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Policy Statement & Submission

2026/01/16

HKGCC Budget Proposals for 2026-2027

16 January 2026

The Honourable Paul Chan Mo-po, GBM, GBS, MH, JP
Financial Secretary
Hong Kong Special Administrative Region
25/F, Central Government Offices
2 Tim Mei Avenue, Tamar
Hong Kong

Dear Financial Secretary,

We appreciate this opportunity to submit the Hong Kong General Chamber of Commerce’s proposals for the Government’s forthcoming Budget.

Hong Kong’s economy has demonstrated remarkable strength and resilience amid global turbulence.  Despite heightened uncertainty and volatile markets – driven by intersecting economic, geopolitical, technological and societal shifts – our economy continued to grow against the odds.  Building on this solid foundation, it is now time to address the structural challenges that will shape our long‑term development.

Hong Kong cannot remain untouched by evolving global trends.  An ageing population will soon, if it hasn’t already, affect economic growth across many developed economies, making a comprehensive strategy indispensable.  Yet artificial intelligence offers a promising avenue to unlock new growth and efficiency, and we must seize the moment to accelerate its adoption across all sectors of society.

The attached submission outlines our recommendations for comprehensive, forward-looking strategies to ensure Hong Kong remains at the forefront of these global dynamics.

We hope you find our proposals constructive and valuable.

Yours sincerely,


Agnes Chan
Chairman

Encl.
 

Hong Kong General Chamber of Commerce 
Submission to the 2026-27 Budget

A Silver Society, A Smarter Community


Executive Summary
Hong Kong’s economy has demonstrated remarkable resilience amid global uncertainty. Following a resilient 2025, we are poised to leverage the strengths we have built as we enter a promising 2026 and beyond. 

We continue to support the Government in fostering the development of the Northern Metropolis through the adoption of public-private partnerships, streamlining procedures, and expediting approvals. We emphasise the importance of creating synergy within the Greater Bay Area by enhancing the Connect Schemes and deepening financial market connectivity. Strengthening Hong Kong’s international business environment remains crucial. Leveraging the city’s status as the world’s premier international financial center, this effort includes advancing key market segments such as family offices, the bond market, sustainable finance, intellectual property trading, and new growth areas like digital assets and commodity trading.

However, achieving sustainable growth requires addressing structural challenges, notably the disruptions brought by artificial intelligence (AI) and the rapid aging of our population.

Ageing Population: Formulating Population Growth Strategy
The demographic shift is a ticking time bomb. The number of residents aged 65 and over is projected to increase from 1.45 million (20% of the total population) in 2021 to 2.75 million (33.5% of the total population) by 2046. An ageing population will soon, if not now, start to hinder economic growth, creating significant economic, social, and healthcare pressures—from a shrinking labour force to rising healthcare costs and shifting consumption patterns. It is imperative for the Government to take action now to implement a comprehensive population growth strategy, as outlined in our submission, including measures to encourage childbearing, boost labour supply, improve healthcare services, reform the MPF system, and enhance land use planning.

AI as a Driver of Transformation
Above all, the adoption of AI is the most critical driver of Hong Kong’s successful economic transformation. We view AI not as a separate segment, but as a strategic tool to drive meaningful changes and positive developments across all sectors of society. With the pace of skill obsolescence accelerating, we strongly recommend that the Government build on the existing Innovation and Technology Development Blueprint and develop a dedicated AI strategy and roadmap focused on responsible implementation. This strategy should include encouraging local research and development activities, nurturing an AI-ready workforce, and accelerating AI adoption. These initiatives will enable the city to move beyond pilot projects and scale AI integration across industries, ultimately improving overall efficiency.

Our vision is clear: a smarter Hong Kong that offers growth opportunities for the younger generation, stability for the middle-aged, and healthy aging for seniors—ultimately creating a prosperous, inclusive future for all.

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