HKPC Fully Supports the 2026-27 Budget in Driving Industrial Upgrading and Transformation Through I&T Advancing AI Industrialisation and Partnering with SMEs to Embrace New Opportunities

(Hong Kong, 25 February 2026) The Hong Kong Productivity Council (HKPC) welcomes the 2026-27 Budget, which allocates additional resources to the development of innovation and technology (I&T) artificial intelligence (AI), and new industrialisation initiatives. HKPC will actively align with the recommendations of the National 15th Five-Year Plan and support the Budget’s goal of Driving High-quality, Inclusive Growth with Innovation and Finance. Through the advancement of new productive forces, HKPC will empower industries and SMEs to continuously upgrade and transform, facilitate Hong Kong and Mainland enterprises in expanding their global networks, and inject new impetus into the high-quality development of both Hong Kong and the nation.

Hon Sunny TAN, Chairman of HKPC, stated, “HKPC proactively supports and collaborates with the Government in aligning Hong Kong with the National 15th Five-Year Plan by formulating the city’s first five-year plan. Earlier, we successfully organised our annual flagship event, ‘ForeSight 2026,’ which brought together representatives from various sectors to explore new directions for Hong Kong’s development during the period of the 15th Five-Year Plan. This year’s Budget demonstrates strong foresight in advancing I&T, AI+, new industrialisation, low-altitude economy (LAE), intellectual property (IP) protection, and SMEs development, supporting Hong Kong’s new ‘South-North dual engine (finance-I&T)’ industry pattern. HKPC fully supports the Government’s efforts to contribute to the nation’s modernised industrial system, and we welcome the Budget’s four major measures in technological innovation and industry, including enhancing integration with national development, improving the I&T ecosystem, promoting Hong Kong’s new industrialisation, and driving AI development across the board.”

We also welcome the new injection into the “BUD Fund” which will provide more targeted support for enterprises to apply AI. Looking ahead, we anticipate the Government introducing the “New Industrialisation Elite Enterprises Nurturing Scheme” within the year, as well as establishing in Hong Kong the first national manufacturing innovation centre outside the Mainland to further promote the deep integration of technological and industrial innovation and accelerate Hong Kong’s participation in national new industrialisation.

Leveraging our technological and network advantages, HKPC will actively foster the development of the LAE and accelerate large-scale adoption of autonomous driving, while continuing to support both local and Mainland enterprises in going global. As a member of the GoGlobal Task Force, our “The Cradle – Go Global Service Centre” has been providing comprehensive support to enterprises; since its launch in April last year, it has attracted interest from over 350 enterprises and handled more than 450 cases.

Fully Developing AI and Other Emerging Technologies to Promote New Industrialisation
The Budget proposes the establishment of the Committee on AI+ and Industry Development Strategy, aligning with the National AI+ Initiative and promoting collaboration among public organisations, technology enterprises, and tertiary institutions to deepen AI application training. In this regard, HKPC successfully held the "AI with HKPC" Smart AI Solutions Showcase Series earlier, displaying over a hundred solutions and launching the multipurpose AI platform "HKPC Picasso," along with "AI Governance and Testing Services," to assist enterprises in efficiently deploying and ensuring compliance in the application of AI.

HKPC welcomes the Government's allocation of HK$50 million to support AI Training for All and the earmarking of HK$2 billion in the Quality Education Fund to take forward digital education in primary and secondary schools by offering school based AI education programmes. In the past two years, HKPC Academy has conducted over 500 AI training sessions, training a total of 22,000 participants. Additionally, to support digital education, the HKPC Academy has established the "EdTech Hub," and recently co-hosted the inaugural “AI in Education Forum Series & Showcase” with the Education Bureau, attracting 3,000 principals and teachers from over 250 primary and secondary schools to participate in person.

In terms of new industrialisation development, HKPC is actively implementing the concept of "Hong Kong Got Industries," supporting targeted high-growth enterprises that contribute to the development of new industrialisation through various aspects, such as technological R&D, Government-industry-academia-research collaboration, cultivating innovative talent, and establishing in Hong Kong the first national manufacturing innovation centre outside the Mainland.

Regarding the LAE, the Government has completed the first phase of legislative amendments. Under the first cohort of the Regulatory Sandbox, 32 projects have conducted trials along their designated routes. HKPC, as the technical partner for the Working Group on Developing Low-altitude Economy and "Regulatory Sandbox X," will continue to promote the practical application of innovative solutions.

Driving the Intellectual Property Economy, Green Transformation and SME Development
As the hosting institution of the Hong Kong Technology and Innovation Support Centre (HKTISC), HKPC welcomes the Government’s allocation of HK$28 million for HKTISC in providing I&T enterprises with patent evaluation based on Guobiao (GB), and implementing two two year Pilot Patent Valuation Support Scheme to assist I&T enterprises for conducting valuation of their patent assets. Additionally, HKPC welcomes various IP–related initiatives, including tax incentives, IP Financing Sandbox, patent examination, talent training, and business matching support.

The Budget’s injection of HK$200 million into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) and the raise of the funding ceiling of “Easy BUD” to HK$150,000 per application will further support enterprises in AI application. As the implementer, HKPC will assist enterprises in leveraging “Easy BUD” to expand their business operations. In addition, the injection of HK$500 million to the Chinese Medicine Development Fund will strengthen research, training, and international promotion of Chinese medicine. HKPC will align with Government policy and The Chinese Medicine Development Blueprint to promote high quality development of the Chinese medicine sector.

Furthermore, the Government is actively supporting the national “dual carbon” targets by advancing green industries and enterprise transformation, including formulating hydrogen standards certification under the Strategy of Hydrogen Development in Hong Kong. HKPC will continue to drive green technology innovation, support the development of green transport and energy, and make good use of the Green Tech Fund to promote applied R&D. Together with the “Center of Advanced Power and Autonomous Systems” (APAS), HKPC aims to advance the green upgrading of public transport and contribute to urban low carbon and sustainable development.

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Hon Sunny TAN, Chairman of the Hong Kong Productivity Council (HKPC), stated that the 2026-27 Budget demonstrates strong foresight in advancing innovation and technology, AI+, new industrialisation, the low-altitude economy (LAE), intellectual property (IP) protection, and SMEs development. HKPC is fully committed to cooperating with the Government in contributing to the establishment of a modern national industrial system, and to support all measures related to technological innovation and industry outlined in the Budget.