HKPC Welcomes Policy Address Fully Supports the Government to Develop New Productive Forces Empowering New Industrialisation to Boost Economy Supporting SMEs to Embrace New Opportunities

(Hong Kong, 16 October 2024) Hong Kong Productivity Council (HKPC) welcomes the array of measures and visions proposed by Chief Executive Mr John LEE in his 2024 Policy Address today to boost local economy and promote innovation and technology (I&T) development. HKPC will work actively with the HKSAR Government and the industry towards the vision of “reform for enhancing development and building our future together”, we will proactively follow HKSAR Government’s lead in developing new productive forces according to local conditions, supporting SMEs through a series of offers and support measures, along with the application of innovative technologies to transform, realise and commercialise research and development (R&D) outcomes, in order to accelerate Hong Kong's transformation into an international I&T centre.

Hon Sunny TAN, Chairman of HKPC, said, “HKPC fully supports and cooperates with the work frame on economic and I&T development outlined in the Policy Address. We welcome the HKSAR Government’s plan to establish the ‘Hong Kong New Industrialisation Development Alliance’, building a co-operative platform for new industrialisation in Hong Kong, set up the HK$10 billion ‘I&T Industry-Oriented Fund’, establish the ‘Working Group on Developing Low-altitude Economy’, create a high value-added supply chain service centre, and strengthen the position as a regional intellectual property (IP) trading centre. Additionally, it will inject HK$1 billion into the ‘BUD Fund’ and expand ‘E-commerce Easy’ to strengthen the support for SMEs. Furthermore, the Policy Address promotes the development of new energy, green transport, and the integrated development of education, technology and talent. It also enhances the admission schemes for talent and professionals and focuses on developing the Northern Metropolis with an industry-oriented approach. The Policy Address aligns with the objectives of the ‘Third Plenary Session’ by driving industrial reform and innovation, and developing new productive forces according to local conditions.”

Hon TAN added, “The Chief Executive visited HKPC recently and acknowledged our achievements in implementing new industrialisation. He highly commended the diverse services and support for SMEs provided by HKPC and recognised our efforts in assisting the upgrading and transformation of traditional industries, as well as nurturing emerging industries. HKPC will continue to align with the Government's initiatives on I&T development, promote the R&D of core technologies and their commercialisation, and facilitate IP trade and protection. In line with the national direction of developing high-end intelligent manufacturing, we will leverage the strengths of traditional industries to drive their upgrading and transformation towards high-end, intelligent, and green. We will also strengthen talent training, promote new industrialisation and take proactive actions to support the Government's determination on reform. By leveraging Hong Kong's unique advantage of 'enjoying strong support of the Motherland and being closely connected to the world', we aim to enhance international cooperation in industrial and supply chains and boost industrial competitiveness, empowering the national industry's upgrading and transformation.”

Comprehensive Support for Local SMEs to Embrace New Opportunities

HKPC welcomes the injection of HK$1 billion into the “BUD Fund” as announced in the Policy Address, including expanding the geographical coverage of “E-commerce Easy” to the 10 ASEAN countries, and providing targeted funding support for enterprises to implement green transformation projects. SMEs have a strong demand for funding schemes, and the HKPC’s Government Funding Schemes Management Centre (GFSMC), as Hong Kong’s leading institution for implementing Government funding schemes, has recorded double-digit growth in applications for the “BUD Fund” in the 2024/25 financial year compared to the same period last year. The “E-Commerce Easy”, which supports businesses in expanding into the Chinese Mainland market through e-commerce, is particularly popular amongst SMEs. GFSMC has also launched the Biz Expands Easy (BEE) 3-in-1 platform, providing information of 28 Government funding schemes, allowing SMEs to understand and explore suitable funding schemes.

As the strongest support for the SMEs, HKPC stays closely attuned to industry needs and market trends, and continues to enhance its diverse services and support for SMEs through integration of six key services, envision to boost SME competitiveness and promote high-quality economic development in Hong Kong. Additionally, HKPC’s “SME ReachOut” will co-organise the annual “SME ReachOut - FUND Fair plus Tech Sourcing 2024” with the Trade and Industry Department to address the pain points of SMEs, helping local SMEs and start-ups to upgrade and transform to seize market opportunities.

Boosting New Industrialisation for Economy, Developing New Productive Forces According to Local Conditions

It is uplifting that the Policy Address has attached importance to optimising the strategy and institutional set-up for the development of new industrialisation, including the establishment of the “Hong Kong New Industrialisation Development Alliance” followed by the HK$10 billion “I&T Industry‑Oriented Fund” which will strengthen the development of strategic emerging and future industries, including life and health technology, artificial intelligence (AI) and robotics, semiconductors and smart devices, advanced materials, and new energy, result in building an I&T ecosystem systematically. We are also pleased to see the HKSAR Government’s injection of HK$100 million for a new round of the “Cleaner Production Partnership Programme”, which will accelerate the green transformation, renovation, and upgrading of Hong Kong-invested factories located locally and in the Guangdong Province, a positive move to meet carbon neutrality target.

As a key enabler of new productive forces and new industrialisation in Hong Kong, HKPC will work with the HKSAR Government to build a collaborative platform for Hong Kong’s new industrialisation. HKPC has opened Hong Kong’s first and largest Future Manufacturing Hall earlier this year, showcasing successful cases of world-class intelligent manufacturing and smart production lines from overseas, the Greater Bay Area (GBA), and Hong Kong, reinforcing the brand value of “Made in Hong Kong”. HKPC will continue to promote “Microfactory” technology, facilitating the upgrading of traditional industries and the development of emerging ones.

The Policy Address proposes expanding the IP trading ecosystem for I&T industries, strengthening Hong Kong’s position as a regional IP trading centre. HKPC is actively preparing to establish the Technology and Innovation Support Centre (TISC) under the World Intellectual Property Organization (WIPO), focusing on patent search and analysis, protecting R&D achievements, and nurturing talent equipped with patent knowledge, contributing to Hong Kong’s intellectual property trade.

Empowering Low-altitude Economy (LAE), Develop New Engine to Drive Economic Growth

HKPC is encouraged by the measures on developing Low-altitude Economy (LAE) in the Policy Address. HKPC launched Hong Kong Industrial Drone Technology Centre (HKIDTC) in 2021, which made it the first Approved Training Organisation (ATO) that was accredited by the Civil Aviation Department (CAD) for Small Unmanned Aircraft Advanced Rating. We also hold an “Advanced Operations Permission (AOP) under the Small Unmanned Aircraft Order, which allowed us to partner with the industry to carry out applied research projects on the LAE, our projects receiving widespread international recognition, covering property management, agriculture, and tunnel inspection. This year, HKPC has also become a council member of the Guangdong Hong Kong Macao Greater Bay Area Low Altitude Economy Industry Alliance. We will continue to leverage Hong Kong’s strengths in advanced materials, Industry 4.0, AI, and industry standards to create and implement diverse drone application scenarios, aiming to form an integrated ecosystem through collaboration with stakeholders from industry, academia, and research, thereby seizing potential industrial development and economic opportunities.

Looking forward, HKPC will fully align with the development goals of the nation and HKSAR Government, drive new productive forces and new industrialisation with I&T and provide services covering more SMEs, meanwhile, promote closer collaboration among the HKSAR Government, industry, academia, research, and investment sectors, and featuring the compelling I&T stories of Hong Kong to enhance the international competitiveness. HKPC will carry on promoting cross-border innovation flows within the GBA and the development of the Hong Kong-Shenzhen I&T Park, helping Hong Kong to better integrate into the country’s overall development.

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Hon Sunny TAN, Chairman of HKPC, said, “HKPC fully supports and cooperates with the work frame on economic and I&T development outlined in the Policy Address. We welcome the HKSAR Government’s plan to establish the ‘Hong Kong New Industrialisation Development Alliance’. Additionally, we appreciate the Government’s efforts in building a cooperative platform for new industrialisation in Hong Kong, including the setup of the HK$10 billion ‘I&T Industry-Oriented Fund’, the establishment of the ‘Working Group on Developing Low-altitude Economy’, and the creation of a high value-added supply chain service centre. To strengthen the position as a regional intellectual property trading centre, the Government will inject HK$1 billion into the ‘BUD Fund’ and expand ‘E-commerce Easy’ to strengthen the support for SMEs. Furthermore, the Policy Address promotes the development of new energy, green transport, and the integrated development of education, technology and talents. It also enhances the admission schemes for talent and professionals and focuses on developing the Northern Metropolis with an industry-oriented approach. The Policy Address aligns with the objectives of the ‘Third Plenary Session’ by driving industrial reform and innovation, and developing new productive forces according to local conditions.”

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. As a nationwide leader in innovative, market-driven research and development (R&D), specialising in leading technologies and all-rounded manufacturing services, HKPC promotes new industrialisation in Hong Kong and the Greater Bay Area and facilitates the development of new productive forces, leveraging innovation and technology (I&T), as well as bolstering Hong Kong to be an international I&T centre.