A Supportive Government

Hong Kong will capitalise on the opportunities arising from the national Belt and Road Initiative and the Guangdong-Hong Kong-Macao Bay Area development proactively and holistically. The government shall play the role of a “facilitator” and “promoter”.

Key initiatives announced in the 2023-24 Budget include:

Finance

• Provide HK$100 million to InvestHK to attract more family offices to Hong Kong
• Plan to issue no less than HK$50 billion of Silver Bond and HK$15 billion of retail green bonds in the next financial year
• Introduce a listing regime for advanced technology companies in the first quarter of 2023

Innovation and Technology

• HK$6 billion for universities and research institutes to set up thematic research centres related to life and health technology
• HK$3 billion earmarked to enhance basic research in frontier technology fields such as artificial intelligence and quantum technology
• Establish a Microelectronics Research and development Institute to enhance collaboration among universities, R&D centres and the industry, expediting “1 to N” transformation
• Over HK$260 million reserved for Cyberport to nurture smart living startups
• HKSTPC will inject HK$400 million into its Corporate Venture Fund and inject an additional HK$110 million to launch the Co-acceleratoin Programme
• HK$500 million earmarked to launch a Digital Transformation Support Pilot Programme, to assist SMEs in applying ready-to-use basic digital solutions 
• HK$50 million to expedite development of the Web3 ecosystem

Reviving the Economy

• Over HK$250 million to be spent on mega events
• About HK$300 million reserved for staging more mega events, international meetings, incentive travel, conventions and exhibition 
• HK$50 million for stepping up the promotion and branding of Hong Kong
• New mechanism to facilitate companies domiciled overseas for re-domiciliation to Hong Kong
• New Capital Investment Entrant Scheme to attract people to live and pursue development in Hong Kong after making investment at a certain amount in local asset market (excl. property)

Support Enterprises

• Reduce profits tax for the assessment year 2022/23 by 100%, subject to a HK$6,000 ceiling
• Provides rates concession for non-domestic properties for the first two quarters of 2023/24, subject to a ceiling of HK$1,000 per quarter
• Grant 50% rental fee concession to eligible tenants of government premises and short-term tenancies and waivers for six months
• Extend the application period of all guarantee products under the SME financing Guarantee Scheme to March 2024
• Offer fully guaranteed loans for eligible passenger transport operators and licensed travel agents. To be launched in April 2023
• Inject HK$30 million into the Information Technology Development Matching Fund Scheme for Travel Agents to encourage the tourism sector to undergo upgrade and transformation

Aviation and Maritime

• Enhance the aircraft leasing preferential tax regime 
• HK$20 million reserved to expedite strategic studies and exchanges of the high-end maritime service industry

Trade

• Additional funding of HK$550 million to the Hong Kong Trade Development Council to assist enterprises in opening markets
• Inject HK$500 million into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)

Key economic initiatives announced in the 2022 Policy Address include:

Attract enterprises, investment and talent 

• New Office for Attracting Strategic Enterprises, offering special facilitation measures and services
• Establish the HK$30 billion Co-Investment Fund to attract enterprises to Hong Kong and invest in their business 
• Set up Talents Service Unit to enhance recruitment and support for talents from outside Hong Kong
• Dedicated Teams to be set up in Mainland Offices and overseas Economic and Trade Offices to reach out to enterprises and talents 
• Launch Top Talent Pass Scheme to widely entice top-notch talents to Hong Kong 

Create impetus for growth 

• Attract not less than 100 high-potential I&T enterprises to set up operations in next five years 
• HK$10 billion Scheme to support commercialisation of R&D outcomes by university research teams 
• Amend the legislation to facilitate expansion of 5G network
• Facilitate fund-raising of pre-profit advanced technology enterprises on Main Board of HKEX
• Promote the launch of more Renminbi-denominated investment tools
• Further strengthen cross-boundary mutual market access
• Tax concession to attract family offices to set up or expand operations in Hong Kong
• Launch a new HK$1.4 billion scheme to support the convention and exhibition industry in staging over 200 exhibitions over three years
• Invest over HK$100 billion (US$12.8 billion) annually on capital works over next few years 

Healthy and vibrant city 

• Revamp healthcare system to focus on prevention and early treatment; set up the Primary Healthcare Authority
• Commissioner for Chinese Medicine (CM) Development to strengthen development of CM
• Develop a “Round-the-Island Trail” of about 60km on Hong Kong Island
• Promote urban sports and explore eco-tourism opportunities
• 10-year development blueprint to provide about 30 diversified sports and recreation facilities
• Enhance the “M” Mark System to support major international sports events
• New Mega Arts and Cultural Events Fund to support international arts and cultural events
• Promote Hong Kong’s pop culture globally through film, TV and streaming platforms
• 10-year development blueprint for arts and cultural facilities 

The Government of Hong Kong SAR is also committed to driving local business through a variety of initiatives. For details of government funding schemes, please visit here.