A Supportive Government

Hong Kong will capitalise on the opportunities arising from the national Belt and Road Initiative and the Guangdong-Hong Kong-Macao Bay Area development proactively and holistically. The government shall play the role of a “facilitator” and “promoter”.

Key economic initiatives announced in the 2023 Policy Address include:

Trawl for enterprises, attract and retain talents

• Develop a "Headquarters Economy" to attract enterprises from outside Hong Kong to set up headquarters or corporate divisions in Hong Kong; attract companies to re-domicile to Hong Kong
• Expatriates, including foreign staff of companies in Hong Kong, can travel to the Mainland on "multiple-entry visas", with priority visa processing; entries of Vietnamese, Laotian and Nepalese talents are relaxed
• Establish the physical office of Hong Kong Talent Engage, expand the coverage of universities under the Top Talent Pass Scheme, and implement the Capital Investment Entrant Scheme
• Establish the Hong Kong International Legal Talents Training Academy and the Hong Kong International Academy Against Corruption, developing Hong Kong into a talent nurturing base
• Implement the Capital Investment Entrant Scheme – Under the scheme, eligible investors who make investments of HK$30 million or above in assets such as stocks, funds, bonds, etc. (excluding real estate) can apply for entry into Hong Kong
   

Reinforce our advantages and build a diversified economy

• Reinforce our status as international financial centre – enhance stock market liquidity, expand offshore Renminbi business, deepen GBA collaboration and venture into green finance
• Expand our global economic and trade networks and our reach to new markets; set up more consultant offices to attract businesses and investment
• Publish the Action Plan on Modern Logistics Development to promote smart development, modernisation, green and sustainability, internationalisation and facilitation of logistics
• Strengthen support to SMEs by providing flexible repayment arrangements, tapping into e-commerce, expediting digital transformation, and reinforcing export credit insurance
• Accelerate growth of the innovation and technology (I&T) ecosystem
  • Set up the New Industrialisation Development Office to support development of strategic enterprises, facilitate upgrading and transformation of manufacturing sector and assist start-ups
  • Establish the Hong Kong Microelectronics Research and Development (R&D) Institute and commission the Microelectronics Centre to facilitate R&D of microelectronics and industry development
  • Expedite establishment of a supercomputing centre to foster development of artificial intelligence
  • Set up a HK$10 billion New Industrialisation Acceleration Scheme to provide matching fund for promoting downstream development of new industrialisation
• Develop cultural and creative industries
  • Establish the Cultural and Creative Industries Development Agency to promote the arts, culture and creative sectors as industries
  • Inject HK$4.3 billion to the Film Development Fund and the CreateSmart Initiative
  • Launch the Signature Performing Arts Programme Scheme to fund and nurture representative and large-scale major performing arts productions to be staged as long-run performances
  • Organise the Hong Kong Fashion Design Week as a flagship initiative to promote Hong Kong's fashion and textile design brands
• Publish the Action Plan on Maritime and Port Development Strategy to develop Hong Kong into a leading international maritime centre, promote high value-added maritime services and facilitate GBA maritime collaboration
• Northern Metropolis as the new engine for growth
  • Adopt an "industry-driven" approach
  • Integrate deeply with Shenzhen and other GBA cities
  • Leverage market forces to expedite the development
• Formulate the Development Blueprint for Hong Kong's Tourism Industry 2.0, develop signature tourism products, and enhance development of cruise tourism economy
• Promote new energy transport – develop bunkering of green maritime fuel and supply of sustainable aviation fuel, formulate strategy for hydrogen development, and promote green transformation of public land transport
   

Key initiatives announced in the 2023-24 Budget include:

Finance

• Provide HK$100 million to InvestHK to attract more family offices to Hong Kong
• Plan to issue no less than HK$50 billion of Silver Bond and HK$15 billion of retail green bonds in the next financial year
• Introduce a listing regime for advanced technology companies in the first quarter of 2023

Innovation and Technology

• HK$6 billion for universities and research institutes to set up thematic research centres related to life and health technology
• HK$3 billion earmarked to enhance basic research in frontier technology fields such as artificial intelligence and quantum technology
• Establish a Microelectronics Research and development Institute to enhance collaboration among universities, R&D centres and the industry, expediting “1 to N” transformation
• Over HK$260 million reserved for Cyberport to nurture smart living startups
• HKSTPC will inject HK$400 million into its Corporate Venture Fund and inject an additional HK$110 million to launch the Co-acceleratoin Programme
• HK$500 million earmarked to launch a Digital Transformation Support Pilot Programme, to assist SMEs in applying ready-to-use basic digital solutions 
• HK$50 million to expedite development of the Web3 ecosystem

Reviving the Economy

• Over HK$250 million to be spent on mega events
• About HK$300 million reserved for staging more mega events, international meetings, incentive travel, conventions and exhibition 
• HK$50 million for stepping up the promotion and branding of Hong Kong
• New mechanism to facilitate companies domiciled overseas for re-domiciliation to Hong Kong
• New Capital Investment Entrant Scheme to attract people to live and pursue development in Hong Kong after making investment at a certain amount in local asset market (excl. property)

Support Enterprises

• Reduce profits tax for the assessment year 2022/23 by 100%, subject to a HK$6,000 ceiling
• Provides rates concession for non-domestic properties for the first two quarters of 2023/24, subject to a ceiling of HK$1,000 per quarter
• Grant 50% rental fee concession to eligible tenants of government premises and short-term tenancies and waivers for six months
• Extend the application period of all guarantee products under the SME financing Guarantee Scheme to March 2024
• Offer fully guaranteed loans for eligible passenger transport operators and licensed travel agents. To be launched in April 2023
• Inject HK$30 million into the Information Technology Development Matching Fund Scheme for Travel Agents to encourage the tourism sector to undergo upgrade and transformation

Aviation and Maritime

• Enhance the aircraft leasing preferential tax regime 
• HK$20 million reserved to expedite strategic studies and exchanges of the high-end maritime service industry

Trade

• Additional funding of HK$550 million to the Hong Kong Trade Development Council to assist enterprises in opening markets
• Inject HK$500 million into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)

The Government of Hong Kong SAR is also committed to driving local business through a variety of initiatives. For details of government funding schemes, please visit here.