FHKI Welcomes the 2025 Policy Address Seizing New Opportunities to Create a New Economic Landscape
FHKI Welcomes the 2025 Policy Address Seizing New Opportunities to Create a New Economic Landscape
17-09-2025
FHKI Welcomes the 2025 Policy Address
Seizing New Opportunities to Create a New Economic Landscape
Federation of Hong Kong Industries (FHKI) strongly welcomes the fourth Policy Address delivered by Chief Executive John Lee, which accepted many of the Federation's recommendations. FHKI believes the Policy Address, with its extensive elaboration on emerging industries and new industrialisation, has set a sound direction and is fully responsive to the industry's views. It further clarifies the development pace and industrial positioning of the Northern Metropolis and continues to support the industry through various funds, funding schemes, and the Principal Moratorium Arrangement. FHKI strongly supports the new Policy Address and its proposals to promote innovative industries such as life and health technology and artificial intelligence, as well as to drive economic diversification. These measures will help Hong Kong identify new growth points and future directions during its economic transformation, laying a solid foundation for building its position as an international financial and I&T centre.
FHKI Chairman Anthony Lam stated that since taking office, the Chief Executive has actively proposed numerous reforms to accelerate Hong Kong's economic recovery and consolidate its status on the international stage. Chairman Lam is pleased to see the Government continue to vigorously plan the Northern Metropolis and develop emerging industries, while also providing ongoing support for the industry to navigate the challenges of the economic transition. He commented, “The Policy Address proposes a series of measures targeting the Northern Metropolis, I&T Parks, AI, and economic diversification. By mapping out future development directions and creating new growth points, this demonstrates the Government's foresight and its determination to keep pace with global industrial trends, prioritise the I&T industry, and stimulate market vitality. The industry welcomes the Government's new thinking regarding new development areas and acknowledges its proactive encouragement of cross-sector collaboration across different policy areas, which aligns with FHKI’s long-standing advocacy for collaboration between Government, industry, academia, research, and investment. The Federation is deeply convinced that these measures will help transform Hong Kong’s industries and enhance competitiveness. We look forward to continuing to work with the Government and the industry to seize the opportunities presented by the changing global landscape.”
Chairman Lam added that the Policy Address clearly indicates that Hong Kong's future opportunities will be more focused on helping enterprises "go global". FHKI strongly concurs and will maintain close communication with the Government, support its policy direction, and connect the industry with overseas markets through activities such as leading overseas delegations. The Federation recently (14-16 September) jointly organised a delegation to Vietnam with the Hong Kong Association of Banks to explore cooperation opportunities between the two places, and the mission yielded fruitful results. Building on this, FHKI will continue to actively prepare enterprises for overseas expansion and open up new cross-border business opportunities.
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Accelerating the Northern Metropolis with Flexible Land Policies
FHKI commends the Government for adopting industry recommendations in the Policy Address, introducing comprehensive measures to fast-track the development of the Northern Metropolis. Central to these is the establishment of the “Committee on the Development of the Northern Metropolis”, led by the Chief Executive, which elevates the strategic decision-making for the region’s development. Under this new committee, three working groups have been formed, each under Secretarial-level leadership. These groups will coordinate the development of industrial estates, the integration of academia and industry within a University Town, and the streamlining of planning processes. This targeted approach will advance the development of the Northern Metropolis and unlock its full potential. The pace of land supply and construction are critical to the development of the Northern Metropolis and its ability to attract industries. FHKI supports the Government's simplification of administrative procedures, the introduction of a Fast Track Processing System, the use of a multi-pronged development model, and the adoption of a “pay for what you build” approach to reduce the upfront capital cost of land premiums. Furthermore, employing flexible land allocation policies will not only accelerate land development but also strengthen the incentive for industry to participate in the construction of the Northern Metropolis, encouraging more enterprises to invest and establish themselves in the area.
Furthermore, FHKI is pleased to see the Government's commitment to enacting dedicated legislation to accelerate the development of the Northern Metropolis and further simplify statutory procedures. This includes establishing statutory park companies with dedicated funding channels and managing the cross-boundary flow of people, goods, capital, data, and biological samples in designated areas. These initiatives will help attract research institutes and high-end manufacturers to set up operations in Hong Kong, facilitating the early formation of an industrial ecosystem in the Northern Metropolis. The Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone is a critical nexus connecting domestic and international markets. FHKI supports the consideration of a “phased occupation during construction” model, which would flexibly provide workspace to allow enterprises to move in early, thereby helping to complete the overall layout of the Hong Kong Park in the Hetao Area sooner. Additionally, the forthcoming release of the Conceptual Outline of the Development Plan for the Innovation and Technology Industry in the San Tin Technopole—which will cover top-level design and industry positioning strategies—will provide robust support for advancing Hong Kong’s development of new quality productive forces.
Partnering with Mainland Enterprises for Global Success
Amid the restructuring of the global economy, FHKI strongly endorses the Government's strategy to leverage the "One Country, Two Systems" advantage. This involves seizing the opportunities presented by Mainland enterprises "going global", providing high-value-added supply chain services, and jointly exploring emerging markets alongside them. FHKI supports the establishment of the Task Force on Supporting Mainland Enterprises to Go Global and welcomes the introduction of policy measures designed to attract Mainland enterprises to establish regional headquarters and corporate treasury centres in Hong Kong, thereby boosting local economic growth. FHKI also welcomes the Government’s responsiveness to the industry's calls, including establishing a new Economic and Trade Office in Kuala Lumpur, actively pursuing investment agreements with more countries, and expediting Hong Kong’s accession to the Regional Comprehensive Economic Partnership (RCEP)—all of which will create new overseas market opportunities for our industries. FHKI will continue to join forces with partners across government, industry, academia, research, and investment. We will lead delegations to overseas markets to build networks and facilitate collaboration as Hong Kong and Mainland enterprises partner to "go global" together.
Promoting the Commodity Market and Deepening Global and Mainland Connectivity
FHKI strongly supports the robust measures proposed in the Policy Address to advance commodity trading. These include offering a half-rate tax concession to attract traders to establish a presence in the city, deepening cooperation with Mainland markets, and optimising international trading processes through financial innovation. This will solidify Hong Kong's status as a premier commodity trading hub that connects Mainland China with the world. The Government's proactive development of a commodity ecosystem will drive growth across multiple sectors—including manufacturing, logistics, shipping, finance, sustainable development, and professional services—and inject new impetus into Hong Kong's economic diversification. Furthermore, FHKI welcomes the Government's acceptance of its recommendation to establish the Strategic Committee on Commodities. This committee will formulate the long-term development direction for the market and enhance Hong Kong’s standing in the global commodity industry.
Promoting Emerging Industries for Economic Growth
To foster economic growth, it is imperative for Hong Kong to transform and upgrade. FHKI welcomes the multiple measures in the Policy Address aimed at actively developing emerging industries. We are particularly pleased to see the Government's vigorous promotion of "AI+" to facilitate its broad application across all trades and industries. This includes strengthening infrastructure, notably by providing advanced computing power facilities at the approximately 10-hectare site designated for a data park in Sandy Ridge, North District. FHKI also welcomes the Government's acceptance of our recommendation to spearhead the integration of AI into public administration. This includes enhancing the use of AI to recommend suitable funding schemes and public service support for enterprises, especially SMEs, thereby helping to boost their competitiveness. We look forward to the Government comprehensively formulating a development strategy for Hong Kong's AI industry to achieve the goals of "industries for AI" and "AI for industries".
Life and health technology is a key strategic industry for Hong Kong. FHKI is delighted that the Government has proposed establishing the Hong Kong Centre for Medical Products Regulation next year and accelerating the "1+" mechanism for new drug approvals, which will help pharmaceutical firms bring innovative drugs to market. We also welcome the establishment of the Office for Introducing Innovative Drugs and Medical Devices, which will expedite the introduction of more high-quality, innovative drugs and medical devices to Hong Kong. Furthermore, FHKI supports the Government's plan to formulate an Action Plan on Developing Low-Altitude Economy while concurrently improving civil aviation legislation and the regulatory framework. This will lay the foundation for the standardised development of the low-altitude economy. Given Hong Kong's potential in aerospace technology, FHKI believes the Commerce and Economic Development Bureau's study into simplifying the licence approval process for low-earth orbit satellites is timely and will further stimulate the industry's development.
Driving Economic Diversification and Market Expansion
FHKI is pleased to see the Government accept its advocacy to further promote Muslim tourism and strengthen the strategy of “accreditation, education, and promotion,” encouraging the industry to provide more Muslim-friendly facilities and dining options. The Hong Kong Tourism Board is also launching a funding scheme for restaurants applying for Halal certification. From today until the end of 2026, restaurants that successfully acquire certification will receive a 50% subsidy on the fee, capped at HK$5,000, further fostering a Muslim-friendly environment. FHKI will continue to assist the business community in seizing these opportunities and enhancing supporting facilities and service quality through initiatives like the "Hong Kong Q-Mark Quality Halal Scheme", working hand in hand with the Government to develop the halal industry.
FHKI also welcomes the Government's commitment to building an elderly-friendly society and will continue to support the establishment of the Working Group on Promoting Silver Economy. We aim to further advance the silver economy through the authoritative "Silver Q-Mark" certification for silver quality assurance. In collaboration with industry, FHKI will explore the development of additional GBA Standards for silver products, helping to provide elderly individuals with more high-quality and suitable age-friendly product choices.
The food manufacturing industry holds enormous potential. FHKI strongly welcomes the Government's support, which not only facilitates the sale of food from Hong Kong to the Mainland but also reserves land near the Heung Yuen Wai Boundary Control Point for the development of the food industry. This includes areas for food wholesale, processing, and trading, with the long-term goal of establishing a food industry park. This initiative promotes "food manufacturing + tourism", drives the growth of the food sector, and supports its upgrading and transformation towards high-quality development. Furthermore, FHKI supports the Government's proposals to promote modern aquaculture, including providing deep-sea cages, building a multi-story eco-friendly pig farm, and advancing the development of Agricultural Park Phase 2. We believe these measures will help industrialise local agriculture and fisheries while incorporating environmental concepts, thereby enhancing the economic value of local agricultural and fishery production.
Comprehensive Support to Boost the Global Competitiveness of SMEs
In the face of a challenging business environment, FHKI welcomes the Government’s acceptance of our proposals to extend the principal moratorium arrangement for another year, inject HK$1.43 billion into the BUD Fund, and expand its geographical scope to cover eight more economies, including those along the Belt and Road. As stated in the Policy Address, SMEs are the backbone of Hong Kong’s economic development. FHKI believes these support measures will effectively improve supply chain cash flow, help enterprises navigate the economic transition with flexibility, and assist Hong Kong brands in expanding into more regions. Furthermore, FHKI strongly believes the proposal for the Hong Kong Export Credit Insurance Corporation to expand financing support for local e-commerce businesses will effectively help SMEs develop their online operations, a move that aligns with market trends and their needs. FHKI also welcomes the Government’s plan to set up the “Economic and Trade Express”, which will unite the overseas offices of ETOs, InvestHK, and the Hong Kong Trade Development Council to organise overseas business missions for local enterprises and explore new business opportunities.
Regarding the new IP financing initiatives, FHKI notes that the CEDB and the Intellectual Property Department (IPD) will collaborate with the Hong Kong Monetary Authority to launch the first-ever "IP Financing Sandbox". This will assist pilot sectors, particularly technology, in leveraging their intellectual property for financing. The Government will also support local small and medium-sized I&T enterprises by providing patent evaluations based on national standards and will launch a two-year pilot programme to subsidise patent valuations for use as a reference in credit financing. FHKI believes these policies will effectively encourage local enterprises to invest in creativity and R&D, generate economic benefits, and enhance their international competitiveness.
Talent Strategy: Integrating Industry and Academia
FHKI welcomes the Government's strategy for the "integrated development of education, technology, and talent" and supports the establishment of a more comprehensive talent cultivation system through a series of measures. FHKI fully supports the Government in accelerating the development of the Northern Metropolis University Town. By combining this with the industrial strengths of the San Tin Technopole, a complete industry-academia-research ecosystem can be established.
The partnership between industry, academia, and research is an indispensable component of innovation and technology development. FHKI is pleased to see the Government strengthening applied sciences and vocational and professional education. This includes encouraging Universities of Applied Sciences to deepen their collaboration with leading enterprises on the Mainland and overseas to meet the pressing demand for technical specialists in new industrialisation and high-end industries, which will help enrich Hong Kong's talent pool for new industries. Furthermore, the launch of the Innovation and Technology Talents Exchange Scheme for Industry and Academic Sectors will promote in-depth cooperation between academia and the I&T industry, drive the translation of research outcomes, and accelerate the development of I&T and new industrialisation in Hong Kong.
FHKI also fully supports the formulation of the Blueprint for Digital Education in Primary and Secondary Schools. This will promote AI and STEAM education to nurture a new generation equipped with innovation and technology literacy, laying a solid foundation for the talent required for future I&T development.
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