HKPC Welcomes 2022-23 Budget Proposals Offering Full Support to Help SMEs Overcome Difficulties with Innovation and Technology and Reinforcing Hong Kong’s I&T Development

(Hong Kong, 23 February 2022) The Hong Kong Productivity Council (HKPC) welcomes the 2022-23 Budget of the HKSAR Government with the aims of “fighting against the epidemic” and “relieving people's burden”. While SMEs are severely hampered by the fifth wave of COVID-19 in Hong Kong, the Budget introduced a number of measures to ease the economy downturn, promote the development of advanced technology in different sectors, encourage continuing education and attract technology talents. HKPC will continue to spare no effort in supporting the Government to walk SMEs through obstacles with digital transformation and advanced manufacturing, and take Hong Kong’s innovation and technology (I&T) to a new level.

The Budget has proposed earmarking HK$10 billion for enhancing the capacity and capability of life and health technology institutions, strengthening the industrial chain and setting up the “InnoLife Healthtech Hub” in Hong Kong. These measures will be warmly welcomed by the local I&T industry. As a key local research and development (R&D) institution and a trusted partner of Hong Kong’s industrial and commercial sectors, HKPC plans to conduct a “Life and Health Industry Development Study” this year, in order to solicit industry views on the strengths and pain points in the industry, and provide recommendations for the future development of this industry. HKPC will also roll out new technologies and services based on this report to support the development of life and health industry.

The Budget’s proposals on green technology research have also been encouraging. For example, an additional HK$200 million will be injected into the “Green Tech Fund (GTF)” to further promote decarbonisation and environmental protection in Hong Kong. An additional HK$1.5 billion will also be injected to extend the subsidising scheme on the installation of electric vehicles charging infrastructures for four years to 2027/2028. HKPC, together with its Automotive Platforms and Application Systems (APAS) R&D Centre, will continue to work with the industry, universities and technical institutions through technology R&D and commercialise green technology R&D results, thereby promoting net-zero electricity generation, energy saving and green buildings, green transport and green and smart living.

Setting up of an HK$5 billion “Strategic Tech Fund” is proposed by the Budget to attract technology companies with remarkable strategic value to Hong Kong as well as investment opportunities conducive to enriching the I&T ecosystem. HKPC is deeply pleased with this measure and believes that it is a very positive move to boost Hong Kong's I&T ecosystem. HKPC will give its full support to such initiative and make use of its business network and understanding of various industries to assist I&T enterprises in technology commercialisation, for enhancing Hong Kong's productivity.

The National 14^th Five-Year Plan has clarified the positioning and direction of Hong Kong's economic development and supports Hong Kong's development into an international I&T hub. The past few years has seen the Government’s commitment in nurturing emerging industries. While the industrial I&T ecosystem has gradually matured and will be able to create enormous business opportunities and ample room for Hong Kong's development in the coming years, HKPC is glad to work with the Government in implementing the relevant measures and will continue our missions of promoting advanced manufacturing and green living in Hong Kong, encouraging the development of high value-added industries through "Industry 4.0" and innovative smart technologies. Through these, we shall help enterprises innovate a new economy and seize huge business opportunities in the post-pandemic era, cementing the success of the “Made in Hong Kong” standing.

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