It is only natural that the multi-billion-dollar Northern Metropolis (NM) development should anchor Hong Kong’s first Five-Year Plan. After all, the NM will be able to house 2.5 million people and create some 650,000 jobs in 2036. It is a key component in Hong Kong’s future.
The NM blueprint maps out the development of one third of Hong Kong’s land mass for the next eight years and can easily be dovetailed in the Five-Year Plan as well as being integrated into the mainland’s 15th Five-Year Plan.
The NM is moving at an ever-accelerating pace with more than 60 firms having moved into the first two buildings in the Phase 1 development of the San Tin Technopole, the centrepiece of the entire project. The infrastructure is already well in place: drainage has been laid, internal roads built with slip roads connecting to the main highway, electricity has been connected and buildings are sprouting like stalagmites while construction cranes dot the skyline. The area is a hive of activity.
Earlier this week, the government opened the two-month consultation period for the public to comment on how Hong Kong should look in the next five years. It is strategic, forward-looking, and operable. Its purpose is to strengthen Hong Kong’s position as an international financial, maritime, and trade centre. The road map will also help drive growth for the Guangdong-Hong Kong-Macao Greater Bay Area. Livelihood issues such as healthcare, education, housing, social welfare, elderly care, etc. will also be covered in the Five-Year Plan.
The Plan is another tool to complement Hong Kong’s annual budget and the chief executive’s policy address. The annual policy address and budget would serve to advance the goals and visions of the plan, which aim to align with Beijing’s blueprint guiding the country’s development from 2026 to 2030.
The Government strives to publish the formal document of Hong Kong's Five-Year Plan within the third quarter of the year.
The overview of the document is divided into six sections, containing 95 bullet points outlining initiatives under 29 policy directions and key proposals:
The first part covers the NM, collecting views on policy tools and areas in which Hong Kong holds the greatest strengths. It sets a target of delivering more than 70,000 flats and 1 million square metres of floor space for economic activities over the next five years. To achieve this, the government is proposing several models to stimulate market interest, including “large-scale land disposal”, establishing an “industry park company,” and a “pay for what you build” scheme.
The second section sets out directions such as building an “internationally competitive low-altitude economy ecosystem” and a “commodities trading ecosystem” to expand cross-boundary financing for mainland enterprises.
The third part outlines plans to deepen AI+ initiatives and transform the city into a health and medical innovation hub.
For livelihood issues, the fourth section includes a commitment to “eradicate substandard subdivided units in an orderly manner” through the new “basic housing unit” regime. It also focuses on addressing the pressures of an ageing society and changes in labour supply.
The fifth and six sections cover areas of regional cooperation, the integrated development of culture, sports and tourism, and green living.
Chief Executive John Lee has noted that the Five-Year Plan aims to strengthen Hong Kong’s core sectors—including finance, shipping, trade, and technology—while accelerating projects such as the international aviation hub, a talent hub, and the Northern Metropolis development.
Leveraging the city's unique strength, Lee said Hong Kong will serve as a bridge connecting the mainland and the world, driving high-quality development and allowing citizens to benefit from the city’s growth.
The plan will help Hong Kong seize more strategic opportunities, allowing the city to further strengthen the integration of the Greater Bay Area through regional cooperation, transforming Hong Kong from a traditional "super-connector" into a "functional value-added hub" for the country.'
Mark Pinkstone
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When Chief Executive (CE) John Lee stepped off his plane in Hong Kong, he was full of smiles. He had just completed a very successful trade mission to Central Asia worth about HK$10.35 billion and saw the signing of 96 agreements and Memorandum of Understanding (MOU) covering investment, aviation, cultural exchange and customs. Not bad for one week’s work.
Lee was the leader of a 70 member-strong delegation of officials, businessmen and women and cultural managers from both Hong Kong and the mainland. It was an action-packed series of meetings, banquets and visits to the two key Central Asian cities of Kazakhstan and Uzbekistan.
The trip was so successful that Hong Kong’s status as a “super-connector” has been upgraded a “super-value-adder agent,” proactively integrating into the “Silk Road Economic Belt,” and strengthening its functional platform role within the “Belt and Road Initiative.”
There are a number of similarities between Hong Kong and Kazakhstan which make partnerships there more palpable. The Astana International Financial Centre (AIFC), a special economic zone in the capital, applies common law and international arbitration, as well as special tax and currency regulatory regimes, and houses the Astana International Exchange.
A major item on the agenda was with Hong Kong’s three major innovation and technology parks (Cyberport, Science Parks, and Hong Kong-Shenzhen Innovation and Technology Park), who signed a technology cooperation pact with Kazakhstan, enabling mainland technology firms to connect with Central Asia through Hong Kong and advance cooperation in artificial intelligence and digital infrastructure. Kazakhstan will hold a roadshow in Hong Kong to attract investors and professional service institutions next year.
Central Asia can become a strategic logistics hub for Hong Kong as wars in the Middle East and Europe persist, with cargo volume between the city and two countries in the region surging nearly fivefold year on year.
With this in mind, the Hong Kong Airport Authority and Cathay Pacific secured operational agreements with Almaty International Airport in Kazakhstan. Cathay announced that it plans to operate three direct flights per week connecting Hong Kong to Almaty, starting in the first quarter of next year.
Several business entities among the delegation signed individual MOUs with their counterparts in the two countries, covering sectors such as finance, asset management, aviation, media, agriculture and new energy.
MOUs, a common vehicle used for cooperation between parties, are usually non-binding and outline only broad intentions and mutual understanding. These are often upgraded to Memoranda of Agreement (MOA) which is more detailed and often includes legally enforceable obligations.
A number of the agreements were signed by state-backed investment bank China International Capital Corporation Limited (CICC) as well as their Kazakh partners, including one with the Sovereign Wealth Fund Samruk-Kazyna.
The Chinese Manufacturers' Association of Hong Kong, the Federation of Hong Kong Industries and the Hong Kong General Chamber of Commerce also secured deals.
During the visit, coordinated and promoted by senior Hong Kong government officials, Shandong-based private enterprise Xinfa Group reached an agreement with Kazakhstan to invest about HK$117.5 billion in developing a large-scale industrial park spanning over 3,000 hectares, encompassing the entire industrial chain from mining and smelting to new materials manufacturing. The Hong Kong platform acted as the liaison point for the Kazakh investment negotiations, financing plan coordination and legal framework setup, highlighting Hong Kong’s vital role in supporting mainland asset-heavy enterprises to expand internationally.
For the first time, two local news bodies, the Newspaper Society of Hong Kong and the Hong Kong News Executives’ Association, signed an MOU with one of Kazakhstan’s largest state-owned conglomerates to strengthen collaboration in journalism and information exchange. Separately, the South China Morning Post sealed a partnership with Astana International Financial Centre Authority to boost ties between Central Asia, Hong Kong and mainland China, and entered into an agreement with the Autonomous Cluster Fund “Astana Hub”, alongside Gobi Partners and the Khan Tengri Innovation Hub of China, to strengthen economic and business ties.
The visit exemplified a proactive effort and successful practice in cementing Hong Kong’s positioning and fulfilling national missions. The upgrading from a “super-connector” to a “super-value-adder agent,” proactively integrates the “Silk Road Economic Belt,” and strengthening its functional platform role within the “Belt and Road Initiative.” This aligns closely with the national “15th Five-Year Plan” directives.
“Central Asia could be the next Middle East, becoming a terminal connecting Asia and Europe,” the HK Airport Authority chairman Fred Lam told a radio programme, citing the region’s location sitting between the Middle East and Russia, both of whose cargo businesses were disrupted by military conflicts.
Chief Executive John Lee said the trip had numerous achievements, including cooperation at government level, and expediting consultations on signing a comprehensive double taxation avoidance agreement as well as discussions on an investment protection agreement.
Diplomatically, Uzbekistan agreed to set up a consulate in Hong Kong next year.
It is unlikely for Hong Kong to secure immediate gains from the developing Central Asian region but one can argue that a farsighted view is needed. As the offshore renminbi market continues to deepen, Hong Kong can provide diverse support for enterprises in terms of financing, onshore and offshore bond issuance, and cross-border cash management.
