Hong Kong and UNIDO Sign Joint Statement to Boost Industrial Development and Innovation Collaboration

ITIB and UNIDO sign joint statement on collaboration to advance industrial development, innovation and digital transformation

The Chief Executive, Mr John Lee, met with the Director General of the United Nations Industrial Development Organization (UNIDO), Dr Gerd Müller, at the Central Government Offices today (April 14), to exchange views on strengthening co-operation of both sides in industrial development, and to witness the signing of a joint statement on collaboration to advance industrial development, innovation and digital transformation by the Innovation, Technology and Industry Bureau and UNIDO. The Deputy Commissioner of the Office of the Commissioner of the Ministry of Foreign Affairs in the Hong Kong Special Administrative Region (HKSAR), Mr Li Yongsheng, also attended.

The Secretary for Innovation, Technology and Industry, Professor Sun Dong, and the Deputy to the Director General of UNIDO and the Managing Director of the Directorate of Technical Co-operation and Sustainable Industrial Development, Mr Zou Ciyong, signed the joint statement. Hong Kong has competitive advantages in digital transformation and AI innovation in industry and manufacturing. Both the HKSAR Government and UNIDO actively promote inclusive and sustainable industrial development. The signing of the joint statement by the two parties aims to establish a co-operative framework to strengthen collaboration, information sharing and exchange of best practices to advance industrial innovation, technology transfers and capacity development, including exploring the joint development of a centre of excellence on global advanced manufacturing and AI in Hong Kong.

Mr Lee welcomed Dr Müller's delegation to visit Hong Kong. He said that the National 15th Five-Year Plan clearly supports Hong Kong to develop into an international innovation and technology (I&T) centre. Hong Kong enjoys the advantage of connecting the Mainland and the world under the "one country, two systems" principle and is accelerating its development into an international I&T centre. With the signing of the joint statement between the HKSAR Government and UNIDO, both sides will strengthen collaboration to jointly promote development including industrial innovation and technology transfers, and seize opportunities in the new round of the technological revolution to accelerate high-quality industrial development and transformation, and further leverage the city's role as a "super connector" and a "super value-adder" to attract enterprises from the Chinese Mainland and overseas to expand businesses in Hong Kong, promote new industrialisation, and cultivate and strengthen new quality productive forces.

Professor Sun said that Hong Kong enjoys world-acclaimed academic and research excellence, a strong talent pool, free flow of information and capital, rule of law, and an international environment. Hong Kong looks forward to closer collaboration with UNIDO under the joint statement to share best practices on advanced manufacturing, AI applications and digital transformation; encourage multi-stakeholder dialogue on technology trends and experiences; as well as explore avenues of co-operation in innovation, knowledge transfer and skills development.

While in Hong Kong, Dr Müller's delegation also attended the opening ceremony of the InnoEX, Hong Kong's signature I&T exhibition held during the Business of I&T Week. The delegation also visited the Hong Kong Productivity Council.

Source: AI-found images

ITIB and UNIDO sign joint statement on collaboration to advance industrial development, innovation and digital transformation Source: HKSAR Government Press Releases

ITIB and UNIDO sign joint statement on collaboration to advance industrial development, innovation and digital transformation Source: HKSAR Government Press Releases

ITIB and UNIDO sign joint statement on collaboration to advance industrial development, innovation and digital transformation Source: HKSAR Government Press Releases

Chief Executive in Council approves transfer of $150 billion from Exchange Fund to Capital Works Reserve Fund

The Government announced today (April 14) that the Chief Executive in Council has approved, in accordance with Section 8 of the Exchange Fund Ordinance (EFO), that $150 billion will be transferred from the Exchange Fund to the Capital Works Reserve Fund (CWRF) of the Government. This transfer will be made through a designated account under The Financial Secretary Incorporated, with $75 billion per annum credited to the account of the CWRF in 2026-27 and 2027-28 respectively. The Government will implement the relevant arrangement after the passage of the Appropriation Bill 2026 by the Legislative Council.

A Government spokesman said that Section 8 of the EFO sets out the mechanism that empowers the Financial Secretary (FS) to transfer from the Exchange Fund, with the principal condition that the FS is satisfied that such a transfer would not adversely affect the Exchange Fund's main function to maintain the stability of the exchange value of the Hong Kong dollar, as well as the stability and integrity of the local monetary and financial systems.

The Exchange Fund achieved a recordbreaking performance last year, delivering an investment income of $330billion. As at the end of last year, the total value of assets under the Exchange Fund exceeded $4.1trillion, which would suffice to maintain monetary and financial stability in Hong Kong. As such, in the 2026-27 Budget, on the premise that the Exchange Fund's function to maintain the stability and integrity of the local monetary and financial systems will not be compromised, the FS proposed transferring $150 billion from the Exchange Fund to the CWRF of the Government over two years in support of the Northern Metropolis and other infrastructure projects.

The Government spokesman emphasised that the transfer is an exceptional arrangement and not a recurring measure, and all funds will be used for infrastructure projects for long-term investment with a view to accelerating and increasing development capacity rather than for the Government's operating expenditure. The Government has consulted the Exchange Fund Advisory Committee earlier on the proposed transfer and secured its support.

Source: AI-found images