Gov’t allocates $10b for new industrialisation scheme

The fund will cover technological, creative, legal, and economic development initiatives.

The government will launch the New Industrialisation Acceleration Scheme as part of its strategy under the Hong Kong Innovation & Technology (I&T) Blueprint. 

According to Chief Executive John Lee, the scheme will receive $10b in funding.

The New Industrialisation Development Office will be built to promote new industrialisation, support strategic enterprises to develop their businesses, assist the manufacturing sector, and provide support for startups.

To support this, the government will establish the Hong Kong Microelectronics Research & Development Institute next year in collaboration with universities and R&D centres.

Expediting the establishment of a supercomputing centre to develop AI will also be one of the priorities for this project.

“To promote the downstream development of new industrialisation, we will provide financial assistance for enterprises in the field of life and health technologies, AI and data science, advanced manufacturing and new energy technologies,” Lee said.

From the $10b budget,  $200m will be set for new production facilities on 1 government to 2 company matching basis, $4b for the promotion of cultural and creative industries., and another $4.3b for the Film Development Fund and the CreateSmart Initiative.

In addition, the government will also launch the Signature Performing Arts Programme Scheme to promote performing arts in Hong Kong. The project will be offered a subsidy capped at $10m and an additional $5m to match private sector funding.

Cross-boundary data flow and financial and medical services across the GBA will also be facilitated under this scheme. A memorandum of understanding with the Mainland will be signed in June.

Lee also discussed the enhancement of 5G coverage networks by expediting the expansion of mobile network infrastructure in rural and remote areas through subsidies.

The government will initiate preparations next year for the establishment of InnoHK 3rd cluster on advanced manufacturing, materials, energy, and sustainable development.

The government will also leverage its legal, taxation, and professional services to develop Hong Kong into a regional intellectual property (IP) trading centre. Implementation of the “patent box” tax incentive is one of the key measures to boost the IP legal regime.

Efforts to develop Hong Kong into a centre for international legal and dispute resolution services in the   APAC region are also ongoing.