Full text of the Chief Executive's 2026 Policy Address (11)

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(G) Support the Local Economy

Ten Measures to Support Small and Medium Enterprises

362. In the face of uncertainty over the global economy and trade, the Government will implement 10 measures to support the diversified development of SMEs, as well as their upgrading and transformation:

(i) The CEDB will expand the geographical scope of the BUD Fund to cover Uzbekistan and Qatar, encouraging SMEs to tap into emerging markets.

(ii) The Hong Kong Export Credit Insurance Corporation will extend the 20 free-buyer credit checks for one year to September 2027 to continue to cover all of its insured markets.

(iii) The HKTDC will strengthen the services of E-Commerce Express, promoting the awareness of Hong Kong brands and expanding their coverage in e-commerce markets outside Hong Kong. The Trade and Industry Department will co-ordinate with the "Four-in-One" Integrated Services of SME Centres to organise branding seminars and workshops to assist SMEs in formulating brand development strategies.

(iv) The Government will continue to encourage more government departments and institutions, including the Business Registration Office of the Inland Revenue Department and the eMPF Platform, to connect to the HKMA's CDI and explore the feasibility of automated payment. This will enable banks to conduct business registration search through CDI, enhancing efficiency in credit approval. The CDI has helped reduce the borrowing costs of companies by an average of 36 basis points.

(v) The HKMA, in collaboration with the Shanghai Data Bureau, will implement a pilot project on trade data connectivity this year, covering Hong Kong SME traders exporting goods from the Mainland. Starting from this year, Project Cargoˣ will progressively connect the CDI with the Trade Single Window, the Port Community System and the Digital Corporate Identity (CorpID) platform. It will also explore connections with ASEAN's electronic port systems to enable the one stop access to data for approval by banks.

(vi) Starting from this year, the Hong Kong Technology and Innovation Support Centre will provide qualitative, patent evaluation services and offer funding support to SMEs for conducting valuation of their IP assets to facilitate relevant financing.

(vii) The Government raised the funding ceiling of "Easy BUD" applications under the BUD Fund to $150,000 in June. The BUD Fund also provides more targeted funding support for AI projects.

(viii) The Government will enhance the DTSPP by providing subsidies on a matching basis to support more SMEs in applying AI and cybersecurity-related solutions.

(ix) The HKPC will expand the functions of its "Digital DIY Portal" to integrate advisory services for SMEs. It will also assist enterprises in assessing and addressing cybersecurity risks, as well as providing professional advice and technical support on AI application scenarios.

(x) The Future Innovative Logistics Acceleration Scheme will provide subsidies to SMEs using innovative logistics solutions to interface with the Port Community System.

Report on Manpower Projection

363. Due to the structural impact of an ageing population, Hong Kong's labour force will gradually decline over the coming years, leading to manpower shortages. The current-term Government's measures to attract talent and allow the limited importation of labour, subject to appropriate approval, have relieved manpower shortages. The LWB will release a mid-term update of the Manpower Projection this month. It indicates that manpower remains tight across most key industries, including I&T, aviation, health services and construction.

Safeguard the Environment for Fair Competition

364. The Government will consult the LegCo this year on a legislative proposal to endow the Competition Commission with compulsory information-gathering powers for conducting market assessments. This will ensure that the Commission may, upon having reasonable cause to suspect that any feature in the market affects competition, mandate enterprises to submit information and identify potential issues, thereby maintaining a conducive environment for fair competition.

Promote Textiles and Fashion Brands

365. The Hong Kong Fashion Fest has recently been held in conjunction with CENTRESTAGE hosted by the HKTDC for an elevated scale and an enhanced business-matching platform. We will expand collaboration and exchange with fashion shows in the Mainland and overseas, promoting collaboration between fashion design and the textiles industry. This will promote the development of Hong Kong's fashion brands and strengthen Hong Kong's status as a fashion design hub in Asia.

Promote the Development of the Agriculture and Fisheries Industries

366. The Government will continue to offer the industry financial and technical support for the development of deep-sea mariculture, with a target of increasing local mariculture production to about 2 000 tonnes within five years. The Government will also set up a Fish Processing Centre in collaboration with the Fish Marketing Organization, to drive industrial upgrading.

367. The Government is facilitating the construction of the industry's first modernised and environmentally-friendly, multi-storey pig farm, in Sheung Shui. Site formation works will be completed this year. We will assist the selected organisation in finalising the design and financial arrangements next year.

368. The Modernised Techno-Agricultural Park, established through a public-private partnership, has been gradually leasing land to farmers. The Government will continue to take forward Agricultural Park Phase 2, while promoting the development of leisure farming and fisheries.

Promote Innovation in Municipal Services

369. In last year's Policy Address, I proposed three novel initiatives in response to public aspirations for greater benefits and convenience. These include allowing applications from restaurants for the admission of dogs, implementing the "joint-vetting" mechanism to expedite approval of applications for outside seating accommodation of restaurants, and leveraging technology and new investigation procedures to prompt owners to speed up water seepage repairs in buildings.

370. Continuing this reformist spirit, and in view of structural changes in people's grocery shopping habits, the Secretary for Environment and Ecology will lead an inter departmental working group to explore alternative uses for vacated market spaces (e.g. community facilities).

371. The Food and Environmental Hygiene Department (FEHD) also plans to try out the more agile single-operator model in individual new public markets, whereby operators enjoy greater flexibility in adjusting operating strategies to better meet public needs. Stall enhancement will also become a priority under the Market Modernisation Programme to improve customer experience.

(H) Strengthen the Protection for People's Livelihood

Targeted Support

372. The Government has been implementing a host of education, healthcare, housing and labour welfare measures to empower those who can help themselves achieve self-reliance and to provide a safety net for those unable to support themselves. The current-term Government has increased efforts to identify target groups according to the principle of targeted poverty alleviation, focusing resources on those most in need.

373. In June, the Commission on Poverty (renamed the Commission on Targeted Poverty Alleviation), led by the Chief Secretary for Administration published the Report on Impact of Targeted Poverty Alleviation Strategy in Hong Kong. The Report summarises the impact of and experience derived from the Strive and Rise Programme, the Pilot Programme on Community Living Room, the School based After School Care Service Scheme and other initiatives. These projects have all achieved their key performance indicators, raising the standard of living and personal development of service beneficiaries.

374. The Report also highlights that we will shift from the traditional mindset of offering "relief" towards a strategy of proactive identification and targeted support. The new-term Commission on Targeted Poverty Alleviation has included carers in need (particularly elderly carers who look after elderly or disabled persons, and carers who look after children with special needs) among the groups for targeted poverty alleviation. It will provide specific services tailored to their needs.

375. The Government will:

(i) Following the launch of the 16 Community Living Rooms, launch two more by the end of this year, expanding the reach to about 10 000 SDU households.

(ii) Establish a Welfare Information Sharing E-platform in phases to integrate the social welfare data of relevant government departments and non-governmental organisations (NGOs) and use AI to enable the early identification of high-risk individuals or families, for timely intervention and targeted response. Data analysis would facilitate targeted support, resource allocation and service deployment in a scientific manner. We will initiate a trial of data integration and analysis, involving selected government departments and NGOs, in the first half of 2027.

(iii) Run the "Community Dining Hall" to optimise the use of Integrated Children and Youth Services Centres during off peak hours, providing affordable and nutritious meals for elderly persons living alone and in couples, PWDs, carers, children with special needs and their families. This will encourage them to integrate into the community, while giving social welfare organisations the opportunity to identify their needs and offer assistance. We will also launch the "Wellness-on-Wheels" project to provide more convenient service points via mobile service vehicles, for elderly persons and their carers living in aged buildings.

(iv) Spearhead the establishment of a matching platform to institutionalise tripartite collaboration among the Government, the business sector and the community in supporting the disadvantaged. The platform will enable the matching of resources from family offices and the business sector with community social welfare projects. The first round of matching will be arranged this year. The Commission on Targeted Poverty Alleviation will determine the target groups and themes before inviting NGOs to submit proposals.

(v) In collaboration with the HKEX, explore providing listed companies with further guidance on the preparation of ESG reports, encouraging them to engage in community and charitable activities, and promoting closer and more effective partnerships between the business sector and social welfare organisations.

(vi) Narrow the digital divide by organising more experiencing and training activities on I&T and AI for children and young people from grassroots families.

Support Carers

376. The Government will strengthen its support for carers:

(i) Increase the amount of allowance under the Scheme on Living Allowance for Carers of Elderly Persons from Low-income Families and the Scheme on Living Allowance for Low-income Carers of Persons with Disabilities by 10% to $3,300 per month. It is expected to benefit more than 10 000 low income families.

(ii) Enhance the automated operation of the Carer Support Data Platform and expand its coverage.

(iii) Optimise the system of the Designated Hotline for Carer Support and enhance its efficacy.

(iv) Increase the manpower of the District Support Centres for PWDs for better early identification of and support for high risk carers.

(v) Regularise the Pilot Scheme on Training for Foreign Domestic Helpers in Elderly Care and the Pilot Scheme on Training for Foreign Domestic Helpers in Care for PWDs, starting from April 2027.

Support Persons with Disabilities and Persons in Rehabilitation

377. To strengthen rehabilitation services for PWDs, the Government will provide about 460 additional places for day, residential and pre-school rehabilitation services.

Protect Children

378. The Government is closely monitoring the implementation of the Mandatory Reporting of Child Abuse Ordinance, which took effect in January, to ensure adequate support measures are in place.

379. Four new Community Parents and Children Centres have begun operation in the first half of this year, with an estimated 40 000 beneficiaries a year. We are closely monitoring service implementation to ensure that the families and children concerned receive suitable and effective support.

Support Students with Special Needs

380. The Government is committed to increasing the quotas for pre-school rehabilitation service to achieve zero-waiting time for on-site support. We will exempt kindergarten children with special needs from going through the Central Waiting List, so that they receive better and earlier support through personalised services designed by their kindergartens and multi-disciplinary service teams.

381. We will launch the "Enhanced Support for Students with Attention Deficit/Hyperactivity Disorder" Project in the 2026/27 school year and pilot the project for three years, starting from the 2027/28 school year. It will provide small group training and other support services for students with attention deficit/hyperactivity disorder studying in public sector ordinary primary and secondary schools, thereby enhancing their performance in behavioural, social and learning adaptation.

(I) Enhance Labour Protection

Combat Illegal Employment

382. The Government will step up efforts to combat illegal employment on all fronts and reduce economic incentives for potential non-refoulement claimants to come to Hong Kong. Relevant measures include:

(i) Strengthen the functions of the Inter-departmental Task Force against Illegal Employment and review the membership of the task force in a dynamic manner.

(ii) Appoint industry representatives from specific sectors as "Anti-Illegal Employment Ambassadors" to assist in intelligence collection and step up publicity and education.

(iii) Leverage technology to enhance the effectiveness of "cyber patrol" and intelligence collection.

(iv) Review the penalty for illegal employment and strive for sentences with a greater deterrent effect to be handed down by courts.

(v) Enhance inter-departmental joint operations to combat illegal employment in a targeted manner.

Stringent Vetting of Applications for Limited Supplementary Labour

383. The Government has always been committed to ensuring employment priority for local workers, while allowing only employers facing genuine recruitment difficulties and shortages of local manpower to import labour, on a limited scale, following approval. Employers are granted approval for limited importation of labour only upon meeting the manning ratio of local employees to imported workers, and proving that vacancies could not be filled by local workers after undertaking local recruitment. The wages of imported workers should not be lower than the median wages of local workers. In addition, the Labour Department (LD) has, since June, implemented a tiered vetting mechanism under the Enhanced Supplementary Labour Scheme (ESLS). Job categories falling under the Tier 2 mechanism are subject to more stringent requirements in such areas as manning ratio and local recruitment, including a requirement for employers to attend in person recruitment fairs held at designated job centres, and an extension of the local recruitment period from four weeks to six weeks. The Tier 2 mechanism is currently applicable to key posts in the kitchen and table services of the food and beverage services sector. The ratio of imported workers approved has fallen accordingly. The Government will closely and dynamically monitor the employment situation and include more industries and posts in the Tier 2 vetting mechanism, as necessary. The LD actively investigates and follows up on suspected violations of ESLS requirements. It imposes administrative sanctions on non-compliant employers, to ensure employment priority for local workers.

384. The LD is also developing a new digital application platform for ESLS with enhanced data collection and analysis, to strengthen the monitoring of applicant employers' compliance.

Formulate New Legislation to Strengthen Protection for Delivery Workers

385. The Government is developing new legislation to provide digital platform workers engaging in food and goods delivery services with statutory compensation for injuries at work. We will also strengthen communication with stakeholders.

Enhance Occupational Safety and Health

386. The Government is deeply concerned about occupational safety and health (OSH) issues in the construction industry. Apart from ongoing surprise inspections and enforcement actions against non-compliance, we are using innovative technologies to boost enforcement effectiveness and efficiency. We will also step up publicity and education efforts to raise safety and law abiding awareness among contractors and workers.

387. The Government has launched the Smart Site Safety System (4S) labelling scheme in collaboration with the CIC. We will continue to fund private works projects through the CITF to enhance site safety by using innovative construction methods and new technologies (including 4S).

Enhance the Mandatory Provident Fund System

388. We will introduce an amendment bill into the LegCo by the end of the year, to enhance the process of recovering default MPF contributions from employers. With Phase One of MPF "Full Portability" scheduled for implementation this year, we are also preparing a legislative proposal on the implementation of Phase Two of MPF "Full Portability" to benefit the remaining employees.

Encourage Re-employment

389. As of July, the Re-employment Allowance Pilot Scheme had recorded over 53 000 placements, about a quarter of which were filled by individuals aged 60 and above. The Government will provide additional resources to disburse re employment allowance to all eligible participants. The LD will also announce the results of the Scheme's mid-term review by the end of the year to facilitate the refinement of further measures to encourage re employment.

(J) Concerted Efforts to Build a Thriving Age friendly Society

Cope with an Ageing Society

390. Last year's Policy Address announced the establishment of the Working Group on Ageing Society Strategies, to formulate strategy responses and submit a report under the steer of the Deputy Chief Secretary for Administration.

391. The report is now completed and is set to recommend about 70 measures covering 11 areas, including healthcare, technology, economy, transport, elderly care, finance, learning, social life and age-friendly city design. The Deputy Chief Secretary for Administration will announce the report later this month.

Foster a Sense of Security among the Elderly

392. Adhering to the principle of "ageing in place as the core, with institutional care as back up", the Government promotes ageing in place with the following measures:

(i) Increase the number of Community Care Service Vouchers for the Elderly by 2 000, to 18 000 in the 2027 28 financial year.

(ii) Increase the number of Residential Care Service Vouchers for the Elderly by 1 000, to 8 000.

(iii) Set up five new subsidised, day-care facilities for the elderly, providing about 200 service places.

(iv) Set up five new Neighbourhood Elderly Centres to support the elderly in integrating into the community. The facilities are expected to serve about 5 000 persons a year.

393. The Government will continue to set up new residential care facilities and improve relevant services, including:

(i) Set up three new residential care homes for the elderly (RCHEs), providing about 400 residential care places.

(ii) Provide newly built government RCHE premises for self financed operation by the sector on a pilot basis, allowing greater flexibility in offering diversified residential care services for the elderly.

(iii) Continue to expand the Residential Care Services Scheme in Guangdong by identifying more RCHEs in the Mainland cities of the GBA to join the Scheme, providing more RCHE choices for Hong Kong's elderly persons. To date, the number of participating RCHEs in Guangdong has reached 29, accommodating over 1 400 Hong Kong elderly residents.

(iv) Explore further enhancement to the Incentive Scheme to Encourage Provision of RCHE Premises in New Private Developments, such as allowing developers to use part of the floor area exempted from the gross floor area calculation to provide day-care facilities for the elderly.

(v) Provide additional resources for subvented RCHEs to offer end of life care services over a three year period.

394. To facilitate Hong Kong elderly persons to receive medical treatment in the Mainland cities of the GBA, the Government will explore extending the service points under the Elderly Health Care Voucher Greater Bay Area Pilot Scheme to cover the "community health centres" operated by the current participating medical institutions, and including additional pilot medical institutions in the scheme.

395. With reference to the existing regime for admitting foreign domestic helpers, the Government will admit foreign domestic carers with more advanced training and experience in elderly care on a pilot basis. This will help meet the care needs of elderly persons living at home.

Promote a Sense of Worthiness among the Elderly

396. We will launch a three year "Young-Old Mentorship Programme", establishing a mutual support network for young-olds with vitality and the skills to make the most of their abilities, share their experience and integrate into society, raising their sense of self worth and enjoying active ageing.

397. The LWB will collaborate with Octopus Cards Limited to launch the mobile version of JoyYou Card by the end of the year. It will offer elderly persons an option to enjoy the "$2 flat rate or 80 per cent discount" concession without a physical card. We will also explore making better use of the mobile platform in disseminating useful information to elderly persons via push notifications.

Continuously Build a Gerontechnology Ecosystem

398. The Government has been subsidising social welfare service units in procuring or renting relevant products under the Innovation and Technology Fund for Application in Elderly and Rehabilitation Care.

399. The HKHA will launch a pilot scheme introducing suitable household gerontechnology equipment to elderly singletons of advanced years and all-elderly households in selected public housing estates with a higher elderly population. The scheme will gradually be extended to other public housing estates.

400. The Government will earmark $100 million to launch the Gerontechnology Promotion Scheme. It will encourage and support local technology enterprises in developing elderly-care products and solutions, accelerating product optimisation for the benefit of the people of Hong Kong.

(To be continued.)

Ends/Wednesday, September 16, 2026
Issued at HKT 14:23

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