LCQ10: Promotion of new industrialisation development in Hong Kong
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Question:
The Administration launched the "New Industrialisation Funding Scheme" (NIFS) (renamed from Re-industrialisation Funding Scheme effective from October 2023) and the "New Industrialisation Acceleration Scheme" in July 2020 and September 2024 respectively, with a view to advancing new industrialisation in Hong Kong and accelerating the development of the innovation and technology industry. In this connection, will the Government inform this Council:
(1) of the numbers of applications received and approved cases, the total amount of matching grant approved, as well as the number of new smart production lines or facilities established in Hong Kong since the launch of the two schemes (with the above data provided in tabular form);
(2) given that the Innovation and Technology Commission streamlined the vetting and assessment procedures of the NIFS in June last year to shorten the time taken for vetting and approval of applications seeking funding support of no more than $2.8 million, of the effectiveness of such measures (including the reduction in the average time taken for vetting and approval, the approval rates for small and medium-sized enterprises (SMEs) and feedback from the industry); what specific measures will be put in place in the future to further optimise the application procedures, so as to attract more local manufacturers and SMEs to upgrade and transform through the NIFS; and
(3) given that the authorities will announce within this year the medium-to-long-term development plan for new industrialisation in Hong Kong, with a view to accelerating the growth of strategically valuable emerging industries, what specific strategies and supporting measures the authorities have in place to promote the development of emerging industries while at the same time consolidating the foundation of traditional industries with competitive edge such as textiles and apparel, and guiding them towards high-end, smart and green upgrading; whether the authorities will formulate key performance indicators to monitor the effectiveness?
Reply:
President,
The Government has been committed to developing a new industrialisation system with Hong Kong characteristics. The First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026 - 2030) sets out four major directions for industrial development, including fostering the upgrading and transformation of traditional industries by making use of innovation and technology, developing and strengthening emerging industries of strategic value, planning for future industries, and better developing producer services.
Having consulted the Commerce and Economic Development Bureau, the reply to the various parts of the question raised by the Hon Sunny Tan is as follows:
(1) The New Industrialisation Funding Scheme (NIFS) provides funding support on a 1(Government):2(enterprise) matching basis for enterprises to set up new smart production lines in Hong Kong. The maximum funding support for each project is one-third of the total project cost or $15 million, whichever is lower.
The New Industrialisation Acceleration Scheme (NIAS) provides funding support on a 1(Government):2(enterprise) matching basis for enterprises engaging in life and health technology, artificial intelligence and data science, as well as advanced manufacturing and new energy technologies to set up new smart production facilities in Hong Kong. Each enterprise may receive up to $200 million in funding.
Relevant figures on the two schemes are tabulated as follows:
| NIFS | NIAS | |
| Number of applications (Note) | 138 | 20 |
| Number of supported applications announced (Note) | 83 (involving nearly 150 smart production lines) |
9 |
| Funding amount | about $500 million | about $1.3 billion |
| Applicant's matching fund | about $1.2 billion | about $3 billion |
| Total investment amount | about $1.7 billion | about $4.3 billion |
(2) Since the implementation of the enhancement measure in 2025 to streamline the documentation requirements and assessment procedures for NIFS applications seeking funding support of no more than $2.8 million, the Innovation and Technology Commission (ITC) have processed 11 such applications (including 10 submitted by small and medium-sized enterprises), and they were all supported by the vetting committee. The average time for applicants to be notified of the vetting results upon submission of all necessary documents had been shortened to 21 working days. This has enabled applicants to kick-start their various tasks under the project as early as possible and was welcomed by the industry. The ITC will continue to review the operation of the NIFS and introduce enhancement measures as and when appropriate.
(3) The Government plans to release the medium-to-long-term development plan for new industrialisation (the Plan) in Hong Kong within this year, setting out a new industrialisation development pathway centred on "high technology, high value‑added" activities. On the one hand, it will actively foster strategic emerging industries, including life and health technology, artificial intelligence and advanced manufacturing, as well as future industries such as embodied intelligence and biomanufacturing. On the other hand, it will focus on consolidating and upgrading traditional industries with competitive edge, including textiles and garments. In addition, the Government will promote "dual-industry-driven" development, placing equal emphasis on manufacturing and producer services. The Plan will set out the relevant development objectives and policy measures.
Innovation and technology development is the driving force behind the upgrading and transformation of traditional industries. The Government will continue to support various research and development (R&D) institutions through the Innovation and Technology Fund to conduct R&D and technology transfer projects covering areas such as advanced manufacturing, new energy, life and health, new materials, big data, artificial intelligence of things, robotics, smart mobility, and green technology, with a view to promoting the upgrade and transformation of traditional industries with competitive edge (including the textiles and garments industry).
In addition, Hong Kong is proactively developing into a high value-added supply chain services centre and better leveraging its unique role to align with our country's modern industrial system, which includes promoting the upgrade and transformation of traditional industries, as well as cultivating emerging pillar industries. It was announced in the 2026 Policy Address that the Government will establish the Task Force on High Quality Development of Textile and Fashion Industry (Task Force), to be led by the Secretary for Commerce and Economic Development, to enhance the collaboration between government and industry representatives to pursue high-quality development of the textile and fashion industry in areas including innovation and technology, fashion design, supply chain management, sustainable development and brand promotion, as well as nurturing talent, thereby assisting the industry to connect with Chinese Mainland and overseas markets. The Task Force is expected to be set up in the first half of 2027 and submit its report to the Chief Executive within 2027.
Ends/Wednesday, October 28, 2026
Issued at HKT 15:00
Issued at HKT 15:00
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