Financial Secretary Paul Chan painted a dynamic picture of Hong Kong’s future at the Joint Business Community Luncheon on 13 March. Addressing a packed ballroom of Hong Kong business leaders, Consuls General, local chambers of commerce and industry organizations, he outlined the key highlights of the 2025-26 Budget and his vision to position the city as a leading global hub for technology, finance and talent.
Delivering the welcome remarks, Chamber Chairman Agnes Chan praised the Financial Secretary’s measures for striking a prudent balance between necessary cost cuts and strategic investments amid a complex economic landscape shaped by global market shifts and trade tensions. She expressed optimism about achieving fiscal balance in the coming years and enhancing Hong Kong’s reputation as a premier financial hub.
In his speech, the Financial Secretary acknowledged the opportunity to engage with the business community: “I look forward to hearing your views, concerns and suggestions on how your Government can better support the economy and elevate Hong Kong despite the challenges we face.”
Acknowledging current challenges such as geopolitical uncertainty and changing consumption patterns, he also pointed to positive signs, including a projected economic growth of 2-3% this year and potential growth of about 2.9% in real terms over the next few years.
In other promising developments, OASES attracted 66 strategic enterprises and over 500 businesses in 2024. Bank deposits surged to over $17 trillion, reflecting a robust talent acquisition landscape, with over 430,000 applications received by the end of the year.
His presentation highlighted the Government’s key priorities across four major areas: fostering technology and innovation, advancing the Northern Metropolis initiative, enhancing Hong Kong’s role as a global financial hub, and maintaining sound public finance.
Emphasizing technology and innovation as central to Hong Kong’s future, the Financial Secretary outlined five key elements for success in the AI sector: computing power, algorithms, data, talent, and capital. With 16 research centres and laboratories under AIR@InnoHK, Hong Kong is positioning itself as a global leader in AI research.
Hong Kong institutions like The Hong Kong University of Science and Technology, The Hong Kong University, and The Chinese University of Hong Kong rank among the top 20 in the QS World University Rankings for data science and AI.
The Northern Metropolis initiative also received significant attention, with a $3.7 billion allocation for infrastructure and public facilities in the Hong Kong Park at the Hetao Cooperation Zone. This investment is part of a broader vision that includes master planning for the San Tin Technopole and a data facility cluster at Sandy Ridge.
In discussing the Three Centres and One Hub strategy, Chan reinforced Hong Kong’s status as an international financial hub and outlined plans to enhance the stock market and develop the gold and commodities markets, along with a preferential tax regime for funds and single-family offices. Introducing a second policy statement on virtual assets underscores the city’s ambition to lead in financial innovation.
Enhancements to various admission schemes to foster a strong talent hub feature the Quality Migrant Admission Scheme and the upcoming Global Talent Summit in 2026. The Hong Kong PhD Fellowship Scheme will see an increased quota to 400 places annually, reflecting the city’s commitment to attracting top-tier talent.
Additionally, he stressed the importance of public finance in maintaining a balanced budget. Plans for fiscal discipline comprise a pay freeze for Government personnel and a cumulative 7% recurrent expenditure cut through 2027, alongside bond issuance to support infrastructure investments.
During the Q&A session, moderated by Jonathan Choi, Chairman of the Chinese General Chamber of Commerce, the Financial Secretary addressed various queries with a touch of humour, hoping for “simple and easy” questions.
He discussed concrete plans for collaboration with GBA cities to attract Mainland investors and overseas entities. Through InvestHK, a pan-GBA investment liaison group has been established, promoting proactive outreach missions to Europe and the U.S. to share positive stories about Hong Kong and facilitate candid discussions.
Responding to inquiries about the Northern Metropolis, Chan described a flexible approach to land acquisition, allowing businesses with substantive proposals to apply for land through a limited tender process.
On the geopolitical front, he underlined Hong Kong’s unique position as an international city under the “One Country, Two Systems” framework, offering access to the vast Mainland market while maintaining its global appeal.
He also highlighted Hong Kong’s unique attributes – its excellent education, vibrant culinary scene, stunning hiking trails and exceptional connectivity. He urged the audience to effectively communicate the city’s value proposition to the outside world, showcasing what makes our city an attractive destination for talent and investment.
After the luncheon, the Financial Secretary made a point to interact with guests, stopping for conversations and photos and further fostering a sense of connection and collaboration.