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

Hong Kong's first five-year plan aims to provide businesses with long-term certainty amid an uncertain external environment, according to Financial Secretary Paul Chan Mo-po. The targets and timelines of the plan allow companies to align their strategies with the government's vision over the next five years. Chan emphasized that the significance of planning extends beyond the document itself, as it involves setting indicators and action plans that can be reviewed annually.

The plan, unveiled alongside Chief Executive John Lee Ka-chiu's policy address, sets targets for 2026 to 2030. These include producing 900 hectares of formed land in the Northern Metropolis, increasing manufacturing and new industrialisation's contribution to 5.5% of GDP, and raising research and development expenditure to 3% of GDP.

The plan also includes the creation of 200 hectares of formed land in the Northern Metropolis over the current and next financial years. The nine new development areas in the megaproject have been launched, with work underway in four of them, covering about 800 hectares. The Hong Kong-Shenzhen Innovation and Technology Park, San Tin Technopole, and Sandy Ridge Data Park are among the sites supporting the innovation and technology sector.

The plan also aims to increase research postgraduate places and Hong Kong PhD Fellowship Scheme awards. The government has shortlisted 20 fund management companies for the I&T Industry-Oriented Fund, which is expected to be launched this year. Additionally, a bill to provide selected companies with concessionary tax rates is set to be submitted by the end of the year.