The Chief Executive of the Hong Kong Special Administrative Region delivers the 2024 Policy Address (Full Text)

According to the Wise Finance APP, on October 16th, the Chief Executive of the Hong Kong Special Administrative Region, Carrie Lam, delivered the "Policy Address for 2024". She mentioned that efforts will be made to continuously optimize the "Connectivity" mechanism, strengthening Hong Kong's position as the world's largest offshore Renminbi business hub to support the internationalization of the Renminbi. Key measures include enhancing infrastructure, upgrading the Central Clearing System for debt instruments to facilitate international investors to settle various assets in different currencies; enhancing the infrastructure of the fixed income market, such as establishing a central clearing system for repo transactions denominated in Renminbi, making Hong Kong-issued government bonds more popular collateral in the offshore market. Carrie Lam stated that there will be a commitment to increase offshore Renminbi liquidity, making good use of the currency swap agreements between the SAR and the Mainland, enabling the Hong Kong Monetary Authority (HKMA) to better support the economic and trade development of Hong Kong; enhancing the overnight cross-border service capability of the Hong Kong Renminbi Real Time Gross Settlement System to facilitate global settlement in the offshore Renminbi market; exploring more diversified offshore Renminbi financing channels. She pointed out that Hong Kong's gold import and export volume ranks among the top globally. With increasingly complex geopolitical situations, Hong Kong's security and stable environment advantages are highlighted, attracting international gold spot trading to be stored in Hong Kong, promoting gold trading, clearing, and delivery, and further developing Hong Kong into a gold trading center, driving the development of related industrial chains such as investment trading, derivative products, insurance, storage, trade, and logistics services. The Hong Kong government will promote the establishment of international-level gold storage facilities, expanding users and investors to store and deliver physical gold in Hong Kong, driving derivative financial services such as collateral and lending, creating new growth points for the financial industry. The Financial Services and the Treasury Bureau (FSTB) of Hong Kong will establish a working group to promote the establishment of an international gold trading center, including strengthening trading mechanisms and regulatory frameworks, promoting the application of cutting-edge financial technology, and discussing the inclusion of gold products in the "Connectivity" with the Mainland. The Hong Kong government will establish a "Low Altitude Economy Development Task Force", led by the Deputy Secretary for Financial Services and the Treasury, to formulate development strategies and cross-departmental action plans, starting with application projects, setting specific application sites to promote projects, and formulating regulations and construction systems, studying the deployment of basic equipment and networks. Furthermore, Hong Kong will optimize the "New Capital Investment Entrant Scheme" - effective immediately, allowing investment in residential properties with a transaction price of HKD 50 million or above, with the investment in real estate counted towards the total investment limit of HKD 10 million. In addition, starting from March 1st next year, investments through fully-owned eligible private companies owned by the applicant can be included in the eligible investment amount. Additionally, it mentioned exploring new overseas funds - implementing the listing of Exchange Traded Funds (ETFs) tracking the Hong Kong stock index in the Middle East to attract local funds to allocate to Hong Kong stocks; striving for corporate listings - making good use of the advantages of "Connectivity" with the Mainland market, attracting international companies to list in Hong Kong, while also promoting large Mainland enterprises to list in Hong Kong, aiming to achieve more landmark initial public offerings (IPOs) in the short term. The Hong Kong government will continue to promote innovative financial services such as central bank digital currency, mobile payments, virtual banks, virtual insurance, and virtual asset trading. The FSTB of Hong Kong will issue a policy statement, outlining the policy stance and guidelines on the application of artificial intelligence in the financial market The full text of the report is as follows: I. Reform and Development from Governance to Prosperity This is my third policy address. The Third Plenary Session of the Twentieth Central Committee deliberated and passed the "Decision of the Central Committee of the Communist Party of China on Further Comprehensive Deepening of Reform and Advancing China's Modernization," pointing out the need to give full play to the institutional advantages of "one country, two systems," consolidate and enhance Hong Kong's status as an international financial, shipping, and trade center, support Hong Kong in building an international high-end talent gathering place, and improve the mechanism for Hong Kong to better play a role in the country's opening up to the outside world; deepen cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area, strengthen rule alignment and mechanism integration. Over two years ago, during my election campaign, I proposed in my policy platform that "we must have a spirit of change," "further innovation is needed," and that we will establish a government that sets "results as the goal," set performance indicators to reform government culture, establish caring teams to strengthen district services, launch the "Early Housing Scheme" to help shorten the waiting time for public housing, and propose a series of innovative measures to assist households in subdivided units in solving intergenerational poverty. I believe in continuous progress, self-renewal; I believe in understanding and seeking change, maintaining originality and innovation, and flexibly responding to challenges and opportunities. Regarding systemic reform, my philosophy is: what needs to be established in the system but is lacking should be established; what is seriously deficient should be corrected; what has bottlenecks, shortcomings, or obstacles should break through bottlenecks and remove obstacles; what needs to be consolidated should be strengthened and improved. During the reform process, it is important to determine what needs to be built from scratch, what needs corrective surgery, and what needs to be consolidated. Reforms should focus on a systemic perspective, grasp the relationship between the overall and the local, the present and the long-term, the macro and the micro. While drawing on successful experiences from other places, blindly copying is not advisable due to differences in foundations and systems. Reform plans should be timely and tailored to local conditions. Since taking office, I have been reforming based on this philosophy. In the practice and construction of "one country, two systems," I fulfilled the constitutional responsibility of local legislation under Article 23 of the Basic Law; reshaped the District Councils to implement the principle of "patriots governing Hong Kong"; enacted legislation to allow leases to be automatically renewed for 50 years upon expiry, extending beyond 2047, reflecting the long-term adherence to "one country, two systems." In government governance, I reformed the government structure, redefined the functions of policy bureaus, increased from 13 bureaus to 15 bureaus; added three deputy secretaries to strengthen coordination across bureaus; established a team led by deputy secretaries to enhance execution capabilities; reformed government culture, setting results as the goal, and formulated performance indicators; established a "whole-of-government mobilization" mechanism to handle major incidents, etc. In economic development, the unprecedented establishment of the Hong Kong Investment Management Limited, using government funds to promote industrial and economic development; developing the "Eight Centers"; developing the northern metropolitan area (North Metropolis) with an "industry-oriented" approach; establishing the "Talent Service Office" to attract talent, and the "Key Enterprise Introduction Office" to attract enterprises; building a regional university education hub. In people's livelihood, promoting medical system reform, establishing a system towards independent approval of medical devices; establishing a system for importing medical personnel to address the shortage of staff in public healthcare; innovatively launching "Simple Public Housing" to fill short-term gaps in public housing supply; establishing a "Working Group on Resolving Subdivided Unit Issues"; pooling resources for targeted poverty alleviation; establishing a "One Year, One Review" minimum wage guarantee system; Implement "Three Tunnels Diversion" and more. Reform is an ongoing process, not a conclusion. Over the past two years, my team and I have always focused on the people, economic development, and improving people's livelihoods. This year's "Policy Address" will further deepen reforms and explore new growth points; for example: establishing an international gold trading market; vigorously promoting the development of high value-added segments of the maritime shipping service industry, constructing a commodity trading circle, establishing internationally recognized metal warehouses; formulating the "Development Outline of Hesitate Port Deep Innovation Park", opening up a policy and institutional innovation test field; establishing a working group to develop low-altitude economy, and more. This year's "Policy Address" continues to implement President Xi Jinping's "Four Hopes" from the July 1st important speech, and elaborates on the concepts and development goals, key measures, and performance indicators for reforms and changes; I have also formulated an appendix to the "Policy Address", detailing other measures and related matters. II. Strengthening the governance system of "One Country, Two Systems" for long-term stability (I) Fully and accurately implement the principle of "One Country, Two Systems" Harness the institutional advantages of "One Country, Two Systems" The institutional advantages of "One Country, Two Systems" are numerous. When facing the epidemic, overcoming economic difficulties, and seeking development opportunities, the central government has always cared about Hong Kong and introduced many measures to support Hong Kong's long-term prosperity and stability from various aspects. Under "One Country, Two Systems", Hong Kong, based on "One Country" as its foundation, enjoys the benefits of "Two Systems", leveraging Hong Kong's strengths to contribute to the needs of the country. Hong Kong enjoys national advantages as well as international advantages, including national policies, guarantees, and opportunities. Hong Kong also has a comprehensive open international city status, practices a capitalist system, with free flow of funds, personnel, and information, adopts common law, has its own legislative and judicial system, laws, tax system, currency and financial system, is a separate customs territory, and is an international metropolis. We will continue to fully and accurately, resolutely implement the principles of "One Country, Two Systems", "Hong Kong people governing Hong Kong", and a high degree of autonomy, fully leverage the institutional advantages of "One Country, Two Systems", maintain Hong Kong's long-term prosperity and stability, and contribute to the construction of a strong country and the great rejuvenation of the Chinese nation. Safeguard national security Security and development are the two wings of a bird. Development must have a secure social environment. In March of this year, the Special Administrative Region fulfilled its constitutional responsibility and historical mission under Article 23 of the Basic Law. The newly enacted "National Security Law" and "Hong Kong National Security Law" are integrated and complementary, improving the legal system and enforcement mechanisms for safeguarding national security. However, national security risks can arise suddenly, and we must remain vigilant. Safeguarding national security is the responsibility of public officials. Article 8(3)(a) of the "National Security Law" stipulates that any function granted by the laws of the Hong Kong Special Administrative Region to any person must be understood to include the responsibility of safeguarding national security; Article 114 stipulates that public officials must assist in safeguarding national security work. All policy bureaus and departments must review their codes, guidelines, and procedures to ensure compliance with the above provisions. Conscious safeguarding of national security is of utmost importance. The National Security Exhibition Hall was opened to the public in August this year and has been well received by the public. We will train regional mentors to promote it in the community. In conjunction with the tenth "National Security Education Day for All", the exhibition hall will launch special exhibitions next year The Education Bureau will also update the national security education curriculum framework. Promoting Patriotism Education The "Patriotism Education Working Group" has formulated promotion strategies and measures to promote more activities, allowing the spirit of patriotism to take root in society. Next year marks the 80th anniversary of the victory in the War of Resistance Against Japan. The government will hold commemorative activities to enhance patriotism. The Education Bureau will promote the "Caring for the Country 3.0" cross-school, cross-border activities, continue to strengthen the education of Chinese history and national geography in primary and secondary schools, and increase patriotic historical elements in exchanges with the mainland. Promoting Chinese Culture The "Promotion of Chinese Culture Office" established in April this year is fully promoting Chinese culture, including the establishment of museums introducing national development and achievements, new "Chinese Culture Experience Halls," and the continuation of the "Chinese Culture Festival" and series of exhibitions on Chinese history. (ii) Strengthening Government Governance System Since taking office, this government has promoted a number of reforms in cross-policy coordination systems and government governance culture, strengthening the government governance system. In addition to appointing three deputy directors to strengthen leadership and coordinate work across departments, I have set targets for designated projects, reviewed progress and effectiveness, established a government culture of "aiming for results," doing practical things, and achieving results, and updated the "Code of Conduct for Civil Servants" to clarify the basic beliefs and ethical principles that civil servants must uphold, as well as establishing a "whole-of-government mobilization" system to enhance response capabilities, etc. The government will further deepen reforms and continue to strengthen the government governance system. Strengthening Cross-Policy Coordination Mechanisms We will further strengthen leadership and cross-policy coordination mechanisms, appointing: (i) "Education, Science, and Talent Committee" - chaired by the Secretary for Administration, with members including the Director of Education, the Director of Innovation Technology and Industry, and the Director of Labor and Welfare, to coordinate the integrated development of education, science, and talent, expand connectivity, promote talent cultivation, talent aggregation, and coordinated development of science and technology, while promoting the gathering of international high-end talents in Hong Kong; (ii) "Low Altitude Economy Development Working Group" - chaired by the Deputy Secretary for Finance, starting with pilot projects, formulating strategies and action plans for the development of low-altitude economy, promoting regulatory reform and deploying infrastructure construction; (iii) "Tourism Hotspot Development Working Group" - chaired by the Deputy Secretary for Administration, strengthening cross-departmental coordination, combining social forces to explore and build attractive tourism hotspots in the region; and (iv) "Silver Economy Promotion Working Group" - chaired by the Deputy Secretary for Administration, formulating measures to accelerate the development of the silver economy to meet the needs of the elderly. Enhancing Civil Service Governance Capability Strengthening Civil Service Management In terms of the establishment of the reward and punishment system, the work of the past two years includes setting up the Chief Executive's commendation list, simplifying the mechanism for the retirement of underperforming civil servants, and strengthening the speed and intensity of handling disciplinary cases. We will review the "Civil Service (Management) Order" and the "Civil Service (Discipline) Regulations," further optimize the civil service discipline mechanism, and consult the Civil Service Commission on the preliminary plan next year. Studying National Affairs and International Training Civil servants must fully grasp the country's governance concepts and strategies. The government will hold study and training sessions on major central policies, reports, etc., arrange for middle and senior-level officials to receive training at well-known institutions in the mainland and overseas, and cultivate a national perspective and international vision With the support of the central government, the SAR government will continue to send personnel to different United Nations offices through specific programs. Hong Kong and Mainland China "Civil Servant Exchange Program" The government will launch two-way civil servant exchange programs with cities in the Greater Bay Area and Beijing, Shanghai, Chongqing, Wuhan, and Hangzhou. Introducing the "Government Governance Talent Cultivation Program" The Civil Service College will introduce the "Government Governance Talent Cultivation Program" to enhance the governance capabilities of leadership personnel. The college will also strengthen internal research and training capacity building. Government Digital Transformation The "Digital Policy Office" will consolidate the foundation of government and public institution information systems and lead the trial implementation of locally developed generative artificial intelligence document assistance applications in government departments. Approximately 20 digital government and smart city initiatives will be launched this year, including issuing electronic certificates for designated civil service examinations and fire department licenses using blockchain technology, and using artificial intelligence to handle citizen inquiries. Enhancing the Security of Key Infrastructure Computer Systems The government will establish responsibilities for key infrastructure operators to safeguard their computer systems and enhance their ability to defend against cybersecurity challenges, and will submit a bill within the year. III. Consolidating and Enhancing the Position of an International Financial, Shipping, and Trading Center The development of international financial, shipping, and trading centers is interrelated. In addition to expanding and strengthening existing businesses, we will establish new growth points, starting with the construction of a commodity trading ecosystem, attracting relevant companies to settle in Hong Kong as operational centers for international commodity trading, warehousing and delivery, shipping logistics, risk management, etc., seizing opportunities to develop international markets such as gold, non-ferrous metals, and green transportation, further promoting the coordinated development of international financial, shipping, and trading centers. Hong Kong's gold import and export volume ranks among the top globally. In today's complex geopolitical environment, the advantages of Hong Kong's security and stability are highlighted, attracting investors to store gold in Hong Kong, promoting gold trading, clearing, and delivery. We will leverage the mechanisms and advantages of an international financial center to build an international gold trading center. The government will promote the establishment of recognized warehouses for international commodity exchanges in Hong Kong, attract companies to settle in Hong Kong through tax incentives and other measures, and promote commodity warehousing and trading volume. Global maritime and air transport is moving towards green development. The government will nurture the development of sustainable aviation fuels and green marine fuels industries, promote the construction of fueling centers, and seize opportunities for financial, trade, and shipping development in new energy. (I) International Financial Center Hong Kong is an international financial center, ranking third globally and first in investment environment. The government will continue to reform and consolidate the position of Hong Kong as an international financial center. Deepening "Connectivity" to Enrich Offshore Renminbi Business We will continue to optimize the "Connectivity" mechanism, strengthen the position as the world's largest offshore Renminbi business hub, and support the internationalization of the Renminbi. Key measures include continuously improving infrastructure, upgrading the central clearing system for debt instruments to facilitate international investors to settle various assets in different currencies; enhancing the infrastructure of the fixed income market, such as establishing a central clearing system for repo transactions denominated in Renminbi, making government bonds issued in Hong Kong more popular collateral in the offshore market; Continuing to study and optimize the "Cross-Border Wealth Management Connect". We are also committed to increasing the offshore Renminbi liquidity, making good use of the currency swap agreements between the special administrative region and the country, enabling the Hong Kong Monetary Authority (HKMA) to better support the economic and trade development of Hong Kong; enhancing the overnight cross-border service capabilities of the Hong Kong Renminbi real-time payment and clearing system, facilitating global settlement in the offshore Renminbi market; exploring more diversified offshore Renminbi financing channels. More Renminbi-denominated investment products will be provided: (i) The Hong Kong Exchanges and Clearing Limited (HKEX) will encourage more listed companies to add Renminbi stock trading counters, expanding the scope of Renminbi stocks; (ii) Expanding the issuance of Renminbi bonds to support more green and sustainable offshore Renminbi bond issuances in Hong Kong; (iii) Seeking to increase the scale and frequency of national bond issuances in Hong Kong by the Ministry of Finance, and to introduce offshore national bond futures in Hong Kong as soon as possible; and (iv) Actively discussing with the mainland to moderately expand the "Bond Connect" (Southbound Connect), including expanding the scope of qualified domestic investors, such as including non-bank financial institutions like securities and insurance companies; enriching the relevant liquidity management for offshore investors investing in onshore bonds, actively researching and timely introducing various products and arrangements such as repurchase and collateralization using onshore Renminbi bonds. Further strengthening its position as an international risk management center Hong Kong has the highest concentration of insurance companies and the highest insurance density in all of Asia. To further strengthen Hong Kong's position as an international risk management center, the Insurance Authority will conduct a review next year, including studying the enrichment of insurance company asset allocation through infrastructure investments to help diversify risks and drive investments in infrastructure such as the Northern Loop. We will also continue to strive for large mainland state-owned enterprises and overseas companies to establish exclusive captive insurance companies in Hong Kong. Further strengthening its position as an international asset and wealth management center Hong Kong has 2,700 single-family offices, with industry expectations that Hong Kong will become the world's largest cross-border wealth management center by 2028. We will make every effort to promote more global funds to be managed in Hong Kong, including promoting private equity funds to explore new sales channels through HKEX, as well as: (i) "Belt and Road" Sovereign Fund Cooperation - Strive to cooperate with large sovereign funds from regions such as the Middle East to jointly establish funds and invest in assets in the mainland and other regions; (ii) Optimizing the "New Capital Investor Immigration Scheme" - Effective immediately, allowing investment in residential properties with a transaction price of HKD 50 million or above, with the investment in real estate counting towards the investment cap of HKD 10 million. In addition, starting from March 1 next year, investments through investments in eligible private companies fully owned by the applicant can be counted towards the eligible investment amount; and (iii) Expanding the scope of tax concessions - The government will consult the industry to increase the types of eligible transactions for funds and single-family offices to enjoy tax concessions. Actively expanding markets and deepening overseas networks We will continue to actively expand and deepen overseas networks, including financial cooperation with the Middle East and ASEAN regions, hosting more international financial events, and seeking further cooperation in the financial field with Islamic markets Further optimizing the securities market Measures include: (i) Expanding overseas new capital - Implementing the listing of Exchange Traded Funds (ETFs) tracking the Hong Kong stock index in the Middle East to attract local funds to allocate to Hong Kong stocks; (ii) Attracting corporate listings - Leveraging the advantages of the "Mutual Market Access" with the mainland market to attract international companies to list in Hong Kong, while also promoting large mainland enterprises to list in Hong Kong, striving to achieve more iconic Initial Public Offerings (IPOs) in the short term; (iii) Optimizing listing approvals - The Securities and Futures Commission (SFC) and the Hong Kong Exchanges and Clearing Limited (HKEX) will announce specific measures to further optimize the listing approval process, making the listing application approval time more predictable; and (iv) Enhancing market efficiency - The SFC and HKEX will enhance market efficiency and reduce trading costs, including reviewing margin deposit arrangements, optimizing margin and collateral requirements, etc. Facilitating cross-border financial arrangements for residents One of the aspects of developing inclusive finance is to facilitate cross-border transactions and payments for residents. The Hong Kong Monetary Authority (HKMA) and the People's Bank of China are promoting the interconnection of the two fast payment systems (namely Hong Kong's Faster Payment System (FPS) and the mainland's Online Payment Cross-Bank Clearing System (IBPS)), facilitating real-time small-value cross-border payments for residents of both places; and will implement the issuance of bank cards by Hong Kong registered banks' branches in the mainland. Establishing an international gold trading market Hong Kong's gold import and export volume ranks among the top globally. With geopolitical complexities increasing, Hong Kong's security and stable environment advantages are highlighted, attracting international gold spot trading to be stored in Hong Kong, promoting gold trading, clearing, and delivery, and further developing Hong Kong into a gold trading center, driving the development of related industrial chains such as investment trading, derivative products, insurance, storage, trade, and logistics services. The government will promote the construction of international-level gold storage facilities, expand users and investors to store and deliver physical gold in Hong Kong, drive derivative financial services such as pledging and borrowing, and create new growth points for the financial industry. The Financial Services and the Treasury Bureau (FSTB) will establish a working group to promote the establishment of an international gold trading center, including strengthening trading mechanisms and regulatory frameworks, promoting the application of cutting-edge financial technology, and discussing with the mainland the inclusion of gold products in the "Mutual Market Access" scheme. Enhancing the green financial ecosystem Hong Kong is a leading sustainable finance center in Asia. The Hong Kong Exchanges and Clearing Limited's international carbon market (Core Climate) is currently the only international voluntary carbon credit product trading market settled in Hong Kong dollars and Renminbi. The HKMA will launch the "Sustainable Finance Action Plan," and the FSTB will introduce a roadmap for full adoption of the International Sustainability Standards Board (ISSB) standards for financial reporting within this year, aiming to make Hong Kong one of the first jurisdictions to align local standards with ISSB standards. (II) International Shipping Center Hong Kong is one of the busiest and most efficient ports globally, ranking fourth in the Global Shipping Center Development Index. The average stay of container ships in Hong Kong port is 0.95 days, about half of the average of the top twenty container ports in the world (1.85 days), earning the reputation of a "Just-in-Time Port" that can make up for delays in other ports for vessels The shipping business can be divided into ports and maritime services. Maritime services (including ship brokerage, financing leasing, maritime insurance, maritime law and arbitration, and other professional services) are the high value-added part of the shipping business, with an economic contribution increasing by nearly 40% over the past three years (2019 to 2022), serving as a source of growth. We will vigorously develop the shipping business, while taking multiple measures to consolidate and enhance Hong Kong's status as an international shipping center. Establishment of the "Hong Kong Maritime Port Development Authority" The government will reform the current "Hong Kong Maritime Port Authority" into the "Hong Kong Maritime Port Development Authority" as a high-level advisory body to assist the government in formulating policies and long-term development strategies. We will appoint non-official individuals as chairpersons, with members mainly from the shipping industry. A dedicated research and promotion team will be established, with increased resources allocated to enhance research capabilities, strengthen domestic and international promotion, and reinforce human resources training to effectively support the government in implementing policies and promoting the sustainable development of Hong Kong's shipping industry. Promoting the development of high value-added maritime services We will vigorously develop high value-added maritime and professional businesses. The government has been promoting more commercial leaders in the shipping industry and maritime service enterprises to settle in Hong Kong, including providing tax incentives for ship leasing and half-tax incentives for maritime insurance, ship management, agency, and brokerage businesses. We will continue to strengthen Hong Kong's shipping advantages, including: (i) Optimizing and promoting tax incentives - increasing the promotion of existing tax relief measures for shipping services, optimizing the tax incentive system (including introducing new tax deduction arrangements for ship lessors in compliance with international tax rules), and strengthening the local shipping ecosystem; (ii) Attracting maritime service enterprises to settle - promoting maritime insurance businesses with potential or representativeness to settle in Hong Kong, expanding maritime insurance products; and (iii) Enhancing the cultivation of maritime talents - strengthening cooperation with international maritime insurance institutions, promoting maritime insurance talent training, expanding the "Maritime and Air Transport Talent Training Fund," incorporating more green energy courses and maritime insurance examinations, etc. Accelerating the construction of a green shipping center We will build Hong Kong into a green shipping center, including: (i) Promoting the greening of registered ships - the Marine Department has been providing cash incentives to ships that meet international carbon reduction standards since this year, and will further promote this in the future; (ii) Establishing a green ship fueling center - by the end of the year, the "Action Plan for Green Ship Fueling" will be announced to promote the development of infrastructure such as green ship fuel storage facilities, encourage port emission reduction, provide incentives to encourage the use of green ship fuels, cooperate with ports in the Greater Bay Area, and build green shipping corridors with major trading partners; and (iii) Providing supporting services for green fueling - providing intelligent navigation safety information for green ships, enhancing ship navigation surveillance service systems to ensure safety during fueling. Establishing a commodity trading ecosystem Commodities such as metals and minerals account for more than half of global shipping trade volume. Shipowners and commodity traders are the main users of shipping routes and maritime services. Attracting them to gather and operate in Hong Kong can drive maritime services and promote financial and professional services such as futures hedging, which is beneficial for consolidating and enhancing Hong Kong's status as an international financial, shipping, and trade center. We will study tax incentives and supporting measures to attract relevant domestic and foreign companies to settle in Hong Kong and build a commodity trading ecosystem An international commodity exchange plans to establish accredited warehouses in Hong Kong to store and deliver bulk commodities, including non-ferrous metal products. We will seize the opportunity to promote the establishment of facilities and supporting services, attracting mainland enterprises to conduct bulk commodity trading in Hong Kong, especially in non-ferrous metals, further promoting Hong Kong's shipping and trade services. Developing an internationally promoted smart port organization The government will complete the construction of a smart port system next year, with functions such as cargo tracking, real-time transportation information, electronic information and document access, port data analysis, etc., to promote information interconnection among stakeholders in the shipping, port, and logistics industries. The government will also hold more large-scale events with international maritime organizations and companies to promote Hong Kong's maritime strength globally. Expanding high value-added logistics services We are advancing the implementation of the "Modern Logistics Development Action Plan" and introducing four high-quality logistics sites for the industry to develop multi-story modern high-end logistics facilities. The results of the planning study for the construction of a modern logistics circle in the Hung Shui Kiu / Ha Tsuen new development area will be announced next year. The government will continue to strengthen logistics cooperation with the Pearl River Delta region and neighboring areas, make good use of the Hong Kong-Zhuhai-Macao Bridge, expand sources of goods, and promote the transshipment of goods through Hong Kong. (III) International Trade Center The global trade landscape is constantly changing, with some supply chains shifting to "Global South" and "Belt and Road" countries, and mainland enterprises actively going global. In the "World Competitiveness Report 2024", Hong Kong ranks first globally in "international trade" and "business regulations", making it the preferred choice for domestic and foreign companies to establish and manage offshore trade and supply chain international headquarters. Building a high value-added supply chain service center Hong Kong has a wealth of high-quality talent and networks in offshore trade and supply chain management, including production chain management, export credit risk management, trade financing, marketing, inspection and certification, accounting, and other professional services. We will strengthen high value-added supply chain services: (i) Building a high value-added supply chain service mechanism - Invest Hong Kong and the Hong Kong Trade Development Council (TDC) will establish a mechanism to enhance coordination, attract mainland enterprises to establish international or regional headquarters in Hong Kong, and provide one-stop diversified professional consulting services for companies in Hong Kong to assist them in going global; (ii) Enhancing export protection for enterprises - The statutory maximum compensation percentage of the Hong Kong Export Credit Insurance Corporation (ECIC) will be increased from 90% to 95%, and more free buyer credit investigation services covering a wider region will be provided. The ECIC will also expand financing support for e-commerce; (iii) Strengthening export credit services - Promoting the establishment of China Export & Credit Insurance Corporation in Hong Kong to provide export credit insurance services for overseas investments and longer investment periods, providing more comprehensive export credit services for mainland enterprises in Hong Kong going global and foreign investments entering the mainland; (iv) Promoting the digitization of trade finance - The Hong Kong Monetary Authority is conducting a sandbox experiment on the tokenization of electronic bills of lading through the "Ensemble" project to use technology to reduce fraud risks, assist financial institutions in approving trade-related financing. The HKMA will formulate mechanisms for transmitting trade-related data in a trial manner with other regions to promote cross-border data flow and digitalization of international trade; it will also allow potential issuers to test different blockchain application scenarios, including cross-border payment solutions, through the "Stablecoin Issuer Sandbox" Utilizing Data to Enhance Financial Services - The Hong Kong Monetary Authority's "Commercial Data Interchange" is expected to be connected to the Land Registry system next year to assist banks in optimizing services through data utilization. Expanding Global Economic and Trade Networks In addition to expanding into the European and American markets, we will continue to broaden our economic and trade networks, especially in countries along the "Belt and Road" initiative, including: (i) Increasing the development of Mainland China's trade in services - Under the recently signed CEPA Service Trade Agreement (i.e. the Agreement on Amendment II to the Mainland and Hong Kong Closer Economic Partnership Arrangement on Trade in Services), Mainland China has further opened up various service sectors, including construction, testing, certification, finance, film, television, etc., and has mostly abolished the three-year operating requirement for Hong Kong businesses. This move aims to attract more start-ups, overseas companies, and talent to settle in Hong Kong for access to the Mainland market. We will implement the agreement, enhance promotion, and provide assistance; (ii) Strengthening trade mechanism alignment - Continuing efforts to join the Regional Comprehensive Economic Partnership (RCEP) at an early date. We are currently negotiating investment agreements with Bangladesh and Saudi Arabia, and planning to commence negotiations with Egypt and Peru. Negotiations for a free trade agreement with Peru have been completed, and we hope to sign it formally within this year. We will also expand our global economic and trade office network, focusing on economic and trade relations in emerging markets; and (iii) Increasing expansion in key markets - We will actively visit key markets such as the "Belt and Road" initiative, leading the business and professional services sectors to conduct inspections in these markets and organizing the "Belt and Road Cross-Professional Forum" to promote Hong Kong's professional services. Promoting Headquarters Economy Development The government will intensify efforts to attract key domestic and foreign enterprises to establish headquarters or branch operations in Hong Kong. The Financial Services and the Treasury Bureau will submit a bill within this year to introduce a company migration mechanism, allowing companies interested in coming to Hong Kong to retain their corporate identity without the need to liquidate in their original overseas registration location and establish a new company in Hong Kong. This will enable companies to continue their operations, simplify processes, and save costs. We will provide convenience by extending the validity period of the "One Entry, Multiple Exits" visa for foreign personnel (including non-permanent residents) of Hong Kong-registered companies to Mainland China to up to five years, with expedited processing. To further attract Mainland Chinese companies to use Hong Kong as a springboard for international expansion, we will provide more financial services to promote the internationalization of Mainland financial enterprises and consolidate overseas operations in Hong Kong. The Hong Kong Monetary Authority is studying ways to enhance offshore Renminbi liquidity, technology applications, and international cooperation to help Mainland enterprises "go global" enjoy the convenience of cross-border Renminbi settlement financing. Promoting Liquor Trade Currently, Hong Kong imposes a 100% import tax on spirits (alcoholic beverages with an alcohol content of more than 30%). In order to promote liquor trade, drive the development of high value-added industries such as logistics and warehousing, tourism, and high-end dining consumption, the government, taking reference from the successful experience of promoting red wine trade by abolishing red wine tax, will reduce the tax rate from 100% to 10% for the portion of spirits with an import price above HKD 200, while maintaining the tax rate for the portion below HKD 200, and for spirits with an import price of HKD 200 or below (IV) International Aviation Hub Hong Kong is an international aviation hub, connecting nearly 200 destinations worldwide, with air cargo volume surpassing the global number one for over a decade. The Airport Authority Hong Kong (AA) will complete the construction of the three-runway system within this year. The handling capacity of Hong Kong International Airport will increase by 50% starting from 2035. Enhancing Aviation Development Strategy The government will vigorously expand the aviation network to support Hong Kong International Airport in opening up new routes and flights, especially in cooperation with countries along the "Belt and Road" initiative. By leveraging the advantages of Zhuhai Airport, efforts will be made to strengthen the "Fly Through the Pearl River Delta" direct passenger service, jointly develop international cargo business, and expand synergies. Developing a World-Leading Airport City The government will work with the AA to plan the expansion of the "Airport City" on the airport island, the artificial island between the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port and Tung Chung East New Town, doubling its scale to create a new world-leading landmark. New projects include building an artistic industry ecosystem, constructing the second phase of the AsiaWorld-Expo, establishing a yacht marina and supporting facilities, launching an air-freighted fresh market, and increasing public activity spaces to drive high-end commercial, tourism, and leisure activities. Expanding Aviation Cargo Advantage with the Greater Bay Area The AA is actively collaborating with Dongguan to promote innovative development of "sea-air cargo intermodal transport." By the end of next year, the first phase of permanent facilities at the "Hong Kong International Airport Dongguan Air Cargo Center" in Dongguan will be completed, gradually achieving an annual handling capacity of 1 million tons. Forward-looking planning for the second phase development will be carried out to introduce more high value-added logistics, cross-border e-commerce, and express service facilities. The government will expand the exemption arrangement for air cargo transshipment permits to other multimodal transport modes to enhance competitiveness. (V) Regional International Legal and Dispute Resolution Services Center Conducting International Legal Talent Training The "Hong Kong International Legal Talent Training Institute" will officially launch this year to cultivate legal professionals familiar with international law, common law, mainland law, and national legal systems. The Department of Justice's dedicated office and expert committee are actively promoting this work. Enhancing Mediation Services Promotion The headquarters of the International Mediation Institute will be established in Hong Kong after the relevant international conventions come into effect. The government will enhance local mediation professional certification and disciplinary system construction to further strengthen the international mediation center. Mediation clauses will be included in government contracts to encourage private institutions to refer to and use them, and the "Community Mediation Pioneer Program" will be launched to increase training and promote a mediation culture. Establishing a Sports Dispute Resolution System With the development of sports and the industry, sports disputes are becoming increasingly complex. Research will be conducted to establish a dispute resolution system for sports disputes, promote sports arbitration, and leverage Hong Kong's system advantages in dispute resolution. I. Developing New Quality Productivity According to Local Conditions The core of new quality productivity lies in empowering with technology to achieve high-quality economic development. Hong Kong is developing into an international innovation and technology center, promoting the upgrading and transformation of traditional industries, and actively nurturing emerging industries. Efforts will be made to develop new quality productivity according to local conditions. (I) International Innovation and Technology Center Improving New Industrial Development Strategies and Institutional Construction 76. We will formulate a new industrial mid- to long-term development plan for Hong Kong and promote the establishment of the "Hong Kong New Industrial Development Alliance" to facilitate close collaboration among the government, industry, academia, research, and investment sectors, building a cooperation platform for Hong Kong's new industries. This includes providing financing opportunities, promoting collaboration in innovation and technology between newly listed companies in Hong Kong and local universities. Advancing the third "InnoHK Innovation and Technology R&D Platform" InnoHK currently brings together approximately 2,500 researchers from local and global locations. The government has initiated preparations for the construction of the third InnoHK R&D platform, focusing on advanced manufacturing, materials, energy, and sustainable development, attracting world-class research teams to collaborate with local institutions and promote research while gathering talent. Expanding research funding The government will launch a new round of HKD 1.5 billion "Research Matching Grant Scheme" to encourage more institutions to fund research at universities. Increasing investment in innovation and technology industries We will increase investment and lead market funds, innovate the government's investment approach in innovation and technology industries, including: (i) Establishing a HKD 10 billion "Innovation and Technology Industry Guidance Fund" - setting up a parent fund to strengthen the guidance of market funds to invest in designated strategic emerging and future industries, including life health technology, artificial intelligence and robotics, semiconductors and smart devices, advanced materials, and new energy, systematically building an innovation and technology industry ecosystem; (ii) Optimizing the "Innovation and Technology Venture Fund" - allocating HKD 1.5 billion to establish joint funds with the industry to invest in strategic industries' startups, further enhancing the development of Hong Kong's startup ecosystem; and (iii) Leveraging the Hong Kong Investment Corporation's "patient capital" - the Hong Kong Investment Corporation will continue to guide and leverage market funds, jointly attracting innovation and technology companies to settle and take root in Hong Kong. Attracting international startup accelerators to establish in Hong Kong The government will launch the "Innovation and Technology Accelerator Pilot Scheme" and allocate HKD 180 million with a matching ratio of 1 (government) to 2 (institution), with a funding ceiling of HKD 30 million, to attract professional startup service organizations with rich experience from home and abroad to establish accelerator bases in Hong Kong, facilitating the growth of startups. Developing low-altitude economy The low-altitude economy refers to economic activities conducted in airspace below 1,000 meters, which can be used for rescue, measurement, delivery, and passenger transportation, among other categories. Developing a low-altitude economy management system will further drive the development of communication technology, artificial intelligence, and digital industries, activating low-altitude airspace as a new economic production factor. The government will establish a "Low-Altitude Economy Development Task Force" led by the Deputy Financial Secretary to formulate development strategies and cross-departmental action plans, starting with application projects, setting specific application sites to drive projects, and formulating regulations and building systems, researching and deploying basic equipment and networks, including: (i) Expanding low-altitude flight application scenarios - vigorously promoting pilot projects, establishing locations to develop drone applications, including drone delivery, measurement, building maintenance, aerial photography, events coverage, and search and rescue, among others; (ii) Revising relevant regulations - including relaxing "beyond visual line of sight flights" and drone weight and cargo restrictions, promoting increased market research and development investment, encouraging technological experiments, and developing aerial tours (iii) Connecting with the Mainland - discussing the joint construction of low-altitude cross-border air routes, entry and exit arrangements, customs clearance, and supporting infrastructure; and (iv) Research and deployment of low-altitude infrastructure - for the long-term development of low-altitude activities, it is necessary to rely on efficient, intelligent, and digital low-altitude infrastructure systems to manage the low-altitude activity network in real-time, and address complex management and safety issues. The working group will conduct technical research and planning on the construction of low-altitude activity supporting facilities (such as take-off and landing sites and charging stations), communication networks, air route networks, and management, laying the foundation for development. Advancing communication technology development Low-orbit satellites have lower costs than traditional satellites, and the government will study simplifying the approval process for applying for low-orbit satellite licenses. In addition, the government will timely provide more suitable radio frequency spectrum to the market. Promoting aerospace technology research and development Hong Kong research teams have been actively involved in aerospace technology research and development, and this year, Hong Kong residents have been selected as reserve astronauts. We are very grateful for the country's support for Hong Kong's development of aerospace-related technologies. The government will establish a research center under the InnoHK research platform to participate in the Chang'e-8 mission and contribute to the country's aerospace development. Promoting the development of new energy The government will reserve approximately HKD 750 million in the New Energy Transport Fund to subsidize the taxi industry and licensed bus companies to purchase electric vehicles, and launch a subsidy trial program for hydrogen fuel cell heavy vehicles. We will further promote the development of new energy, including: (i) Setting sustainable aviation fuel (SAF) usage targets - accelerating carbon reduction in the aviation industry to meet the increasing demand for SAF from international airlines; (ii) Developing a sustainable aviation and green maritime fuel supply chain - long-term industry development planning will be made on supply and demand, storage, refueling, etc.; and (iii) Promoting green hydrogen and low-carbon hydrogen energy - actively assisting the industry in building solar hydrogen production facilities as industrial demonstrations, submitting a draft ordinance next year to ensure the safe use of hydrogen fuel. The government will also prepare a Hong Kong hydrogen standard certification model. (II) Regional Intellectual Property Trading Center Intellectual property-intensive industries in Hong Kong account for about one-third of the local gross domestic product and total employment in Hong Kong. We will expand the knowledge and intellectual property trading ecosystem of the science, technology, and cultural and creative industries, and strengthen the position of the regional intellectual property trading center. Improving the intellectual property legislative framework The government will strengthen the protection of research and development innovation and creative achievements, including proposing next year to strengthen the Copyright Ordinance to protect the development of artificial intelligence technology; currently reviewing the existing system of registered design, consultations will begin next year; and submitting amendment proposals to optimize the intellectual property litigation procedures, allowing the High Court to more effectively manage and adjudicate relevant litigation. Next year, the Trademark Registry under the Intellectual Property Department will launch a new artificial intelligence-assisted image retrieval service to facilitate public access to the trademark database. With the support of the central government, Hong Kong plans to participate in the World Intellectual Property Organization's legal judgment database next year, sharing important intellectual property judgments of Hong Kong courts to demonstrate Hong Kong's level of intellectual property judicial expertise. Enhancing intellectual property talent training 91. The government will continue to discuss with the patent agency industry and stakeholders, plan to establish regulatory arrangements for local patent agency services, covering qualifications, registration, etc., to promote the cultivation of professional talents and quality improvement. The Intellectual Property Department will cooperate with the Qualifications Framework Secretariat to develop practical teaching materials for training institutions, benefiting practitioners in 23 different industries. (III) International Medical Innovation Hub To accelerate patients' access to advanced diagnosis and treatment, promote the new productivity of biomedicine technology, the government will use institutional innovation to cooperate with technological innovation to develop Hong Kong into an international medical innovation hub. Reform of the Drug and Medical Device Approval System The government will accelerate the reform of the drug and medical device approval system, including: (i) Expand the "1+" approval mechanism to all new drugs, including vaccines and advanced therapeutic products, improve the review system to expedite registration, and reflect the concept of "Good Drug Hong Kong"; (ii) Implement the timetable for the establishment of the "Hong Kong Medical Device Regulatory Center" and move towards the "first-level approval" roadmap, formulate strategies and measures to support drug and medical device research and development; and (iii) Promote the preparation of legislation for regulating medical devices. Enhancing the R&D Transformation of Biomedical Technology The government will comprehensively enhance Hong Kong's clinical trial capabilities and promote the transformation of innovative biomedical achievements, including: (i) Jointly establish the "Greater Bay Area Clinical Trial Collaboration Platform" with Shenzhen to expand the research and development network to accelerate clinical trials; (ii) Establish the "Real-World Research and Application Center" to promote Hong Kong-Shenzhen cooperation combining data from the "Hong Kong-Macau Medical Device Pass" to expedite the approval and listing of new drugs in Hong Kong, the Mainland, and overseas; and (iii) Support advanced biomedical technology research and development, clinical trials, and applications in Hong Kong, attracting top global innovative enterprises and research institutions to settle in Hong Kong. (IV) Promoting the Integrated Development of the Digital Economy and the Real Economy Strengthening the system to promote the integration of the real economy and the digital economy is one of the key new productivity areas. The government will accelerate the development of the digital economy, including speeding up industrial digital transformation, enhancing digital infrastructure construction, researching to promote data trading ecology, and exploring convenient arrangements for cross-border data flow in the Greater Bay Area as a pilot. Accelerating the Development of Digital Trade The government will actively promote the digital transformation of enterprise trade, including seeking to participate in international discussions on the development of the digital economy, studying the inclusion of relevant chapters in bilateral trade agreements to promote the development of digital trade and cross-border e-commerce. The Commerce and Economic Development Bureau is actively developing a single trade window to provide a one-stop electronic platform for the industry to submit import and export trade documents for customs clearance. The Hong Kong Monetary Authority has set up a working group to conduct in-depth research on future trends in the supply chain and make recommendations. The research scope includes how to promote trade digitization from aspects such as talent, financial infrastructure, technology, legislation, etc., to reduce trade costs and enhance the trade ecosystem. Building a Financial Technology Innovation Ecosystem The government will continue to promote innovative financial services such as central bank digital currency, mobile payments, virtual banks, virtual insurance, and virtual asset trading. The Treasury Bureau will issue a policy statement outlining the policy position and guidelines for the application of artificial intelligence in the financial market. Other measures include: (i) Promoting cross-border payment applications with central bank digital currencies (CBDC) - The HKMA is actively testing and exploring more technical solutions and scenarios related to cross-border trade settlement on the "Multiple Central Bank Digital Currency Cross-Border Network" (mBridge), and expanding the participation of public and private institutions; (ii) Improving regulation of virtual asset trading - The Treasury Bureau will complete the second round of consultations on the regulation of over-the-counter trading of virtual assets and submit a proposed licensing system for virtual asset custody service providers; (iii) Promoting the tokenization of real-world assets and the digital currency ecosystem - The HKMA is promoting the "Ensemble" financial market infrastructure project to explore the application of tokenizing real-world assets and using digital currencies for interbank settlements to promote the development of related asset transactions. In addition, the HKMA is allowing potential issuers to test business plans and application scenarios through the "Stablecoin Issuers Sandbox" and will submit a draft regulation with the Treasury Bureau this year to regulate fiat stablecoin issuers; and (iv) Promoting the development of digital securities markets - The HKMA is about to launch the "Digital Bond Subsidy Program" to encourage more financial institutions and issuers to adopt tokenization technology in capital market transactions. Facilitating cross-border e-commerce logistics services To establish Hong Kong as a cross-border e-commerce logistics distribution center, the government will review current processes to enhance the efficiency of cross-border goods delivery and strengthen Hong Kong's competitiveness. Promoting the digitization of public housing construction and management The Hong Kong Housing Authority (HA) has selected ten public housing estates as smart estate management pilot projects. Starting next year, a central property management platform will be established to introduce digital technology in daily management, enhancing management efficiency and service quality. The HA will also gradually apply project information management and analysis platforms in new public housing construction projects starting next year to practice digital project management, utilizing 3D digital maps, virtual digital models, etc., to enhance project efficiency. Promoting legal technology The Department of Justice will establish a "Consultative Group on Promoting Legal Technology Development" to formulate policies and measures, and promote the application of legal technology in the industry. V. Building an international hub for high-end talent aggregation (I) Coordinating the integrated development of education, science and technology, and talent Education nurtures the future, technology demonstrates strength, and talent leads development. The government will establish an "Education, Science and Technology, and Talent Committee" chaired by the Chief Secretary for Administration to coordinate the integrated development of education, science and technology, and talent, expand connectivity, formulate policies to promote talent cultivation, aggregation, and synergistic development in science and technology, and promote the aggregation of international high-end talent in Hong Kong. (II) Talent Aggregation Hong Kong is home to five world's top 100 universities and is a gathering place for international high-end talent exchange and cooperation. Attracting Talent By the end of 2022, the government will launch a new talent admission scheme, receiving over 380,000 applications to date, with approximately 160,000 talents and their families arriving in Hong Kong. Over the next five years, an estimated shortage of about 180,000 workers across various industries is expected. In order to establish a high-quality talent pool to support development, we will innovate various talent admission mechanisms, including: (i) Update the "Talent List" to include talents needed to drive the "Eight Core Areas"; (ii) Expand the list of universities under the "High-End Talent Admission Scheme" to include 13 top universities at home and abroad, bringing the total to 198, and extend the initial visa period for high-income talents under the scheme from two years to three years; (iii) Optimize the "General Employment Policy" and the "Admission Scheme for Mainland Talents", introducing new channels to attract young and experienced professionals in designated technical fields where there is a severe shortage of manpower to Hong Kong. The new arrangement will have quotas; (iv) Establish mechanisms under the "Quality Migrant Admission Scheme" to actively invite top talents to develop in Hong Kong, promoting the gathering of international high-end talents in Hong Kong; and (v) Extend the trial arrangement for graduates of local universities in the Greater Bay Area campus to be included in the "Stay/Return to Hong Kong Employment Arrangement" for a period of two years. Assist in talent retention and development In addition to providing assistance according to the individual needs of talents, the "Talent Office" will strengthen the promotion of online platforms, provide comprehensive information on salary, taxation, education, and visas, expand the partner network, and jointly organize online and offline job fairs with industry and employer groups to facilitate direct job matching between employers and talents. The Talent Office will also host international talent forums and promote overseas. Promote the development of an international hub for higher education Cultivate future talents to build the brand of "Studying in Hong Kong" The government is fully committed to making Hong Kong an international hub for higher education, including: (i) Encouraging more local students to pursue further studies - Establishing the "Hong Kong Future Talent Further Studies Scholarship Scheme", starting from the 2025/26 academic year, providing scholarships to a maximum of 1,200 local students studying designated postgraduate courses; (ii) Building the brand of "Studying in Hong Kong" - Striving to host international education conferences and exhibitions, promoting cooperation and exchanges between local higher education institutions and institutions worldwide, promoting the brand of "Studying in Hong Kong" globally, and attracting more students from overseas, especially from ASEAN and other countries along the "Belt and Road" initiative, to study in Hong Kong through scholarships; and (iii) Improving dormitory facilities - We will launch pilot schemes to streamline planning, land administration, and building plan approval processes, encourage the market to convert hotels and other commercial buildings into student dormitories through self-financing and private means, and increase the supply of student dormitories. The Development Bureau's Project Facilitation Offices will provide one-stop consultation services for these projects in response to market demand. Promote the quality development of self-financed institutions Next year, a draft of the "Regulations of Private Post-Secondary Colleges" will be submitted to improve the regulation and quality assurance mechanisms of self-financed post-secondary institutions. Construct the Northern Capital University Education City The government has reserved at least 80 hectares of land in the Northern Capital for the development of the "Northern Capital University Education City", encouraging local higher education institutions to collaborate with well-known local and foreign institutions in a flexible and innovative manner to develop more branded courses, research collaborations, and exchange projects. Flexibility will also be reserved in the planning to facilitate the development of student dormitories. We plan to announce the "Conceptual Development Outline of the Northern Capital University Education City" in the first half of 2026. (iii) Cultivate talents Promote diverse career paths Advance the development of Applied Science Universities The Hong Kong Metropolitan University has been accepted as the first Applied Science University. The Applied Science University Alliance will be established within this year for collaborative promotion, strengthening exchanges and cooperation with applied science institutions worldwide, etc. The government has allocated HKD 100 million as the startup fund for the alliance Expand the professional talent pool The government will build school buildings for the newly established Hong Kong Institute of Information Technology by the Vocational Training Council, as well as develop elevator and escalator technology centers. Promote STEAM education in primary and secondary schools The Education Bureau will establish the "Digital Education Strategy Development Supervisory Committee" to promote digital education, update the curriculum for junior secondary science subjects, and support teachers in using artificial intelligence for teaching. Enhance support for schools and teachers The government will allocate HKD 2 billion to establish a Teacher Professional Development Fund to support the long-term professional development of teachers, continuously optimize teacher training and exchange programs; it will also allocate approximately HKD 470 million to strengthen the teaching and learning of English, Mandarin, and other languages, as well as enhance support for students with special learning needs, and continue to provide book subsidies and other assistance to economically disadvantaged students. Accelerate youth hostel projects In response to the youth's desire for self-contained living spaces, the government has launched the Youth Hostel Scheme and expanded the scheme two years ago to subsidize non-governmental organizations in renting suitable hotels and hostels for conversion into youth hostels. We have also established a dedicated team to provide targeted support and technical advice, including assisting them in negotiating with hotel owners to reach agreements as soon as possible. The number of hostel places has now increased to approximately 3,000. Support youth in purchasing subsidized sale units The Housing Authority will allocate an additional lottery number to white-form youth families under the age of 40 and individual applicants applying to purchase units under the Home Ownership Scheme (HOS) starting from the next phase; and starting from the next phase of the White Form Secondary Market Plan, an additional 1,500 quotas will be allocated, all of which will be allocated to youth families under the age of 40 and individual applicants. Enhance support for youth development We will establish a "Youth Hostel" hostel and youth cultural and arts exchange space in the Kai Tak Community Isolation Facility, set up a "Youth Network" physical interactive platform in the Southorn Community Center, and enhance communication with young people, including making good use of the new application "HKYouth+" and other online media. To enhance support for youth development potential, the government will open up a new interactive space and set up a video studio in the Youth Square; and launch a new round of the "Youth Career Planning Activity Subsidy Scheme" to support non-governmental organizations in optimizing services and strengthening national elements. The Hong Kong Jockey Club will contribute HKD 300 million in support. We will continue to promote exchanges and internship programs in the Mainland and overseas, optimize the "Greater Bay Area Youth Employment Program," relax the eligibility criteria to 29 years old or below and holding a sub-degree or above qualification, raise the monthly employment allowance limit to enterprises to HKD 12,000, and explore two-way arrangements. Optimize the "Flying Youth Plan," rename it the "Youth Employment Plan," raise the age limit to 29 years old, and increase internship opportunities in the Greater Bay Area. VI. Promote the integrated development of cultural, sports, and tourism industries to drive a diversified economy (I) Integration of cultural and sports exchanges center to promote the development of cultural, sports, and tourism industries This government has established the Culture, Sports and Tourism Bureau (CSTB) to integrate cultural, creative industries, sports, and tourism for development. To enhance Hong Kong's role as a center for cultural and artistic exchanges between China and foreign countries, the government is keen on deepening cultural system reform, improving cultural and economic policies, and further enhancing cultural confidence Enhancing Cultural Soft Power to Drive the Development of Cultural and Creative Industries The Leisure and Cultural Services Department formulated the "Blueprint for the Development of Cultural and Creative Industries" last year to solicit opinions from the arts and cultural sector, covering four development directions: promoting diverse and international cultural and artistic development, promoting Chinese culture, facilitating cultural and artistic exchanges between China and foreign countries, and promoting industrial development. The Leisure and Cultural Services Department will consult the Cultural Commission and announce it within this year. The "Cultural and Creative Industries Development Division" was established in June this year to promote industry development through an industrial-oriented approach, including: (i) The "Creative Intelligence Plan" will cultivate more cultural and creative projects with industrial potential, enhance cross-sector collaboration, introduce market resources, and help the industry explore business opportunities; (ii) Promote the participation of more Hong Kong and overseas cultural and creative products in the "Asian Intellectual Property Trading Platform" to facilitate cross-sector exchanges and cooperation, promote cultural intellectual property trading and transformation; and (iii) Develop the new flagship event "Hong Kong Fashion Design Week" into an annual event, making Hong Kong the center of Asian fashion design. Enhancing the Long-term Industrial Development of the West Kowloon Cultural District The West Kowloon Cultural District is one of the largest cultural and artistic projects globally. The West Kowloon Cultural District Authority will lead the construction of the Hong Kong cultural and creative industry chain, promote cultural and creative tourism, and optimize financial sustainability through diversified and innovative industrial development, including: (i) Further expanding Hong Kong's advantage in art trading—promoting the establishment of a complete art trading ecosystem, establishing high-end private art collection storage, restoration, and exhibition facilities; (ii) Promoting the cultural district as an international venue for cultural and creative business events—there are over 20 venues in the West Kowloon Cultural District for hosting various events, intensifying efforts to attract international cultural and business events to the cultural district, attracting more visitors to Hong Kong, and stimulating consumption; (iii) Strengthening the output of cultural and artistic creative projects—planning and curating performance arts and exhibition projects for long-term performances and exhibitions locally or overseas based on commercial principles, and expanding channels for the sale of cultural and creative products; and (iv) Establishing the cultural district as a must-visit cultural and creative tourism destination—launching more distinctive experiential activities, and collaborating with the Hong Kong Tourism Board to enhance global promotion and attract more tourists. Promoting Sports Development and Building the Capital of International Sporting Events In recent years, Hong Kong athletes have performed well in international competitions. With abundant supporting resources and the upcoming completion of the new landmark Kai Tak Sports Park, as well as the 15th National Games to be jointly hosted by Guangdong, Hong Kong, and Macau at the end of next year, Hong Kong has favorable conditions to develop into an international sports platform. The government will continue to promote the popularization, professionalization, eventization, specialization, and industrialization of sports development, including: (i) Enhancing the development of elite athletes and coaches—the government has invited the Hong Kong Sports Institute to review the direct funding mechanism for athletes (including para-athletes), optimize the training system, and establish a committee to supervise the development of sports medicine and sports science. The government will also strengthen coach training and explore the feasibility of establishing a unified coach certification system; (ii) Promoting the popularization of sports activities—providing more sports and recreational facilities, including the construction of a swimming pool capable of hosting international-level competitions and a sports hall equipped with fencing training and competition facilities, and regularizing the Emerging Sports Program Pilot Scheme; (iii) Reforming the governance of sports associations - The Sports Federation & Olympic Committee of Hong Kong, China will complete a review of the "governance and operation of sports associations" and make recommendations to ensure the efficient operation of sports associations, allowing athletes (including para-athletes) to unleash their potential in a fair and professional environment; and (iv) Developing the home economy of the sports industry - The government will continue to support athletes in participating in various competitions, and fully utilize the Kai Tak Sports Park and other existing venues to host multiple large international events, allowing the Hong Kong team to compete at home, build an audience base, and promote the long-term development of the sports industry. The government will re-examine the redevelopment plan for the Hong Kong Stadium to ensure the synergy between the Kai Tak Sports Park and the Hong Kong Stadium. Building the Kai Tak Sports Park as a landmark for sports and events The Kai Tak Sports Park, which will be put into use in the first quarter of next year, is the largest sports infrastructure project in Hong Kong's history, which will help drive sports development and stimulate the development of industries such as leisure, entertainment, tourism, and event economy. The "Inter-departmental Working Group on the Kai Tak Sports Park" led by the Chief Secretary for Administration will strengthen supervision to ensure the smooth completion and promotion of the sports park, promote the coordinated development of sports events, innovative entertainment, catering, conventions and exhibitions, and tourism, and make comprehensive plans and drills for security, crowd management, and handling of emergencies. Enhancing cultural confidence to create a new image for Hong Kong tourism We will use innovative thinking to make Hong Kong the preferred tourist destination, making good use of Hong Kong's rich and unique resources, such as Victoria Harbour, islands, rural areas, culture, cuisine, lifestyle, and historical buildings, combined with advantages in technology, animation, performing arts, and film and television culture, to achieve "tourism everywhere in Hong Kong." The Commerce and Economic Development Bureau will announce the "Hong Kong Tourism Industry Development Blueprint 2.0" ("Blueprint 2.0") within this year, focusing on promoting culture, sports, ecology, and events, including: (i) Developing ecotourism - We will explore more distinctive suburban and coastal tourism routes and improve supporting facilities, such as the Yim Tin Tsai island hopping tour; accelerate the construction of the "Southern Lantau Ecotourism Corridor"; develop the former Nam Y Island quarry site into a leisure and outdoor recreation zone; and develop Tsim Bei Tsui and Pak Nai as ecotourism nodes, etc.; (ii) Expanding tourist sources from the Middle East and ASEAN - We will actively promote all sectors of society to enhance relevant tourism facilities, create a tourist-friendly environment, including providing Arabic information at the airport and encouraging taxi fleets to provide service information in Arabic, integrating and providing a list of restaurants offering halal food, encouraging more commercial establishments to provide suitable facilities, such as providing prayer facilities in hotels, and enhancing staff training to deepen their understanding of receiving guests from different cultural backgrounds; (iii) Expanding unique tourism products - Expanding yacht tourism through the extension of parts of Aberdeen Typhoon Shelter, the former Nam Y Island quarry site, and the waterfront project at Hung Hom Station; actively promoting panda tourism, horse racing tourism, etc. The Commerce and Economic Development Bureau will promote the cultural and ecological tourism route products of Sha Tau Kok; the Security Bureau will also increase the daily tourist limit for the Sha Tau Kok opening plan to 3,000 people within this year, and through facial recognition technology, allow residents and workers in Chung Ying Street to try the "touchless" access method in and out of Chung Ying Street, and will study the application of related technologies to support the future development of tourism in Chung Ying Street (iv) Developing event tourism economy - The "Event Coordination Team" led by the Deputy Director of the Financial Services Department will continue to take the initiative to attract different events to be held in Hong Kong, focusing on both quality and quantity, driving retail and hotel industries. We will promote the development of the area above the Wan Chai North Exhibition Station and the waterfront and pier areas around the Hung Hom Station, providing venues for activities and creating new landmarks; (v) Consolidating traditional tourism attractions - The Tourism Board will develop an 18-district food guide, organize food events, and promote regional cuisine. The Department of Culture, Sports and Tourism will also announce the Cruise Tourism Development Action Plan in conjunction with the release of "Blueprint 2.0" to enhance the Kai Tak Cruise Terminal as a homeport and venue for conferences, exhibitions, and events; and (vi) Promoting smart tourism and enhancing the quality of tourism services - The Tourism Board will increase the development and promotion of more tourism projects with Hong Kong characteristics for local and foreign tourists, and utilize technologies such as artificial intelligence to provide one-stop support and attraction recommendations. We will also launch a new Outstanding Service Award program to deepen the implementation of the "Way of Hospitality". Developing distinctive tourism hotspots The government will establish a "Tourism Hotspot Development Task Force" led by the Deputy Director of the Administration, strengthen cross-department coordination, and work with social forces to discover and build popular and attractive tourism hotspots in various regions. Increasing inbound tourists The SAR government has proposed to the central government to further optimize the entry visa arrangements for mainland residents visiting Hong Kong, including restoring the "one visa multiple trips" individual travel endorsement for Shenzhen and expanding the pilot cities for the "one week one trip" individual travel endorsement policy. Relevant departments of the central government have expressed their willingness to actively study and accelerate the implementation. To promote exchanges with ASEAN countries, the government will relax the application thresholds for Cambodia, Laos, and Myanmar for "one visa multiple trips" for tourism and business, and extend the validity period of the visa from two years to three years. Vietnam, which benefited from the relaxation last year, will also benefit. We will establish expedited approval channels to allow group travelers from these ASEAN countries to have their visa applications expedited through local travel agents. In addition, we will provide self-service clearance services for special invitees from the ten ASEAN countries for trade and development activities, and facilitate their self-service clearance and visa applications through a one-stop counter service. All policy bureaus will assist in formulating the list. We will also fully cancel the requirement for travelers to submit arrival or departure declaration forms from today onwards, making entry and exit more convenient. (ii) Promoting diversified economic support for small and medium enterprises In response to the challenges faced by small and medium enterprises during the economic transformation period, the government will introduce the following support measures: (i) Reintroducing "interest-only repayment" - All borrowing enterprises under the "SME Financing Guarantee Scheme" (including loans already approved under the 80%, 90%, and 100% special guarantee products, as well as new loans under the 80% and 90% credit guarantee products) can apply for up to 12 months of "interest-only repayment", and the maximum loan guarantee period for the 80% and 90% credit guarantee products will be extended to ten years and eight years respectively. At the same time, an option for "partial principal repayment" will be provided for new loans under the two guarantee products. The HKMA is also actively considering providing flexibility on bank capital requirements to encourage banks to provide financing to small and medium enterprises; (ii) Injecting HKD 1 billion into the "BUD Special Fund" - Through the fund (officially known as the "Special Fund for Developing Brands, Upgrading Transformation, and Expanding Domestic Sales Markets"), assist small and medium enterprises in upgrading transformation and expanding into new markets, including expanding the regional subsidy scope of "e-commerce easy" to the ten ASEAN countries, and providing more targeted funding for enterprises to implement green transformation projects; (iii) Support the digital transformation of small and medium-sized enterprises and seize e-commerce opportunities—Expand the coverage of Cyberport's "Digital Transformation Pilot Programme" from retail and catering industries to tourism and personal services, providing one-on-one assistance to SMEs in digital transformation. Continue to hold the "Hong Kong Brands and Products Expo" in the next two years to help SMEs expand their e-commerce sales in the Mainland market, and timely organize the "Hong Kong Brands and Products Expo" in the ASEAN market; (iv) Strengthen the branding of SMEs—The TDC will formulate plans to set up more Hong Kong Pavilions at exhibitions in the Mainland and overseas to enhance the promotion of Hong Kong brands. The HKTDC and the TDC will also enhance support for SMEs in developing brands and expanding e-commerce sales networks; (v) Enhance services of the Hong Kong Design Centre—Reorganize the structure and functions of the Hong Kong Design Centre to assist SMEs in the design industry in enhancing product and brand design services, strengthen cooperation with startups and Mainland enterprises in Hong Kong; (vi) Strengthen regular exhibition incentives—Allocate an additional HKD 500 million to launch the "Regular Exhibition Incentive Programme 2.0", focusing on supporting new and international large-scale exhibitions to further promote the development of the event economy and MICE industry; (vii) Assist in government procurement participation—The Housing Authority will streamline the application process for contractors to join the list of maintenance project contractors, providing more bidding opportunities for contractors; and (viii) Strengthen payment protection in the construction industry—The government has submitted the "Construction Industry Payment Protection Bill", which prohibits unfair terms such as "conditional payment" from being included in contracts, and introduces an adjudication mechanism to resolve payment disputes. Promote the Silver Hair Economy The silver hair market is growing rapidly, with increasing demand for elderly products and services, opening up new products and services to meet the needs of the elderly, improve their quality of life, and bring business opportunities. The government will establish a "Task Force for Promoting the Silver Hair Economy", led by the Deputy Secretary for Home Affairs, to introduce measures in five categories: (i) Promote "Silver Consumption"—Build a senior-friendly consumption environment with various sectors, encourage the integration of silver hair economy elements in businesses, such as senior discounts, and safeguard the rights of elderly consumers; (ii) Develop "Silver Industries"—Promote the marketization and industrialization of elderly products, integrate funding resources, encourage the business sector to provide products, and expand the market; (iii) Promote "Silver Quality Assurance"—Promote certification of elderly products, enhance acceptability and attractiveness, align with domestic and international standards, and expand sales networks; (iv) Promote "Silver Financial and Security Arrangements"—Assist the elderly in making proper financial arrangements and enhance security, including promoting retirement financial products under the supervision of Hong Kong mortgage securities companies, elderly investor education, etc.; and (v) Unleash "Silver Production Power"—Assist in unleashing the productivity of the elderly through retraining and re-employment initiatives. Promote Sustainable Development of Fisheries and Agriculture The government will continue to promote the "Fisheries and Agriculture Sustainable Development Blueprint", including developing deep-sea aquaculture in the waters of Wong Chuk Hang and Tai Tam Bay, preparing for the development of the second phase of agricultural parks, implementing the "urban agriculture" strategy in new development areas, promoting the construction of multi-story modern environmentally friendly poultry and livestock farms in the poultry and livestock industry, and promoting leisure fisheries and agriculture VII. Driving the Development Engine of the Northern Metropolis Area to Deepen Cooperation in the Greater Bay Area (I) Advancing the Construction of the Northern Metropolis Area The Northern Metropolis Area (Northern Metropolis) is a new engine for the economic development of Hong Kong. We will accelerate the promotion of projects related to economic and housing development within the Northern Metropolis while maintaining sound public finances. The Northern Metropolis will gradually enter the harvest period. In the next five years, approximately 60,000 housing units will be completed and occupied, including about 10 new public housing estates; the first batch of land in the Nantian Science and Technology City will be launched on the market; the new Huanggang Port building implementing "One Port, Two Checks" will also be completed. In the second five years, the newly completed housing units will increase by about 150,000; over 10 million square meters of total floor area will be used for economic purposes; the first government joint office building in Gudong North will be completed and put into use; the North District Hospital will complete its expansion and be put into service; in terms of transportation infrastructure, the main line of the Northern Ring Road is expected to be completed in 2034, and the Northern Metropolis Highway (Nantian section) is expected to open in 2036. This will greatly drive economic development, promote the development of research and technology industries, provide a better living environment, help attract and retain talent, improve the quality of life for residents, and bring happiness and well-being to the people. The government will seek funding for the initial phase of infrastructure works in the Nantian Science and Technology City, starting the works within this year, and strive to gradually launch around 20 hectares of new creative technology land from 2026-27 onwards for development and operation by the Science Park Corporation. In addition, the second phase of development in the South Yuen Long New Development Area will commence in the middle of next year. Preliminary development proposals for Niu Tan Wei will also be announced in the short term, including land reservations to promote the development of the "Northern Metropolis University Education City," the third medical school, and a comprehensive medical education and research hospital. Subsequently, preliminary development proposals for the new towns in the North New Territories and Ma Tsau Long will be announced by the end of the year. The rezoning process for Sha Ling in the North District will commence within this year, and the creative technology land for data centers and related purposes will be expanded to ten hectares. We are exploring the selection of pilot industrial parks, such as part of the logistics land in the Hongshuiqiao/Xiacun New Development Area, to be allocated to a government-established and led company responsible for formulating park development and operation strategies in line with government industrial policies (including considering strategic investments) and daily management, investment promotion, and other work. Details will be announced in the first quarter of next year. We will also consider flexibly allocating industrial land to promote industrial development in response to the needs of individual industries. The government will implement the "district development" model to accelerate the construction of the Northern Metropolis, selecting plots of land with scale, commercial value, and provision of public facilities as districts for comprehensive development by project developers to expedite completion and achieve more coordinated design. We have identified three pilot areas ranging from 10 to 20 hectares each. (II) Promoting the Development of the Hetao-Hong Kong-Shenzhen Innovation and Technology Park The Hetao Shenzhen-Hong Kong Science and Innovation Cooperation Zone is located on both sides of the Shenzhen River, including the Shenzhen Park and the Hong Kong Park. The government will leverage the advantages of "One Country, Two Systems" and the geographical advantage of "One River, Two Banks" to develop the Hong Kong Park in Hetao into a world-class platform for industry-academia-research collaboration, build an internationally competitive industrial pilot transformation base, create a global hub for innovation and technology resources, and explore experimental fields for institutional and policy innovation I have established the "He Tao District Hong Kong-Shenzhen Innovation and Technology Park Supervisory Committee" chaired by the Chief Executive to lead the government in formulating the overall strategy, plan, and layout deployment of Hong Kong park development. This year, the "He Tao Hong Kong Park Development Outline for Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone" will be released, proposing innovative policies to promote the flow of personnel, materials, funds, and data between the park areas of Hong Kong and Shenzhen, making the cooperation zone a key source of new productive forces nurtured by the country. The Hong Kong park is divided into two phases from west to east. It is currently accelerating and expanding, doubling the total floor area of the first phase to 1 million square meters, with the first three buildings set to be completed one after another starting at the end of the year. The first batch of tenants from pillar industries in the park such as life health technology, artificial intelligence, and data science will start to move in next year, with the remaining five buildings to be completed over the next five years. We are also discussing with relevant national ministries the facilitation measures for innovation, such as: convenient transit for specific personnel between the park areas of Hong Kong and Shenzhen; using unmanned low-altitude transportation to facilitate cross-border flow of goods; facilitating mainland enterprises to settle in the Hong Kong park and transfer funds across borders. Combining the advantages of the Greater Bay Area for mutual expansion The Guangdong-Hong Kong-Macao Greater Bay Area is a strategic fulcrum of the country's new development pattern, a demonstration area for high-quality development, and a leading area for Chinese-style modernization. Hong Kong has always been an active participant, promoter, and beneficiary. To strengthen top-level planning and supervision, I have established the "Integration into the National Development Overall Supervision Group" to lead the SAR government and all sectors to more actively promote the integration development of Hong Kong with the mainland, especially with mainland cities in the Greater Bay Area, and deepen mutual coordination and cooperation through multiple cooperation task forces. The government will continue to promote higher-level interconnection, policy innovation breakthroughs, broader rule alignment and mechanism docking, and accelerate the coordinated development of innovation and industries to promote the construction of the Greater Bay Area. Expanding the logistics industry circle by combining mainland land resources and Hong Kong's air transport advantages The "Hong Kong International Airport Dongguan Air Cargo Center" is the best demonstration of innovative cooperation mechanism development, invested and built by Hong Kong, combining Hong Kong's advantages in aviation logistics with mainland land and human resources advantages to reduce operating costs and cargo handling time, setting an example of complementary advantages. We will work together with the Dongguan municipal government to promote the development of the permanent air cargo center. Promoting cooperation among the Greater Bay Area airport cluster to expand business networks By leveraging the strengths of Hong Kong International Airport and Zhuhai Airport, we will strengthen direct passenger services through the "Hong Kong-Zhuhai-Macao Bridge" and promote joint international cargo operations with Zhuhai to achieve mutual benefits. Strengthening professional qualification recognition mechanisms We have successfully established the first batch of professional title evaluation mechanisms for engineering professionals in Hong Kong with Guangdong Province, which will gradually expand to other construction professions. We are also cooperating with Guangdong Province and Macao to establish Bay Area standards for the technical levels of construction workers and personnel, and promote the "one test, multiple certificates" arrangement. Through Bay Area standard examinations, individuals can simultaneously obtain professional skills certificates from all three regions, enhancing the training quality of the entire Greater Bay Area construction industry and nurturing talents. Activating fund circulation for joint investment in the Greater Bay Area Hong Kong Investment Management Limited is actively exploring cooperation opportunities with relevant mainland institutions and jointly investing in projects in the Greater Bay Area that have potential economic and social benefits in response to market developments Promoting Data Flow for the Convenience and Benefit of Enterprises Last year, the "Guangdong-Hong Kong-Macao Greater Bay Area (Mainland China, Hong Kong) Personal Information Cross-border Flow Standard Contract" pilot measures in the banking, credit data, and medical sectors have operated smoothly in simplifying cross-border data compliance flow. We will expand these measures to various industries to promote more convenient cross-border services for enterprises and data flow in the Greater Bay Area. Enhancing Medical Collaboration in the Greater Bay Area Through Guangdong-Hong Kong cooperation, we will expand the "Elderly Medical Voucher Greater Bay Area Pilot Program" to nine mainland cities in the Greater Bay Area; utilize the Health Code platform to expand cross-border medical record exchange; explore the "Greater Bay Area Clinical Trial Collaboration Platform" and "Real-World Research and Application Center" in the Hetao Deep Bay Area for technology innovation cooperation, facilitating cross-border application of data, samples, and medical devices to accelerate the development of the medical innovation industry; strengthen collaboration in the Greater Bay Area to promote specialized training in line with international standards. Enhancing Legal Cooperation We will continue to promote the implementation of optimized arrangements for cross-border judicial document delivery and establish the Greater Bay Area Legal Information Platform and the Greater Bay Area Lawyer Specific Platform organization to promote professional exchanges and training. Nurturing Talent to Expand Youth Development Opportunities We have always encouraged universities in Hong Kong to establish branches in the Greater Bay Area, with four branch campuses established to date. We have also established the "Greater Bay Area Youth Employment Program" to encourage young people from Hong Kong to work in the Greater Bay Area. We are exploring bilateral arrangements in this regard. Improving People's Livelihood and Adding Happiness (I) Housing: Accelerating, Increasing, Improving, and Enhancing Efficiency Increasing Public Housing Supply Housing is a matter of great concern to citizens. In the past, the pace of land development and housing construction was slow, but with the government's unremitting efforts, the completion volume of public housing has gradually reversed the situation of being "light at the beginning and heavy at the end." Although we have identified land to provide a sufficient number of public housing units to fully meet long-term demand and have accelerated land development and housing construction, it takes time to develop land and build houses. To fill the gap in recent years, I announced the introduction of innovative "Simplified Public Housing" units in 2022, totaling 30,000 units, to reduce the comprehensive waiting time for public housing. This measure has had a certain effect. Including the "Simplified Public Housing," the overall supply of public housing in the next five years (from 2025-26 to 2029-30) will reach 189,000 units, an increase of about 80% compared to the five-year period when this government took office (from 2022-23 to 2026-27). In the past two years, the average waiting time for public housing has decreased by half a year, from a peak of 6.1 years to five and a half years. With the gradual completion of the "Simplified Public Housing" starting next year, the comprehensive waiting time for public housing can be reduced by one and a half years by the 2026-27 fiscal year, to four and a half years. With an urgent attitude to help citizens move in, the "Early Move-in Plan" proposed when I took office has enabled more than 2,000 families to move in 5 to 9 months earlier, saving nearly 50 million yuan in rental expenses for beneficiaries. By the 2027-28 fiscal year and earlier, there will be approximately 10,000 additional units available for early move-in. In addition, the first batch of around 2,100 units of "Simplified Public Housing" on Yau Yue Road in Yuen Long will be completed and occupied in the first quarter of next year. Approximately 9,500 units will be completed next year, and all around 30,000 units will be completed by the 2027-28 fiscal year Establishing a Rental System for Residential Unit Subdivision to Solve the "Subdivided Unit" Issue The "Subdivided Unit Issue Resolution" working group has submitted a report, and the government has decided to establish a rental system for residential unit subdivisions through legislation, with compliant units to be named "Simple Homes." Currently, there is a significant difference in the conditions of different subdivided units, including in fire safety, ventilation, area, and whether there is an independent kitchen and bathroom or a combined kitchen and bathroom, it is necessary to set minimum standards and prohibit non-compliant units. There are currently about 110,000 households living in subdivided units, indicating a practical demand for such units. Due to the significantly higher total rental income from subdividing and renting out the original units, owners have a strong economic incentive to operate such leases. Proper regulation will ensure that the rental "Simple Homes" meet market demand while complying with standards. Non-compliant residential unit subdivisions must be renovated into compliant "Simple Homes," confirmed and certified by professionals. Otherwise, owners who rent out non-compliant units will be criminally liable, while tenants will not be held legally responsible. Existing owners of residential unit subdivisions will be given time to carry out the necessary renovations. The legislation will provide a grace period during which no enforcement action will be taken against illegally rented units. The government will establish a registration system for this purpose, allowing registered owners to enjoy the grace period. The registration system will only accept registrations of existing rental residential unit subdivisions; new entrants to the market must apply for certification as compliant "Simple Homes" before renting out, thus not requiring a renovation grace period. As new entrants to the market must be certified as compliant "Simple Homes" and existing registered units must be renovated into compliant "Simple Homes," owners who continue to rent out non-compliant units after the grace period will be in violation of the law, and the relevant units will be orderly shut down, gradually reducing the number of non-compliant residential unit subdivisions to zero. To allow current owners and residents of subdivided units sufficient time to make arrangements, the government will set an adequate grace period and coordinate with the supply of "Simple Homes" in the market, as well as the supply and policies of public housing, to handle residential unit subdivisions in batches in an orderly manner. The Secretary for Housing will be authorized by the legislation to decide, based on the actual situation, when and which subdivided units will be subject to enforcement actions in batches after the grace period ends. The government proposes that the standards for "Simple Homes" include having windows, an independent toilet, and an area of not less than 8 square meters. The working group leader, the Deputy Secretary for Financial Services and the Treasury, and the Deputy Director of Housing will announce the details and consult the Legislative Council and stakeholders to formulate legislative content and a registration timetable. Improving the Home Ownership Scheme The Housing Authority will further enhance and enrich the Home Ownership Scheme to meet the housing needs of the public, including: (i) Adjusting the ratio of public rental housing (including the Green Form Subsidised Home Ownership Scheme (GSH)) and subsidised sale units - The Housing Authority is reviewing the ratio of public rental housing and subsidised sale units for upcoming public housing projects in the mid to late 2020s, aiming to gradually adjust the ratio from the current 7:3 to 6:4; (ii) Increasing opportunities for repeat applicants to purchase subsidised sale units - Starting from the next round of GSH and Home Ownership Scheme projects, applicants who have applied for the same category of subsidised sale units sales plan twice in a row without successfully purchasing a unit will be provided with an additional ballot number; (iii) Accelerating the turnover of public housing units - The Housing Authority will tighten the policy for wealthy households in public housing, increase the additional rent for wealthy households and lower the income limit for wealthy households, allowing public resources to be appropriately used for applicants in need. At the same time, the ratio of Green Form Subsidised Home Ownership Scheme (GSH) units will be adjusted from the current 40:60 to 50:50, encouraging more public housing tenants to purchase GSH units. Cracking down on the abuse of public housing In recent years, the Housing Authority has strengthened efforts to crack down on the abuse of public housing. In the past two years, the Housing Authority has recovered a total of 5,000 public housing units that were abused or violated lease agreements or housing policies, equivalent to building a medium-sized public housing estate, with significant results. In January next year, the Housing Authority will launch the "Reward Scheme for Proper Use of Public Housing Resources" to reward individuals who provide accurate information to report cases of public housing abuse, in order to identify more cases of abuse. Advancing public housing redevelopment The Housing Authority is currently carrying out 11 redevelopment projects. This year, the research results and details of the redevelopment of Choi Hung Estate will be announced, and next year, the redevelopment plans for Sai Wan Estate and Ma Tau Wai Estate will be revealed. Stabilizing the supply of private residential land According to the "Long Term Housing Strategy," the demand for private residential units in the next ten years is projected to be 132,000 units. The government is preparing land to build approximately 80,000 private residential units in the next five years. Relaxing the loan-to-value ratio limit for property mortgages Considering the latest economic and financial environment, and with the aim of maintaining the stability of the banking system, the Hong Kong Monetary Authority will relax the mortgage conditions for residential properties. Regardless of property value, whether it is for self-use or held by a company, and whether the buyer is a "first-time buyer," the maximum loan-to-value ratio will be uniformly adjusted to 70%, and the maximum debt servicing ratio will be adjusted to 50%. As for non-residential properties, the maximum loan-to-value ratio and debt servicing ratio will also be adjusted to the same levels. Further improving building safety and management Through the "Professional Building Management Consultant Service Scheme," the Home Affairs Department has assisted in establishing approximately 100 owners' corporations in nine areas with a higher number of "three-nil buildings" over the past two years. The scheme has been extended to cover the entire territory by mid-year, with the contract also extended to three years. The government will implement a pilot scheme called "Joint Management of Buildings" in selected districts next year, arranging for the same property management company to jointly manage neighboring old buildings, allowing "three-nil buildings" and old-style buildings to receive basic management services at reasonable costs. To enhance deterrence against those who fail to comply with notices or orders in a timely manner and engage in large-scale unauthorized building works, the government will propose amendments to the Building Ordinance within this year and consult the public. It is also proposed to increase the categories of exempted works and minor works within the Building Ordinance, to pragmatically handle lower-risk minor unauthorized building works, with a proposal for legislative amendments to be submitted in 2026. The government will create a senior-friendly building environment and propose building design suggestions conducive to the lives of seniors, to be implemented in phases. (ii) Developing land and building homes for living The government's determination to continue developing land remains unchanged, and it will adapt to the situation and steadily advance various projects. According to the latest forecast, in the next ten years, government-led projects can provide approximately 3,000 hectares of land for development (i.e., "developed land"). When selling land, the government will consider market changes to ensure a stable and healthy market environment Further Simplify Procedures to Reduce Costs The government is vigorously streamlining the land development procedures and has issued an internal notice explicitly requiring all approving departments to act as promoters when processing applications and to dedicate efforts to streamline processes, which has been well received by the industry. We will continue to break down barriers and loosen restrictions, including: (i) Utilizing industry resources to speed up processes - outsourcing drone surveys of building facades, unauthorized building structures, and related analysis work to private companies, and shifting the approval of smaller-scale or temporary structures to be certified by professionals themselves; (ii) Lowering construction costs - strengthening the role of the Strategic Development and Control Division under the Development Bureau, completing a strategic study on construction costs within this year and proposing improvement measures, including increasing direct government procurement of building materials and products, reviewing building design standards, promoting cost-effective building materials and construction technologies for domestic application; and (iii) Expanding project coordination work - expanding the authority of the Project Facilitation Office under the Development Bureau to not only coordinate departments to expedite approvals for large-scale private residential and commercial projects but also for land use and related approvals for projects in the Northern Metropolis Innovation Zone and other industrial development projects. Promote the Integration of Building Technology Research and Application with National and Hong Kong Standards In August of this year, the Development Bureau established the "Hong Kong Institute of Building Technology" to conduct applied research on innovative materials, construction methods, and technologies, formulate standards, provide testing and certification, lead industry innovation, and implement a "Modular Integrated Construction" manufacturer certification program, in coordination with the mainland as a production base, to promote complementary advantages in the construction industry between Guangdong and Hong Kong. Through the "Hong Kong Institute of Building Technology," we will reference overseas and national standards ("National Standards") to review and optimize the long-standing building standards in Hong Kong, promote the application of high-quality and cost-effective building materials from home and abroad. Moreover, when high-quality national standard building materials and technologies are applied locally, it also benefits the national standards in expanding into the international market. We will closely collaborate with relevant authorities in Guangdong Province to promote the formulation of "Guangdong-Hong Kong-Macao Greater Bay Area Building Standards." The Housing Authority will increase the application of the second-generation "Modular Integrated Construction" method (MiC 2.0) jointly developed with research institutions, simplify on-site installation processes, ensure construction safety, and specify the use of construction robots in certain parts of contract specifications to enhance site safety and construction efficiency. Commence the Environmental Impact Assessment Process for the Artificial Island Project in Kau Yi Chau The government will prudently promote the construction of the artificial island in Kau Yi Chau, initiating the environmental impact assessment process for the reclamation part by the end of the year, with the goal of completing the approval work next year. Detailed engineering design work will be carried out within this year. Accelerate Urban Renewal The Urban Renewal Authority is conducting planning studies for Tsuen Wan and Sham Shui Po, and will propose updated master plans in the second half of next year. The Development Bureau is also studying the use of newly developed land to drive large-scale redevelopment projects in old districts, including transferring development rights across districts and constructing more "dedicated resettlement estates," with the aim of formulating recommendations in the first half of next year. We will extend several measures related to "Revitalization of Industrial Buildings" that are nearing expiration until the end of 2027, including continuing to allow an increase in plot ratio of up to 20% for industrial building redevelopment projects, to encourage ongoing redevelopment and refurbishment of old industrial buildings (Three) Promoting the Development of Transportation Infrastructure The government is actively promoting the "Hong Kong Major Transport Infrastructure Development Blueprint". The Hung Hom Station and the North Link main line will commence construction within this year and next year respectively, with completion expected in 2030 and 2034. Efforts are also being made to advance cross-border railway projects, including the Hong Kong-Shenzhen Western Railway (Hung Hom Station to Qianhai) and the North Link branch line, to enhance connectivity between Hong Kong and Shenzhen. Building Smart and Green Public Transport We are fully promoting three smart and green public transport system projects, compressing the timeline for development. In August of this year, we invited suppliers and operators to submit letters of intent for the projects in East Kowloon and Kai Tak, and will do the same for the Hung Hom/Xiacun project within this year. Through innovative development methods and construction techniques, our goal is to complete the Kai Tak project three years ahead of the original estimate. (Four) Deepening Healthcare System Reform To enhance public health, improve medical security and quality, leverage medical expertise, the government will comprehensively review the positioning and objectives of the healthcare system. This includes reforming the Hospital Authority, Department of Health, and District Health Centers to strengthen primary healthcare for health promotion and disease prevention, improve public medical services, promote the quality, efficiency, and transparency of private medical services, provide citizens with high-quality, cost-effective medical service choices, support talent training and technological innovation, continuously enhance Hong Kong's medical professionalism on the world stage and regional advantages, and establish Hong Kong as an international medical innovation hub, an advanced medical center in Asia, a gathering place for medical talent, and a bridge for medical exchanges between China and foreign countries. Advancing Primary Healthcare Development The government will comprehensively advance primary healthcare development, including: (i) Legislatively strengthening the governance structure of primary healthcare centers, empowering them to establish quality assurance and supervision mechanisms; (ii) Developing a community drug list and launching a community pharmacy plan, coordinating centralized procurement and community networks to make it more convenient for citizens to access affordable primary healthcare drugs; (iii) Formulating a whole-life health promotion strategy, developing citizen health management plans based on different ages and health conditions; (iv) Restructuring maternal and child health and family planning services, enhancing fertility counseling and parenting education to promote healthy reproduction; (v) Strengthening the "Whole School Health Plan", proposing targeted school-based measures for each school to improve physical activities, dietary arrangements, and enhance students' physical and mental health; (vi) Expanding more district health centers into hubs and expanding service networks, integrating services of women's health centers and elderly health centers; (vii) Expanding the "Chronic Disease Co-management Pilot Program" to include lipid testing; positioning Hospital Authority general outpatient clinics to provide comprehensive primary healthcare services specifically for vulnerable communities; (viii) Gradually formulating screening plans based on risk for common cancers, including breast cancer screening, researching artificial intelligence-assisted lung cancer screening, and implementing hepatitis B screening for liver cancer prevention and treatment; (ix) Launching the "Adolescent Dental Co-management Pilot Program" to encourage dental disease prevention, and the "Community Dental Support Program" to strengthen dental services for vulnerable groups including economically disadvantaged elderly, replacing the Dental Assistance Program of the Community Care Fund, and adding preventive dental services for preschool children; Continuing to promote tobacco control. Enhancing public and private healthcare services The government will strengthen the public healthcare services of the Hospital Authority, including: (i) Exploring fee structures and levels to encourage prudent use of services, guide resources to those most in need and critically ill patients, increase support for economically disadvantaged patients, and enhance the financial sustainability of targeted subsidies for public healthcare services; (ii) Strengthening centralized procurement of pharmaceuticals for public healthcare, enhancing bargaining power, and more proactively introducing innovative drugs that are effective and cost-effective into the formulary; (iii) Utilizing data from the Hong Kong Genome Institute to develop a catalog of genetic and rare diseases to assist clinical teams in early diagnosis and treatment, support related research and clinical trials, and develop precision medicine; (iv) Fully integrating various networked pediatric departments at the Hong Kong Children's Hospital and expanding more advanced medical services to better fulfill the functions of the children's hospital; (v) Finalizing the second hospital development project and schedule to align with the development of the Northern District and regional needs; (vi) Constructing the first stroke center and the second chest pain center according to national certification standards; (vii) Optimizing the referral system and transfer arrangements for specialist outpatient clinics, including establishing cross-specialty comprehensive clinics to eliminate the need for multiple referrals; and (viii) Increasing cataract surgery volume by at least 20%. The government will also enhance the quality and efficiency of healthcare services, including: (i) Organizing professional platforms based on evidence to develop clinical guidelines and researching to establish quality and efficiency benchmarks for public and private healthcare services; (ii) To enhance service efficiency and address medical inflation, quality indicators will be developed for the public and private healthcare systems, and legislation on transparency of private healthcare fees will be explored, with plans to consult the industry next year; and (iii) Amending regulations to require all healthcare providers to store important health data in citizens' personal electronic health records, enabling citizens to have more comprehensive electronic medical records to enhance the continuity of healthcare services. Attracting healthcare professionals Promoting the previously passed legal framework, actively introducing non-local doctors, nurses, and dentists to increase manpower. The government will submit a bill next year to introduce qualified non-local trained allied healthcare professionals. Supporting the establishment of a third medical school In order to increase the number of doctors and support Hong Kong's development as an international medical innovation hub, in addition to increasing the training quota of the existing two medical schools, the government supports local universities in establishing a third medical school. A task force will be set up to invite universities interested in establishing a new medical school to submit proposals. The government will reserve land in Ngau Tam Mei in the Northern District for the development of new medical school buildings and a new integrated medical education and research hospital. Promoting the development of Chinese medicine and Chinese herbal medicine The government will leverage Hong Kong's advantages in healthcare system, regulatory system, standard setting, clinical research, and trade to develop Hong Kong into an international gateway for the internationalization of Chinese medicine and Chinese herbal medicine. The "Chinese Medicine Development Blueprint" will be announced within the next year, and the following measures will be implemented: (i) Exploring the application of big data to promote international research cooperation on the interaction between Chinese and Western medicine, discover more clinically significant evidence, and promote the internationalization of Chinese medicine; (ii) Expanding collaborative services between Chinese and Western medicine to include "respiratory diseases," "osteoarthritis," and other areas where Chinese medicine has advantages, and gradually expanding "cancer treatment" to all networked hospitals; (iii) The permanent building of the first Chinese medicine hospital and government Chinese medicine testing center is expected to be completed in stages next year and put into service; and (iv) Organize the first "Hong Kong Chinese Medicine Culture Festival" to collaborate with the industry to promote Chinese medicine culture. Promoting mental health The government will increase the provision of medical, educational, and social collaborative services to promote the mental health of citizens, including: (i) Formulating a "mental health tiered care model" - Formulating a tiered structure across multiple professional sectors, from frontline handling of general emotional issues, to follow-up on individual cases, to more severe cases of mental illness, clarifying the positioning and division of labor of mental health services provided by professionals such as teachers, social workers, and medical staff at each level, enabling them to work together smoothly and play their respective roles; (ii) Enhancing societal attention to mental health - Annually establish a promotion theme for the "Mental Health Workplace Charter" and commend participating organizations that meet the standards; and increase the promotion of the "4Rs Mental Health Charter" in schools to more comprehensively enhance the mental health of students, teachers, and parents; (iii) Strengthening support for children and adolescents - Continuing and optimizing the school-based three-tier emergency mechanism, launching a "mental health literacy" resource package for high school and primary school students; establishing an online immediate support platform for adolescent emotional health in the second quarter of next year; (iv) Assisting mental health recovery individuals to integrate into the community - Establishing a "Transitional Support Service Team for Mental Health Recovery Individuals" to support discharged individuals waiting for halfway house services; the Social Welfare Department (SWD) will also increase the establishment of comprehensive community mental health centers; and (v) Enhancing teacher training and parent education - Strengthening teachers' ability to identify and support students with mental health needs early, and assisting parents in acquiring knowledge and skills to care for their children's mental health. (v) Building a caring and inclusive society I attach great importance to building a harmonious, stable, caring, and inclusive community, providing appropriate assistance to vulnerable groups and families in need. Social welfare expenditure has always been at the forefront of various categories of public expenditure, with daily spending on social welfare exceeding HKD 300 million, demonstrating the government's emphasis on social welfare investment. Precision poverty alleviation The government adopts a precision poverty alleviation policy, focusing resources on those most in need of assistance, with measures receiving positive responses from society. We will focus on the following key areas: (i) Expand the "Co-create Bright 'Teen' Program" - Launch the third phase of the program this year, recruiting 4,000 students to promote alumni youth leaders in organizing activities for self-development, enhancing mentor training, etc.; (ii) Expand the "Community Lounge Pilot Program" - Add 3 new community lounges in areas with a concentration of subdivided units next year, expected to benefit around 1,300 target households, providing services to approximately 200,000 people annually. Taking into account the 4 community lounges already launched, it is expected to provide services to around 3,050 subdivided unit households and approximately 470,000 people annually; (iii) Optimize the "In-school After-school Care Program" - Starting this school year, the coverage has expanded from 50 primary schools to over 110 primary schools, allowing students to stay in school for after-school care and learning support, making it more convenient for parents to work outside; depending on actual needs and effectiveness, we plan to encourage more schools to participate in the program in the 2025/26 school year, with no limit on the number of places; and (iv) Subsidize elderly people receiving Comprehensive Social Security Assistance (CSSA) to reside in elderly homes in Guangdong Province - launching a three-year trial plan next year to subsidize eligible elderly people receiving CSSA who choose to live in designated homes in Guangdong. Each eligible elderly person can receive a monthly subsidy of 5,000 yuan, with a total of 1,000 quota. Caring for the elderly The government focuses on taking care of the elderly in need and continuously strengthens elderly services. The government will increase the total number of "Elderly Home Care Service Voucher Scheme" vouchers by 20% to 6,000, allowing more frail elderly people to move into their chosen elderly homes without waiting and receive government-subsidized nursing services. We will optimize the "Guangdong Elderly Home Care Service Scheme" to provide more choices and support for elderly people living in elderly homes in Guangdong, including: (i) Starting from November this year, the number of elderly homes participating in the scheme will increase from the current 4 to 11; (ii) Sharing part of the local medical expenses for elderly people participating in the scheme; and (iii) Entrusting organizations to provide care services to elderly people participating in the scheme, helping them adapt to life in Guangdong. We are also committed to enhancing the support and level of staffing in local elderly homes. Through the "Elderly Home Nursing Staff Special Program," we will alleviate the shortage of manpower and comprehensively review the skills and qualifications requirements for healthy staff in elderly homes, such as adding promotion ranks for existing health workers and relaxing the educational requirements for nursing staff to pursue advanced training certificate courses. The review is expected to be completed within this year. In addition, the government is in discussions with the banking industry on feasible methods to allow Hong Kong elderly people living in Guangdong and Fujian provinces to conveniently receive government assistance through banks. Support for caregivers The government is dedicated to supporting caregivers. In addition to providing caregiver allowances, respite services, a one-stop information website, and a 182183 Caregiver 24-hour support hotline, starting from March this year, the "District Service and Care Team - Support for the Elderly and Caregivers Program" (Program) was piloted in Tsuen Wan and Southern Districts. The Social Welfare Department trained "Care Teams" in the two districts to proactively reach out and identify residents in need, in collaboration with the support hotline, to provide support for the elderly and caregivers. The pilot program has shown good results. The trained Care Teams have visited 4,700 households in the past six months and referred approximately 900 cases to social welfare agencies for follow-up. Next year, we will expand the program to cover all districts in Hong Kong, providing support to the elderly and caregivers in all 18 districts. We will also study the establishment of a cross-disciplinary, cross-institutional database for caregivers of the elderly and persons with disabilities, in collaboration with identification tools designed by university teams, to identify high-risk cases and intervene early to provide support. Enhancing support for persons with disabilities We will further strengthen rehabilitation services for persons with disabilities, including: (i) Establishing 14 "Integrated Community Rehabilitation Centers" across Hong Kong, adding 1,280 service quotas, to provide appropriate support according to individual needs and rehabilitation progress through a comprehensive case management model; (ii) Adding 90 peer support worker positions to enhance peer support for persons with disabilities and their caregivers; (iii) Establishing a District Support Center for Persons with Disabilities in the New Territories East; and (iv) Adding approximately 1,040 quotas for day, residential, and preschool rehabilitation services, and studying the establishment of special kindergarten centers in vacant kindergarten premises 202. To encourage and support the employment of persons with disabilities, the government will establish the "Caring Employer" award to commend employers who actively hire persons with disabilities, promote the establishment of more social enterprises that employ persons with disabilities, optimize the services and training models of sheltered workshops and integrated vocational rehabilitation service centers, and build a better vocational rehabilitation training ladder for persons with disabilities. Many women in Hong Kong hold leadership roles. To promote the development of women in the workplace, we will establish networks with female leaders from all sectors and launch the "Guiding You" program to pair female university students with senior management mentors. To support working parents, I announced the addition of 10 subsidized standalone childcare centers last year. The government will add one more center, providing 100 daytime childcare places, and increase the service quota of the "Neighborhood Support Childcare Program" by 25% to 2,500 places, benefiting up to 25,000 children. The Legislative Council has passed the "Mandatory Reporting of Child Abuse Ordinance," which requires professionals in the social welfare, education, and healthcare sectors to report serious child abuse cases. To strengthen parenting education, the Social Welfare Department will launch a pilot program to establish four "Community Parent-Child Centers" that use play-based methods to promote parent-child interaction and teach parents positive parenting methods, supporting families in need. To better integrate ethnic minority individuals into the community, the two additional Ethnic Minority Service Centers proposed last year will be put into service this year. The government will also hire an additional support center starting next year to provide interpretation and translation services for ethnic minority individuals, alleviating language barriers. The Education Bureau will enhance support for non-Chinese-speaking students (including ethnic minority students) in Chinese language learning and parental assistance, including organizing after-school Chinese learning classes, enhancing "online Chinese self-learning resources," and organizing cross-school teacher learning communities, as well as holding parental education activities for non-Chinese-speaking students' parents. The "Caring Team" is an important service team in the government's improved district governance structure. All 452 "Caring Teams" in Hong Kong were fully activated last year. The "Caring Teams" work diligently and provide diverse care and support services, such as visiting a total of about 230,000 elderly households and households in need, providing over 22,000 instances of simple home or other support, greatly appreciated by the public. The government will regularize funding for the "Caring Teams" and increase the funding amount by 50% in the next round of funding to support the work of the "Caring Teams."