Hong Kong's 2026-27 Budget Focuses on Innovation, AI, and Economic Development Opportunities

Budget: Driving High-Quality, Inclusive Growth with Innovation and Finance

The Financial Secretary, Mr Paul Chan, unveiled today (February 25) his 2026-27 Budget. He noted that this year marks the beginning of the National 15th Five-Year Plan, and the country's sustained high-standard two-way opening-up, coupled with scientific and technological and innovation, has presented Hong Kong with new opportunities. Hong Kong must foster new quality productive forces in accordance with local conditions. Leveraging the edge of having close connectivity with the Mainland and the world, and with a large pool of talent, Hong Kong will facilitate enterprises in opening up new markets.

The Financial Secretary, Mr Paul Chan, Photo by Bastille Post

The 2026-27 Budget, Photo by Bastille Post

Mr Chan proposed a series of measures to drive innovation and technology development, including establishing the Committee on AI+ and Industry Development Strategy; taking forward the Sandy Ridge data facility cluster project; promoting AI training; and accelerating digital intelligence transformation of the Government. He noted that Hong Kong is pressing ahead with the industrialisation of AI and deepening its integration across various industries, while encouraging wider AI application, thereby achieving the target of adoption and utilisation by all. Moreover, the International Clinical Trial Academy will also be established to help enable the Mainland's biomedicine technology to go global, attract foreign investment, and help develop Hong Kong into an international health and medical innovation hub.

Design Image

To facilitate the development of new industrialisation, the Budget has earmarked resources for establishing in Hong Kong the first national manufacturing innovation centre outside the Mainland, and the New Industrialisation Elite Enterprises Nurturing Scheme will be launched. The Government will promote the full integration of technological innovation and industrial innovation through key infrastructure, including the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone and San Tin Technopole.

The Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, Photo source: reference image

San Tin Technopole, Photo source: reference image

On finance, Hong Kong will proactively align with national development strategies, advance the internationalisation of the Renminbi, and continuously reform the securities market. The Government will legislate this year to enhance tax regimes for family offices and funds, as well as establish licensing regimes for digital asset dealing and custodian service providers.

Photo source: reference image

On tourism promotion, to support "tourism is everywhere" and promote "urban-rural integration", the Government will launch the Northern Metropolis Urban-rural Integration Fund as a pilot scheme to encourage the introduction of rural tourism projects.

The introduction of rural tourism projects will be encouraged. Photo source: HKSAR Government Press Releases

Regarding land supply, Mr Chan said that specific land sale arrangements will be announced on a quarterly basis after careful consideration of market conditions and other relevant circumstances, for the steady development of the market. In view of the vacancy rate in the non-residential property market, and considering supply and demand, the Government will not put up general commercial sites for sale in the coming year.

Photo by Bastille Post

On public finances, Mr Chan noted that tax revenue has increased over the past year, as a result of the booming economy and capital market. Coupled with the reinforced fiscal consolidation programme gradually bearing fruit, public finances have improved sooner than expected. In 2025-26, the Operating Account will return to a surplus ahead of schedule, while the Consolidated Account will be broadly balanced after taking into account the net proceeds from bond issuance. The Government will continue to strictly contain the growth of its operating expenditure and take forward the Productivity Enhancement Programme as planned. Moreover, to relieve the economic pressure faced by the people, the Budget proposes increasing the basic allowance, the single parent allowance, the married person's allowance, the child allowance, the allowance for maintaining a dependent parent or grandparent, and the deduction ceiling for elderly residential care expenses starting from the year of assessment 2026/27.

Design Image

In conclusion, Mr Chan said that the global environment has remained volatile over the past year, and Hong Kong has continued to undergo economic transformation. Technological innovation, in particular the development of AI, has brought a mix of opportunities and challenges. Yet, Hong Kong has always thrived amid changes and progressed through innovation. While transformation is ongoing, the economy has recalibrated its course and is advancing steadily. Hong Kong must make full use of its strengths and leverage the resolute support of the country to speed up and scale up economic development sustainably, creating better development opportunities for the people and enhancing their quality of life.

Photo source: reference image

For more details on the 2026-27 Budget, click here.

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