Hong Kong Unveils HK$10 Billion New Industrial Acceleration Plan to BoostManufacturing Competitiveness
HONG KONG – September 17, 2024 – The Hong Kong Special Administrative Region (HKSAR) government is pushing forward with its ambition to transform the city into a hub for innovative manufacturingby launching a HK$10 billion (New Industrial Acceleration Plan). The initiative, announced by the Innovation and Technology Bureau yesterday, aims to incentivize businesses to embracesmart manufacturing technologies and enhance their competitiveness.
The plan, which was first outlined in the 2023 Policy Address by the Chief Executive, will provide financial support to companies establishing new intelligent production facilities in Hong Kong. The government willoffer a 1:2 matching grant, meaning for every HK$1 invested by the government, companies will need to contribute HK$2 of their own funds.
The New Industrial Acceleration Plan will focus on three strategic industries:
- Life Health Technology: This sector encompasses the development and production of medical devices, pharmaceuticals, and other healthcare solutions.
- Artificial Intelligence and Data Science: The plan aims to support companies working on AI-powered applications, data analytics, and other related technologies.
- Advanced Manufacturing and New Energy Technology:This sector focuses on promoting innovation in areas like robotics, automation, and renewable energy solutions.
To qualify for funding, each project must have a minimum total cost of HK$300 million, with companies required to invest at least HK$200 million. The government’s maximum contribution is capped at one-third ofthe approved project’s total cost or HK$200 million, whichever is lower. Each company can receive funding for a maximum of two projects, with a total funding cap of HK$200 million per company.
Beyond financial support, the government will also provide additional funding to encourage companies to hire research talent inHong Kong. This initiative aims to bolster local research and development efforts and expand the scale of these activities. The government will also assist companies in recruiting non-local talent to fill roles necessary for setting up and operating the new production facilities.
The New Industrial Acceleration Plan reflects Hong Kong’s commitment to nurturing avibrant and innovative manufacturing ecosystem. By providing financial incentives and supporting talent development, the government aims to attract investment, foster technological advancements, and ultimately enhance the city’s global competitiveness in the manufacturing sector.
The plan is expected to have a significant impact on Hong Kong’s economy, creating new jobs, boosting productivity, and fosteringa more sustainable and technology-driven manufacturing landscape. With the government’s unwavering support, Hong Kong is poised to become a leading player in the global manufacturing revolution.
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