John Lee, the Hong Kong SAR’s Chief Executive, has unveiled a comprehensive programme to boost economic development in the city during his 2024 Policy Address.
The reforms in Mr Lee’s policy blueprint included measures to reinforce Hong Kong’s status as an international financial, shipping and trading centre as well as support for smaller businesses and youth development in the city, among many other areas.
“The Policy Address highlights the Hong Kong SAR Government’s drive to encourage innovation and change, while striving for excellence,” said Dr Peter K N Lam, Chairman of the Hong Kong Trade Development Council (HKTDC).
The annual address also complements Hong Kong’s eight centres positioning, while helping promote new quality productive forces in the city, Dr Lam noted.
Hong Kong’s eight centres are eight priority areas for development set out in China’s latest Five-Year Plan. These centres include finance, innovation and technology and professional services.
New quality productive forces are another development priority, emphasising the importance of innovation, talent and new business models in driving economic progress.
As part of HKTDC’s ongoing plans to promote Hong Kong’s eight-centre advantages, including high-value supply chain services, Dr Lam said that HKTDC would step up cooperation with InvestHK, the Government department responsible for foreign direct investment, to attract more Chinese companies to Hong Kong.
Mainland enterprises can set up international or regional headquarters in Hong Kong and leverage the city’s expertise in professional services to expand internationally, Dr Lam noted.
The Policy Address also outlined additional support for SMEs, including easier loan repayment terms and a HK1$ billion (US$129 million) injection for the Government’s Dedicated Fund on Branding, Upgrading and Domestic Sales, known as the BUD Fund.
The BUD Fund supports SME expansion plans in Mainland China and other economies that have signed free trade deals and investment promotion and protection agreements with Hong Kong, including the ASEAN region.
The Policy Address also highlighted plans to restage the Hong Kong Shopping Festival, an e-commerce event organised by the HKTDC. This move should also benefit many SMEs.
The Shopping Festival made its debut in August with more than 230 Hong Kong brands selling their wares on platforms in Mainland China.
“We will build on this year’s success and host the second edition of the Festival next August and in the ASEAN market in due course to enable Hong Kong SMEs to explore market opportunities via e-commerce and social media platforms,” Dr Lam said.
The HKTDC will also publish research reports on the e-commerce landscape in different markets, including ASEAN, to help businesses increase their online sales.
At the same time, the HKTDC plans to set up more Hong Kong Pavilions at exhibitions in Mainland China and overseas markets to help SMEs and larger companies promote their brand and capture new opportunities.
The Chief Executive’s Policy Address also provided an extra boost to Hong Kong’s convention and exhibition industry, earmarking an additional HK$500 million (~US$64.5 million) for the Incentive Scheme for Recurrent Exhibitions 2.0, which focuses on large-scale events.
Mr Lee also outlined new measures to develop regional IP trading, which is also one of Hong Kong’s eight centres, by leveraging the city’s legal and IP protection frameworks.
This will include support for the HKTDC’s annual Business of IP Asia Forum, which will take place in December, among other areas.
As part of this, the HKTDC will also enhance its Asia IP Exchange (AsiaIPEX) portal next year, adding more cultural and creative products from Hong Kong, Mainland China and overseas. AsiaIPEX currently hosts more than 28,000 IP projects for trading.
This year’s Policy Address also included tax cuts for imported high-end spirts. This will help strengthen related trade and further promote Hong Kong as a regional wine trading hub, Dr Lam noted.
The HKDTC is holding the Hong Kong International Wine & Spirts Fair, which will showcase a wide variety of wines and spirits from around the world on 7-9 November.
