Hong Kong’s first 5-year plan to set goals, not alter economic system: John Lee

Hong Kong's incoming policy address is set to address measures aimed at removing obstacles for businesses establishing operations in the Northern Metropolis. The government is expected to introduce proactive initiatives to bolster innovation hubs, research endeavors, and technology applications. These key elements are anticipated to be focal points during the chief executive's policy address, which is scheduled for Wednesday. The same day, Lee will unveil the city's inaugural five-year plan.

The policy address is projected to be concise, lasting no longer than three hours, with an equal split between the five-year plan and the policy address. The five-year plan is expected to encompass ambitious and enforceable key performance indicators and objectives, which would apply to both the incumbent and subsequent administrations.

According to an insider, the address will feature several deregulation and streamlining measures. The government aims to further simplify development procedures and facilitate business operations, including easing rules in various commercial and operational sectors to unlock market vitality.

Authorities are determined to streamline the approval process for construction projects in the Northern Metropolis. One source mentioned that cutting the time for obtaining approvals from multiple departments would reduce costs for companies. The proposed megaproject encompasses innovation hubs and a university town, covering 30,000 hectares (74,132 acres).

It aims to foster economic diversification through technology, generate demand for skilled jobs and learning opportunities for young people, and provide better quality homes for improved quality of life.

Details regarding the size of land plots for the three university town areas and the updated timeline for completing various infrastructure projects, such as new rail lines, are expected to be revealed in the policy address. The government plans to increase the number of research postgraduate and doctoral positions funded by the University Grants Committee to support local universities' expansion into the Northern Metropolis.

Lee is set to announce additional proactive policies to bolster industrial development, reinforcing Hong Kong's status as a world-leading hub within the Shenzhen-Hong Kong-Guangzhou innovation cluster. The World Intellectual Property Organisation recently ranked the cluster first globally. The government intends to enhance synergy among Hong Kong's three innovation parks and foster collaboration between five other research and development (R&D) institutes, expanding the city's research capabilities.

One potential avenue authorities are considering involves inviting smaller companies, local universities, and organizations from mainland China and other regions to participate in projects at the Lok Ma Chau Loop, the site of the Hong Kong-Shenzhen Innovation and Technology Park. This move could cultivate ideas and attract talent, helping to sustain the integrated research ecosystem.

The government also plans to utilize artificial intelligence (AI) to develop Hong Kong society, integrating the technology across various policy areas like tourism, welfare, finance, and legal services, while introducing AI-driven robots into communities. Additionally, authorities may consider enacting legislation to combat cyber-dependent crimes.