Full text of "The Chief Executive's 2026 Policy Address" (6)
Chapter V Expedite the Development of the Northern Metropolis
183. The land area and projected population of the NM account for about one-third of Hong Kong's total. No longer merely a blueprint, it has begun to deliver tangible results and will gradually enter its maturity phase.
184. The NM will rise as an important strategic vehicle for advancing high-quality post-secondary education, integrating I&T and industry, and pooling international high-calibre talent. It will become a major platform for Hong Kong's deepening engagement with the GBA and integration into and serving the overall national development. It also serves as a new engine to develop new quality productive forces.
185. To foster the integrated development of education, technology and talent, the NM will take the university town as the main focus of its development, converging the five elements of education, technology, industry, talent and a suitable living environment. We will drive the NM's high-quality development, while facilitating the infrastructure links between the NM and the Harbour Metropolis to improve Hong Kong's spatial planning.
(A) Northern Metropolis University Town
Drive the Northern Metropolis Development with University Towns and Leading Industry Development through Technology
186. We will develop three university towns, which are the San Tin, Hung Shui Kiu and Ta Kwu Ling university towns in the NM, based on the concept of town area comprising campus area, technology area, industry area and living community area, and planned around "One Town, Five Elements" (education, technology, industry, talent and urban development), to drive the overall development of the Northern Metropolis University Town (NMUT). "Education–industry–urban development" will power the synergistic development of "technology–industry", establishing a talent hub for the GBA and the world. We will build high-quality university towns that are suitable for education, research, innovation and living. Adopting the strategic positioning that integrates the four pillars of "talent cultivation, scientific research, transformation of outcomes, industry development", we will drive the synergistic development among the Government, industries, academia, research and investment sectors, in a bid to achieve the integrated development of education, technology and talent.
187. The campus areas of the three university towns in San Tin²¹, Hung Shui Kiu²² and Ta Kwu Ling²³ amount to about 300 hectares. Together with the surrounding technology areas, industry areas and living community areas, the overall planned areas of the three university towns will exceed 1 000 hectares.
188. The San Tin University Town will focus on the development of medicine, life and health technology, AI, robotics, microelectronics and emerging industries, with its campus area covering the land near the future Northern Link's San Tin Station and Ngau Tam Mei Station. Its technology area and industry area will cover the Loop Hong Kong Park and San Tin Technopole. The Loop Hong Kong Park, which opened in 2025, is home to the established GBAICTI, which has been in operation. The GBAICTI is wholly owned by the Government, with the University of Hong Kong as the operator. The GBAICTI works in collaboration with the Greater Bay Area International Clinical Trials Center, located in the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, to promote medical innovation and clinical trial development. It also houses a biobank, jointly managed by the HA and the Chinese University of Hong Kong. Building 1 of the Loop Hong Kong Park, scheduled for completion by the end of the year, will be positioned as the flagship project for launching of the NMUT, bringing together the frontier research capabilities of leading local and non-local universities and institutions, including InnoHK and other new initiatives. It will promote interaction and connection between universities, R&D and industries. In line with its strategic positioning, the building will be named "Loop Academy One", which reflects the tripartite mission anchored by academia, with R&D a core part, and underpinned by technology. In addition, the Hong Kong Jockey Club Charities Trust will allocate $3 billion to support the construction of another integrated teaching and scientific research building. It will focus on educational and scientific exchange, as well as the cultivation of scientific research talent, and will make available its facilities for other institutions to use. The two buildings will complement one another, marking the start of a new chapter in the development of the NMUT.
189. The Government will invite the Hong Kong-Shenzhen Innovation and Technology Park Limited and the San Tin Technopole Company Limited to join the development of university towns and participate in related construction works, so as to accelerate such projects.
190. The campus area of the Hung Shui Kiu University Town and its adjoining technology and industry areas (including Hung Shui Kiu Industry Park, the Lau Fau Shan Digital Technology Hub, Yuen Long InnoPark and the MRDI) will be developed as a "Centre for Applied Post-secondary Education in Smart Manufacturing and Global Talent Cultivation". This year, the Government will invite applications from post-secondary institutions for the construction of campuses to kick-start Hung Shui Kiu University Town campus development.
191. The Ta Kwu Ling University Town will integrate arts and "blue-green" development elements. It will support comprehensively the development of emerging and traditional industries, as well as new industries. Strategic space will also be reserved for future development needs, establishing a university town with a unique style that integrates the "One Town, Five Elements", along with an arts and leisure ecosystem.
Innovation-driven Industry-academia-research Collaboration across Institutions
192. The Working Group on Planning and Construction of the University Town, led by the Chief Secretary for Administration, will be upgraded to become the Committee on Construction and Development of the University Town, and include non-official expert members. The Committee will provide high-level steer with respect to the long term strategic development of the NMUT, while promoting inter-departmental collaboration, and facilitating the development of an internationally competitive university town.
193. The Committee will explore measures to facilitate and incentivise NMUT institutions to pursue the transformation of research outcomes. They include providing funding for technology transfer, introducing accelerators and incubators, and channelling capital input to promote the institutions' commercialisation and marketisation of research outcomes.
194. To dovetail with the development of the NMUT, and raise Hong Kong's scientific research capabilities, the Government will support the capacity expansion and enhancement of post-secondary education:
(i) Gradually increase the number of UGC-funded research postgraduate places by around 30% from the current level of 7 200 to 9 600 in the 2030/31 academic year, so as to support the vibrant development of basic research in Hong Kong.
(ii) Starting from the 2027/28 academic year, gradually increase the annual quota of the Hong Kong PhD Fellowship Scheme from 400 to 550 places by the 2029/30 academic year.
(iii) Starting from the 2027/28 academic year, an additional funding of $20 million per academic year will be provided to support knowledge transfer, thereby accelerating the transformation of innovative outcomes.
(iv) Starting from the 2029/30 academic year, $40 million a year will be provided under the Fund for Innovative Technology-in-Education to promote the widespread use of AI and emerging technologies in the higher education sector.
(B) Promote Development of Innovation and Technology and Industries
The Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone
195. Since the Loop Hong Kong Park was officially commissioned last December, over 100 I&T enterprises and institutions have been gradually moving in. The two wet laboratory buildings have been fully leased. The results of the two open tender exercises for the eight land parcels in the remaining batches of Phase 1 will be announced by the end of the year.
196. To implement "institutional innovation and alignment of rules and mechanisms" at Hong Kong Park and Shenzhen Park for realising the development concept of "one river, two banks" and "one zone, two parks" of the co-operation zone, the Government will advance the cross-river connection project on the western side of the Loop and related construction, and proactively facilitate the efficient, convenient and safe flow of researchers and data between the two parks of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone.
Establish the National Manufacturing Innovation Centre
197. The HKSAR Government and the Ministry of Industry and Information Technology (MIIT) signed the Co-operation Agreement on Advancing the Joint Establishment of Manufacturing Innovation Centre by the Ministry and Hong Kong in July, preparing for the establishment of Hong Kong's first national manufacturing innovation centre, which the MRDI will take the lead in operating. The MRDI has moved into the Microelectronic Centre in Yuen Long. Its two pilot lines, focusing on the R&D and trial production of third generation semiconductors, are being set up in full speed with a target for commencing operation by the end of the year.
San Tin Technopole
198. The Government has established the San Tin Technopole Company Limited, which will adopt a multi-pronged approach for leveraging market forces in expediting land formation for the development of the 210-hectare I&T land.
Hung Shui Kiu Industry Park
199. The Hung Shui Kiu Industry Park Company Limited (Park Company) established by the Government is working to attract enterprises and investments. It has entered into substantive negotiations with several established companies, including those in areas of advanced construction, and testing and certification. The Park Company is also engaging with the Authority of Qianhai of the Shenzhen Municipality and will sign an MoU to establish a mutually beneficial collaboration model, capitalising on their combined industry strengths.
Sandy Ridge Data Facility Cluster
200. The construction works of the Sandy Ridge Data Facility Cluster have begun. The computing power of the cluster is expected to reach 180 000 peta-floating point operations per second by 2032. That is equivalent to 36 times Hong Kong's current computing power. It will support the development of Hong Kong's intelligent computing industry. Its estimated cumulative investment is expected to reach at least $23.8 billion.
201. The Government will inject $1 billion into the Artificial Intelligence Subsidy Scheme to support the AIRDI in applying high-performance computing power for frontier research, accelerating innovative breakthroughs. We will assess the market demand for computing power, adopting "high efficiency computing power, stable electricity supply, low-carbon transition" as our core direction. This will optimise the operation of Hong Kong's data centres and city-level layout of computing power, supporting the healthy development of the intelligent computing industry.
Advanced Construction Industry Park
202. We have earmarked 30 hectares of land in the NM to develop a large-scale, advanced construction industry park. It will accommodate steel reinforcing bar prefabrication yards and innovative concrete batching plants. The industry park will also introduce facilities for promoting testing and certification of Modular Integrated Construction (MiC) and Multi-trade Integrated Mechanical, Electrical and Plumbing (MiMEP), as well as R&D of the construction methods and their training, production and demonstration. In the first half of 2027, the Government will invite the market to submit expressions of interest for the development of an advanced construction industry park of about 10 hectares in Yuen Long South, with a view to commencing the tendering process for the first batch of land no later than the first half of 2028.
(C) Build a Northern Metropolis Ideal for Living, Work and Travel
Commencement of All Nine New Development Areas in the Northern Metropolis
203. Development of the NM is well underway. A cumulative total of about 120 hectares of "spade-ready sites" have been produced up to 2025-26, while no less than 200 hectares of "spade-ready sites" will be produced in 2026-27 and 2027-28.
204. Among the nine NDAs in the NM², construction works have begun at four of them: Kwu Tung North/Fanling North, Hung Shui Kiu/Ha Tsuen, Yuen Long South and San Tin Technopole and the Loop. Together, they involve about 800 hectares of land. Site formation and infrastructure works for the fifth NDA (Ngau Tam Mei) will start in the first half of next year, with "spade-ready sites" available progressively, starting at the end of 2028.
205. As for the remaining four NDAs, we will begin statutory planning and related procedures for Lau Fau Shan NDA this year, and progressively next year for the over 200-hectare Priority Development Area (including part of the university town) of Ta Kwu Ling NDA, Au Tau NDA and part of Ma Tso Lung NDA.
Enhance Development Speed and Efficiency
206. The Government will expedite innovative and diverse development to accelerate the development and attract industries to the NM. Various measures proposed in last year's Policy Address, including the "Pay for What You Build" Pilot Scheme, flexible land-grant arrangements and the arrangement of allowing land owners to voluntarily surrender land to offset payable land premiums, have been implemented in an orderly manner.
207. Following the August award of tender under large-scale land disposal in Hung Shui Kiu/Ha Tsuen NDA, we will launch the tender for the second pilot area in Fanling North at the end of the year at the earliest.
208. The Government will continue to streamline procedures to cut the time and costs of the NM development:
(i) Chaired by the Deputy Financial Secretary, the Working Group on Planning and Development co-ordinates departments to expedite approval processes. Measures include using a digital platform to shorten the approval time for works projects by three to six months; reducing the time for the first approval for building plans of new railway projects by half to 30 days; boosting the bearing capacity of rock layers in foundation designs to save about $1.4 billion in the construction costs of NM public housing; and introducing time limits on approval processes and an escalation mechanism for private developments.
(ii) The Government will adopt a framework procurement model to increase cost effectiveness, and other mechanisms such as Early Contractor Involvement to shorten construction time.
(iii) The Environmental Protection Department (EPD) will expand the application scope of the Hong Kong Environmental Database, consolidating over 200 environmental datasets and optimising planning with AI. The database significantly reduces the time needed for the environmental impact assessment (EIA) process to about 15 to 24 months from 36 to 48 months, significantly improvng project efficiency and reducing costs². For the NM-related projects, the time needed for the EIA process is targeted at about 15 to 20 months.
Introduce Dedicated Legislation for the Northern Metropolis
209. The Government is working to secure passage of the Northern Metropolis Development Bill in the LegCo this year, and will submit the first batch of five pieces of subsidiary legislation to cover town planning processes, land compensation, building works approval, noise control and cross-boundary flows of people, streamlining procedures to accelerate NM development and facilitating industry operation.
Step Up Efforts to Attract Enterprises and Investments and Intensify Industry Development
210. The Government has implemented the mechanism on preferential policy packages to attract enterprises and investments, as announced in last year's Policy Address. The cross-departmental committee, led by the Financial Secretary, will consider factors such as resources invested by the enterprises, related economic benefits and development potential, to formulate dedicated preferential policy packages. These may cover land grant, land premium concession, financial subsidies and tax concessions, attracting international and national brands and strategic enterprises to establish business operations in Hong Kong. The committee is now reviewing relevant applications from strategic emerging industries, including aerospace and new materials, to establish business operations in Hong Kong.
211. The FSTB plans to introduce an amendment bill into the LegCo by year-end, providing preferential tax rates of 5%, or half-rate, for selected enterprises operating in key sectors such as finance, advanced manufacturing, R&D in I&T, headquarters activities and logistics and supply chain management.
212. The HKIC will continue, through investments, to mobilise market resources, supporting enterprises in establishing a presence in the NM and other GBA cities.
Step up Efforts to Attract Long-term Capital Investment to the Northern Metropolis
213. The Northern Metropolis Financial Advisory Taskforce, jointly established by the HKMA and the Hong Kong Association of Banks in April, will explore public-private partnership approaches and financing arrangements for NM development with the Government and industry park companies. The 23 banks participating in the Taskforce will offer tailored financing solutions for companies moving into the NM, so as to provide precise support for the NM development.
214. The IA will implement lowered capital requirements for eligible investment in infrastructure at the end of the year, releasing more insurance capital to participate in Hong Kong's infrastructure projects, including the NM development.
Achieve Higher Living Standards in the Northern Metropolis
215. For subsidised sale-flat (SSF) projects in the NM to be completed from 2031-32 onwards, the HKHA will increase the proportion of larger flats (those with a saleable area of about 45 square metres or more) from 20% to 25%. The public can enjoy more spacious housing, raising their overall living quality.
Establish the New Territories North Cluster
216. The HA will plan the establishment of the New Territories North Cluster from 2027 onwards, and press ahead with the construction of an integrated teaching and research hospital in Ngau Tam Mei. It will assess the need and feasibility of constructing Hung Shui Kiu Hospital.
Cultural Facilities in the Northern Metropolis
217. The LCSD will develop various cultural facilities in the NM, with construction of the Hong Kong Conservation Repository (formerly the Heritage Conservation and Resource Centre) in Tin Shui Wai and the New Territories East Cultural Centre in Fanling expected to be completed in 2028 and 2030 respectively.
Promote Urban-rural Integration
218. The Government has announced the launching of the $200 million NM Urban-rural Integration Fund. Applications will be invited and the first batch of projects approved next year, capitalising on community wisdom to promote rural tourism.
219. We will publish the Guidelines on Promoting Urban-rural Integration in the NM within this year. The first signature project to be launched next year, the "San Tin Timewalk", will link attractions with features of traditional rural architecture as well as historical and cultural heritage, creating distinctive landmarks and tourist attractions in collaboration with villagers.
Advance Transport Infrastructure
220. The Government is conducting an investigation for the Northern Metropolis Highway. It will prioritise the San Tin Section to serve NDAs, including Kwu Tung North, San Tin Technopole and Ngau Tam Mei, with the target of inviting tenders for the main construction works next year. Suitable national and overseas design standards, alongside advanced construction technologies, will be adopted, with a view to bringing forward the commissioning of the San Tin Section by two years to 2034.
221. The Government will take forward the Tsing Lung Bridge project at the southern end of Route 11, aiming for commissioning in 2033, to meet north south transport demands arising from the NM development.
222. Kwu Tung Station is expected to begin operation next year and become the 100th heavy rail station. As for Hung Shui Kiu Station, an MiC method will be adopted to enhance speed and efficiency, with commissioning of the station targeted for 2030.
223. We will present a preliminary proposal for the southern extension of the Hong Kong Shenzhen Western Rail Link next year to strengthen connectivity between HKIA and the NM, as well as the Mainland.
²¹Located in the San Tin Technopole and Ngau Tam Mei New Development Areas (NDAs).
²²Located in the Hung Shui Kiu/Ha Tsuen NDA.
²³Located in the Ta Kwu Ling NDA (formerly known as the New Territories North New Town).
²The nine NDAs are Kwu Tung North/Fanling North, Hung Shui Kiu/Ha Tsuen, Yuen Long South, San Tin Technopole and the Loop, Ngau Tam Mei, Lau Fau Shan, Ta Kwu Ling, Ma Tso Lung and Au Tau.
²Take one of the road works in the NM as an example. By using the database to compare alignment proposals, the project team has reduced the affected ecologically sensitive area by nearly 70% while shortening the tunnel section length from about five kilometres to 0.8 kilometres, substantially reducing the project cost (about $40 billion) and its environmental impact.
(To be continued.)
Source: AI-found images
Full text of "The Chief Executive's 2026 Policy Address" (9)
(C) Deepen Healthcare System Reform
297. The Government is pressing ahead with healthcare system reform and restructuring the functions and division of work among the HA, the DH and the PHC Commission. The goal is to establish a new healthcare model that emphasises prevention and integrates prevention with treatment. We will continue to deepen the reform, fully aligning with the national health-first development strategy and the opportunities presented by the 15th Five-Year Plan, while taking active public health measures, to consolidate Hong Kong's status as an international health and medical innovation hub and ensure that the outcomes of the reform are widely shared.
Strengthen Primary Healthcare Services
298. The Government will improve community healthcare and disease-prevention services:
(i) Upgrade the DHC Expresses in Wan Chai and Kwun Tong to DHCs, starting next year, and continue to upgrade other DHC Expresses.
(ii) Implement the phased integration of Elderly Health Centre services from the end of this year. Measures include more than doubling the service capacity for elderly health assessments, reducing the maximum waiting time by two-thirds, and providing similar services for underprivileged elderly through designated HA Family Medicine Clinics (FMCs).
(iii) Provide about 220 000 additional HA's Family Medicine Out-patient service quotas each year, starting next year, including around 10 000 quotas for evening out-patient service, to meet local demand. We will improve the provision of preventive screening and care services targeting the "three highs", hepatitis B and women's health for underprivileged groups at designated FMCs. We will boost co-operation between primary and secondary healthcare. In parallel, training for primary healthcare professionals will be strengthened to raise service quality.
(iv) Set up a co-ordination platform for public and private primary healthcare services to pilot the unified release of evening and public holiday consultation information for public and private out-patient clinics.
(v) Roll out the Community Pharmacy Programme from the end of this year, with the first phase covering four districts³¹ and progressively extending across the city. In parallel, launch the Community Drug Formulary and gradually increase the number of drugs covered.
(vi) Starting from next year, provide preventive primary oral healthcare services for specified high-risk groups at designated DHCs/DHC Expresses, and expand the Healthy Teeth Collaboration to offer outreach preventive oral healthcare services for residents of designated residential care homes for persons with disabilities (PWDs).
(vii) Publish the "Life-course Health Promotion Strategy" and monitor local health data, encouraging the public to accept primary responsibility for their own health and promote population-wide health management across different life stages.
Enhance Public Healthcare System
299. After the relocation of Queen Elizabeth Hospital to Kai Tak, the HA will develop Hong Kong's first integrated ambulatory care hospital at King's Park. The first phase will include a high-capacity ambulatory cataract surgery centre, a high-capacity ambulatory radiology centre and an ambulatory radiotherapy centre. With the commissioning of the cataract surgery centre in the fourth quarter of next year, annual service capacity will increase by about 5 500³². With annotation and triage at the ambulatory radiology centre to be carried out with AI, the annual service capacity for computed tomography and magnetic resonance imaging will increase by about 40% compared to general facilities. The increase in service capacity at the radiotherapy centre will also accelerate treatment procedures for cancer patients.
300. All hospital development projects under the Government's First Hospital Development Plan are expected to be completed by 2031. By then, the number of beds in public hospitals will increase by 17% to about 35 000, while the number of operating theatres will increase by 44% to around 360. We will publish the Second Hospital Development Plan during the current-term Government and initiate projects in an orderly manner.
301. The HA will implement the Hong Kong Cancer Strategy, raising diagnostic imaging capacity and applying AI to assist with diagnosis and advanced laboratory testing. It will increase radiotherapy service capacity and expedite the introduction of new cancer drugs through public healthcare fees and charges reform, while stable and low-risk cancer survivors will be referred to primary healthcare, with multi-disciplinary palliative care and end-of-life services to be strengthened.
302. The HA has set a target to shorten the waiting time³³ for the first consultation of stable new cases in specified specialist³ out-patient services by half in five years, with the waiting time of specified specialties to be reduced by 10% in 2027-28 in the first phase. By "narrowing upstream, collaborating downstream, diverting midstream", unnecessary referrals will be avoided and stable follow-up cases diverted to primary healthcare. The HA will also expand multi-disciplinary, integrated clinical services, optimise appointment arrangements and enhance service capacity.
303. The first phase of public healthcare fees and charges reform was implemented in January this year to increase protection for poor, acute, serious and critical patients, yielding immediate results, as follows:
(i) Accident and emergency services have become smoother, with a significant decrease in the number of non-urgent cases; fees for critical and emergency cases are fully exempted.
(ii) The number of beneficiaries of full medical fee waivers has surged, from under 14 000 a year in the past to more than 250 000, providing free medical services to more low-income families.
(iii) The burden on serious patients has been eased, with their annual spending capped at $10,000 and requiring no financial assessment. Over 17 000 patients have been granted a full medical fee waiver for the remainder, preventing impoverishment due to illness.
(iv) Accelerated the introduction and increased subsidisation for innovative drugs and medical devices. The HA has introduced 16 new drugs into the Drug Formulary and included 53 new drugs and medical devices³ under the subsidisation scope of the Samaritan Fund safety net.
Strengthen Professional Regulation of Healthcare Services
304. The Government will introduce into the LegCo a regulation to improve the price transparency of private healthcare services by the end of the year and draw up codes of practice, setting out requirements on price information, budget estimates and billing statistics.
305. The Government will advance the scrutiny of the Medical Registration (Amendment) Bill 2026 by the LegCo to reform the Medical Council of Hong Kong (MCHK), and raise the manpower and system support for the MCHK and other healthcare professional regulatory bodies.
306. The Government will continue to support the IMACE in publishing clinical guidelines and devising service quality and efficiency standards for public and private healthcare sectors. The IMACE plans to publish clinical guidelines on the management of hyperlipidemia and percutaneous coronary intervention by the end of the year.
Continuously Implement eHealth+
307. Over 6.5 million citizens have registered with eHealth, accounting for 87% of Hong Kong's population. In the past year, the monthly number of electronic health records deposited by private healthcare providers increased by over 110%, to about 1.45 million. More than 44 000 citizens have used eHealth to enable the sharing of cross-boundary medical records.
308. The Government will further facilitate the deposit of electronic health record by private healthcare providers, expand the cross-boundary sharing of medical records and enhance the nine core functions, including eMedication and eMedical Certificate.
Press Ahead with the Establishment of the Third Medical School
309. The Hong Kong University of Science and Technology (HKUST) is moving ahead with the establishment of Hong Kong's third medical school. The Medical Education and Research Complex at the Clear Water Bay campus will be completed by mid-2028 to admit the first cohort of students.
310. On using Kai Tak Hospital as the interim teaching hospital, the Government is exploring teaching arrangements with the HKUST and the HA. We are also pressing ahead with the integrated design and co-ordinated construction of the medical school campus and the integrated teaching and research hospital in the San Tin University Town.
Promote the Development of Inheritance and Innovation in Chinese Medicine
311. The Government will continue to implement the Chinese Medicine Development Blueprint. The annual out-patient service volume of the CMHHK will be increased from 60 000 to over 140 000 attendances in the first year. The Government Chinese Medicines Testing Institute will continue to formulate Chinese Materia Medica Standards, which align with international standards and develop innovative Chinese medicine-testing technologies. Future development measures include:
(i) Starting from the end of the year, the CMHHK will launch 24-hour in-patient services, provide additional day beds, increase out-patient service capacity, introduce more special disease programmes, begin related research, and set up a clinical trial and research centre. In addition, clinical training opportunities for local students and more subsidised training posts for registered Chinese medicine practitioners will be provided. The International Consortium of Herb-Drug Interaction will be officially established to promote research and clinical application of herb-drug interactions.
(ii) The Chinese Medicine Clinics cum Training and Research Centres based in all 18 districts will roll out pilot out-patient services for special diseases.
(iii) We will continue to develop HA's integrated Chinese-Western Medicine (ICWM) services, including regularising a "knee osteoarthritis" pilot programme, expanding ICWM services to day-care services, and refining the "cancer care" pilot programme.
(iv) We will sponsor regional and international Chinese Medicine conferences and exhibitions.
Sustain Efforts in Tobacco Control
312. The Government will fully implement the duty stamp system by the end of next year to effectively distinguish duty-paid from duty-not-paid cigarettes. The plain-packaging requirement on conventional smoking products will be introduced at the same time.
Promote Mental Health
313. The Government will adopt an integrated approach to promoting 11 mental health measures:
(i) Continue to implement the Three-Tier School-based Emergency Mechanism in Primary Four to Six on a trial basis in the 2026/27 school year and enhance the related support services, strengthening training for school professionals to facilitate early identification of and support for students with higher suicidal risk.
(ii) Provide teacher training on catering for students' mental health needs, and organise programmes relating to the physical and psychological well-being of teachers.
(iii) Set up an additional Integrated Community Centre for Mental Wellness in the NM to dovetail with population growth.
(iv) Enhance the function of the Cyber Youth Support Teams by strengthening their co-operation with schools and community networks to support the emotional and psychological needs of students, conduct assessments and take follow-up action immediately after receiving cases involving students with higher suicidal risk and in emotional distress.
(v) Extend the Healthy Mind Pilot Project to all existing DHCs before mid-2027, improve frontline staff training, provide more timely assessments or referrals, organise more outreach activities and step up promotion and publicity.
(vi) The PHC Commission will study public-private partnerships and other approaches to encourage more cross-disciplinary professionals, including family doctors, to provide mental health services.
(vii) The Government has endorsed the framework for the Stepped Care Model on Mental Health submitted by the Advisory Committee on Mental Health. The next step is to consider setting competency standards and designing training courses for mental health practitioners, co-ordinating the distribution of duties among departments, and drawing up details for full implementation.
(viii) The Advisory Committee on Mental Health will explore the possibility of setting up a mental health experience exhibition in the urban area to promote mental health and eliminate social prejudices.
(ix) Through the Hong Kong Jockey Club "Chief Executive Community Project List", the Government will fund a series of mental health support projects enabling clear identification, early intervention and enhanced support. We expect the projects to benefit over 30 000 persons.
(x) Launch a Mental Health Literacy Resource Package for Parents and organise parent education programmes³ relating to student mental health.
(xi) Attract more organisations and their staff to join the Mental Health Workplace Charter and encourage the organisations to optimise their staff training content.
(D) Enhance and Diversify the Housing System
314. The current-term Government is pressing ahead with a public housing policy geared towards advancing quantity, speed, efficiency and quality, to expedite the fulfilment of housing needs for low-income families and, in an orderly manner, tackle the big and difficult housing issues that have lingered for years. Since the implementation of the BHU regime in March this year, we have been steadily advancing towards the eradication of substandard SDUs.
315. We will continue to increase public housing supply on all fronts, while enhancing the housing ladder to enable people of different income groups to realise home ownership, thereby fundamentally building a new paradigm of more sustainable, multi-strata housing supply in Hong Kong.
Continuous Pursuit of Land Development
316. In the next decade (i.e. from 2027-28 to 2036-37), the Government will prepare about 2 500 hectares of "spade-ready sites" to build up the land reserve and meet the demand for economic development and the community's housing needs, thus retaining control over land supply. Of these sites, it is expected that some 1 400 hectares will be produced in the next five years, including about 1 000 hectares in the NM.
Supply of Land for Private Housing Development
317. The Government will take account the overall situation to determine the pace of land disposal and co-ordinate other land supply sources to meet housing demand in the next 10 years according to the Long Term Housing Strategy and other land requirements.
Release Industrial Land in Urban Areas
318. The DEVB will make reference to the Study on Utilisation of Existing Industrial Stock, which is underway, to explore the release of more industrial land in urban areas and make recommendations by the end of the year, including the way forward for the Revitalisation Scheme for Industrial Buildings.
Review on Urban Renewal Policy
319. In August, the DEVB introduced measures to use newly developed land for urban renewal³. To enable the Urban Renewal Authority (URA) to pursue redevelopment in a sustainable manner, the DEVB and the URA are conducting a policy review, offering recommendations for commencing consultation in 2027.
Control Construction Costs
320.The DEVB has rolled out various initiatives to lower construction costs, achieving an annual saving of about $4 billion³ for public works projects. Hong Kong's ranking has dropped to 16th globally this year, falling out of the top 10 for the first time, according to the International Construction Cost Index. The Government will, among others, adopt innovative procurement models, enhance Hong Kong's construction standards and introduce more AI solutions to further lower construction costs.
Increase Public Housing Supply
321. The current-term Government has laid a solid foundation for, and is entering the harvesting phase of, public housing production. In the next five years, from 2027 28, public housing production will exceed 35 000 units a year on average, an increase of about 73% compared with the five-year period since I took office.
322. Since the launch of the innovative LPH, upon my assumption of office, about 26 000 units have largely been completed with intake already underway, benefitting around 14 000 PRH applicants and their families. The remaining some 4 000 units will be successively completed before the end of March next year. All 30 000 LPH units will be completed in slightly over four years, ahead of the five-year target set out in my 2022 Policy Address.
323. The overall CWT was 4.8 years as of the end of June this year. That is more than one year shorter compared with the peak of 6.1 years before the current-term Government took office. Over the same period, there were about 100 500 general applications for PRH, and around 81 000 non-elderly one-person applications under the Quota and Points System. These numbers, when measured against their respective highest levels at 156 400 and 143 700, represent a significant drop by over 30% and over 40% respectively, demonstrating that the waiting queue for PRH is being effectively shortened.
324. The current-term Government has been combatting PRH abuse to prevent the mismatch and waste of PRH resources. As of June 2026, the HKHA has recovered around 10 500 PRH flats from tenancy abuse and breach of tenancy agreement or housing policies. This is equivalent to two large housing estates comparable to the size of Kai Ching Estate, and has enabled the early intake of over 10 000 families on the waiting list, yielding savings of over $10.5 billion in construction costs financed by public money.
Enhance Subsidised Sale Flats
325. The HKHA's new SSF projects, in accordance with the "Well-being" Design Guide, are equipped with multi-functional recreational and sports spaces, communal spaces, elderly-friendly facilities and green spaces designed for intergenerational integration. The HKHA will continue to improve the design of SSF to better meet modern living styles, including improving natural lighting and adopting an open kitchen design in suitable units for two-to-three person households.
326. Last year's Policy Address announced the relaxation of the alienation restriction period to 10 years for new SSFs offered for sale. To encourage upward mobility on the housing ladder, we will also shorten the alienation restriction period to 10 years for SSFs first put up for sale between 2022 and 2025.
Eradicate Substandard Subdivided Units and Implement the Basic Housing Unit Regime
327. Since March this year, the BHU regime has been rolled out in phases under the principle of "registration first, enforcement later". Responses to our call for grace-period registration have been positive. The HB will continue its registration and recognition work.
328. Starting from March next year, the HB will conduct inspections and take enforcement and prosecution action in an orderly manner against illegal letting of SDUs with no registration and no recognition, conducting joint operations with relevant departments to enhance deterrence. Upon the expiry of the grace period at the end of February 2030, the HB will rigorously combat illegal letting of substandard SDUs by owners or operators.
329. The HB will provide tenants in need with comprehensive, people-oriented support through its District Service Teams in various districts. This includes assisting eligible tenants to apply for traditional PRH and LPH, and flexibly co-ordinating resources such as transitional housing and Hostels for Single Persons, providing tenants in need with temporary shelters or helping them find alternative accommodation in the private market.
Promote the Scheme on Joint Property Management
330. From 2027-28, the HAD will continue to implement the Scheme on Joint Property Management in districts with needs for two years. Through the newly formed Working Groups on Building Management under all DCs, the HAD will continue to facilitate the execution of duties by DC members and enhance exchange.
Persistently Promote the Use of Building Technologies
331. The MiC approach reduces the construction time of a typical floor of public housing buildings by about 17%, and is effective in reducing water and electricity consumption and waste. The HKHA will adopt the AIoT³ System for logistics and transport in the tender exercises for new projects to boost the transport efficiency and quality of modules.
332. The HKHA will identify more projects to apply the "Building Information Modelling (BIM)-enabled Systematic Approach to Foundation Design", saving about $1 million for each domestic block on average.
333. We injected $1 billion into the Construction Innovation and Technology Fund (CITF) this year. Together with the CIC's contribution of $400 million, a total of $1.4 billion will be used to support the wider application of I&T in the construction industry, especially among SMEs.
334. The DEVB has required that MiMEP be adopted in suitable public works projects, as well as repair and maintenance works, since the middle of this year. A one-stop integrated information platform was launched to support the industry.
³¹Eastern District, Yau Tsim Mong District, Yuen Long District and Sha Tin District.
³²The number of cases waiting for cataract surgery recorded a downward trend instead of upward since the HA strengthened its cataract surgery service in 2024. The 90th percentile waiting time was also shortened from 37 months to 32 months. Waiting time is expected to be further shortened to 18 months by 2032.
³³The 90th percentile waiting time.
³Ear, Nose and Throat, Ophthalmology, Gynaecology, Medicine, Orthopaedics and Traumatology, Psychiatry and Surgery.
³Including 27 new drugs/expanded clinical indications and 26 recommendations for outofpocket medical devices.
³Including digital health.
³Including the implementation of the Bonus Plot Ratio Pilot Scheme and the crossdistrict transfer of plot ratio scheme.
³Accounting for about 3% of the total annual expenditure on public works projects.
³Artificial Intelligence of Things
Including new technologies such as construction robots, AI and digital construction technologies.
(To be continued.)
Source: AI-found images
