Innovation-tech sector gets HK$50b boost to catch up

The Hong Kong government has pledged a five-fold increase in investment in the innovation and technology field for the next financial year, focusing on infrastructure construction of innovative platforms and attracting talents.

Financial Secretary Paul Chan Mo-po said in his 2018-19 Budget speech on Wednesday HK$50 billion will be set aside to help the SAR catch up in the fierce regional tech race.

For the 2017-18 fiscal year, only HK$10 billion was allocated for the sector.

“Hong Kong must optimize its resources by focusing on developing its areas of strength, namely biotechnology, artificial intelligence, smart city and financial technologies,” Chan said.

Of the amount, HK$20 million will be spent on infrastructure construction and initial operations in the first phase of the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop — one of the most significant tech projects undertaken by the SAR.

The financial chief estimated the entire project would eventually cost far more than the amount allocated, and additional resources will be provided to enable the park to go into operation as early as possible.

Agnes Wong, tax partner at PwC Hong Kong, said the government’s large financial support could lift professionals’ confidence in working on the project, facilitating its longterm development.

The park is a wholly-owned subsidiary company of Hong Kong Science and Technology Parks Corporation (HKSTPC) and is designed to be co-developed by the SAR and Shenzhen.

The first plot of land is expected to be delivered to HKSTPC in 2021 or earlier, according to government sources on Wednesday. Once completed, the project would be the biggest science park in Hong Kong — four times larger than the existing Hong Kong Science Park in Tai Po.

In addition, the SAR government will inject HK$10 billion into HKSTPC for the building of research-related infrastructure and facilities, enhancing support for its tenants and incubatees, as well as setting up a Smart Campus at the park.

Wilton Chau, professor of practice in entrepreneurship at the Chinese University of Hong Kong, described the huge increase in government investment, compared with the previous financial year, as “surely a good thing” for the development of the city’s innovation and technology field.

He said the government has provided the first lump sum of money for budding businesses to develop, but the key is to sustain the growth in future. To achieve that goal, he believes, attracting talents and nurturing an innovative ecosystem are of greater significance.

In this respect, the government will allocate HK$10 billion to set up two research clusters on healthcare technologies, artificial intelligence and robotic technologies.

They are expected to attract the world’s top scientific research institutions and technology enterprises to Hong Kong for conducting more research and development projects in collaboration with local universities and scientific research institutions.

Besides, the Technology Talent Scheme, which was unveiled in the Chief Executive’s maiden Policy Address last year, will be implemented in the second half of this year with an investment of HK$500 million. Government sources said selected talents in the scheme may receive an incentive of about HK$32,000 each month.