Gov’t outlines preferential policies to attract enterprises

The Financial Secretary will lead in designing packages.

Chief Executive John Lee, in his 2025 Policy Address, announced plans to formulate preferential policies to attract more enterprises to set up in Hong Kong.

The Financial Secretary will lead relevant bureaus, departments and public organisations in designing packages that may include land grants, land premiums, financial subsidies, and tax incentives.

In line with this, the Government is also exploring a mechanism to allow the Chief Executive and Financial Secretary to introduce tax incentives that comply with international standards.

On aviation, the Government has signed an agreement of intent with a European aeronautic services company to establish operations in Hong Kong. The company will also collaborate with the Hong Kong International Aviation Academy.

A sustainable aviation fuel (SAF) industry chain is expected to expand into the Greater Bay Area (GBA), covering raw material collection, plant construction and production to meet Hong Kong International Airport’s 2030 SAF consumption target.

Hydrogen initiatives include drafting certification standards, setting up filling facilities on Hong Kong Island and in Kowloon, advancing trial projects, and working with Guangdong on a GBA Hydrogen Corridor.

Meanwhile, construction of Hong Kong’s first large-scale electric vehicle battery recycling facility at EcoPark is scheduled to begin operations in the first half of 2026.

The Government will also establish the Hong Kong Centre for Medical Products Regulation and table a legislative proposal on medical device regulation next year. Plans include accelerating the “1+” mechanism for new drugs, standardising clinical data, and building a real-world data platform.

$1b has been earmarked for the Hong Kong AI Research & Development Institute. The Digital Policy Office will introduce AI applications in areas such as data analysis, customer service and document processing.

Moreover, the Monetary Authority and Cyberport have launched the second round of the AI Sandbox initiative, whilst the Development Bureau will provide subsidies for AI use in construction. The Department of Justice will form a working group to review legislative support for AI adoption.

Separately, a 10-hectare site at Sandy Ridge in the North District will be tendered this year for a data facility cluster to expand computing power capacity and support the growth of data and AI industries.