HK rolls out action plan for low-altitude economy

It involves improvements to civil aviation legislation and regulatory framework.

The Government will introduce an action plan to develop the city into a hub for low-altitude applications, said Chief Executive John Lee in his 2025 Policy Address.

The plan involves improvements to civil aviation legislation and regulatory framework, including dedicated legislation for unconventional aircraft weighing over 150 kilogrammes.

Infrastructure measures will include the designation of spectrum by year-end and early planning for vertiports, air route networks, satellite positioning, three-dimensional spatial data systems, and a smart low-altitude traffic management system.

The Government will also launch “Regulatory Sandbox X” pilot projects covering complex applications such as cross-boundary routes and passenger-carrying aircraft.

In line with this, the Insurance Authority will work with the insurance sector, which has set up a task force to design insurance products for low-altitude applications.

A third InnoHK research cluster will be created, focusing on sustainable development, energy, advanced manufacturing and materials.

Meanwhile, the New Industrialisation Acceleration Scheme’s minimum project cost will be lowered from $300m to $150m.

An I&T Industry-Oriented Fund will be launched in 2026-27 to attract investment into emerging industries.

In aerospace development, a Space Robotics & Energy Centre under InnoHK will be established to support the Chang’E 8 mission. The Innovation & Technology Support Programme has allocated over $100m for six university research projects in aerospace technology.

The Commerce & Economic Development Bureau (CEDB) is also reviewing the vetting process for Low Earth Orbit satellite licence applications and will promote 6G applications.

The CEDB, along with the Intellectual Property Department, will work with the Monetary Authority to launch an IP financing sandbox to support technology companies in using patents and IP as collateral. A two-year pilot scheme will subsidise patent valuation to support SME financing.

The Government will also prepare a legislative proposal to update the Copyright Ordinance following last year’s consultation on AI-related protections, and will publish a code of practice outlining relevant legal principles, the Chief Executive said.