​Following is the English translation of the opening remarks by the Secretary for Labour and Welfare, Mr Chris Sun, on labour, manpower development and retirement protection policy areas at the special meeting of the Legislative Council (LegCo) Finance Committee today (April 17):

Chairman and Honourable Members,

     Recurrent government spending on labour and manpower development in 2026-27 is estimated to be $3,560 million, representing an increase of about $120 million (3.3 per cent) over the revised estimate of $3,450 million last year. I will highlight the key areas of work in respect of the relevant areas in the coming year.

Utilising artificial intelligence to optimise job matching

     On labour, the Labour Department (LD) will optimise the job matching function of the Interactive Employment Service website and its mobile application by adopting artificial intelligence to analyse, match suitable job vacancies and provide personalised employment and vocational training information. The service is expected to be rolled out in phases in mid-2027 at the earliest.

Promoting the employment of elderly and middle-aged persons

     The provision for allowance under the Re-employment Allowance Pilot Scheme (REA Scheme) has been increased to $222 million in 2026-27. The LD is conducting a mid-term review of the REA Scheme, along with the Employment Programme for the Elderly and Middle-aged, to explore measures to encourage the employment of the elderly and the middle-aged. The mid-term review is expected to be completed in the second half of this year.

Enhanced Supplementary Labour Scheme

     The LD is reviewing the Enhanced Supplementary Labour Scheme. To tie in with the completion of the review in the first half of this year, in the process of the mid-term update of the Manpower Projection currently being undertaken by the Labour and Welfare Bureau (LWB), priority has been accorded to data analysis for industries with a higher proportion of imported workers, including the catering and retail sectors, with a view to providing the relevant analytical results earlier for reference. 

Improving work injury compensation mechanism for digital platform workers

     The Government is formulating new legislation to provide a statutory compensation mechanism for digital platform workers (DPWs) who sustain injuries or die as a result of work. The protection will apply to DPWs engaged in food and/or goods delivery services. The LD is pressing ahead with the law drafting work, with an aim to submit the legislative proposal to the LegCo within this year.

Enhancing occupational safety and health standards

     Meanwhile, the Government is working at full speed on a total smoking ban at construction sites and targets to submit the proposed legislative amendments to the LegCo for deliberation by mid-year. Also, the LD will revise the codes of practice to specify the material requirements for the toe-boards of scaffolds to ensure sufficient material strength to prevent workers and objects from falling off, while also reducing fire risks.

     Furthermore, the LD continues to enhance mandatory safety training courses and organise occupational safety and health (OSH)-related courses, seminars, online forums, etc, to strengthen OSH awareness.

Talent attraction 

     On talent attraction, as of end-February this year, nearly 280 000 worldwide talents from diverse industries had been attracted to work and pursue development in Hong Kong under the various talent admission schemes. These incoming talents and their families bring about a positive impact on Hong Kong's labour force and add new impetus to the local economy.

     While seeking talent, the Government also focuses on retaining talent. Last year, around 71 000 applications for extension of stay were received under the various talent admission schemes. Of these, approximately 66 000 were approved, exceeding the annual key performance indicator by 32 per cent. The Government will continue to closely monitor the progress of extension of stay under the various talent admission schemes.

     In addition, to address the acute manpower shortage in the local skilled trades, we introduced a new channel under the General Employment Policy and the Admission Scheme for Mainland Talents and Professionals from June 30 last year to allow young and experienced non-degree talents with relevant professional and technical qualifications to come to Hong Kong to join those skilled trades facing acute manpower shortage. As of the end of February this year, more than 700 applications had been received, with around 550 approved. We will conduct a review after the first year of implementation.

     Meanwhile, non-local students who have completed eligible full-time Higher Diploma programmes (eligible programmes) under the Vocational Professionals Admission Scheme (VPAS) may apply to stay in Hong Kong for one year after graduation to seek jobs relevant to their disciplines. The initial cohort of students will graduate by the middle of this year. The Vocational Training Council will strengthen the support for graduates of eligible programmes to seek jobs relevant to their disciplines to alleviate the manpower shortage in the local vocational and professional trades.

     Hong Kong Talent Engage will continue to promote Hong Kong's advantages and talent attraction measures to the world, as well as to provide comprehensive one-stop support to help incoming talent settle and pursue long-term development in Hong Kong.

Upskilling workforce

     The Budget this year announced that the Employees Retraining Board (ERB) will be upgraded to Upskill Hong Kong to reflect its enhanced functions in promoting continuous learning and upskilling for all upon reform. The LWB targets to introduce an amendment bill in the LegCo in the second half of 2026 to enable the ERB to fully implement the reform measures. The ERB will be renamed after the relevant legislative amendments come into effect.

     To encourage more young people to participate in the Apprenticeship Scheme and join the relevant trades, each registered apprentice, for a period of three years starting from 2024-25, is provided with an additional training allowance of $1,000 per month, and graduated apprentices will be subsidised to undertake upskilling courses of relevant trades. Meanwhile, the VTC receives subvention to organise short in-service training courses to meet market demand. 

Manpower Projection update

     We have already commenced a mid-term update of the Manpower Projection, using the latest 2025 situation as the base to update the projection of Hong Kong's manpower situation in 2028. The mid-term update will focus on analysing the impact of the latest global and local developments. This includes the changes in the economic environment about which everyone is very concerned, as well as the rapid growth and widespread adoption of artificial intelligence, which bring new changes to the job market and allow us to update our forward-looking projections. The results of the mid-term update are expected to be available in the fourth quarter of this year.

     Chairman, this concludes my opening remarks. Members are welcome to raise questions. 

Ends/Friday, April 17, 2026
Issued at HKT 19:25

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