New Initiatives to Support High-Quality Development

HONG KONG - Promoting high-quality development and expanding Hong Kong's capacity for economic growth are core elements of the 2024 Policy Address, announced (October 16) by John Lee, Chief Executive of the Hong Kong Special Administrative Region. "Hong Kong is striving to become an international innovation and technology (I&T) centre by promoting the upgrading and transformation of traditional industries while actively nurturing emerging ones," Mr Lee said. "We will spare no effort in developing new quality productive forces tailored to local conditions. Mr Lee said the Government would establish the third InnoHK research cluster, which will focus on advanced manufacturing, materials, energy and sustainable development. In particular, the Government will set up a research centre under the InnoHK research cluster to participate in the Chang'E-8 space mission, contributing to national aerospace development. Moreover, a new round of Research Matching Grant Scheme funding totalling HK$1.5 billion will also be launched to attract more organisations to support research endeavours of institutions. The Chief Executive also revealed a number of measures that the Government would adopt to revamp its approach to boosting capital investment in I&T industries. These include setting up a HK$10 billion I&T Industry‑Oriented Fund, forming a fund-of-funds to channel more market capital to invest in specified emerging and future industries of strategic importance; and optimising the Innovation and Technology Venture Fund by redeploying HK$1.5 billion to set up funds jointly with the market to invest in start‑ups of strategic industries. The Government will also launch an I&T Accelerator Pilot Scheme, with a funding allocation of HK$180 million, to attract professional start-up service providers to set up accelerator bases in Hong Kong, fostering the robust growth of start-ups. Meanwhile, the Government will establish the Working Group on Developing Low‑altitude Economy, to explore the emerging potential of economic activities in airspace below 1,000 metres. "We will press ahead with pilot projects and designate venues to explore deploying drones for delivery, surveys, building maintenance, aerial photography, performances, search and rescue, and other possibilities," Mr Lee said. On new energy, the Government will earmark around HK$750 million under the New Energy Transport Fund to subsidise the taxi trade and franchised bus companies to purchase electric vehicles, and launch the Subsidy Scheme for Trials of Hydrogen Fuel Cell Electric Heavy Vehicles. To foster new quality productive forces in biomedical technology, the Government will complement technological innovation with institutional innovation, developing Hong Kong into an international health and medical innovation hub. Initiatives include expediting reform of the approval mechanism for drugs and medical devices, including extending the "1+" mechanism to all new drugs for use in Hong Kong. Under the new "1+" drugs registration mechanism, applications for registration of new drugs that are supported with local clinical data are only required to submit approval from one reference drug regulatory authority (instead of two originally). "Education nurtures our future, technology denotes our strength, and talents lead our development," Mr Lee said, adding that the Government will set up a Committee on Education, Technology and Talents to co-ordinate and drive the integrated development of education, technology and talents. The Chief Executive also announced reforming various talent admission mechanisms, including expanding to 198 the number of universities under the Top Talent Pass Scheme list, and extending the validity period of the first visa of high-income talents from two to three years. He supplemented that the Government would extend the pilot arrangement, for two years, for graduates from the Greater Bay Area campuses of Hong Kong universities to work in Hong Kong. To expand capacity and inject impetus into Hong Kong's high-quality development, Mr Lee said the Government would take forward development of the Northern Metropolis as a new engine for economic development. He added that a Government-led company would be established to formulate development and operation strategies for building a pilot industrial park. To expedite development of the Northern Metropolis, the Government will adopt, on a pilot basis, a large‑scale land‑disposal approach, under which sizable land parcels with commercial value and earmarked for provision of community facilities will be selected and granted to successful bidders for collective development. "I believe that we must maintain our development momentum and self‑renewal, and that we must embrace changes while staying principled, innovative and flexible in meeting challenges and opportunities," Mr Lee said.