The Speech on the 2026-27 Budget - Part 5

Budget Speech by the Financial Secretary (5)

Enhancing Industries with Competitive Edge

122. The Recommendations, apart from further reinforcing Hong Kong's strategic position, support us to consolidate and enhance industries with competitive edge.

International Trade Centre

123. Facing a complicated and ever-changing geopolitical and economic landscape, we will consolidate and enhance our status as an international trade centre on all fronts through a series of policy initiatives.

Expand Commercial and Trade Network

124. Hong Kong will strengthen its role as the functional node for the Belt and Road (B&R) Initiative. We will collaborate with industry players to further develop the ASEAN and Middle East markets, and explore the potential of Central Asia, South Asia and North Africa markets. Meanwhile, we will forge more free trade agreements and investment agreements (IAs). We have concluded negotiations of IAs with Qatar, Bangladesh and Peru respectively, and are exploring the signing of new IAs with Saudi Arabia and Egypt.

125. Hong Kong has so far signed a total of 55 Comprehensive Avoidance of Double Taxation Agreements (CDTA), including those signed with Jordan, Maldives, Norway and Rwanda last year. We will further expand our CDTA network.

126. We will continue reaching out to relevant authorities in B&R regions to seek more project matching opportunities for Hong Kong enterprises and professional services, while encouraging and assisting external organisations to stage roadshows in Hong Kong. Outbound missions and project-matching activities will also be organised to promote our professional services.

Attract Enterprises and Investment

127. To further attract enterprises to set up in Hong Kong, last year's Policy Address announced that we would formulate preferential policy packages to promote industries and investment.

128. We have formulated a preliminary framework, which would take into account a series of factors, including the enterprise's industry and its technology level, as well as the potential economic contributions and employment opportunities it can bring to Hong Kong. Policy tools include land grant arrangements, financial subsidies and tax incentives. The preferential tax rates will be half-rate or five per cent. We will introduce an amendment bill this year.

129. Tax policy is a key component to economic competitiveness. In view of the evolving global tax environment in recent years, I will establish and chair an Advisory Committee on Tax Policy to gather views widely from commercial, industrial and professional sectors, so that Hong Kong's tax policy can reinforce economic development.

Support Mainland Enterprises in Going Global

130. As our country is advancing with high-level, two-way opening-up, more Mainland enterprises are actively expanding overseas markets. The Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) will organise promotional activities to attract Mainland enterprises to venture into global markets through Hong Kong. We will also set up a cross-sectoral professional services platform, bringing together Hong Kong's professional services providers in the field of legal services, accounting, financial services, testing and certification, marketing, etc. to support enterprises going global.

Support Local Enterprises

131. The growing popularity of online shopping and changing consumption patterns have posed challenges to some sectors. The Government is enhancing various measures to strengthen the competitiveness of SMEs.

132. The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) has been well-received by enterprises. The Government will inject $200 million into the fund, raise the funding ceiling of "Easy BUD" to $150,000 per application, and provide more targeted funding support for enterprises in AI application.

133. The Hong Kong Export Credit Insurance Corporation will introduce a pilot scheme this year to provide protection for SMEs engaging in exports with higher-risk buyers.

134. The Government will continue providing loan guarantees to enterprises through the SME Financing Guarantee Scheme. We have extended the application period for the 80% Guarantee Product to the end of March 2028 and also extended the application period for the principal moratorium arrangement to mid-November this year. The total loan guarantee commitment under the Scheme will increase by $20 billion.

135. Hong Kong's food industry can leverage its reputation for quality to further expand into the Mainland and international markets. We will continue seeking market access and simplified customs arrangements of the Mainland for a wider range of local food products. The Centre for Food Safety will waive the fees related to the certification of food products for two years. Besides, we will introduce a new unified brand for local agricultural and fisheries products in the middle of this year, supported by a certification, testing and traceability mechanism.

Convention and Exhibition Industry

Hong Kong Convention and Exhibition Centre, Photo source: reference image

136. To promote further development of the exhibition industry and brand building as an international convention and exhibition hub, the Government will earmark $100 million for attracting large-scale international exhibitions with new elements to Hong Kong through collaborating with relevant organisations on a pilot basis. Our objective is to develop Hong Kong into the first-choice platform for showcasing Mainland and international brands, while attracting high-spending business visitors to Hong Kong and driving high value-added economic activities.

International Aviation Hub

Photo source: reference image

137. The Hong Kong International Airport (HKIA) is the world's busiest cargo airport. Its cargo throughput exceeded five million tonnes last year; and its passenger throughput reached 61 million, marking a year-on-year increase of nearly 15 per cent. We will strive to enter into new air services agreements and expand traffic rights with regions demonstrating development potential, such as the Middle East, Central Asia, Africa and South America, so as to further enhance Hong Kong's competitiveness as an international aviation hub.

138. The new passenger departure facilities at Terminal 2 of HKIA are scheduled to commence operations in May, which will substantially enhance the airport's overall capacity.

Airport City

139. The Airport Authority Hong Kong (AAHK) is proactively attracting businesses and investment to develop Airport City SKYTOPIA into a world-class landmark. Relevant developments include the AsiaWorld-Expo Phase 2, art storage facilities and the Yacht Bay, etc.

Aircraft Parts Processing and Trading Centre

140. The AAHK is pressing ahead with a leading overseas aircraft services company to provide professional services such as aircraft dismantling and parts recycling in Hong Kong, thereby developing Hong Kong into the first aircraft parts processing and trading centre in Asia.

Co-operation in Transport and Logistics

Collaborate with airports in the Greater Bay Area

141. Since the launch of the direct passenger service from Zhuhai to Hong Kong for passengers taking flights at HKIA, over 100 000 passenger trips have been made. The AAHK will step up promotion while enhancing the connectivity between Zhuhai Airport and the HKIA to encourage more travellers using the service.

Sea-Air Intermodal Cargo Transhipment Mode

142. The sea-air intermodal cargo transhipment mode operated by the AAHK in collaboration with Dongguan has attracted the participation of 27 airlines and 140 logistics companies. In addition, the construction of the intermodal pier under Phase 1 of the HKIA Dongguan Logistics Park has been completed. The remaining works are expected to complete within this year, targeted for commissioning in the first half of next year.

International Maritime Centre

143. Hong Kong will further align with the national maritime strategic development, and elevate our status as an international maritime centre. Meanwhile, we are striving to promote smart logistics and digital transformation in the industry, while expanding our cargo hinterland to secure more transhipment cargo.

Smart Port

The maritime services in Hong Kong, Photo source: reference image

144. The newly launched Port Community System (PCS) provides real-time tracking of sea, land and air cargo, fostering free flow of information among different industries. In addition, the PCS and Guangdong e-Port are connected to provide value-added services such as One-Data-Multiple-Declarations. More than 3 000 companies have registered with the PCS. We will continue leveraging the data provided by the PCS to bring greater values to the industry.

High Value-Added Maritime Services

145. We will introduce an amendment bill in the first half of this year to enhance tax concession measures for the maritime service industry and provide a half-rate tax concession to eligible commodities traders. All these will further promote the development of high value-added maritime services in Hong Kong.

146. To consolidate Hong Kong's premier position in ship registration, we will introduce an amendment bill this year to revamp the existing ship registration arrangements, including permitting dual registration arrangement to cater for the diverse operating models of international maritime enterprises.

Hong Kong Maritime Week

147. This year marks the 10th anniversary of the Hong Kong Maritime Week. We will organise more large-scale forums and seminars in collaboration with different international maritime organisations, with a view to enhancing Hong Kong's influence as an international maritime centre.

Green Shipping

Develop a Green Maritime Fuel Bunkering Centre

148. To develop Hong Kong into a green maritime fuel bunkering and trading centre, the Government will provide port dues concessions for vessels powered by green fuel as well as those carrying green fuels to attract more vessels to bunker green fuel in Hong Kong. An incentive scheme will also be launched for green vessels registered in Hong Kong to encourage green transformation of Hong Kong fleets. All these involve government subsidies of around $34 million. The Government will take forward a legislative amendment exercise this year to provide more anchorages for green maritime fuel bunkering operations.

Synergy of Financial and Maritime Services

149. The international maritime industry is undergoing green transformation. Substantial capital investments are needed for building new green vessels or retrofitting existing ones. Hong Kong will leverage our strengths to promote the co-development of financial and maritime centres.

Open up New Cargo Sources

150. We are fully committed to establishing a comprehensive "rail-sea-land-river" intermodal transport system connecting the inland region, striving to channel more inland cargo for export through Hong Kong. The relevant legislation will be amended within this year to extend the current arrangements under the Air Transhipment Cargo Exemption Scheme to other sea transhipment and sea-air transhipment modes.

Smart Logistics

Photo source: reference image

151. To develop Hong Kong into an international smart logistics hub, the Government will launch the Future Innovative Logistics Acceleration Scheme this year to drive the transformation of the industry and enhance the interconnectivity of logistics data, with a view to increasing the competitiveness of the logistics industry.

Modern Logistics Cluster

The Hung Shui Kiu/Ha Tsuen New Development Area, Photo source; the official website of LandsD

152. The Hung Shui Kiu/Ha Tsuen New Development Area is connected with the Qianhai Co-operation Zone and will become the centre for modern services in the NM. The Government has reserved about 32 hectares of land for developing a modern logistics cluster and will invite expressions of interest from the industry for the development of the first site this year.

FEHD releases fourth batch of gravidtrap indexes for Aedes albopictus in May

The Food and Environmental Hygiene Department (FEHD) today (May 21) released the fourth batch of gravidtrap indexes and density indexes for Aedes albopictus in May, covering 12 survey areas, as follows:

District

Survey Area

May 2026

First Phase Gravidtrap Index

First Phase Density Index

Eastern

Shau Kei Wan and Sai Wan Ho

9.1%

1.4

Islands

Tung Chung

2.0%

1.0

Kowloon City

Hung Hom and To Kwa Wan

6.7%

1.5

Tai Po

Tai Po East

2.2%

2.0

Tai Po West

15.5%

1.0

Tuen Mun

Tuen Mun South

9.1%

1.4

District

Survey Area

May 2026

Area Gravidtrap Index

Area Density Index

Central and Western

Kennedy Town and Shek Tong Tsui

16.8%

1.3

Eastern

Chai Wan

15.4%

1.0

North Point and Quarry Bay

18.9%

1.4

Southern

Aberdeen and Ap Lei Chau

20.8%

1.7

Sha Tin

Sha Tin Town Centre and Fo Tan

18.3%

1.4

Tsuen Wan

Tsuen Wan Town

6.9%

2.3

The fourth batch of gravidtrap indexes for Aedes albopictus in May includes First Phase Gravidtrap Indexes covering six survey areas and Area Gravidtrap Indexes covering six survey areas. Among which, six survey areas recorded gravidtrap indexes above 10 per cent, while Aberdeen and Ap Lei Chau in Southern District recorded a gravidtrap index above 20 per cent. Meanwhile, the gravidtrap indexes of six survey areas, namely Kennedy Town and Shek Tong Tsui in Central and Western District; North Point and Quarry Bay in Eastern District; Shau Kei Wan and Sai Wan Ho in Eastern District; Aberdeen and Ap Lei Chau in Southern District; Tai Po East in Tai Po District; and Tuen Mun South in Tuen Mun District, have recorded a decrease as compared to the indexes recorded in the last survey period, reflecting the progress of relevant mosquito control work.

With reference to the data from the past few years, the gravidtrap indexes start to rise from April or May every year. The actual timing and extent of the rise are affected by factors like weather conditions and rainfall. The average temperature and rainfall recorded in April this year were higher than those in the same period last year, creating favourable conditions for mosquito growth and breeding. As a result, the rise in gravidtrap indexes occurred earlier this year. With the increase in rainfall in May, the gravidtrap indexes are expected to rise further.

For survey areas which recorded indexes exceeding 10 per cent, in accordance with the mechanism implemented by the FEHD in response to the chikungunya fever (CF) situation (i.e. strengthening mosquito control work in areas with a gravidtrap index between 10 per cent and 20 per cent, instead of 20 per cent or above under the original mechanism), the FEHD is collaborating with relevant departments and stakeholders to identify locations with high mosquito infestations and carry out intensive and targeted mosquito control measures. The FEHD has initiated two prosecutions against the relevant construction site contractors following the discovery of mosquito breeding at construction sites in Tai Po District and Southern District. Moreover, following the discovery of stagnant water or stagnant water containers in a park, a construction site, a private housing estate, a clinic and a private premises in Tai Po District, Central and Western District, as well as Southern District, the FEHD has issued five statutory notices to the responsible persons-in-charge, requiring the clearance of such items within a specified timeframe. The FEHD, the relevant departments and stakeholders are following up on the mosquito control work, and will also organise exhibitions, distribute leaflets and posters, and notify residential estates that have subscribed to the gravidtrap Rapid Alert System, advising property management agents and residents to stay vigilant and work together in taking mosquito prevention and elimination measures. In addition, the FEHD will strengthen the monitoring of the gravidtrap index in the areas to review the effectiveness of the mosquito control work.

Public participation is crucial to the effective control of mosquito problems. The FEHD appeals to members of the public to continue to work together in strengthening personal mosquito control measures, including:

tidy up their premises and check for any accumulation of water inside the premises;

remove all unnecessary water collections and eliminate the sources;

check household items (those placed in outdoor and open areas in particular), such as refuse containers, vases, air conditioner drip trays, and laundry racks to prevent stagnant water;

change water in flower vases and scrub their inner surfaces thoroughly, and remove water in saucers under potted plants at least once a week;

properly cover all containers that hold water to prevent mosquitoes from accessing the water;

properly dispose of articles that can contain water, such as disposable meal boxes and empty cans; and

scrub drains and surface sewers with alkaline detergent at least once a week to remove any mosquito eggs.

Starting in August 2025, following the completion of the surveillance of individual survey areas, and once the latest gravidtrap index and the density index are available, the FEHD has been disseminating relevant information through press releases, its website and social media. It aims to allow members of the public to quickly grasp the mosquito infestation situation and strengthen mosquito control efforts, thereby reducing the risk of CF transmission.

Following recommendations from the World Health Organization and taking into account the local situation in Hong Kong, the FEHD sets up gravidtraps in districts where mosquito-borne diseases have been recorded in the past, as well as in densely populated places such as housing estates, hospitals and schools to monitor the breeding and distribution of Aedes albopictus mosquitoes, which can transmit CF and dengue fever. At present, the FEHD has set up gravidtraps in 62 survey areas of the community, with a surveillance period of two weeks. During the surveillance period, the FEHD will collect the gravidtraps once a week. After the first week of surveillance, the FEHD will immediately examine the glue boards inside the retrieved gravidtraps for the presence of adult Aedine mosquitoes to compile the Gravidtrap Index (First Phase) and Density Index (First Phase). At the end of the second week of surveillance, the FEHD will instantly check the glue boards for the presence of adult Aedine mosquitoes. Data from the two weeks of surveillance will be combined to obtain the Area Gravidtrap Index and the Area Density Index. The gravidtrap and density indexes for Aedes albopictus in different survey areas, as well as information on mosquito prevention and control measures, are available on the department's webpage (www.fehd.gov.hk/english/pestcontrol/dengue_fever/Dengue_Fever_Gravidtrap_Index_Update.html#).

FEHD releases fourth batch of gravidtrap indexes for Aedes albopictus in May Source: HKSAR Government Press Releases

FEHD releases fourth batch of gravidtrap indexes for Aedes albopictus in May Source: HKSAR Government Press Releases

FEHD releases fourth batch of gravidtrap indexes for Aedes albopictus in May Source: HKSAR Government Press Releases

FEHD releases fourth batch of gravidtrap indexes for Aedes albopictus in May Source: HKSAR Government Press Releases

FEHD releases fourth batch of gravidtrap indexes for Aedes albopictus in May Source: HKSAR Government Press Releases