Hong Kong’s Financial Secretary Paul Chan presented the 2025-26 Budget, highlighting challenges and opportunities ahead. While global political tensions pose risks, advancements in technology and artificial intelligence (AI) are reshaping industries and creating new growth opportunities.
He emphasized the need for Hong Kong to act quickly during this key moment, pushing forward development by embracing innovation while phasing out outdated systems. Chan stressed that transformation and forward-thinking approaches will drive Hong Kong’s future, and the government is committed to fostering high-quality economic growth.
The Budget outlines measures to accelerate the development of new industries and promote innovation. In the innovation and technology (I&T) sector, the government plans to position Hong Kong as a global hub for AI collaboration.
Efforts will focus on cutting-edge research, practical applications, and turning AI into a core industry. Traditional sectors will also be supported in their upgrades and transformations.
The Government will establish the Hong Kong AI Research and Development Institute to support AI development and launch the Pilot Manufacturing and Production Line Upgrade Support Scheme (Manufacturing+).
Regarding financial reforms, the government aims to modernize the listing framework, host the Hong Kong Global Financial and Industry Summit, and develop a strategic plan for the gold market this year.
The Budget highlights the ongoing development of the Northern Metropolis as a long-term investment in Hong Kong’s future. Efforts will focus on creating I&T zones, such as the Hong Kong Park within the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone and San Tin Technopole. Plans also include a data facility cluster at Sandy Ridge and space for conference and exhibition centres.
Regarding tourism, funds will be allocated to promote the concept of “tourism is everywhere” and implement the updated Development Blueprint for Hong Kong’s Tourism Industry. A study will explore transforming areas south of Hung Hom Station into a new waterfront landmark in Kowloon, which may include a yacht club.
Addressing land supply, Chan announced that no commercial land will be offered for sale next year due to high office vacancy rates. The Government may rezone some commercial plots for residential use and allow more flexible land-use options.
To manage public finances, Chan proposed a reinforced fiscal consolidation plan to control spending while gradually increasing revenue. The goal is to restore a balanced Operating Account within the current Government’s term. The Government also plans to streamline public services through digital upgrades and process improvements.
Chan indicated plans to adjust revenue sources, including raising the air passenger departure tax and reviewing tolls for government-managed tunnels and roads. On bond issuance, the Government will increase bond sales responsibly, using the funds for infrastructure projects that benefit Hong Kong’s future and generate value for society.
