Innovation, youth top HK policy plan

national innovation and technology hub, Lam vowed to double the gross domestic expenditures on research and development as a percent of GDP from the current 0.73 percent to 1.5 percent by 2022.

Although the figure still lags behind regional competitors — Singapore at 2.19 percent, Taiwan at 3 percent and South Korea at 4.29 percent — this is the first time Hong Kong has set its own target.

Lam also said she will personally lead an interdepartmental committee on innovation and technology to steer future development, and she announced measures such as setting aside no less than HK$10 billion ($1.3 billion) for university research funding, offering tax incentives to innovative companies and investing HK$700 million into Hong Kong’s Smart City development.

Lam stressed the importance of Hong Kong’s participation in the Belt and Road and Bay Area development.

She said a Bay Area development office will be set up for coordination with various government agencies.

Regarding the city’s ever-escalating property prices, Lam announced a “starter homes” program to help young and first-time homebuyers get on the housing ladder. The so-called sandwich class — people who earn too much to qualify for government-subsidized apartments but still cannot afford private housing — will benefit from it.

She also vowed to expand the subsidized housing schemes for the city’s public housing tenants.

The address received wide support. Lo Wai-kwok, chairman of the Business and Professionals Alliance for Hong Kong, said it showed Lam’s determination to fulfill her promises.

Starry Lee Wai-king, chairwoman of the Democratic Alliance for the Betterment and Progress of Hong Kong, called it a bold commitment to improve people’s livelihoods.

The Hong Kong General Chamber of Commerce said in a news release on Wednesday that it welcomes the pragmatic and inclusive proposals.