Global Market: Hong Kong unveils first five-year plan, targets bigger push into technology

Hong Kong unveiled its first Five-Year Plan on Wednesday, setting out an economic and social strategy through 2030 that includes a significant push to expand investment in innovation and technology and deepen the city's integration with mainland China's development priorities.

According to AFP, the plan seeks to align Hong Kong's economic strategy more closely with China's national development objectives while retaining the city's market-based economic system.

R&D spending target raised

Hong Kong aims to increase spending on innovation activities to the equivalent of 3% of GDP after 2030, compared with 1.63% in 2024, according to the official plan. The broader measure includes research and development as well as other innovation-related activities.

The plan identifies areas including artificial intelligence, robotics, microelectronics, new energy, advanced manufacturing, new materials, and life and health technologies as key strategic technology fields.

The initiative comes as China places greater emphasis on technological development and self-reliance, with substantial investment in sectors such as semiconductors and artificial intelligence.

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Northern metropolis gets fresh focus
A major component of Hong Kong's strategy is the acceleration of the Northern Metropolis, a large-scale development project near the mainland border designed to support technology, innovation and industrial development.

The plan includes development of the San Tin Technopole, which is intended to connect research and development with prototyping, pilot production and manufacturing capacity. The project is also expected to link more closely with industrial supply chains across the Guangdong-Hong Kong-Macao Greater Bay Area.

The government plans to develop hubs focused on areas including life and health technology, AI and robotics, microelectronics and advanced industries.

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Closer integration with Mainland China

AFP reported that the Five-Year Plan represents an effort to bring Hong Kong's economic development more closely into line with Beijing's national priorities.

Hong Kong, which became a Chinese special administrative region in 1997, maintains separate economic and trade arrangements from mainland China. Its financial sector has historically benefited from its role as an international gateway for capital flowing into and out of the mainland.

The new plan, however, places greater emphasis on regional integration and cooperation in technology, infrastructure and industry.

Focus on technology and research infrastructure

Hong Kong's government also plans to strengthen its research ecosystem by advancing five major institutions covering productivity, applied science and technology, microelectronics, artificial intelligence, and life and health technology.

The government said these institutions will help strengthen research capabilities and support the development and commercialisation of technologies in strategic areas.

The Five-Year Plan is the first such comprehensive economic and social development plan issued by Hong Kong. The government has described it as a framework for coordinating policy and resources while supporting the city's longer-term development.

The strategy comes as Hong Kong seeks to strengthen its position in technology and innovation while expanding its economic and industrial links with mainland China.

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