BFAC appreciates Government's efforts in launching measures to alleviate persistently tight local labour market and strengthen labour protection
The following is issued on behalf of the Business Facilitation Advisory Committee Secretariat:
The Business Facilitation Advisory Committee (the Committee) held its 59th meeting today (March 26). At the meeting, members were briefed by the Labour and Welfare Bureau (LWB) and the Labour Department (LD) on a series of measures to address manpower challenges. These include actively promoting upskilling for all, attracting outside talent, encouraging older and middle-aged persons to join the employment market, and amending the Employment Ordinance (EO) to make it easier for employees to enjoy comprehensive employment rights.
The LWB briefed members on the measures launched by the Government to promote upskilling of the local workforce and attract outside talent. The Employees Retraining Board (ERB) is undertaking a comprehensive reform and will be upgraded to "Upskill Hong Kong". The ERB has enhanced its services since early 2025, lifting the restrictions on the education attainment of its service targets. It has also rolled out more training on emerging skills and strengthened collaboration with higher education institutions with strengthened career planning and employment support. "Upskill Hong Kong" will provide various types of skills-based training courses, including AI application, with a view to promoting continuous learning for people from diverse backgrounds, and contributing to boosting Hong Kong's human capital.
The LWB has since late 2022 implemented an array of talent attraction measures, including the launch of the Top Talent Pass Scheme, the updating of the Talent List, and the reform and enhancement of the General Employment Policy, the Admission Scheme for Mainland Talents and Professionals and the Quality Migrant Admission Scheme, etc to meet Hong Kong's manpower needs and enhance its international competitiveness. The Government established in October 2023 Hong Kong Talent Engage, which is responsible for formulating and co-ordinating strategies and work to attract worldwide talent as well as providing one-stop support to incoming talent.
In enabling older and middle-aged persons to join the employment market, the LD launched a three-year Re-employment Allowance Pilot Scheme (REA Scheme) in July 2024 to encourage persons aged 40 or above to rejoin the workforce. The response to the REA Scheme has been very favourable, with over 40 000 placements recorded as at February 2026. The LD is conducting a mid-term review of the REA Scheme, along with the Employment Programme for the Elderly and Middle-aged, to explore measures to further encourage employment of older and middle-aged persons.
In addition, the new working hours threshold of the "continuous contract" requirement under the EO is applicable from January 18, 2026, making it easier for employees to enjoy comprehensive employment rights. It is believed that more people would be attracted to enter the labour market.
The Committee appreciated the Government's concerted efforts in launching a series of talent measures and labour policies to proactively cope with the changing business environment and help the trade alleviate the labour shortage problem.
The Committee also received the work reports of its three task forces:
Joint meeting of the three task forces
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The Innovation and Technology Commission (ITC) and the Hong Kong Productivity Council (HKPC) briefed members on the details of the Pilot Manufacturing and Production Line Upgrade Support Scheme (Manufacturing+), including its objective, eligibility of applications, funding scope, funding amount and assessment criteria, etc. Manufacturing+ is open for applications throughout the year and a dedicated website (mplus-eproq.itf.gov.hk/) is provided to applicants for submitting their applications and conducting the necessary e-procurement procedures. The Task Forces welcomed Manufacturing+ and commented that it would be helpful to small and medium-sized enterprises. Members raised some enquiries and suggestions on the implementation details. The ITC and the HKPC thanked members for their opinions and undertook to keep in view the situation to ensure smooth implementation.
Wholesale and Retail Task Force (WRTF)
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The Customs and Excise Department briefed the WRTF on Hong Kong Authorized Economic Operator Programme and a series of trade facilitation schemes. Accredited as Hong Kong Authorized Economic Operator (AEO)s, local companies can enjoy trade facilitations including reduced customs inspections, prioritised customs clearances, and benefits granted by other economies under mutual recognition arrangements, etc. The WRTF welcomed the AEO Programme and other trade facilitation schemes, which enhances the industry's competitiveness.
The Department of Health (DH) briefed the WRTF on the latest developments in establishing the Hong Kong Centre for Medical Products Regulation (CMPR) and the roadmap for implementing "primary evaluation", targeting to establish the CMPR by the end of 2026 and to implement "primary evaluation" for new drug registrations in four phases beginning in 2026, with full implementation by 2030 covering all kinds of pharmaceutical products. The preparatory work for the establishment of the CMPR mainly focuses on three strategic areas, namely driving regulatory excellence, promoting medical product innovation, and deepening national and international collaboration. The WRTF welcomed the establishment of the CMPR and implementation of "primary evaluation" by the DH, and believes the new mechanism would strengthen the overall regulation of medical products and drive innovation of medical products in Hong Kong.
Food Business and Related Services Task Force (FRSTF)
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The Food and Environmental Hygiene Department (FEHD) briefed the FRSTF on the streamlined New Mechanism for Outdoor Seating Accommodation (OSA) Applications of Restaurants. Under the new process, the FEHD will proactively co-ordinate various relevant departments to undergo "joint-vetting" to solve the matter together and also streamline procedures. For straightforward cases, the FEHD will approve-in-principle an application and then issue a letter of requirements to the applicant. The process, calculated from the date of the application submission, takes approximately one month. The new mechanism will be implemented in the first half of 2026. The FRSTF welcomed the new process, which would further expedite the approval process for OSA applications of restaurants, thereby facilitating business operations.
The Hong Kong Tourism Board (HKTB) briefed the FRSTF on the efforts in promoting Hong Kong as a Muslim-friendly tourism destination. The Chief Executive proposed in the 2025 Policy Address to encourage the industry to provide more Muslim-friendly facilities and dining options. The HKTB launched the Hong Kong Restaurants Halal Certification Funding Scheme in mid-September 2025. Eligible restaurants can receive a subsidy of half of the Halal certification fee, capped at $5,000. Each restaurant may receive the subsidy at most once during the funding scheme period. The FRSTF expressed appreciation to the HKTB for its efforts in enhancing Hong Kong's Muslim-friendly tourism environment. It also hopes that the Hong Kong Restaurants Halal Certification Funding Scheme can encourage more of the catering trade to apply for Halal certification, providing richer choices and experiences for Muslim visitors in terms of dining.
Task Force on Business Liaison Groups (BLGTF)
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The Fire Services Department briefed the BLGTF on measures to facilitate the issuance of Fire Services Certificates for Temporary Places of Public Entertainment Licences via video compliance inspection. The total turnaround time from the applicant reporting work completion to the completion of inspection has been reduced to as fast as one working day. The Video Compliance Inspection Scheme has been fully implemented in the first quarter of 2026.
The Committee also expressed appreciation of the commitment and achievements of the bureaux and departments in continuously implementing the business facilitation measures to enhance their business licensing services.
Papers for the Committee meeting are available at
www.gov.hk/en/business/supportenterprises/bf/advisory/index.htm for public access.
