Amid shifting geopolitical tensions and an uncertain global economy, Financial Secretary Paul Chan’s 2026–27 Budget sets a steady course by focusing on long-term growth and development to align Hong Kong with the nation’s 15th Five-Year Plan. 

One of the most encouraging elements is the return to an operating surplus. This improvement in public finances enables the Government to provide relief to households and businesses through targeted support measures. At the same time, the Budget strikes a careful balance by continuing to invest in areas that can drive Hong Kong’s economic transformation. 

The Budget theme, “Driving High-quality, Inclusive Growth with Innovation and Finance,” is clearly reflected in the substantial emphasis placed on Hong Kong’s technological and financial advancement. The Chamber has long stressed that I&T development must be accelerated to stay competitive. The Government’s decision to allocate $10 billion to the San Tin Technopole and another $10 billion to advance land and infrastructure development in the Hetao Hong Kong Park shows a strong commitment to building that momentum. 

AI and other strategic emerging industries, such as robotics and life & health technologies, also receive a boost with the creation of a $10 billion I&T Industry-Oriented Fund. Equally crucial is the establishment of an AI+ and Industry Development Strategy Committee to guide the integration of AI across major sectors. This signals a long-term policy direction and recognizes AI as a key driver of productivity and growth. 

Success also depends on nurturing home-grown talent, and I am pleased to see resources have been dedicated to building public AI literacy and expanding undergraduate programmes in STEAM fields. These steps acknowledge the need for a workforce that understands and can apply new tools effectively. 

Beyond I&T, the Budget outlines strong plans for strengthening Hong Kong’s position as an international financial hub. Measures to attract more listings and support strategic financial sectors reinforce our unique role in national development. Additionally, advancing renminbi internationalization by expanding cross-border yuan transactions and services will strengthen Hong Kong’s position in this role under the 15th Five-Year plan. 

Support for SMEs is another essential part of the package’s relief measures. Enhancing the BUD Fund and raising the ceiling for Easy BUD applications reflect the Government’s support for small businesses struggling to adapt quickly to changing consumer behaviour. Providing rates concessions and higher single-parent and child allowances will also go a long way toward alleviating taxpayers’ burdens. 

Overall, the Financial Secretary’s blueprint is a nuanced response to economic challenges while laying the groundwork for long-term competitiveness. The Chamber will continue to drive collaborations with the Government and the business community to sharpen Hong Kong’s competitive edge and help steer a future-ready economy. 
 

Agnes Chan
[email protected]