HKPC Welcomes 2024-25 Budget Seizing Opportunities, Forging an International Innovation & Technology Centre, Aspiring High-quality Development

(Hong Kong, 28 February 2024) Hong Kong Productivity Council (HKPC) welcomes the latest Budget for the fiscal year 2024-25 as announced by the HKSAR Government, which presents visionary and comprehensive policies that forges Hong Kong to be an international innovation and technology (I&T) centre. With the solid support from the Central People's Government and the leadership of the HKSAR Government, HKPC is confident in Hong Kong's economic prospects and will continue to cooperate with the HKSAR Government to fully leverage the unique advantages of "One Country, Two Systems" and its highly internationalised characteristics. This can assist the industrial and commercial business community in capitalising on the vast opportunities of being strongly supported by the Motherland and having close connectivity to the global arena. It will strengthen Hong Kong's crucial role in the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative, attracting additional key enterprises and top talent, fostering new industrialisation, and facilitating high-quality economic development.

Hon Sunny TAN, Chairman of HKPC, said the 2024-25 Budget is highly motivating. "HKPC fully supports the HKSAR Government in its measures that foster growth of the I&T sector and propel Hong Kong towards becoming an international I&T centre. We believe that the 2024-25 Budget will garner widespread support from various sectors, including the industrial, commercial, and business communities. Enterprises could actively attract foreign investment and expand their global presence. Hong Kong can achieve high-quality economic development through I&T and accelerate the development of new productivity. As a key enabler, facilitator, and promoter, HKPC plays an important role in nurturing new productivity and achieving new industrialisation in Hong Kong. Earlier this year, we launched our flagship event 'Hong Kong Got Industries' to facilitate cross-sector collaborations among industry, academia and research sectors, showcasing the good stories of Hong Kong. Additionally, the opening of the 'Future Manufacturing Hall' later this year will further advance Hong Kong's new industrialisation. HKPC remains committed to cooperating with the HKSAR Government in implementing relevant measures for the development of I&T sector, accelerating Hong Kong’s development as an international I&T centre and a smart city under the '14th Five-Year Plan'."

Advancing New Industrialisation at Full Speed, Supporting Hong Kong's Development as an International I&T Centre
HKPC has been closely collaborating with industry peers to facilitate the modernisation and transformation of the traditional industrial sector. With expertise in Industry 4.0 and Enterprise 4.0, HKPC is at the forefront of driving Hong Kong's new industrialisation, bolstering productivity through technological innovation. HKPC wholeheartedly supports the HKSAR Government's proposal to launch the "New Industrialisation Acceleration Scheme" with a budget allocation of HK$10 billion this year. Additionally, HK$3 billion has been allocated for a three-year "AI Subsidy Scheme". HKPC firmly believes that by attracting leading enterprises and those with high potential to establish their presence in Hong Kong, it will fuel economic transformation and high-value development across the industry chain. Simultaneously, this will attract more talent to Hong Kong, fostering a virtuous cycle for the I&T ecosystem.

HKPC extends its gratitude to the HKSAR Government for appropriating HK$45 million in the 2024-25 Budget to support the establishment and operation of the WIPO Technology and Innovation Support Centre (TISC). This centre will specialise in providing valuable services such as patent research retrieval and analysis, safeguarding research and development (R&D) accomplishments, enhancing support for the I&T industry, and facilitating intellectual property trade. HKPC is committed to actively collaborating with relevant policy departments and adhering to the Government's timeline to ensure that the centre can commence operations next year, aligning with the broader national development objectives.

Talent plays a pivotal role in enhancing overall competitiveness. In line with Hong Kong's drive to promote I&T development, the 2024-25 Budget introduces the "STEM Internship Scheme" to encourage university students to engage in work related to the I&T sector. Strengthening the local I&T talent pool has always been a core mission of HKPC. HKPC is dedicated to nurturing young scientific research talent and leaders for Hong Kong, cultivating a new generation of "InnoTalent". Leveraging its extensive experience in the I&T field, HKPC Academy actively collaborates with the education sector, I&T industries, and STEAM education practitioners to nurture local I&T talent at various levels and stages. Furthermore, HKPC recruits interns from top universities worldwide, to actively cooperate with government policies to infuse new I&T forces and support the Government in fostering Hong Kong's gradual transformation into an international I&T centre.

Enriching Secretariat Services of Government Funding Schemes to Support More SMEs
As a leading implementing partner and secretariat of Government funding schemes in Hong Kong, HKPC welcomes the injection of HK$500 million to the “Dedicated Fund on Branding, Upgrading and Domestic Sales” (BUD Fund) in the budget proposal. This funding will help small and medium enterprises (SMEs) to boost their competitiveness and tap into Mainland and overseas markets. Furthermore, the introduction of "E-commerce Easy" through the BUD Fund will offer assistance to enterprises undertaking e-commerce initiatives in the Mainland. Additionally, the establishment of a "digital identity of enterprises" platform, similar to a corporate version of "iAM Smart," will enhance convenience and security for businesses when utilising Government e-services and conducting online transactions. In January this year, HKPC implemented enhancements to the BEE ePass function by integrating "iAM Smart," allowing users to directly access and manage their BEE ePass accounts without the requirement of a username and password. The 2024-25 Budget emphasises various funding schemes aimed at significantly boosting the local logistics industry. Notably, HKPC serves as the secretariat for three funding schemes, namely the "Pilot Subsidy Scheme for Third-party Logistics Service Providers," the "Professional Training on Smart and Green Logistics Scheme," and the "Logistics Promotion Funding Scheme". These initiatives are designed to provide substantial support and incentives for the growth and development of the logistics sector.

As a steadfast supporter of SMEs, HKPC remains committed to creating value for them. The recent introduction of Biz Expands Easy Square (BEE2) in January this year serves as a platform for programme applicants to exchange information and facilitates SMEs and startups in accessing pertinent Government funding information. HKPC is grateful for the Government's acknowledgment and will continue to leverage its accumulated experience and advantages in supporting SMEs, assisting a greater number of them in upgrading, transforming, and ensuring their sustainable development.

Leading Towards a Green Future and Promoting the Development of Hong Kong into an International Green Technology and Financial Centre
"Green development is a defining feature of high quality development". HKPC finds inspiration in the Government's diverse initiatives outlined in the Budget towards constructing a sustainable future. As a prominent research institution in Hong Kong, HKPC has consistently dedicated efforts to the advancement of green technologies, resulting in numerous international accolades and commendation from experts in the field. HKPC appreciates the Government's ongoing allocation of resources and looks forward to maintaining close collaboration in the development of green technologies, such as green transportation, green methanol, and hydrogen energy, etc. HKPC will actively promote practical applications that safeguard the environment, contributing to the transformation of Hong Kong into a greener and more sustainable smart city. This endeavour will further solidify Hong Kong's position as an "International Green Technology and Financial Centre."

Looking Forward, Accelerating the Development of New Industrialisation
Mr Mohamed BUTT, Executive Director of HKPC, is excited about the numerous policies related to I&T sector in this year’s Budget. Mr BUTT said, “HKPC is committed to actively collaborating with the Government to implement measures that promote the advancement of I&T development in Hong Kong. As a leading research institution, HKPC has been the recipient of over 200 notable R&D awards and recognitions, both locally and internationally, in recent years. With its exceptional technical expertise, innovative talent, and the ability to provide professional services to enterprises, HKPC will continue to forge partnerships with renowned local, Mainland, and international entities to foster the development of industrial innovation technology, driving its implementation and commercialisation. In doing so, HKPC aims to uphold Hong Kong's unique position and function, contributing to our country's pursuit of high-quality development, amid realising Chinese-style Modernisation.”

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Hon Sunny TAN , Chairman of HKPC, fully supports the HKSAR Government in implementing I&T measures that accelerate Hong Kong’s development into an international I &T centre.

The Hong Kong Productivity Council (HKPC) is a multi-disciplinary organisation established by statute in 1967, to promote productivity excellence through relentless drive of world-class advanced technologies and innovative service offerings to support Hong Kong enterprises. Being a key enabler of Industry 4.0 and Enterprise 4.0, HKPC strives to facilitate new industrialisation in Hong Kong, as well as bolstering Hong Kong to be an international innovation and technology centre and a smart city.