Speech by FS at Hong Kong Institution of Engineers Annual Dinner
Following is the speech by the Financial Secretary, Mr Paul Chan, at the Hong Kong Institution of Engineers (HKIE) Annual Dinner today (April 17):
Alice (President of the HKIE, Ms Alice Chow), Eric (Immediate Past President of the HKIE, Mr Eric Ma), (Deputy Director-General of the Department of Educational, Scientific and Technological Affairs of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, Mr Ye Shuiqiu), engineers, distinguished guests, ladies and gentlemen,
Good evening.
It gives me great pleasure to join you tonight at the Annual Dinner of the Hong Kong Institution of Engineers. This is always a joyful occasion – a time to celebrate your remarkable contributions, to enjoy the fellowship of fellow engineers, and to reflect on how engineering continues to shape our city and our future.
Engineers as builders of Hong Kong
I have had the privilege of working closely with engineers throughout my career, since my time as Secretary for Development and even earlier. Across the disciplines: civil, structural, geotechnical, electrical, mechanical, environmental, information and beyond, you have together created the essential fabric of our city. From our world-class transport network and smart infrastructures, to award winning public works projects and greener neighbourhoods, your collective expertise continues to power Hong Kong's progress.
In recent years, Hong Kong's engineers have delivered many outstanding examples of technological excellence. Innovations in MIC (modular integrated construction), advanced digital engineering, cleaner low carbon solutions, and many others, are steadily transforming how we design and build a smarter, greener and more resilient and liveable Hong Kong.
On the part of the Government, we place great importance in the engineering profession, and spare no effort in fostering an enabling environment for innovation. As outlined in the 2026-27 Budget, the Government’s annual capital works expenditure stands at around $130 billion for the coming five years. At the same time, we are stepping up investment in R&D (research and development), promoting innovation and advanced technologies' adoption in public works, so that our projects become platforms for Hong Kong's engineering excellence.
We are also committed to nurturing a strong pipeline of engineering talent. Through strengthening STEM (science, technology, engineering, and mathematics) education, supporting more internship and apprenticeship opportunities, and building closer ties between the industry, academia and professional bodies, we will help more young people enter the profession and support practitioners upgrade their skills.
Looking ahead, major infrastructure projects, particularly the Northern Metropolis development, will create new opportunities for engineers across many sectors. This strategic region, as Hong Kong's innovation and technology hub, the platform for collaboration with Greater Bay Area cities, and the powerhouse for Hong Kong's next phase of economic growth, will serve as a "living laboratory" for frontier technology applications, integrating AI, green design, advanced construction technologies and smart urban systems.
Trends reshaping engineering
Tonight, I would also like to take this opportunity to share three observations that, in my view, are of significance for Hong Kong’s engineering profession.
First, artificial intelligence. As you all know, AI is transforming various industries at an unprecedented pace. I believe we have entered the era of digital intelligence, in which universal connectivity, convergence of data systems and the rise of agentic AI will profoundly reshape how we live, work and do business. Engineering will be no exception.
AI brings huge possibilities and efficiency. For example, digital twins and sensing technologies can help monitor project progress and detect structural or safety vulnerabilities far more efficiently. Predictive analytics are helping to optimise project timelines, resource allocation and maintenance cycles. Robotics are improving safety and precision on site.
Of course, this new era demands new skill sets, new mindsets and adaptive thinking. Change is never easy, yet embracing change has always been the essence of progress.
The Government is pressing ahead with our AI+ Strategy. This is a whole of community effort to harness the power of AI to empower industries. In the Budget this year, we proposed to establish the Committee on AI+ and Industry Development Strategy to co-ordinate efforts across sectors. We very much welcome the insights and participation of the engineering community as we take this work forward.
Second, green transition. The global drive towards carbon neutrality is reshaping the way we design, build and operate our cities.
Our engineers are already at the forefront of this transformation. For example, you are applying energy efficient designs and modular construction to reduce emissions, cut material waste, and improve build quality. The wider use of smart, energy saving systems and green materials are helping to future-proof the sustainability of our buildings and infrastructure.
Here, let me emphasise that green transition is not a constraint on how we build, but a growth strategy for the construction and engineering sector. As green requirements advance globally and consumer demands similarly evolve, it will increasingly be a competitive advantage of your profession to embrace green practices. Our engineers can and should play a more proactive role in driving this transformation.
Third, our country's high-quality development. As set out in the Outline of the 15th Five-Year Plan, our country, China, is advancing technological self-reliance and high-level two-way opening up. It is also accelerating the development of a modern infrastructure system, new energy networks, and the modernisation of rural and agricultural areas.
For engineers in Hong Kong, this opens up a wide horizon of opportunities. Under the "one country, two systems" framework, Hong Kong is the gateway that bridges national and international standards, and brings together global capital, talent and ideas.
Our engineers can play a truly unique role, as you are the connector and transformer between the two systems. On the one hand, the Mainland will continue to welcome global best practices in engineering, technology and management. On the other, more Mainland enterprises are expanding their footprint worldwide. Wider international recognition of our national standards will support the international use of Chinese technologies and products, creating new business opportunities. To this end, the development of the Greater Bay Area Standards is an important step forward. I am confident that Hong Kong engineers can play an instrumental role in helping our national standards and products go global.
Maintaining the core values
Amid all these changes and opportunities, one thing remains constant: the core values that define the engineering profession – professionalism, integrity, responsibility and an unwavering commitment to excellence. Because of the critical nature of your work, you are also guardians of public interest. The society relies on your judgment, your ethics and your sense of duty. I am sure you will hold fast tothese values, in good times and in challenging times. These are the bedrock of Hong Kong's long-term development.
Ladies and gentlemen, the HKIE has long been a vital partner of the Government. Your professional standing, your leadership in standard setting, accreditation and professional training have strengthened public confidence in Hong Kong’s infrastructure, which has enhanced our city's international reputation.
Infrastructure is the backbone of our city, and talent is its beating heart – and the HKIE has been nurturing that heart for over 50 years.
As we move ahead, the Government looks forward to working closely with the HKIE: to nurture the next generation of engineering talent, and to deliver solutions that are smart, sustainable and resilient, driving the high-quality development of Hong Kong.
Before I close, let me extend my warmest congratulations to Alice, the first female President in your history. Engineering has always been about breaking new ground, and this milestone in gender diversity will no doubt inspire the next generation of engineers.
I wish you all a most enjoyable evening filled with good company, fellowship and renewed confidence in the bright future that we are building together.
Thank you very much.
The Financial Secretary, Mr Paul Chan, attended the Hong Kong Institution of Engineers Annual Dinner today (April 17). Photo shows Mr Chan (seventh left); the President of the Hong Kong Institution of Engineers (HKIE), Ms Alice Chow (seventh right); the Immediate Past President of the HKIE, Mr Eric Ma (sixth left); the Deputy Director-General of the Department of Educational, Scientific and Technological Affairs of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, Mr Ye Shuiqiu (sixth right), the Secretary for Development, Ms Bernadette Linn (fourth left), the Secretary for Housing, Ms Winnie Ho (fourth right), and other guests giving a toast at the dinner. Source: HKSAR Government Press Releases
The Financial Secretary, Mr Paul Chan, speaks at the Hong Kong Institution of Engineers Annual Dinner today (April 17). Source: HKSAR Government Press Releases
Speech by FS at HKICPA x IFAC PAIB Conference
Following is the speech by the Financial Secretary, Mr Paul Chan, at the HKICPA x IFAC PAIB (Professional Accountants in Business) Conference today (April 18):
Stephen (President of the Hong Kong Institute of Certified Public Accountants (HKICPA), Mr Stephen Law), Josephine (Chair of Professional Accountants in Business Advisory Group, International Federation of Accountants (IFAC), Mrs Josephine Okui Ossiya), Kelvin (Chairman of the Securities and Futures Commission, Dr Kelvin Wong), distinguished guests, ladies and gentlemen,
Good morning.
It is a great pleasure to join you today at the Professional Accountants in Business Conference, co-organised by the HKICPA and the IFAC. For those who have travelled from afar, a very warm welcome.
The theme of today's conference - PAIBs at the helm of change - is timely and compelling. We are living through an era of rapid, and often disruptive, transformation. Powerful forces are reshaping the global economy and redefining how businesses compete, invest and manage risk.
Global shifts and forces of change
First, geopolitics. The logic of globalisation that prevailed for decades is being rewritten. As geoeconomic fragmentation intensifies, trade and investment patterns are shifting, and supply chains are being reconfigured in response to tariffs, trade barriers, and security concerns.
At the same time, the Global South is playing a more prominent role in global growth. With youthful demographics, expanding middle classes, and rising consumption, it will be an increasingly important source of demand and new markets.
Second, technological disruption. AI is reshaping every sector and redefining competitiveness. Agentic AI - together with advances in cloud computing and robotics, is moving from tools that assist people to systems that can plan, decide and execute. This will reshape business models and productivity. For businesses, AI competence and literacy are now essential.
Third, green transition. Despite policy twists and turns in individual countries, decarbonisation and green transition remain mainstream global priorities. Recent conflicts in the Middle East have also strengthened the case for energy diversification. Meeting climate and energy-security goals will require trillions of dollars of investment, and this will create new value chains across renewable energy, electric vehicles, energy storage and sustainable construction.
Hong Kong: resilience and opportunity
Ladies and gentlemen, these forces are changing the global business landscape. For Hong Kong, they also create new space to grow, because our strengths match what the world increasingly needs.
The unique advantages under "one country, two systems" remain our enduring strength. In an increasingly fragile and volatile world, Hong Kong offers stable, predictable policies - a safe harbour and a destination for growth. The strength of our stock market and IPO activity, the growth in bank deposits, and the continued expansion of our asset and wealth management sector in the past couple of years all reflect that confidence.
Meanwhile, our opportunities will also continue to expand alongside the development of our country, China, under the 15th Five-Year Plan. The Outline of the Plan places a strong emphasis on building a modernised industrial system and advancing technological self-reliance. In the coming few years, we can expect remarkable progress and breakthroughs in areas such as AI, semiconductors, quantum computing and aerospace.
China is also deepening high-level two-way opening-up under the dual circulation strategy. It is building a larger consumption market. This will support greater flows of goods, services, capital and talent between the Mainland and the world.
Meanwhile, green transition will remain a defining theme of China's development.
We are determined to seize the opportunities ahead. The HKSAR Government is preparing its first Five-Year Plan, which will set out a holistic vision and concrete action plan to strengthen Hong Kong's development over the next five years and more. Meanwhile, in this year's Budget, I have set out AI+ and Finance+ as two key strategies for our next stage of economic development.
AI+
On AI+, we are committed to applying artificial intelligence to empower and transform key sectors of our economy: to create value, to boost productivity and competitiveness, and to deliver better products and services for the people. To steer this effort, I announced in the Budget that we will set up the Committee on AI+ and Industry Development Strategy, which I chair. As a start, we will focus on life and health technology and embodied AI, where Hong Kong has strong advantages in research capabilities and real-world application environment.
Talent is the cornerstone of this endeavour. We have therefore launched the AI Training for All initiative to promote broad-based understanding and adoption of AI across society - so that professionals, including accountants, students and the wider community are ready to seize the opportunities of the AI age.
Finance+
On Finance+, our aim is to deepen and broaden Hong Kong's financial markets and services - not only in equities, green finance, and asset and wealth management, but also in areas such as fixed income and currencies market, for which we launched a roadmap last year.
Above all, our goal is to strengthen Hong Kong's financial ecosystem - broader, deeper, and more sophisticated - to better serve the real economy, especially innovation and technology companies at different stages of development. We have long been a premier fund-raising destination for high-quality companies in the region. With more Mainland companies pursuing global expansion through Hong Kong, we are enhancing our listing regime, such as reviewing the weighted voting rights structure, with a view to attracting more Mainland and international companies to list, and raise capital here. CATL (Contemporary Amperex Technology Co Limited), the world's largest IPO last year, is a good example.
As Asia's No. 1 green and sustainable finance hub, Hong Kong can do more to channel capital to credible green and transition projects, and help bridge the significant global financing gap.
In driving the Finance+ strategy, demand for a new generation of professional services will also accelerate, including those in valuation and risk assessment of emerging assets - such as intellectual property and data assets - as well as related accounting, auditing and assurance services.
To deliver these strategies, we must continue to attract enterprises and nurture the best talent. In this regard, Hong Kong has introduced a re-domiciliation regime to make it easier for them to establish their corporate home in Hong Kong, while maintaining legal continuity and business operations. Several high-profile insurance companies have already made the move, signalling a strong vote of confidence in Hong Kong's business and regulatory environment.
We are determined to attract the best tech companies to enrich our tech ecosystem here. Among our efforts, we have set up the Hong Kong Investment Corporation, HKIC, with $62 billion as seed capital. The HKIC co-invests with partners in hard technology, biotechnology, and new energy. For every dollar it invests, it has leveraged eight dollars of long-term international capital.
Meanwhile, nurturing local talent remains our core priority. For the accounting profession, we are grateful to the HKICPA - and the IFAC as well - for working together to keep our talent pool at the forefront of global best practice.
We will continue to attract high-calibre professional talent to Hong Kong, to support our city's development. Indeed, our various talent admission schemes have received over 600 000 applications. More than 400 000 have been approved, and over 280 000 individuals have arrived.
A bright future for PAIBs
Ladies and gentlemen, I am confident that PAIBs, whether you are from Hong Kong or elsewhere, will find vast opportunities in this city. On a final note, as a professional accountant myself, I would like to take this opportunity to offer three observations to fellow accountants as we navigate this era of change.
First, strengthen digital and AI literacy. In the age of digital intelligence, the finance function will be more automated in routine tasks, but more demanding in analytics, scenario planning, and strategic insight. Human-machine collaboration will become the norm. PAIBs must proactively build their digital and AI capabilities, understand how data and algorithms enable informed decisions, and use AI tools intelligently and responsibly.
Second, better understand shifting geopolitics and economic patterns. Businesses will increasingly rely on PAIBs to assess risks, manage exposures, and advise boards on complex cross-border issues - from regulation and tax to sanctions, sustainability and reputational risk.
Third, and above all, uphold the highest standards of integrity and professional ethics. Trust is the foundation of markets and institutions. No matter how far technology evolves, the ultimate responsibility rests with people. PAIBs are guardians of that trust, and they are instrumental in maintaining rigorous financial reporting, strong internal controls, sound risk management and effective corporate governance.
I am sure you will hear further insights from other speakers at this Conference. On this note, I wish this Conference every success, and all of you good health and continued success in the years ahead. Thank you very much.
Speech by FS at HKICPA x IFAC PAIB Conference Source: HKSAR Government Press Releases
Speech by FS at HKICPA x IFAC PAIB Conference Source: HKSAR Government Press Releases
