Hong Kong’s first 5-year plan to give firms more long-term certainty: Paul Chan

Hong Kong has introduced its inaugural five-year plan, offering enterprises enhanced long-term predictability in the face of market uncertainty. Financial Secretary Paul Chan stated that this strategy's objectives and timelines will enable businesses to grasp the city's trajectory over the next half-decade and fine-tune their strategies in alignment with government goals.

According to Chan, the essence of planning transcends the document itself; it necessitates viewing the present through a future lens and converting aspirations into quantifiable indicators and actionable plans for yearly assessment.

The plan, unveiled alongside Chief Executive John Lee Ka-chiu's policy address, targets the creation of 900 hectares of developed land in the Northern Metropolis, a 5.5 percent increase in manufacturing and new industrial sector contributions to the Gross Domestic Product, and a 3 percent allocation of expenditure towards local research and development.

Over the current and subsequent fiscal years, at least 200 hectares of developed land will be generated in the Northern Metropolis. All nine proposed development areas within the megaproject have been initiated, with progress ongoing in four of them, covering approximately 800 hectares.

Chan detailed how various sites will cater to the innovation and technology sector. The Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop will primarily focus on research and development, while San Tin Technopole will offer space for pilot testing and mass production. The Sandy Ridge Data Park will provide computational resources, completing a chain from research and development to production and the market.

Over 100 technology firms and institutions have relocated to the Hong Kong side of the Loop, and its two wet laboratory buildings are fully leased. San Tin Technopole will allocate 210 hectares for innovation and technology, and the operator of the Hung Shui Kiu Industrial Park is in negotiations with firms from sectors such as advanced construction, testing, and certification.

The plan also envisions the expansion of three university towns within the Northern Metropolis to surpass 1,000 hectares, with research postgraduate positions increasing from 7,200 to 9,600, and Hong Kong PhD Fellowship Scheme awards rising from 400 to 550. Chan indicated that approximately 20 fund management companies have been shortlisted for the I&T Industry-Oriented Fund, anticipated to launch this year.

Furthermore, the government plans to submit an amendment bill by year-end to grant selected companies in finance, advanced manufacturing, innovation and technology research, headquarters operations, logistics, and supply-chain management either a 5 percent tax rate or half the current rate.