Opening remarks by SITI at LegCo Finance Committee special meeting
Following are the opening remarks (English translation) by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the special meeting of the Legislative Council Finance Committee today (April 17):
The Secretary for Innovation, Technology and Industry, Professor Sun Dong, Photo source: reference image
Chairman, Members,
The National 15th Five-Year Plan has indicated clear support for Hong Kong's development into an international innovation and technology (I&T) centre. This year's Budget continues to adopt a forward-looking approach, aligning with national development priorities and closely following the direction set out in the Hong Kong Innovation and Technology Development Blueprint. I will briefly introduce the key measures in three areas below.
(1) Enhancing the I&T ecosystem, promoting Hong Kong's new industrialisation, and promoting the development of the digital economy to build a smart Hong Kong
One of the key themes of this year's Budget is the development of "AI+". Over the past few years, we have consolidated our AI development strategy to lay the foundation for "industries for AI and AI for industries", including the establishment of 16 relevant laboratories under InnoHK, the establishment of the AI Supercomputing Centre at Cyberport and the launch of the $3 billion Artificial Intelligence Subsidy Scheme. The Hong Kong Artificial Intelligence Research and Development Institute has appointed its Board of Directors and held its first meeting, with a view to officially commencing operation in the second half of the year to further support AI research and development (R&D) and the commercialisation of research outcomes. The Sandy Ridge Data Facility Cluster will significantly expand Hong Kong's computing power capacity, developing Hong Kong into an international data hub. The works at the cluster have commenced in end-March.
To drive AI+ development at the strategic level, the Hong Kong Special Administrative Region (HKSAR) Government will establish the Committee on AI+ and Industry Development Strategy, with an initial focus on life and health technology and embodied AI. The Budget will also allocate $100 million to accelerate the Government's digital and smart transformation by introducing leading AI technologies and expert services. It has also introduced the notion of "AI training for all", including the allocation of $50 million to invite various public organisations to collaborate with technology companies and tertiary institutions to kick-start related activities.
Photo source: Design Image
Another key development area is life and health technology. The Life and Health Research Institute we are establishing will adopt a "1+3" model, comprising a headquarters at the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone (Hetao Hong Kong Park), as well as three branches to be established by local universities.
Regarding the development of new industrialisation, we will launch the New Industrialisation Elite Enterprises Nurturing Scheme this year to provide targeted support to high-growth enterprises that contribute to the development of new industrialisation in Hong Kong. It has also been proposed in the Budget to earmark approximately $220 million for establishing in Hong Kong the first national manufacturing innovation centre outside the Chinese Mainland.
To foster and expand emerging industries, the Hong Kong Space Robotics and Energy Centre under InnoHK will participate in the national Chang'e-8 mission. Eight laboratories will be established under the third InnoHK research cluster, SEAM@InnoHK, in phase this year, focusing on sustainable development, energy, advanced manufacturing and materials.
At the same time, Hong Kong's various technology parks will allocate resources to support the development of embodied AI enterprises in Hong Kong. Furthermore, the Government has in recent years invested resources to support quantum technology-related scientific research. Last year, we established two state key laboratories related to quantum technology, and under the InnoHK platform, we also established the Hong Kong Quantum AI Lab.
Furthermore, we will also continue to provide comprehensive support for industrial development across the upstream, midstream, and downstream sectors. To encourage more upstream research activities, we will review and optimise the current tax arrangements for R&D expenditures. In the midstream sector, we will deepen collaboration among industry, academia, and research sectors. The $10 billion Research, Academic and Industry Sectors One-plus Scheme has already approved 49 projects, and we will soon announce the third batch of projects recommended for funding support. Downstream, the $10 billion New Industrialisation Acceleration Scheme has announced support for four applications, involving a total investment of over $2.5 billion. Besides, we also introduced the $10 billion Innovation and Technology Industry-Oriented Fund and are currently selecting fund managers, with the aim of commencing operation within this year.
(2) Proactively integrate into the overall development of the country and consolidate our role as a bridge connecting the Chinese Mainland and the world
The Hetao Hong Kong Park was opened in December last year. As of end-March this year, the first two wet laboratory buildings completed in the first phase have attracted nearly 80 enterprises to set up operations, with nearly 90 per cent of the floor space leased. We plan to release the remaining plots in Phase 1 in an orderly manner starting from the second quarter this year. The Budget announced that the Government will apply to the Legislative Council for an additional injection of $10 billion into the Park's operating company to advance the Park's development in multiple areas, including accelerating the release and development of the remaining Phase 1 land parcels through public-private-partnerships; providing key infrastructure to facilitate the cross-park flow of innovation elements; and further enhancing the comprehensive support for enterprises in the Park.
The San Tin Technopole is a natural extension of the Loop. Together with the Hetao Hong Kong Park, there will be a co-ordinated development at the upstream, midstream and downstream levels, creating a comprehensive industrial ecosystem. The Budget announced that the Government will establish a dedicated company for the San Tin Technopole within the year and seek the Legislative Council's approval for a capital injection of $10 billion as seed funding, thereby mobilising market resources to accelerate development.
(3) Enlarging the I&T talent pool to create strong impetus for growth
Driving I&T development requires high-quality talents. The InnoHK has currently brought together more than 3 000 researchers to engage in world-class scientific collaboration. We have also launched the $3 billion Frontier Technology Research Support Scheme in September 2025, which will help local subsidised universities attract top-notch international talent to Hong Kong to conduct frontier technology research, dovetailing with national strategic planning. We are currently following up with the universities concerned on the preliminary vetting results of the first round of application.
Conclusion
Members, with the strong support of our country, Hong Kong is steadily moving towards realising its vision of becoming an international I&T centre. This year marks the first year of the National 15th Five-Year Plan, the HKSAR Government will continue to commit to promoting the development of I&T and accelerating the development of new quality productive forces. I would like to once again thank all Members for their continued support for the development of I&T, and I hope everyone will continue to support the work of the Innovation, Technology and Industry Bureau. Thank you, Chairman.
Photo source: reference image
