Budget sets out strategies to propel Hong Kong’s innovation and technology development

HONG KONG SAR – Media OutReach Newswire – 26 February 2026 – The 2026-27 Budget, unveiled yesterday (February 25) by Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region (HKSAR), has set out a clear vision for propelling Hong Kong’s innovation and technology development. With a strong emphasis on fast-tracking I&T development, the Budget has outlined comprehensive strategies and measures to support the growth of the sector, ensuring that Hong Kong remains at the forefront of global innovation.

One of the key highlights of the Budget is the commitment to increase government spending on I&T development, with a total of HK$30 billion set aside for various initiatives. This significant investment demonstrates the government’s determination to drive the growth of the sector and make Hong Kong a leading I&T hub in the region.

Mr. Chan has also announced the establishment of an Innovation and Technology Bureau, which will be responsible for formulating policies and strategies to support the development of the sector. This move is a clear indication of the government’s dedication to promoting I&T and creating a favorable environment for its growth.

In addition to financial support, the Budget has also unveiled a range of measures to attract and retain top talent in the I&T sector. These include a new tax incentive scheme for qualified I&T professionals, as well as a scholarship program for local students to pursue I&T-related studies at renowned universities overseas. These initiatives will not only help to build a strong talent pool in Hong Kong but also attract international talent to contribute to the city’s I&T development.

The Budget has also recognized the importance of collaboration between the public and private sectors in driving I&T development. To facilitate this, the government has pledged to set up a dedicated fund to encourage private sector investment in I&T projects. This will not only provide financial support but also foster stronger partnerships between the government and the private sector, leading to more innovative solutions and products.

To further enhance Hong Kong’s position as a global I&T hub, the Budget has also outlined plans to establish a number of innovation and technology parks. These parks will serve as a platform for startups and technology companies to showcase their innovations, collaborate with other industry players, and access necessary resources for their growth. With these parks, Hong Kong will be able to provide a conducive environment for I&T startups to thrive, ultimately contributing to the city’s economic growth.

Another significant aspect of the Budget is the focus on promoting the development of emerging technologies, such as artificial intelligence, biotechnology, and fintech. The government has set aside HK$2 billion for research and development in these areas, providing a strong foundation for the growth of these industries in Hong Kong. This will not only create new job opportunities but also enhance the city’s competitiveness in the global market.

With the COVID-19 pandemic causing disruptions to the global economy, the Budget has also addressed the challenges faced by businesses in the I&T sector. The government has announced a number of relief measures, including a one-off subsidy for technology companies and startups, as well as a tax deduction for expenses related to research and development. These measures will help to alleviate the financial burden on businesses and provide much-needed support during these uncertain times.

In conclusion, the 2026-27 Budget has set out clear strategies and measures to propel Hong Kong’s innovation and technology development. With a strong commitment to investing in the sector, attracting and retaining top talent, promoting collaboration, and developing emerging technologies, Hong Kong is well on its way to becoming a global I&T powerhouse. This will not only bring economic benefits but also enhance the city’s reputation as a hub for innovation and technology. The future is bright for Hong Kong, and the Budget has laid out a solid foundation for the city’s continued success in the I&T sector.