The Chamber’s proposals to the Financial Secretary for the upcoming 2026-27 Budget outline practical steps to boost Hong Kong’s economic momentum in the short term, accelerate innovation in the medium term and build long-term resilience. Many of the challenges we face are interconnected, so a more focused and holistic policy approach is essential. 

In the near term, HKGCC encourages the Government to support businesses and stimulate economic activity. As we look ahead, Hong Kong must continue developing as a smart city, making better use of AI and innovation to raise productivity. Over the longer run, strengthening our ability to navigate global uncertainties will be critical. 

AI has quickly become a major driver of global productivity, making it essential for Hong Kong to adopt a clear and actionable strategy. We recommend expanding the 2022 Innovation and Technology Development Blueprint to include a dedicated AI roadmap. To encourage wider adoption of AI across sectors, we propose a 120% tax deduction for AI-related training and subsidies of up to $5,000 under the Continuing Education Fund. We also call for funding to help businesses adopt AI responsibly, supported by simpler applications and earlier disbursement for companies. 

Another pillar of long-term development is the Northern Metropolis. To accelerate its progress, we recommend broader public-private partnerships, streamlined approval processes and enhanced tax depreciation allowances. This goes hand in hand with deeper integration within the GBA. 

While fiscal prudence remains essential, a dual-track strategy may deliver stronger results. Measures such as reducing profits and salaries tax and offering SMEs long-term fixed-rate mortgage loans would support business confidence and help stimulate spending across the economy. 
Hong Kong should also continue strengthening its role as a leading international financial hub by expanding the family office ecosystem, deepening the bond market, promoting sustainable finance, scaling up IP trading and advancing emerging areas such as digital assets and commodity trading. 

At the same time, demographic shifts must be addressed. By 2046, around 33.5% of the population will be aged 65 or above. A comprehensive population growth strategy – expanding the labour force, strengthening healthcare, reforming the MPF system and improving land-use planning – is essential. One proposal is to redirect 1% of the current 5% MPF contribution into a health insurance savings fund to help residents prepare for future medical needs. To meet the rising demand for elderly-friendly housing, we propose incentives such as bonus plot ratios and land premium vouchers. 

The path ahead calls for collaboration, confidence and fresh thinking. This Budget offers an opportunity to make strategic investments in Hong Kong’s unique strengths and to secure long-term prosperity for generations to come. 

Agnes Chan
[email protected]