contribute to Hong Kong's economy.
Having consulted the Labour and Welfare Bureau (LWB), my consolidated reply to the question raised by the Hon Lee Kwong-yu is as follows:
The Innovation, Technology and Industry Bureau has launched a series of supportive programs through its relevant organisations and platforms to assist local enterprises in leveraging technology to upgrade and transform. With regard to funding schemes, the "Digital Transformation Support Pilot Programme" assists small and medium-sized enterprises (SMEs) in adopting off-the-shelf digital solutions to accelerate their digital transformation through providing subsidies on a matching basis. The Government will enhance the Programme by incorporating artificial intelligence (AI) and cybersecurity solutions to further encourage SMEs (including their employees) to adopt the latest technologies and enhance their competitiveness. The Government is currently examining ways to enhance the Programme, with a view to launching it in the second half of this year following consultation with the Legislative Council.
For the New Industrialisation Acceleration Scheme and New Industrialisation Funding Scheme under the Innovation and Technology Fund, the two schemes will support manufacturers in setting up new smart production lines, and also provide funding to such enterprises for training their employees on operating the relevant smart production lines. The New Industrialisation and Technology Training Programme subsidises local enterprises on a 1 (Government): 1 (enterprise) matching basis to train their staff in advanced technologies, especially those related to new industrialisation.
Regarding the aforementioned schemes, the focus of transformation and employee training arrangements of different enterprises may vary depending on factors such as industry, scale, and actual operational circumstances, and could not be generalised. Currently, the Government has no plan to include an express clause requiring applicants to set aside a certain proportion of funding specifically for the training of in-service employees. All approved funding must be used appropriately in accordance with the relevant program guidelines and approval conditions.
Besides, the Hong Kong Productivity Council (HKPC) assists enterprises in developing and implementing technical solutions across various technology fields based on their pain points and needs, thereby supporting their digital transformation. On supporting technological transformation for employees, the HKPC is committed to providing various upskilling training courses to employees of enterprises undergoing digital transformation, equipping them with knowledge in different technology areas. The courses focus on "FutureSkills", covering AI, cybersecurity, robotics, drones and various soft skills. The HKPC also introduced a free one-stop digital transformation solutions platform "Digital DIY Portal" and the "InnoPreneur Network" platform, bringing together digital transformation solutions, digital and innovation information and successful cases of digital transformation in industries, in order to assist local SMEs in embarking on digital transformation. Moreover, through the adoption of big data consultancy, service robots, Internet of Things, smart operation and system integration, etc, the HKPC assists SMEs in streamlining work processes, minimising labour-intensive processes and enhancing operational efficiency; it also organises online forums to help enterprises adapt to new modes of business operation through digital technologies and online business, and explore new clientele despite geographic constraints.
Meanwhile, the LWB stated that, Hong Kong residents aged 18 or above are eligible to claim for subsidy under the Continuing Education Fund (CEF) up to a ceiling of $25,000 upon successful completion of a CEF reimbursable course (CEF course). At present, CEF courses cover different subjects, including I&T. As at end-January 2026, over 420 CEF courses are related to such I&T areas as AI, big data analytics and smart cities, assisting learners in acquiring relevant emerging skills. The Government will continue to encourage course providers to design and offer new courses and apply for registration under the CEF to meet market development and needs.
In addition, employees can receive training related to I&T through various channels. For example, the Employees Retraining Board (ERB) also provides training courses across different areas, including I&T, to assist the local workforce to continuously enhance their skills and competitiveness. Eligible persons can apply for course fee waiver or reduction. The ERB will continue to strengthen relevant services after being upgraded as Upskill Hong Kong.
Ends/Wednesday, March 18, 2026
Issued at HKT 12:50
Issued at HKT 12:50
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