Keynote speech by PSITI at LSCM Logistics Summit 2026
Following is the keynote speech by the Permanent Secretary for Innovation, Technology and Industry, Mr Kevin Choi, at the LSCM Logistics Summit 2026 today (October 14):
Deputy Chief Secretary for Administration, Mr Cheuk Wing-hing, Alan (Chairman of the Board of Directors of the Logistics and Supply Chain MultiTech R&D Centre (LSCM), Professor Alan Lam), Sunny (Chairman of the Board of Directors of the San Tin Technopole Company Limited, Dr Sunny Chai), Mr Mei (Group Senior Vice President and President of the Overseas Enterprise Business of ZTE Corporation, Mr Mei Zhonghua), Mr Yang (Director and Executive Vice President of China Mobile Hong Kong Co Ltd, Mr Yang Qian), distinguished guests, industry leaders, ladies and gentlemen,
Good morning. I am most honoured to join you at the LSCM Summit today to celebrate the centre's 20th anniversary, and its contribution to Hong Kong's technological evolution.
LSCM was initially established to support the development of Hong Kong's logistics sector. Nowadays, logistics is not just about moving goods through sea, air, and land routes. It is the management of complex, interconnected systems in a volatile global environment shaped by shifting geopolitics and accelerating cross-border e-commerce. In addition to our world-class freight infrastructure and systems, efficiency must be paired with agility through technology deployment: supply chains must be resilient to disruption, end-to-end visible, environmentally sustainable, and powered by intelligent, real-time decision-making systems that enable instant operational pivots. Achieving this level of transformation requires the adoption of innovation and technology (I&T).
Last month, the Chief Executive announced both our city's first-ever Five-Year Plan and the 2026 Policy Address, setting out clear targets for a new paradigm for the development of I&T, reaffirming our unwavering commitment to becoming an international I&T hub.
For example, the rise of AI is impacting almost every aspect of our lives including modern supply chains and cybersecurity management, and computing power is a core engine for the development of AI. To ensure Hong Kong has this vital fuel for AI development, the construction works of the Sandy Ridge Data Facility Cluster have begun. By 2032, the computing power of the cluster is expected to reach a level equivalent to 36 times Hong Kong's current computing power. This represents our solid and unwavering support to the development of the intelligent computing industry. With a cumulative investment expected to reach at least $23.8 billion, Sandy Ridge will provide the robust infrastructure that allows our enterprises to deploy advanced AI models. In future, companies in the sector can run real time global supply chain simulations under secure and reliable IT (information technology) systems, and process complex predictive analytics in a timely manner.
As we deploy more cloud platforms, connected sensors, automation systems, and AI-driven decision tools across the logistics chain, cybersecurity management becomes an essential enabler, not an afterthought. The same connectivity that improves visibility and speed also expands the cyber threat surface. From ransomware and data leakage to tampering with operational systems, cyber risks can directly disrupt logistics operations, compromise customer trust, and undermine compliance. That is why secure-by-design architecture, resilient networks, and robust identity and access management are indispensable. We also need to strengthen incident response capabilities, supply-chain risk assessment, and continuous monitoring so that enterprises can detect, contain, and recover quickly, maintaining business continuity even under attacks. I encourage you to join the afternoon session of today's Summit, where my colleagues of the Digital Policy Office will share more expertise in this regard.
While digital infrastructure and computing power are crucial to the sector's development, smart robotics and automation are other essential elements. In a city like Hong Kong where warehouse space is premium, modern warehouses have to shift into a highly automated ecosystem where autonomous mobile robots, automated guided vehicles, and robotic picking arms work side by side with human operators. These robotic technologies are drastically reducing order cycle times, optimising vertical storage space, and eliminating human error in high-velocity sorting environments.
In this regard, many of you are aware that the Government has established the AIR@InnoHK as a dedicated research cluster focused on AI and robotics technologies. To further our efforts, we have successfully facilitated the United Nations Industrial Development Organization to establish its first centre of excellence on global advanced manufacturing in the Asia-Pacific region in Hong Kong, with a focus on the fields of AI+ manufacturing, robotics, new energy and industrial design.
Yet, hardware and computing power are only part of the solution. We also need a vibrant ecosystem where technology is researched, tested, and tailored for practical business applications, including cybersecurity technologies and solutions that are fit for logistics operations. Under the "north-central-south" spatial layout, the development of our three major I&T parks, namely the Hong Kong Park of the Hetao Shenzhen Hong Kong Science and Technology Innovation Co-operation Zone and the San Tin Technopole, the Science Park, and Cyberport, will establish a truly global industry academia research collaborative innovation platform. Working together with the industries, our top-class universities and different public research and development (R&D) centres, Hong Kong will become a globally competitive advanced R&D centre and pilot production and transformation base for technology industries, benefitting all of us here today.
In parallel, we are solving the historic constraint of physical space. The Northern Metropolis provides a vast amount of new land, directly driving Hong Kong's evolution into an I&T centre under the new "South-North dual engine (finance-IT/I&T)". Within the Northern Metropolis, there will be industrial space designed for prototyping, pilot and mass production. For the logistics and supply chain sector, this offers a very good opportunity for the physical integration of advanced manufacturing and high-end logistics. Enterprises can actively utilise the New Industrialisation Support Scheme to turn R&D outcomes into reality. This includes funding and support for setting up brand new, state-of-the-art smart production lines right within the Northern Metropolis. When you pair smart production lines with automated, AI-driven facilities in the same geographical area, you eliminate transit friction, slash lead times, and create a highly responsive domestic supply chain network.
With proximity to the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), the Chinese Mainland's powerhouse for innovation and economic growth, the Northern Metropolis occupies a vital strategic position in the region. By aligning our local technological frameworks with the industrial mass of the GBA, we are building a seamless, highly integrated ecosystem. Looking ahead, after 2030, we are expecting Hong Kong as an international I&T centre based in the GBA, serving the entire country and deeply connected to the world.
Finally, please once again accept my warmest congratulations to LSCM on its 20th anniversary. I wish you all a highly productive, successful and inspiring Summit.
Thank you very much.
The Permanent Secretary for Innovation, Technology and Industry, Mr Kevin Choi, delivers a keynote address at the LSCM Logistics Summit 2026 today (October 14). Source: HKSAR Government Press Releases
