FHKI Submitted Policy Recommendations for the 2025-26 Budget

Today, the Federation of Hong Kong Industries ("FHKI") submitted its policy recommendations to the HKSAR Government for the 2025-26 Budget.

FHKI Chairman Steve Chuang commented on the complexities of the global economic framework and the opaque external conditions that pose significant challenges to Hong Kong’s business sector. He stated, "Hong Kong must implement an industry-oriented strategy, focusing resources on sectors most advantageous for future economic prosperity. This approach is crucial as we navigate through a period of economic transformation. We earnestly hope that the Government will continue to enhance industry-focused policies, bolster Hong Kong’s unique advantages, and capitalise on national strategic opportunities to forge new developmental paradigms."

The FHKI’s budget submission encompasses six key areas, with highlighted recommendations as follows:

Revitalising Economy and Alleviating Business Financial Burdens Promoting New Industrialisation through Innovative Technology Leveraging Hong Kong’s Unique Advantages Enhancing Regional Interconnectivity Strengthening Hong Kong's Industrial Talent Pool Improving Business Sustainability and Competitive Advantage

 

1. Revitalising Economy and Alleviating Business Financial Burdens: Facing fiscal deficits, FHKI believes it is imperative to stimulate economic growth while managing financial resources efficiently. Our recommendations include providing relief measures for SMEs to lighten their financial loads and promoting the development of e-commerce to improve SMEs' cash flow and enhance their competitiveness.
   
   
2. Promoting New Industrialisation through Innovative Technology: The FHKI has proposed a series of initiatives aimed at accelerating the advent of new industrialisation, fostering the growth of the digital economy, and facilitating the development of smart cities. In particular, with respect to the Northern Metropolis, we are encouraged by the government's contemplation of preferential land pricing as an incentive for companies to establish production facilities in the region. We urge the government to thoroughly assess the land requirements of the complete industrial chain and consider offering flexible payment options such as extended instalments on land purchases or a rent-to-own scheme. These measures would significantly alleviate the initial financial burden on businesses.
   
   
3. Leveraging Hong Kong’s Unique Advantages: As an international financial centre, the FHKI urges the Government to strategically allocate funds to bolster SMEs and I&T enterprises, foster a headquarters economy, and enhance related industrial chains. We also recommend promoting greater market interconnectivity, expediting efforts to join the Regional Comprehensive Economic Partnership (RCEP), and exploring new opportunities in the "Belt and Road" regions, domestic markets, and e-commerce platforms.
   
   
4. Enhancing Regional Interconnectivity: The FHKI recommends that the government actively promote stronger links between Hong Kong, the Greater Bay Area, and the "Belt and Road" countries to facilitate the free movement of people, logistics, capital, and data. We propose expanding the availability of visas and extending stay periods for high-end and in-demand talents from "Belt and Road" nations. Additionally, we suggest extending the Single E-lock Scheme to additional cities on the Mainland, and engaging with governments in the Greater Bay Area to pursue mutual recognition of data and information policies.
   
   
5. Strengthening Hong Kong's Industrial Talent Pool: Anticipating a labour shortage of 180,000 workers by 2028, largely due to an aging population with the I&T sector expecting a deficit of 18,000 to 23,000 individuals, the FHKI calls on the government to implement a proactive talent recruitment strategy. This should include fostering partnerships between universities of applied sciences and the business sector to tailor course content effectively. Additionally, there should be increased investment in STEAM education to develop local talent. To attract international talent, the FHKI recommends that the government allocate land specifically for residential developments for professionals and introduce tax incentives to make Hong Kong more appealing to global experts.
   
   
6. Improving Business Sustainability and Competitive Advantage: FHKI advises the Government to promote the development of a circular economy and green technology and enhance SMEs’ capabilities in sustainable development management. With plans to implement Producer Responsibility Schemes for various materials this year, FHKI urges the Government to coordinate with the industry to ensure adequate preparation time.

For full version of the Submission, please download here (Chinese version only).

 

Media Enquiries:

Tel: 2732 3156 / 2732 3154
E-mail: media@fhki.org.hk