22 May 2026
Ms Bernadette Linn, JP
Secretary for Development
Development Bureau
18/F, West Wing, Central Government Offices
2 Tim Mei Avenue, Tamar, Hong Kong
Dear Bernadette,
Re: Development Bureau Consultation on Dedicated Legislation to Accelerate the Development of the Northern Metropolis
The Hong Kong General Chamber of Commerce (HKGCC) welcomes the opportunity to present our views on the captioned consultation.
We regard the Northern Metropolis (NM) as a key pillar of Hong Kong’s long-term, high-quality socio-economic development and an important strategic priority under the National 15th Five-Year Plan. This flagship initiative will play a vital role in deepening Hong Kong’s integration with the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), while reinforcing its position as a leading international financial and innovation hub.
To this end, we fully support the Government’s efforts to streamline statutory processes in the NM - particularly measures aimed at streamlining planning and land administration, accelerating construction timelines, and facilitating smoother business operations. At the same time, we emphasize the importance of a comprehensive framework that ensures long-term commercial sustainability and appropriately balances the interests of investors, operators, and end-users of this mega-project.
To help address market uncertainties and support the timely delivery of key infrastructure, the Chamber has outlined several priority areas for the Government’s consideration in the attached submission.
Development Bureau Consultation on Dedicated Legislation to Accelerate the Development of the Northern Metropolis (March 2026) Response by The Hong Kong General Chamber of Commerce (HKGCC)
Introduction: 1. The Hong Kong General Chamber of Commerce (HKGCC), representing a broad cross-section of the business community, welcomes the opportunity to provide feedback on the Government’s proposed Dedicated Legislation to Accelerate the Development of the Northern Metropolis (“Consultation Paper (CP)”) .
2. We recognize the Northern Metropolis (NM) as a cornerstone of Hong Kong’s long-term high-quality socio-economic development growth and a vital strategic priority under the National 15th Five-Year Plan. This initiative is also central to Hong Kong’s deeper integration into the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), reinforcing our status as a leading international financial and innovation hub .
3. While we fully support the Government’s objective to streamline statutory processes in the NM – to 1) remove barriers in respect of planning and lands procedures, 2) expedite construction works, and 3) facilitate industry operation; across the six specified policy areas - we propose a holistic approach that advances coordinated development and facilitates the timely delivery of core infrastructure supporting housing, commercial, industrial, innovation, transport and other strategic uses, while addressing the needs of investors and end users to ensure long term commercial viability. Our suggested practical and strategic priority areas are outlined below for consideration.
Recommendations:
4. The NM offers an important platform for Hong Kong to play a constructive role in national innovation and technological development, by leveraging its strong research capabilities, diverse talent pool, and extensive international networks.
5. Strengthening Cross-Boundary Integration for Capital, Data, and Talent: We suggest that the legislative framework further facilitate the seamless flow of capital, data, and talent between the Hetao Shenzhen–Hong Kong Science and Technology Innovation Co operation Zone and the wider GBA, to strengthen cross border synergy. To further support these objectives, the Government may consider introducing dedicated logistical arrangements to enable the efficient transport of specialised construction materials and innovative modular components from the Mainland, allowing the project to benefit from advanced regional construction expertise.
6. Driving Sustained Investment through Global Outreach and Planning Certainty: To maximize the impact of the NM, the Chamber recommends a strategy of proactive international outreach, positioning the region as a premier globally-oriented development. By serving as a flagship platform for high-level engagement, the NM offers a unique opportunity for Hong Kong to lead by example, deepening economic partnerships and raising our international profile. To complement these efforts and reinforce the city’s status as a leading international financial centre, we advocate for enhanced transparency across all development phases. Providing local and international investors with greater forward visibility into land disposal and development timelines will instill the planning confidence required to attract long-term institutional capital. By building this foundation of certainty, the Government can better secure the sustained investment necessary to realize the NM as a world-class economic engine.
7. Expediting Planning Permissions under Section 16 of the Town Planning Ordinance (Cap.131): The Chamber fully supports the proposal to reduce the processing time to two months for Section 16 planning applications within non-conservation zones. This includes applications for changes in land use or the relaxation of development parameters without the need for separate rezoning submissions to the Town Planning Board. We believe this streamlined approach will significantly enhance regulatory certainty and accelerate project timelines for both developers and utility providers.
8. Utility Infrastructure Readiness and Land Flexibility: The successful realization of the NM relies on the pre-emptive deployment of core utility services. While we commend the proactive coordination between the Civil Engineering and Development Department and the Planning Department in reserving land for these purposes, we suggest that utility land requirements be integrated even more comprehensively into the early master planning stages. Furthermore, providing greater flexibility for site rezoning when land is designated for essential utility facilities would ensure that critical service provision remains responsive to evolving technical needs. Regarding conservation zones, the Chamber acknowledges their exclusion from permanent development. However, many utility projects require temporary access through these areas for installation and commissioning. To prevent these essential works from becoming a project bottleneck, we recommend that the Government consider establishing an enhanced, expedited approval pathway specifically for temporary utility-related permissions within conservation zones.
9. Streamlining Land Resumption and Site Clearance: We welcome the introduction of clear milestones for land compensation, specifically the six-month limit for Lands Tribunal referrals and the three-month window for accepting provisional payment offers. These measures are vital for enhancing transparency and ensuring a fair, efficient process for all parties. To complement these improvements, we suggest that equal priority be given to the physical site clearance process. For essential services - including electricity, water, gas, drainage, and telecommunications - delays in vacating resumed land can directly stall site investigations and foundation works, creating a ripple effect across the entire development timetable. We therefore recommend that the Government establish clear time limits for physical site clearance in parallel with compensation timelines. Introducing formal mechanisms to ensure premises are vacated promptly would safeguard the construction schedule and ensure the timely delivery of the NM. On a related note, we note the Development Bureau’s efforts in supporting the relocation of brownfield operators through a dedicated office. In this context, there may be merit in continuing to consider approaches that could help ease the impact of land resumption on affected operators. 10. Balancing Industry Park Development with a Fair and Competitive Market Environment: With regard to industry park developments in the NM, such as those in Hung Shui Kiu, certain companies have been granted land directly by the Government under specific development arrangements. While this approach may enable these projects to offer more competitive or incentivised rental terms to end users (for example, logistics operators), it may also have implications for the broader market, particularly for existing private sector operators who are operating under current market conditions. In this regard, it would be useful for the Government to conduct a careful assessment on the potential impact on existing market participants and consider how to strike a reasonable balance between facilitating new development, supporting targeted industries, and maintaining a fair and competitive operating environment.
11. Facilitating Innovation Ready Logistics and Warehouse Infrastructure: With regard to logistics warehouse development, current building specifications administered by the Buildings Department include a ceiling height standard of around five metres, with any exceedance treated as double gross floor area (GFA). While this framework has served past needs, evolving requirements - particularly in relation to automation, smart logistics, and innovation driven operations envisaged under the Northern Metropolis - may warrant further consideration. As higher ceiling heights are increasingly integral to modern logistics facilities, the current approach may present practical and cost implications for prospective operators. Noting that some overseas jurisdictions have introduced greater flexibility in this regard, the Government may wish to consider whether targeted refinements or flexibility could be introduced to better support innovation led logistics development in the Northern Metropolis, while continuing to uphold safety and planning objectives.
12. Strategic Support for SME Integration in the NM: The success of the NM as a vibrant economic hub rests on a diverse ecosystem where businesses of all sizes can thrive together. Recognizing that small and medium-sized enterprises (SMEs) often operate with leaner resources, the Chamber recommends that the NM development framework also focus on enhancing their participation through a supportive environment focused on accessibility and fair competition. We believe that incorporating additional flexibility into infrastructure planning - perhaps through the provision of smaller land options or adaptable short-term leasing - could greatly assist smaller firms in managing their reinvestment cycles effectively. To further align these enterprises with the region’s innovation goals, the Government might also consider exploring a dedicated SME fund, building on the success of previous pilot schemes, to help businesses transition towards the innovation and automation goals of the NM. By working together to lower entry barriers, we can ensure the NM creates shared prosperity for all sectors of Hong Kong.
13. Strengthening Inter departmental Coordination and Execution: To expedite works and overcome cross departmental silos, we recommend establishing a coordination body with clear leadership authority, drawing on the governance model of the Digital Policy Office, to facilitate more agile execution across departments at the operational level. In this regard, the Government may consider setting up a dedicated inter departmental task force, comprising experienced officers from key departments - including the Buildings Department, Lands Department, Transport Department, Water Supplies Department, and Environmental Protection Department - to specifically support innovative and non standard projects that require specialised technical vetting and coordinated approvals. In addition, a dedicated inter departmental coordination and escalation mechanism could be introduced to help resolve stakeholder concerns and cross departmental issues relating to Excavation Permits (XPs) and Temporary Traffic Arrangements (TTAs) in a timely and consistent manner. To further reduce delays, the Government may also consider establishing a specialised coordination unit to centrally manage construction permits and noise related matters for large scale infrastructure projects, ensuring that enforcement and regulatory decisions are informed by an understanding of the technical and programme context of complex works.
14. Statutory Corporations and Early Utilities Engagement: We welcome the proposal to establish statutory corporations within a shortened timeframe to manage key sites and functions within the NM. To reduce the risk of late stage redesigns and ensure that fundamental utilities requirements are properly integrated from the outset, we recommend that consideration be given to: 1) Engaging core utility service providers early in the planning and design stages of sites to be managed by new statutory corporations; and 2) Institutionalizing early utilities engagement as a standard requirement within the establishment mandates of these statutory corporations. Such early-stage coordination will help align infrastructure provision with development timelines, reduce downstream interfaces, and enhance overall project efficiency.
15. Adoption of Innovative Construction Technologies: We support the Government’s efforts to accelerate innovation in the construction sector, including the adoption of non conventional construction techniques, modern methods of construction, and advanced building materials, and are committed collaborate with the Government, industry partners, research institutes, and academia to explore innovative solutions that can shorten construction timelines, enhance quality, and reduce costs in the NM. In addition to such construction innovations, the Chamber suggests that maintaining a stable labour supply remains critical for the NM’s timely infrastructure delivery. We welcome the Government’s ongoing talent attraction initiatives and encourage further consideration of streamlined, fast-tracked channels for essential technical roles. Through balancing workforce sufficiency alongside technological growth, this would better support the tight developmental timelines of the megaproject.
16. Construction Noise Permit Procedures: We support proposals to streamline application procedures for Construction Noise Permits (CNPs) in designated areas, including extending the validity period of such permits to reduce administrative burden while continuing to balance community considerations. We note, however, that current proposals may cover designated areas and railway infrastructure but exclude utilities infrastructure - such as water, electricity, gas, and telecommunications - which are fundamental to NM development. In this regard, we recommend that utilities infrastructure works also be included within any streamlined CNP arrangements to ensure consistency and avoid unintended bottlenecks.
17. Excavation Permits and Temporary Traffic Arrangements: The provision of timely and reliable core infrastructure and utilities is essential to the successful delivery of the NM. From industry experience, the end to end delivery of utilities supply works typically involves both statutory approvals and on site construction activities, with the following elements often forming part of the critical path: 1) Excavation Permit (XP) applications, which involve multiple departments and iterative comment handling processes; and 2) Temporary Traffic Arrangements (TTAs) and associated stakeholder objections, which can significantly affect work scope, permissible working hours, and overall programme duration. We appreciate the Development Bureau’s proactive efforts to enhance cross departmental coordination and streamline excavation permit arrangements, which have already contributed to reduced utilities connection lead times. Building on this progress, we recommend that the Government consider the following further enhancements: • End to end streamlining of the Excavation Permit process, including the introduction of a dedicated coordination or adjudication mechanism to facilitate timely resolution of stakeholder objections, supported by clear, risk based criteria thresholds; • Similar refinements to TTAs, including clearer guidance on when full road closures or lane occupations are strictly necessary, and greater flexibility for night time or weekend works in designated areas, where appropriate, to minimise congestion while accelerating progress; and • Extension of these enhanced mechanisms, where suitable, beyond the NM to a territory wide application, to improve predictability of utilities connection programmes and strengthen overall project delivery, while continuing to uphold public safety, asset protection, and sound land administration.
18. To accelerate the development of the NM as a leading innovation and technology hub, we recommend a set of coordinated measures spanning land, data, infrastructure, sustainability, and talent development.
19. Fast-tracking land disposal mechanisms for I&T Development: On land supply, the further expansion of a fast track land disposal mechanism for larger strategic parcels could help streamline approval processes and provide greater certainty for projects critical to I&T ecosystem development. This would enable anchor developments to proceed more efficiently and catalyse downstream private sector investment.
20. Powering the Intelligent Metropolis: AI-Ready Infrastructure and Unified Digital Standards: From a digital and data perspective, the establishment of a cross boundary data corridor between Hong Kong and Shenzhen - supported by a clear legal and regulatory framework - would facilitate secure and compliant data exchange, particularly for confidential and high value data required by advanced research, financial services, and innovation led enterprises. Complementing this, targeted data centre incentives, such as tax concessions and expedited licensing arrangements, could be introduced to encourage the development of AI ready facilities in locations such as Sandy Ridge and other designated clusters, strengthening Hong Kong’s digital infrastructure backbone. At the same time, the introduction of a unified digital infrastructure code - encompassing fibre networks, 5G and future ready 6G connectivity, and smart transport systems - could promote consistency and interoperability across NM projects.
21. Advancing Infrastructure Resilience and PPP Innovation: To mobilise private capital while maintaining appropriate oversight, there is also scope to further encourage public private partnership (PPP) models for smart city and digital infrastructure initiatives. Such structures could leverage private sector expertise and funding while ensuring alignment with public policy objectives and long term planning considerations. In parallel, sovereign cloud compliance requirements for operators of critical infrastructure could be considered, requiring the use of certified sovereign public or private cloud solutions to enhance data security, operational resilience, and regulatory assurance.
22. Cultivating Next-Generation Talent: Talent and innovation linkages will also be essential to the NM’s long term success. The proposed “University Town” presents a valuable opportunity to strengthen the synergy between academia and industry, both locally and internationally. By encouraging the establishment of joint R&D facilities, the Government can ensure that research outputs and talent pipelines remain closely aligned with the evolving needs of innovation clusters. This collaborative environment would not only prepare the next generation of professionals but also address the growing demand for continuing professional education and lifelong learning. Furthermore, a vibrant University Town would play a pivotal role in realizing the Government’s vision of further developing Hong Kong as a premier international education hub, attracting global talent and fostering a sustainable knowledge-based economy.
23. Advancing Aerial Innovation Clusters: Looking ahead, the development of a regulatory framework for the low altitude economy - covering areas such as drone logistics, aerial mobility, and smart airspace management - could support emerging applications, enhance cross boundary trade efficiency, and integrate seamlessly with the broader digital and transport infrastructure of the NM.
24. Supporting Financing Channels for Large-Scale Development: With regard to financing channels, developers undertaking NM projects typically rely on bank financing. Given the scale, longer development periods and limited track record of many of these developments, it is understandable that financial institutions may need to adopt a more cautious approach, often requiring extensive market analysis, forecasting and risk assessments before extending credit. In this context, there may be further scope for the Government to play a facilitative role by enhancing coordination between banks and developers to enhance mutual understanding of project fundamentals and policy intent. Examples could include further engagement with regulators such as the Hong Kong Monetary Authority and relevant stakeholders, noting the positive initiatives currently already underway by the Government to engage banks to facilitate financial arrangements. The Government could also consider whether targeted risk sharing or guarantee mechanisms might be appropriate for strategic projects within the NM, with a view to supporting financing access while maintaining prudent risk management for the mega project.
25. The NM represents a once in a generation opportunity to reshape Hong Kong’s socio economic landscape and to establish an international benchmark for sustainable development, reinforcing the “Hong Kong brand” globally. Sustainability should therefore be embedded at the outset of planning and implementation.
26. Leading the Transition to a Carbon-Neutral Innovation Hub: In this regard, the introduction of a green standards mandate for new data centres, including the adoption of renewable energy solutions and advanced cooling technologies, would help enhance environmental resilience while aligning with Hong Kong’s broader climate and sustainability objectives. We also suggest considering targeted incentives to encourage building developments to achieve recognised international benchmarks such as LEED or LEED Zero, noting that the attainment of such high standards often entails significant upfront costs for developers.
27. Empowering the Next Generation: Youth-Centric Planning and Innovation Hubs: To ensure that the NM resonates with its future stakeholders, it is also important for the Government to take a strategic approach to stakeholder engagement, with particular attention to the younger generation. Strengthening engagement with young people will be critical in aligning the development with their aspirations, fostering a stronger sense of belonging to Hong Kong, and building sustained public support over the long term. Meaningful two way dialogue will be essential. Young people should be engaged at the early planning and design stages through a range of channels, supported by coordinated public and private sector efforts. Their perspectives, creativity, and innovative thinking can add long term value to the development, and this represents a timely opportunity to broaden and deepen such engagement. To this end, the Government may consider establishing a “Youth Subcommittee on the Northern Metropolis” to provide structured input into planning and policy discussions, support the co creation of the development vision, and explore the creation of youth oriented hubs within the NM that reflect the needs, ambitions, and potential of future generations.
Conclusion: 28. HKGCC remains committed to partnering with Government bureaux, industry stakeholders, and academia, to deliver a prosperous future for Hong Kong through the successful development of the NM, and we look forward to this mega-project becoming a global benchmark for economic development. By tackling practical challenges in planning, land clearance and financing, and fostering a competitive, sustainable and future-proof ecosystem, we believe the NM can anchor Hong Kong’s standing as a leading international financial and innovation hub, for decades to come.
HKGCC Secretariat May 2026
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