Policy Address

Chapter VII Enhance Social Well-being

(A) Advance Quality Education and Nurture a Diversified Pool of Talent

269. Quality education is the strategic cornerstone for enhancing competitiveness as well as the core engine propelling Hong Kong's rise as an international education hub and cradle for talent. The Government will expand the scope of the NMUT's development; raise the quality of school education and student development; strengthen digital and values' education at the kindergarten, primary and secondary levels; elevate the status of vocational and professional education and training; and adopt a systematic approach for strengthening the professional development of teachers.

Promote Digital and STEAM Education

270. To closely align with the National 15th Five-Year Plan on "advancing the digital transformation strategy for education", the EDB will follow its Blueprint for Digital Education Development in Primary and Secondary Schools, promoting digital and STEAM²⁹ education, including:

Roll out a free digital-education learning resource platform equipped with AI Large Language Models, while progressively extending the "AI Teaching Assistant" to more subjects to provide teaching support.
Review technology education in primary schools to optimise the interface of Information and Innovation Technology curricula between primary and secondary levels, and revise the senior secondary mathematics and science curricula.
Earmark funding under the Quality Education Fund to take forward digitalisation in kindergarten education administration, including enhancing digital equipment and AI tools of kindergartens, promoting technological ethics and digital literacy to parents, and providing training for teaching and administrative staff.

Enhance the Operating Standards of Schools

271. We will refine the Code of Practice for Private Schools and update the Private School List, improving the operation standards and transparency of private schools.

272. We will launch the "Confluence and Elevation – School Excellence Project" for publicly-funded schools in the 2026/27 school year. This will encourage and support mergers of suitable publicly-funded primary and secondary schools, consolidating resources and raising the quality of education.

Strengthen Support for Student Development

273. The EDB will develop a one-stop, self-directed learning portal for Chinese Language Education, organise territory-wide, English-speaking activities for students, provide opportunities for junior secondary students to learn other languages and encourage schools to arrange diversified activities for students to use the languages. The EDB will also collaborate with companies and higher education institutions to enhance the financial literacy of students.

Enhance Teachers' Professional Development

274. We will amend the Education Ordinance to require a practising certificate as a prerequisite for teaching, to enhance teacher registration mechanism. We will also improve the teacher training framework, setting specific training requirements to raise the professional standards of teachers.

Advance the Development of Universities of Applied Sciences

275. In collaboration with the Alliance of Universities of Applied Sciences, we will conduct publicity work on vocational and professional education and training early in secondary schools, to promote diversified pathways for students. We will also deepen collaboration with the GBA to explore, among others, the provision of joint programmes, cross-boundary internship and research collaboration.

Training for Local Technical Experts

276. We will extend the provision of an additional monthly training allowance of $1,000 to registered apprentices for a period of two years in view of the persistent shortage of local technical professionals and to encourage more young people to undergo apprenticeship training.

Continuous Training for Construction Technology Talent

277. The Construction Industry Council (CIC) will continue to provide systematic training courses to upgrade manpower capabilities (especially frontline staff on construction sites) in construction technologies.

Strengthen Skills Training for All and Consolidate Local Training Resources

278. Upskill Hong Kong (upgrade of the Employees Retraining Board) will publish the first phase of a skill-based training framework in the first quarter of 2027. It will focus on sectors related to city operations, guide training bodies in developing corresponding courses and build skills' learning pathways.

279. The Government will begin a review of the Continuing Education Fund with Upskill Hong Kong within the first year after the latter's establishment to consolidate local training resources and increase efficiency.

(B) Foster the Development of Young People, Women, Families and a Harmonious Society

Create a Bright Future for Young People

280. Since the current-term Government announced the Youth Development Blueprint, more than 290 initiatives have been implemented. We will continue to support young people in broadening their international horizons and deepening their participation in the development of the GBA, so that they can better integrate into and serve the overall national development, and accumulate practical experience in emerging fields. They will then become a dynamic force contributing to the development of Hong Kong and our country.

Empower Youth to Go Global

281. The Home and Youth Affairs Bureau (HYAB) will launch an International Young Talent Exchange Base³⁰ this year to promote international exchanges and invite Youth Link members to participate. The HYAB and the Base will:

Launch a new HYAB – United Nations Youth Leaders Internship Programme, offering internship placements in various United Nations agencies.
Sign co-operation agreements and set up regular exchange platforms with international organisations; make arrangements for young people to participate in large-scale international conferences to be held in Hong Kong and the Mainland.
Invite international experts and visiting guests to exchange views with young people who have participated in international exchanges and internships.
Continue to organise the Youth Development Summit, convening young people from around the world to exchange views with Hong Kong youth.

282. The Government will also explore more opportunities for young people to go global, including:

Explore with the IOMed opportunities for more youth participation in related affairs.
Continue to support exchanges outside Hong Kong and expand campus cross-cultural exchanges. The Funding Scheme for Chinese Mainland and Global Engagement and Student Learning Experience has benefitted over 74 000 students over the past three academic years. Starting from the 2026/27 academic year, the UGC will inject $100 million into the Scheme to cover countries and regions along the B&R.
The EDB has allocated additional resources to support the Vocational Training Council in forming the 41-strong Hong Kong, China delegation to participate in the WorldSkills Competition. Hailed as the "Skills Olympics", it will be held in September this year.

Open Up New Frontiers for Youth Development

283. The HYAB will deepen its support for young people in opening up new frontiers:

Introduce a new thematic finance internship programme in the Mainland, allowing young people to undertake internships in large Mainland financial institution(s).
Launch thematic aerospace training activities in the Mainland for young people to gain a deeper understanding of the latest developments of our country's aerospace technology and promote an interest in the field.
Increase thematic internship places relating to high-end scientific research at the Chinese Academy of Sciences, allowing more young people to take part in our country's top-notch scientific research.
Launch new AI experiential activities to increase young people's understanding of AI application and the industry.

284. We will strengthen support for young people to explore and pursue a career in new I&T disciplines:

Introduce a young researcher category under the Innovation and Technology Support Programme.
The HKSTPC has expanded the Talent Foundry programme to provide training for local university students, researchers, career newcomers and professionals, focusing on AI+ and emerging technologies. Around 500 training opportunities are expected to be provided each year.
Continue to provide funding support for the HKPC to organise the Hong Kong Future Aerospace Technology Talents Training Programme for secondary students. Cyberport will also support I&T for young people through relevant programmes.

285. The HKHA will regularise the "Well Being · Start-Up 2.0" Programme, which provides rental concessions to encourage youth entrepreneurship. The programme will offer 15 shops and over 70 entrepreneurial opportunities, a sevenfold increase in scale compared to its pilot run. Referral efforts will also be stepped up to match promising projects with commercial partners.

"30 000 Youth Employment and Internship Programme"

286. The Government and the business sector will launch the two-year, "30 000 Youth Employment and Internship Programme" to facilitate youth employment and development, especially for those with limited or no work experience:

The Government will mobilise the business sector, including major employer and trade associations, to provide an additional 10 000 full-time jobs lasting six months or more within a two-year period starting from the first quarter of 2027. The jobs will be open to young people newly entering the workforce, with the Government assuming part of the wages, i.e. $6,000 per month or up to one-third of the monthly salary, for six months.
The Government will expand the STEM Internship Scheme and enhance the HYAB Youth Start-up Internship Programme, providing more than 10 000 internship quotas within two years, with each intern receiving a subsidy of no less than $11,000.
In 2027 and 2028, the CIC and the Government will allocate funding to extend the on-the-job training subsidy scheme for professional graduates of relevant disciplines. A monthly salary subsidy of $5,000 will be provided for each graduate, offering a total of 10 000 training places over two years.
The FSDC will launch a two-year Financial Services Industry Youth Internship Programme together with industry, providing 1 000 youth internship placements related to financial services.

The Government will launch a "one-stop" dedicated webpage, making it easier for young people to access information about the programmes and apply for vacancies.

287. The Government will establish the "Youth Employment Link" online service portal to facilitate young people's access to employment information and support services. It will also launch the Shanghai-Hong Kong Youth Employment Scheme.

Eleven Measures to Promote Fertility

288. The current-term Government has shifted from a non-interventionist approach to actively promoting fertility, working to create a conducive environment for childbearing. An array of measures for promoting fertility and assisting families in taking care of their children have been introduced.

289. Measures initiated to create a conducive environment for childbearing include: Newborn Baby Bonus of $20,000; a double child allowance for newborns; increasing the child allowance; raising the tax-deduction ceiling for mortgage loan interest and rents; an allocation priority scheme for PRH applicants; a Home Ownership Scheme flat selection priority scheme; increasing the number of child care centres (CCCs) and the Child Care Centre Parent Subsidy; enhancing after-school care service; improving the Neighbourhood Support Child Care Project; a tax deduction for assisted reproductive services; increasing the service quota for assisted reproductive service at public hospitals; removing the statutory storage periods of gametes and embryos for own use; promoting the Good Employer Charter; and encouraging family-friendly employment practices.

290. To further promote a conducive environment for fertility, we will also introduce the following 11 measures under a multi-pronged approach:

The $20,000, newborn baby bonus, which is due to expire on 24 October this year, will be extended for three years.
To encourage families to have more than one child, the newborn baby bonus for the second or subsequent child born today or after will be increased from $20,000 to $30,000 for three years.
If a taxpayer's second child and subsequent children are born today or after, the tax allowance for them will be increased from $140,000 to $160,000, and the allowance may be claimed until they reach the age of 25 following established procedures. This will take effect from the year of assessment 2026/27.
The additional allowance for the first two years following childbirth for the aforesaid second and subsequent child will also be increased, from $140,000 to $160,000, effective from the year of assessment 2026/27.
Eligible families (whose children are born today or after in Hong Kong, with either parent a Hong Kong permanent resident), having purchased a residential property from one year before to two years after the childbirth, are entitled to a stamp duty waiver capped at $20,000. The concession will take effect upon passage of the amendment bill.
Starting from the next Home Ownership Scheme sale exercise, the maximum mortgage loan-to-value ratio for White Form family applicants with newborns will be raised to 95%, to ease their down-payment burden.
The HA will increase the service quota for in-vitro fertilisation in phases over the next three years, by 300 treatment cycles to 1 900 treatment cycles per year.
The Primary Healthcare Commission (PHC Commission) will gradually extend its free pre-pregnancy, antenatal and postnatal classes to all District Health Centres (DHCs) and DHC Expresses. The Family Planning Association of Hong Kong will launch publicity this year to promote healthy fertility.
Following last year's announcement to establish 15 new aided standalone CCCs, we will set up three more aided, standalone CCCs. These are expected to provide about 1 800 additional day-care service places by the end of 2030.
The School-based After School Care Service Scheme will be regularised, starting from the 2027/28 school year and no quota will be imposed to continuously support families of primary school students with caretaking needs.
We will strengthen professional support for the After School Care Programme for Pre-primary Children, providing escort services and increasing service publicity.

Support Women's Development

291. We will extend the "She Inspires" Mentorship Programme by three years to broaden the horizons of female university students and promote high-quality career development.

Support Ethnic Minorities

292. Support Service Centres for Ethnic Minorities (EMs) will:

Set up an Elder Harmony Network next year to increase support for EM elderly persons, and strengthen collaboration between the existing EM Care Teams and District Services and Community Care Teams, so that more EM elderly persons can be reached and referred for assistance, as needed.
Under the new Success Counsel Programme, outstanding EMs will be arranged to share their experience, and EM youth will be encouraged to join the District Youth Committees through the Member Self-recommendation Scheme for Youth.

293. The Government will regularise the EM District Ambassador Pilot Scheme, which engages EMs or designated persons to provide support and publicise welfare services for EMs. In addition, EMs with higher education or professional qualifications will be invited to serve as social welfare volunteers.

294. We will adopt learning materials tailored for non-Chinese speaking (NCS) students, including the Youth Chinese Test and the Hanyu Shuiping Kaoshi Chinese Proficiency Test, and provide after-school Chinese language courses to NCS students from Primary One to Secondary Three. We will also provide suitable learning materials for NCS students.

Strengthen Training for Care Team Services

295. The establishment of Care Teams is an integral part of the current-term Government's commitment to improving district governance structure. To enhance the service quality of Care Teams, the Government will deploy resources to enhance training for Care Teams covering practical skills such as emergency knowledge, communication skills and health support.

Deepen Collaboration and Exchange in Social Services with Mainland Counterparts

296. The LWB, together with Connecting Hearts, has fostered in-depth exchange and collaboration between the social welfare sectors in Hong Kong and the Mainland, and facilitated the launch of a total of 102 livelihood improvement projects between 46 Hong Kong social welfare organisations and 81 counterparts from other GBA cities.

(C) Deepen Healthcare System Reform

297. The Government is pressing ahead with healthcare system reform and restructuring the functions and division of work among the HA, the DH and the PHC Commission. The goal is to establish a new healthcare model that emphasises prevention and integrates prevention with treatment. We will continue to deepen the reform, fully aligning with the national health-first development strategy and the opportunities presented by the 15th Five-Year Plan, while taking active public health measures, to consolidate Hong Kong's status as an international health and medical innovation hub and ensure that the outcomes of the reform are widely shared.

Strengthen Primary Healthcare Services

298. The Government will improve community healthcare and disease-prevention services:

Upgrade the DHC Expresses in Wan Chai and Kwun Tong to DHCs, starting next year, and continue to upgrade other DHC Expresses.
Implement the phased integration of Elderly Health Centre services from the end of this year. Measures include more than doubling the service capacity for elderly health assessments, reducing the maximum waiting time by two-thirds, and providing similar services for underprivileged elderly through designated HA Family Medicine Clinics (FMCs).
Provide about 220 000 additional HA's Family Medicine Out-patient service quotas each year, starting next year, including around 10 000 quotas for evening out-patient service, to meet local demand. We will improve the provision of preventive screening and care services targeting the "three highs", hepatitis B and women's health for underprivileged groups at designated FMCs. We will boost co-operation between primary and secondary healthcare. In parallel, training for primary healthcare professionals will be strengthened to raise service quality.
Set up a co-ordination platform for public and private primary healthcare services to pilot the unified release of evening and public holiday consultation information for public and private out-patient clinics.
Roll out the Community Pharmacy Programme from the end of this year, with the first phase covering four districts³¹ and progressively extending across the city. In parallel, launch the Community Drug Formulary and gradually increase the number of drugs covered.
Starting from next year, provide preventive primary oral healthcare services for specified high-risk groups at designated DHCs/DHC Expresses, and expand the Healthy Teeth Collaboration to offer outreach preventive oral healthcare services for residents of designated residential care homes for persons with disabilities (PWDs).
Publish the "Life-course Health Promotion Strategy" and monitor local health data, encouraging the public to accept primary responsibility for their own health and promote population-wide health management across different life stages.

Enhance Public Healthcare System

299. After the relocation of Queen Elizabeth Hospital to Kai Tak, the HA will develop Hong Kong's first integrated ambulatory care hospital at King's Park. The first phase will include a high-capacity ambulatory cataract surgery centre, a high-capacity ambulatory radiology centre and an ambulatory radiotherapy centre. With the commissioning of the cataract surgery centre in the fourth quarter of next year, annual service capacity will increase by about 5 500³². With annotation and triage at the ambulatory radiology centre to be carried out with AI, the annual service capacity for computed tomography and magnetic resonance imaging will increase by about 40% compared to general facilities. The increase in service capacity at the radiotherapy centre will also accelerate treatment procedures for cancer patients.

300. All hospital development projects under the Government's First Hospital Development Plan are expected to be completed by 2031. By then, the number of beds in public hospitals will increase by 17% to about 35 000, while the number of operating theatres will increase by 44% to around 360. We will publish the Second Hospital Development Plan during the current-term Government and initiate projects in an orderly manner.

301. The HA will implement the Hong Kong Cancer Strategy, raising diagnostic imaging capacity and applying AI to assist with diagnosis and advanced laboratory testing. It will increase radiotherapy service capacity and expedite the introduction of new cancer drugs through public healthcare fees and charges reform, while stable and low-risk cancer survivors will be referred to primary healthcare, with multi-disciplinary palliative care and end-of-life services to be strengthened.

302. The HA has set a target to shorten the waiting time³³ for the first consultation of stable new cases in specified specialist³⁴ out-patient services by half in five years, with the waiting time of specified specialties to be reduced by 10% in 2027-28 in the first phase. By "narrowing upstream, collaborating downstream, diverting midstream", unnecessary referrals will be avoided and stable follow-up cases diverted to primary healthcare. The HA will also expand multi-disciplinary, integrated clinical services, optimise appointment arrangements and enhance service capacity.

303. The first phase of public healthcare fees and charges reform was implemented in January this year to increase protection for poor, acute, serious and critical patients, yielding immediate results, as follows:

Accident and emergency services have become smoother, with a significant decrease in the number of non-urgent cases; fees for critical and emergency cases are fully exempted.
The number of beneficiaries of full medical fee waivers has surged, from under 14 000 a year in the past to more than 250 000, providing free medical services to more low-income families.
The burden on serious patients has been eased, with their annual spending capped at $10,000 and requiring no financial assessment. Over 17 000 patients have been granted a full medical fee waiver for the remainder, preventing impoverishment due to illness.
Accelerated the introduction and increased subsidisation for innovative drugs and medical devices. The HA has introduced 16 new drugs into the Drug Formulary and included 53 new drugs and medical devices³⁵ under the subsidisation scope of the Samaritan Fund safety net.

Strengthen Professional Regulation of Healthcare Services

304. The Government will introduce into the LegCo a regulation to improve the price transparency of private healthcare services by the end of the year and draw up codes of practice, setting out requirements on price information, budget estimates and billing statistics.

305. The Government will advance the scrutiny of the Medical Registration (Amendment) Bill 2026 by the LegCo to reform the Medical Council of Hong Kong (MCHK), and raise the manpower and system support for the MCHK and other healthcare professional regulatory bodies.

306. The Government will continue to support the IMACE in publishing clinical guidelines and devising service quality and efficiency standards for public and private healthcare sectors. The IMACE plans to publish clinical guidelines on the management of hyperlipidemia and percutaneous coronary intervention by the end of the year.

Continuously Implement eHealth+

307. Over 6.5 million citizens have registered with eHealth, accounting for 87% of Hong Kong's population. In the past year, the monthly number of electronic health records deposited by private healthcare providers increased by over 110%, to about 1.45 million. More than 44 000 citizens have used eHealth to enable the sharing of cross-boundary medical records.

308. The Government will further facilitate the deposit of electronic health records by private healthcare providers, expand the cross-boundary sharing of medical records and enhance the nine core functions, including eMedication and eMedical Certificate.

Press Ahead with the Establishment of the Third Medical School

309. The Hong Kong University of Science and Technology (HKUST) is moving ahead with the establishment of Hong Kong's third medical school. The Medical Education and Research Complex at the Clear Water Bay campus will be completed by mid-2028 to admit the first cohort of students.

310. On using Kai Tak Hospital as the interim teaching hospital, the Government is exploring teaching arrangements with the HKUST and the HA. We are also pressing ahead with the integrated design and co-ordinated construction of the medical school campus and the integrated teaching and research hospital in the San Tin University Town.

Promote the Development of Inheritance and Innovation in Chinese Medicine

311. The Government will continue to implement the Chinese Medicine Development Blueprint. The annual out-patient service volume of the CMHHK will be increased from 60 000 to over 140 000 attendances in the first year. The Government Chinese Medicines Testing Institute will continue to formulate Chinese Materia Medica Standards, which align with international standards and develop innovative Chinese medicine-testing technologies. Future development measures include:

Starting from the end of the year, the CMHHK will launch 24-hour in-patient services, provide additional day beds, increase out-patient service capacity, introduce more special disease programmes, begin related research, and set up a clinical trial and research centre. In addition, clinical training opportunities for local students and more subsidised training posts for registered Chinese medicine practitioners will be provided. The International Consortium of Herb-Drug Interaction will be officially established to promote research and clinical application of herb-drug interactions.
The Chinese Medicine Clinics cum Training and Research Centres based in all 18 districts will roll out pilot out-patient services for special diseases.
We will continue to develop HA's integrated Chinese-Western Medicine (ICWM) services, including regularising a "knee osteoarthritis" pilot programme, expanding ICWM services to day-care services, and refining the "cancer care" pilot programme.
We will sponsor regional and international Chinese Medicine conferences and exhibitions.

Sustain Efforts in Tobacco Control

312. The Government will fully implement the duty stamp system by the end of next year to effectively distinguish duty-paid from duty-not-paid cigarettes. The plain-packaging requirement on conventional smoking products will be introduced at the same time.

Promote Mental Health

313. The Government will adopt an integrated approach to promoting 11 mental health measures:

Continue to implement the Three-Tier School-based Emergency Mechanism in Primary Four to Six on a trial basis in the 2026/27 school year and enhance the related support services, strengthening training for school professionals to facilitate early identification of and support for students with higher suicidal risk.
Provide teacher training on catering for students' mental health needs, and organise programmes relating to the physical and psychological well-being of teachers.
Set up an additional Integrated Community Centre for Mental Wellness in the NM to dovetail with population growth.
Enhance the function of the Cyber Youth Support Teams by strengthening their co-operation with schools and community networks to support the emotional and psychological needs of students, conduct assessments and take follow-up action immediately after receiving cases involving students with higher suicidal risk and in emotional distress.
Extend the Healthy Mind Pilot Project to all existing DHCs before mid-2027, improve frontline staff training, provide more timely assessments or referrals, organise more outreach activities and step up promotion and publicity.
The PHC Commission will study public-private partnerships and other approaches to encourage more cross-disciplinary professionals, including family doctors, to provide mental health services.
The Government has endorsed the framework for the Stepped Care Model on Mental Health submitted by the Advisory Committee on Mental Health. The next step is to consider setting competency standards and designing training courses for mental health practitioners, co-ordinating the distribution of duties among departments, and drawing up details for full implementation.
The Advisory Committee on Mental Health will explore the possibility of setting up a mental health experience exhibition in the urban area to promote mental health and eliminate social prejudices.
Through the Hong Kong Jockey Club "Chief Executive Community Project List", the Government will fund a series of mental health support projects enabling clear identification, early intervention and enhanced support. We expect the projects to benefit over 30 000 persons.
Launch a Mental Health Literacy Resource Package for Parents and organise parent education programmes³⁶ relating to student mental health.
Attract more organisations and their staff to join the Mental Health Workplace Charter and encourage the organisations to optimise their staff training content.

(D) Enhance and Diversify the Housing System

314. The current-term Government is pressing ahead with a public housing policy geared towards advancing quantity, speed, efficiency and quality, to expedite the fulfilment of housing needs for low-income families and, in an orderly manner, tackle the big and difficult housing issues that have lingered for years. Since the implementation of the BHU regime in March this year, we have been steadily advancing towards the eradication of substandard SDUs.

315. We will continue to increase public housing supply on all fronts, while enhancing the housing ladder to enable people of different income groups to realise home ownership, thereby fundamentally building a new paradigm of more sustainable, multi-strata housing supply in Hong Kong.

Continuous Pursuit of Land Development

316. In the next decade (i.e. from 2027-28 to 2036-37), the Government will prepare about 2 500 hectares of "spade-ready sites" to build up the land reserve and meet the demand for economic development and the community's housing needs, thus retaining control over land supply. Of these sites, it is expected that some 1 400 hectares will be produced in the next five years, including about 1 000 hectares in the NM.

Supply of Land for Private Housing Development

317. The Government will take account the overall situation to determine the pace of land disposal and co-ordinate other land supply sources to meet housing demand in the next 10 years according to the Long Term Housing Strategy and other land requirements.

Release Industrial Land in Urban Areas

318. The DEVB will make reference to the Study on Utilisation of Existing Industrial Stock, which is underway, to explore the release of more industrial land in urban areas and make recommendations by the end of the year, including the way forward for the Revitalisation Scheme for Industrial Buildings.

Review on Urban Renewal Policy

319. In August, the DEVB introduced measures to use newly developed land for urban renewal³⁷. To enable the Urban Renewal Authority (URA) to pursue redevelopment in a sustainable manner, the DEVB and the URA are conducting a policy review, offering recommendations for commencing consultation in 2027.

Control Construction Costs

320. The DEVB has rolled out various initiatives to lower construction costs, achieving an annual saving of about $4 billion³⁸ for public works projects. Hong Kong's ranking has dropped to 16th globally this year, falling out of the top 10 for the first time, according to the International Construction Cost Index. The Government will, among others, adopt innovative procurement models, enhance Hong Kong's construction standards and introduce more AI solutions to further lower construction costs.

Increase Public Housing Supply

321. The current-term Government has laid a solid foundation for, and is entering the harvesting phase of, public housing production. In the next five years, from 2027-28, public housing production will exceed 35 000 units a year on average, an increase of about 73% compared with the five-year period since I took office.

322. Since the launch of the innovative LPH, upon my assumption of office, about 26 000 units have largely been completed with intake already underway, benefitting around 14 000 PRH applicants and their families. The remaining some 4 000 units will be successively completed before the end of March next year. All 30 000 LPH units will be completed in slightly over four years, ahead of the five-year target set out in my 2022 Policy Address.

323. The overall CWT was 4.8 years as of the end of June this year. That is more than one year shorter compared with the peak of 6.1 years before the current-term Government took office. Over the same period, there were about 100 500 general applications for PRH, and around 81 000 non-elderly one-person applications under the Quota and Points System. These numbers, when measured against their respective highest levels at 156 400 and 143 700, represent a significant drop by over 30% and over 40% respectively, demonstrating that the waiting queue for PRH is being effectively shortened.

324. The current-term Government has been combatting PRH abuse to prevent the mismatch and waste of PRH resources. As of June 2026, the HKHA has recovered around 10 500 PRH flats from tenancy abuse and breach of tenancy agreement or housing policies. This is equivalent to two large housing estates comparable to the size of Kai Ching Estate, and has enabled the early intake of over 10 000 families on the waiting list, yielding savings of over $10.5 billion in construction costs financed by public money.

Enhance Subsidised Sale Flats

325. The HKHA's new SSF projects, in accordance with the "Well-being" Design Guide, are equipped with multi-functional recreational and sports spaces, communal spaces, elderly-friendly facilities and green spaces designed for intergenerational integration. The HKHA will continue to improve the design of SSF to better meet modern living styles, including improving natural lighting and adopting an open kitchen design in suitable units for two-to-three-person households.

326. Last year's Policy Address announced the relaxation of the alienation restriction period to 10 years for new SSFs offered for sale. To encourage upward mobility on the housing ladder, we will also shorten the alienation restriction period to 10 years for SSFs first put up for sale between 2022 and 2025.

Eradicate Substandard Subdivided Units and Implement the Basic Housing Unit Regime

327. Since March this year, the BHU regime has been rolled out in phases under the principle of "registration first, enforcement later". Responses to our call for grace-period registration have been positive. The HB will continue its registration and recognition work.

328. Starting from March next year, the HB will conduct inspections and take enforcement and prosecution action in an orderly manner against illegal letting of SDUs with no registration and no recognition, conducting joint operations with relevant departments to enhance deterrence. Upon the expiry of the grace period at the end of February 2030, the HB will rigorously combat illegal letting of substandard SDUs by owners or operators.

329. The HB will provide tenants in need with comprehensive, people-oriented support through its District Service Teams in various districts. This includes assisting eligible tenants to apply for traditional PRH and LPH, and flexibly co-ordinating resources such as transitional housing and Hostels for Single Persons, providing tenants in need with temporary shelters or helping them find alternative accommodation in the private market.

Promote the Scheme on Joint Property Management

330. From 2027-28, the HAD will continue to implement the Scheme on Joint Property Management in districts with needs for two years. Through the newly formed Working Groups on Building Management under all DCs, the HAD will continue to facilitate the execution of duties by DC members and enhance exchange.

Persistently Promote the Use of Building Technologies

331. The MiC approach reduces the construction time of a typical floor of public housing buildings by about 17%, and is effective in reducing water and electricity consumption and waste. The HKHA will adopt the AIoT³⁹ System for logistics and transport in the tender exercises for new projects to boost the transport efficiency and quality of modules.

332. The HKHA will identify more projects to apply the "Building Information Modelling (BIM)-enabled Systematic Approach to Foundation Design", saving about $1 million for each domestic block on average.

333. We injected $1 billion into the Construction Innovation and Technology Fund (CITF) this year. Together with the CIC's contribution of $400 million, a total of $1.4 billion will be used to support the wider application of I&T⁴⁰ in the construction industry, especially among SMEs.

334. The DEVB has required that MiMEP be adopted in suitable public works projects, as well as repair and maintenance works, since the middle of this year. A one-stop integrated information platform was launched to support the industry.

(E) Enhance Transport and Commuting Convenience

Transport Infrastructure

335. The Central Kowloon Bypass (Kowloon Bay Section) project will be completed this year, marking the full commissioning of Route 6 (including the Central Kowloon Bypass and Tseung Kwan O – Lam Tin Tunnel). It is anticipated that the journey time between Tseung Kwan O and Yau Ma Tei during peak hours will be substantially reduced from about 65 minutes before the commissioning of Route 6, to about 12 minutes.

336. The implementation milestones of smart and green mass transit systems are to:

Award the contract for the Kai Tak project this year for completion in 2031.
Award the contract for the Hung Shui Kiu/Ha Tsuen NDA project next year for first-phase completion in 2031.
Award the contract for the East Kowloon project next year for completion by 2033.

Regulatory Regime for Ride-hailing Services

337. The current-term Government has successfully introduced the regulatory regime for ride-hailing services, with most of the legal provisions coming into effect on 3 August this year. The Government is now inviting applications for ride-hailing service licences, and will issue driving permits to drivers and vehicles beginning from the fourth quarter this year, providing the public with safe and compliant ride-hailing services. The TD is pressing ahead with the development of a ride-hailing vehicle data management system to monitor the compliance of operation, and comprehensively safeguard data security. We will also oversee market development and collect relevant data for the dynamic assessment of supply and demand to enhance personalised, point-to-point transport service.

Promote the Use of Automated Parking Systems

338. With a view to expanding the use of automated parking systems, the TD will establish a one-stop co-ordination office to co-ordinate the efforts of relevant departments in expediting the approval of automated parking-system applications submitted by operators of short-term tenancy car parks.

(F) Deepen the Integrated Development of Culture, Sports and Tourism

339. The Culture, Sports and Tourism Bureau (CSTB) is pressing ahead with the integrated and synergised development of culture, sports and tourism. It fosters sports development by promoting sports in the community, supporting elite sports, maintaining Hong Kong as a centre for major international sports events, advancing professionalism in sports and developing sports as an industry. In building facilities, implementing system reform, optimising resource allocation, nurturing talent and hosting mega events, the CSTB is deepening the integration of culture, sports and tourism to drive economic development.

Shape Tourism with Cultural Activities and Promote Culture through Tourism

340. Hong Kong is blessed with a unique cultural vision, shaped by both Chinese and foreign influences. We will continue to engage and collaborate with Mainland and overseas culture, arts and creative sectors to consolidate Hong Kong's role as a hub for the exchange, collaboration and promotion of culture, arts and creativity. We will also host international cultural and arts exhibitions and performances to attract visitors to Hong Kong.

Support Hong Kong's Film Industry and Promote "Film + Tourism"

341. We will conduct a comprehensive review of the Film Development Fund with a view to attracting more private investment to ensure sustainable development. We will also explore venue provision for constructing film sets to encourage local filming. The Cultural and Creative Industries Development Agency will set up the Support Unit for Non-local Film Productions, which will provide one-stop services for Mainland and overseas film crews filming in Hong Kong, attracting the production of more quality films to promote Hong Kong.

342. The HKTB will offer visitors an immersive experience of Hong Kong's unique urban landscape and lifestyle, weaving together classic Hong Kong films, district characteristics and local culture, including a route in Yau Ma Tei that integrates memorable scenes and locations from classic Hong Kong police-and-crime films, complemented by authentic local night markets and dining experiences.

Sports Development

Support the Kai Tak Sports Park to Promote "Sports + Mega Events"

343. The KTSP has substantially expanded Hong Kong's capacity to host international mega events. To date, more than 170 sessions of international and local sports and cultural entertainment mega events have been held there, attracting over 2.6 million spectators. In 2025, the KTSP's main stadium achieved the highest gross revenue and ticket sales in Asia.

344. To strengthen the promotion of "sports + mega events", we will explore the redevelopment of Victoria Park Centre Court and other ancillary facilities into an iconic all-weather, multi-purpose venue for holding larger-scale and higher-level sports events, as well as performance activities as required.

Training for Sports Executives

345. The Hong Kong Sports Institute will introduce a new three-year Sports Executive Training Programme. The programme will provide transformation opportunities for and expand the career ladder of retired athletes, while helping train professional management for the sports sector.

Promote Sports for All

346. To encourage the general public to exercise regularly, the Government will enhance outdoor basketball facilities and the content of the Hong Kong Games.

Participate in Our Country's Sports Events and Boost Co-operation and Exchanges

347. We will continue to send delegations and teams to participate in our country's sports events and promote sports exchange within the GBA, including supporting NSAs in the organisation of GBA leagues.

Strengthen the Governance of National Sports Associations

348. Early next year, the Sports Federation and Olympic Committee of Hong Kong, China will, taking into account NSAs' implementation of the Code of Governance promulgated earlier, issue certificates of compliance to NSAs meeting the governance standards. Future government funding will be linked to the compliance status to establish a fairer, more impartial and more transparent system for promoting sports development.

Tourism Development

349. Hong Kong's tourism industry is performing well. In 2025, the total number of visitor arrivals reached 49.9 million, a 12% year-on-year increase. Total tourism expenditure associated with inbound tourism is estimated at $238.1 billion this year, an increase of about 10% over last year.

350. The proportion of overseas visitors travelling onwards to the Mainland via Hong Kong has continued to rise, exceeding 20% in the first half of 2026. We will continue to capitalise on measures introduced by the Central Government to facilitate visits by foreign travellers to the Mainland, deepen collaboration with Mainland provinces and municipalities, and explore with the country additional immigration facilitation arrangements for international visitors. The HKTB will promote multi-destination travel itineraries to overseas visitors, partner with airlines to roll out relevant tourism products and promotional offers, and intensify publicity overseas.

Take Forward "+ Tourism" Joint Initiatives

351. We will integrate various events with tourism to raise their appeal, aiming to extend visitor stays in Hong Kong and generate value-adding momentum:

"Mega Events + Tourism": To solidify Hong Kong's reputation as the Events Capital of Asia, the HKTB will demarcate a period each year for the International Arts Season⁴¹ (February to May), the Chinese Arts Season⁴² (June to September) and the Festive Mega Events Season⁴³ (October to February the following year), setting a mega-event framework under these three themes to boost visitor spending and extend their stay in Hong Kong. Flagship events hosted by the HKTB attract millions of citizens and visitors each year. The Government will regularise the additional annual funding currently provided for hosting flagship events, allowing the HKTB to draw up and implement sustainable and forward-looking market promotion strategies in a more systematic manner.
"Finance + Tourism": The refurbishment of the HKEX Connect Hall and the Museum of Finance at the HKEX is scheduled for completion next year. The Government will link up key financial landmarks around Central to create an urban landmark that showcases Hong Kong's status as an international financial centre and the city's cultural appeal.
"Industrial brand + Tourism": We will continue to develop Hong Kong's industrial brand tourism routes with varying themes to promote more in-depth tour experiences.
"Ecological conservation + Green tourism": The Government promotes eco-tourism that advances tourism alongside conservation, enabling the public to get close to and appreciate Hong Kong's unique and precious scenery in the countryside. In early September this year, the Government launched a trial online reservation system for visitors going to the High Island Geo Trail-Po Pin Chau Section of the High Island Reservoir East Dam in Sai Kung during weekends and long holidays. A visitor cap is set to alleviate ecological pressure while enhancing visitor experience. The pilot reservation arrangement will continue during the Golden Week in October this year. We will review the trial outcome and develop a long-term country park management strategy.
"Heritage + Tourism": The Government has opened over 200 Government-owned declared monuments and graded historic buildings to the public. It will upload more information to its websites and step up publicity, enabling the trade to develop and promote signature tourism products.

Ticket Stub Economy

352. We will promote ticket stub offers as a means of attracting visitors to extend their stay and increase their spending in Hong Kong, including announcing the calendar of mega events as soon as practicable. The HKTB will provide one-stop contact services to connect event organisers, retail and catering associations and tourism-related organisations, fostering a consumption chain that extends from the event venue to the community.

353. The HKTB will enhance Discover Hong Kong's digital platform, consolidate the ticket stub discounts of mega events hosted and promoted by the HKTB and launch a new mobile application to facilitate visitor access to, and merchant provision of, ticket stub offers.

Yacht Economy

354. Last year's Policy Address put forward the development of yacht economy. A variety of new yacht berth projects are now moving ahead, including the tender for the composite development project in Aberdeen comprising a marina, recreational facilities and residential development scheduled for the first half of 2027, and the yacht bay project under the Airport City "SKYTOPIA". In addition, starting from May, Hong Kong and Macao yachts may navigate in nine GBA cities, with the requirement for guarantee exempted and under temporary ship nationality registration. The first northbound travel of yachts from Hong Kong set sail in June. The Marine Department will soon sign an MoU with the Guangdong Maritime Safety Administration for the implementation of southbound travel for yachts from Guangdong, adding impetus to cross-boundary leisure consumption.

355. Following the introduction of the Marine Department's three facilitation measures⁴⁴, the first batch of Mainland yacht masters completed the examination and assessment in mid-June. We will extend our online, short-term training courses to overseas, enabling yacht masters of visiting yachts to obtain qualifications from abroad to navigate Hong Kong waters.

Renewal of Central

356. Phase 1 of the Lan Kwai Fong Streetscape Beautification Works will be gradually completed, beginning in October. The consultancy study for Phase 2 will start soon. We encourage private developers to participate in the renewal of Central, which will give Hong Kong's first-generation central business district a fresh face while preserving its heritage.

Muslim Tourism

357. Hong Kong's ranking as a Muslim-friendly destination has risen for two consecutive years, securing second place among non-Organisation of Islamic Co-operation destinations, according to the latest Global Muslim Travel Index. The HKTB will extend the Hong Kong Restaurants Halal Certification Funding Scheme to the end of 2027, encouraging the industry to provide more Muslim-friendly food options.

Facilitate the Operation of Home-stay Lodgings on the Outlying Islands

358. To facilitate the operation of home-stay lodgings on the outlying islands, the HAD will remove barriers by exempting consideration of use restrictions on guesthouse purposes in the deeds of mutual covenant of the buildings, when processing guesthouse licence applications for buildings of three storeys or less on the outlying islands.

Enhance the Professional Standards of Tourism Practitioners

359. To increase the supply of professional tourist guides, the Travel Industry Authority has launched the "specialised tourist guide licensing programme" this year for Geopark guides and reception services. The programme will be expanded to cover other fields, such as in-depth tours focusing on history and culture at the next stage.

Enhance Passenger Clearance Experience

360. The Immigration Department will launch the Automated Transportation On-board Clearance System ("AUTOS") Pilot Scheme at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port in December. It will use AI and facial recognition technology to automatically verify the identities of registered, eligible, cross-boundary private-car drivers and passengers, enabling "contactless on-board clearance".

361. The redeveloped Huanggang Port is expected to come into operation in the fourth quarter of this year, implementing the co-location arrangement and the novel "collaborative inspection and joint clearance" mode, to significantly enhance passenger clearance experience and efficiency.

(G) Support the Local Economy

Ten Measures to Support Small and Medium Enterprises

362. In the face of uncertainty over the global economy and trade, the Government will implement 10 measures to support the diversified development of SMEs, as well as their upgrading and transformation:

The CEDB will expand the geographical scope of the BUD Fund to cover Uzbekistan and Qatar, encouraging SMEs to tap into emerging markets.
The Hong Kong Export Credit Insurance Corporation will extend the 20 free-buyer credit checks for one year to September 2027 to continue to cover all of its insured markets.
The HKTDC will strengthen the services of E-Commerce Express, promoting the awareness of Hong Kong brands and expanding their coverage in e-commerce markets outside Hong Kong. The Trade and Industry Department will co-ordinate with the "Four-in-One" Integrated Services of SME Centres to organise branding seminars and workshops to assist SMEs in formulating brand development strategies.
The Government will continue to encourage more government departments and institutions, including the Business Registration Office of the Inland Revenue Department and the eMPF Platform, to connect to the HKMA's CDI and explore the feasibility of automated payment. This will enable banks to conduct business registration search through CDI, enhancing efficiency in credit approval. The CDI has helped reduce the borrowing costs of companies by an average of 36 basis points.
The HKMA, in collaboration with the Shanghai Data Bureau, will implement a pilot project on trade data connectivity this year, covering Hong Kong SME traders exporting goods from the Mainland. Starting from this year, Project CargoX will progressively connect the CDI with the Trade Single Window, the Port Community System and the Digital Corporate Identity (CorpID) platform. It will also explore connections with ASEAN's electronic port systems to enable the one-stop access to data for approval by banks.
Starting from this year, the Hong Kong Technology and Innovation Support Centre will provide qualitative, patent-evaluation services and offer funding support to SMEs for conducting valuation of their IP assets to facilitate relevant financing.
The Government raised the funding ceiling of "Easy BUD" applications under the BUD Fund to $150,000 in June. The BUD Fund also provides more targeted funding support for AI projects.
The Government will enhance the DTSPP by providing subsidies on a matching basis to support more SMEs in applying AI and cybersecurity-related solutions.
The HKPC will expand the functions of its "Digital DIY Portal" to integrate advisory services for SMEs. It will also assist enterprises in assessing and addressing cybersecurity risks, as well as providing professional advice and technical support on AI application scenarios.
The Future Innovative Logistics Acceleration Scheme will provide subsidies to SMEs using innovative logistics solutions to interface with the Port Community System.

Report on Manpower Projection

363. Due to the structural impact of an ageing population, Hong Kong's labour force will gradually decline over the coming years, leading to manpower shortages. The current-term Government's measures to attract talent and allow the limited importation of labour, subject to appropriate approval, have relieved manpower shortages. The LWB will release a mid-term update of the Manpower Projection this month. It indicates that manpower remains tight across most key industries, including I&T, aviation, health services and construction.

Safeguard the Environment for Fair Competition

364. The Government will consult the LegCo this year on a legislative proposal to endow the Competition Commission with compulsory information-gathering powers for conducting market assessments. This will ensure that the Commission may, upon having reasonable cause to suspect that any feature in the market affects competition, mandate enterprises to submit information and identify potential issues, thereby maintaining a conducive environment for fair competition.

Promote Textiles and Fashion Brands

365. The Hong Kong Fashion Fest has recently been held in conjunction with CENTRESTAGE hosted by the HKTDC for an elevated scale and an enhanced business-matching platform. We will expand collaboration and exchange with fashion shows in the Mainland and overseas, promoting collaboration between fashion design and the textiles industry. This will promote the development of Hong Kong's fashion brands and strengthen Hong Kong's status as a fashion design hub in Asia.

Promote the Development of the Agriculture and Fisheries Industries

366. The Government will continue to offer the industry financial and technical support for the development of deep-sea mariculture, with a target of increasing local mariculture production to about 2 000 tonnes within five years. The Government will also set up a Fish Processing Centre in collaboration with the Fish Marketing Organization, to drive industrial upgrading.

367. The Government is facilitating the construction of the industry's first modernised and environmentally-friendly, multi-storey pig farm, in Sheung Shui. Site formation works will be completed this year. We will assist the selected organisation in finalising the design and financial arrangements next year.

368. The Modernised Techno-Agricultural Park, established through a public-private partnership, has been gradually leasing land to farmers. The Government will continue to take forward Agricultural Park Phase 2, while promoting the development of leisure farming and fisheries.

Promote Innovation in Municipal Services

369. In last year's Policy Address, I proposed three novel initiatives in response to public aspirations for greater benefits and convenience. These include allowing applications from restaurants for the admission of dogs, implementing the "joint-vetting" mechanism to expedite approval of applications for outside seating accommodation of restaurants, and leveraging technology and new investigation procedures to prompt owners to speed up water-seepage repairs in buildings.

370. Continuing this reformist spirit, and in view of structural changes in people's grocery shopping habits, the Secretary for Environment and Ecology will lead an inter-departmental working group to explore alternative uses for vacated market spaces (e.g. community facilities).

371. The Food and Environmental Hygiene Department (FEHD) also plans to try out the more agile single-operator model in individual new public markets, whereby operators enjoy greater flexibility in adjusting operating strategies to better meet public needs. Stall enhancement will also become a priority under the Market Modernisation Programme to improve customer experience.

(H) Strengthen the Protection for People's Livelihood

Targeted Support

372. The Government has been implementing a host of education, healthcare, housing and labour welfare measures to empower those who can help themselves achieve self-reliance and to provide a safety net for those unable to support themselves. The current-term Government has increased efforts to identify target groups according to the principle of targeted poverty alleviation, focusing resources on those most in need.

373. In June, the Commission on Poverty (renamed the Commission on Targeted Poverty Alleviation), led by the Chief Secretary for Administration published the Report on Impact of Targeted Poverty Alleviation Strategy in Hong Kong. The Report summarises the impact of and experience derived from the Strive and Rise Programme, the Pilot Programme on Community Living Room, the School-based After School Care Service Scheme and other initiatives. These projects have all achieved their key performance indicators, raising the standard of living and personal development of service beneficiaries.

374. The Report also highlights that we will shift from the traditional mindset of offering "relief" towards a strategy of proactive identification and targeted support. The new-term Commission on Targeted Poverty Alleviation has included carers in need (particularly elderly carers who look after elderly or disabled persons, and carers who look after children with special needs) among the groups for targeted poverty alleviation. It will provide specific services tailored to their needs.

375. The Government will:

Following the launch of the 16 Community Living Rooms, launch two more by the end of this year, expanding the reach to about 10 000 SDU households.
Establish a Welfare Information Sharing E-platform in phases to integrate the social welfare data of relevant government departments and non-governmental organisations (NGOs) and use AI to enable the early identification of high-risk individuals or families, for timely intervention and targeted response. Data analysis would facilitate targeted support, resource allocation and service deployment in a scientific manner. We will initiate a trial of data integration and analysis, involving selected government departments and NGOs, in the first half of 2027.
Run the "Community Dining Hall" to optimise the use of Integrated Children and Youth Services Centres during off-peak hours, providing affordable and nutritious meals for elderly persons living alone and in couples, PWDs, carers, children with special needs and their families. This will encourage them to integrate into the community, while giving social welfare organisations the opportunity to identify their needs and offer assistance. We will also launch the "Wellness-on-Wheels" project to provide more convenient service points via mobile service vehicles, for elderly persons and their carers living in aged buildings.
Spearhead the establishment of a matching platform to institutionalise tripartite collaboration among the Government, the business sector and the community in supporting the disadvantaged. The platform will enable the matching of resources from family offices and the business sector with community social welfare projects. The first round of matching will be arranged this year. The Commission on Targeted Poverty Alleviation will determine the target groups and themes before inviting NGOs to submit proposals.
In collaboration with the HKEX, explore providing listed companies with further guidance on the preparation of ESG reports, encouraging them to engage in community and charitable activities, and promoting closer and more effective partnerships between the business sector and social welfare organisations.
Narrow the digital divide by organising more experiencing and training activities on I&T and AI for children and young people from grassroots families.

Support Carers

376. The Government will strengthen its support for carers:

Increase the amount of allowance under the Scheme on Living Allowance for Carers of Elderly Persons from Low-income Families and the Scheme on Living Allowance for Low-income Carers of Persons with Disabilities by 10% to $3,300 per month. It is expected to benefit more than 10 000 low-income families.
Enhance the automated operation of the Carer Support Data Platform and expand its coverage.
Optimise the system of the Designated Hotline for Carer Support and enhance its efficacy.
Increase the manpower of the District Support Centres for PWDs for better early identification of and support for high-risk carers.
Regularise the Pilot Scheme on Training for Foreign Domestic Helpers in Elderly Care and the Pilot Scheme on Training for Foreign Domestic Helpers in Care for PWDs, starting from April 2027.

Support Persons with Disabilities and Persons in Rehabilitation

377. To strengthen rehabilitation services for PWDs, the Government will provide about 460 additional places for day, residential and pre-school rehabilitation services.

Protect Children

378. The Government is closely monitoring the implementation of the Mandatory Reporting of Child Abuse Ordinance, which took effect in January, to ensure adequate support measures are in place.

379. Four new Community Parents and Children Centres have begun operation in the first half of this year, with an estimated 40 000 beneficiaries a year. We are closely monitoring service implementation to ensure that the families and children concerned receive suitable and effective support.

Support Students with Special Needs

380. The Government is committed to increasing the quotas for pre-school rehabilitation service to achieve zero-waiting time for on-site support. We will exempt kindergarten children with special needs from going through the Central Waiting List, so that they receive better and earlier support through personalised services designed by their kindergartens and multi-disciplinary service teams.

381. We will launch the "Enhanced Support for Students with Attention Deficit/Hyperactivity Disorder" Project in the 2026/27 school year and pilot the project for three years, starting from the 2027/28 school year. It will provide small-group training and other support services for students with attention deficit/hyperactivity disorder studying in public sector ordinary primary and secondary schools, thereby enhancing their performance in behavioural, social and learning adaptation.

(I) Enhance Labour Protection

Combat Illegal Employment

382. The Government will step up efforts to combat illegal employment on all fronts and reduce economic incentives for potential non-refoulement claimants to come to Hong Kong. Relevant measures include:

Strengthen the functions of the Inter-departmental Task Force against Illegal Employment and review the membership of the task force in a dynamic manner.
Appoint industry representatives from specific sectors as "Anti-Illegal Employment Ambassadors" to assist in intelligence collection and step up publicity and education.
Leverage technology to enhance the effectiveness of "cyber patrol" and intelligence collection.
Review the penalty for illegal employment and strive for sentences with a greater deterrent effect to be handed down by courts.
Enhance inter-departmental joint operations to combat illegal employment in a targeted manner.

Stringent Vetting of Applications for Limited Supplementary Labour

383. The Government has always been committed to ensuring employment priority for local workers, while allowing only employers facing genuine recruitment difficulties and shortages of local manpower to import labour, on a limited scale, following approval. Employers are granted approval for limited importation of labour only upon meeting the manning ratio of local employees to imported workers, and proving that vacancies could not be filled by local workers after undertaking local recruitment. The wages of imported workers should not be lower than the median wages of local workers. In addition, the Labour Department (LD) has, since June, implemented a tiered vetting mechanism under the Enhanced Supplementary Labour Scheme (ESLS). Job categories falling under the Tier 2 mechanism are subject to more stringent requirements in such areas as manning ratio and local recruitment, including a requirement for employers to attend in-person recruitment fairs held at designated job centres, and an extension of the local recruitment period from four weeks to six weeks. The Tier 2 mechanism is currently applicable to key posts in the kitchen and table services of the food and beverage services sector. The ratio of imported workers approved has fallen accordingly. The Government will closely and dynamically monitor the employment situation and include more industries and posts in the Tier 2 vetting mechanism, as necessary. The LD actively investigates and follows up on suspected violations of ESLS requirements. It imposes administrative sanctions on non-compliant employers, to ensure employment priority for local workers.

384. The LD is also developing a new digital application platform for ESLS with enhanced data collection and analysis, to strengthen the monitoring of applicant employers' compliance.

Formulate New Legislation to Strengthen Protection for Delivery Workers

385. The Government is developing new legislation to provide digital platform workers engaging in food and goods delivery services with statutory compensation for injuries at work. We will also strengthen communication with stakeholders.

Enhance Occupational Safety and Health

386. The Government is deeply concerned about occupational safety and health (OSH) issues in the construction industry. Apart from ongoing surprise inspections and enforcement actions against non-compliance, we are using innovative technologies to boost enforcement effectiveness and efficiency. We will also step up publicity and education efforts to raise safety and law-abiding awareness among contractors and workers.

387. The Government has launched the Smart Site Safety System (4S) labelling scheme in collaboration with the CIC. We will continue to fund private works projects through the CITF to enhance site safety by using innovative construction methods and new technologies (including 4S).

Enhance the Mandatory Provident Fund System

388. We will introduce an amendment bill into the LegCo by the end of the year, to enhance the process of recovering default MPF contributions from employers. With Phase One of MPF "Full Portability" scheduled for implementation this year, we are also preparing a legislative proposal on the implementation of Phase Two of MPF "Full Portability" to benefit the remaining employees.

Encourage Re-employment

389. As of July, the Re-employment Allowance Pilot Scheme had recorded over 53 000 placements, about a quarter of which were filled by individuals aged 60 and above. The Government will provide additional resources to disburse re-employment allowance to all eligible participants. The LD will also announce the results of the Scheme's mid-term review by the end of the year to facilitate the refinement of further measures to encourage re-employment.

(J) Concerted Efforts to Build a Thriving Age-friendly Society

Cope with an Ageing Society

390. Last year's Policy Address announced the establishment of the Working Group on Ageing Society Strategies, to formulate strategy responses and submit a report under the steer of the Deputy Chief Secretary for Administration.

391. The report is now completed and is set to recommend about 70 measures covering 11 areas, including healthcare, technology, economy, transport, elderly care, finance, learning, social life and age-friendly city design. The Deputy Chief Secretary for Administration will announce the report later this month.

Foster a Sense of Security among the Elderly

392. Adhering to the principle of "ageing in place as the core, with institutional care as back-up", the Government promotes ageing in place with the following measures:

Increase the number of Community Care Service Vouchers for the Elderly by 2 000, to 18 000 in the 2027-28 financial year.
Increase the number of Residential Care Service Vouchers for the Elderly by 1 000, to 8 000.
Set up five new subsidised, day-care facilities for the elderly, providing about 200 service places.
Set up five new Neighbourhood Elderly Centres to support the elderly in integrating into the community. The facilities are expected to serve about 5 000 persons a year.

393. The Government will continue to set up new residential care facilities and improve relevant services, including:

Set up three new residential care homes for the elderly (RCHEs), providing about 400 residential care places.
Provide newly built government RCHE premises for self-financed operation by the sector on a pilot basis, allowing greater flexibility in offering diversified residential care services for the elderly.
Continue to expand the Residential Care Services Scheme in Guangdong by identifying more RCHEs in the Mainland cities of the GBA to join the Scheme, providing more RCHE choices for Hong Kong's elderly persons. To date, the number of participating RCHEs in Guangdong has reached 29, accommodating over 1 400 Hong Kong elderly residents.
Explore further enhancement to the Incentive Scheme to Encourage Provision of RCHE Premises in New Private Developments, such as allowing developers to use part of the floor area exempted from the gross floor area calculation to provide day-care facilities for the elderly.
Provide additional resources for subvented RCHEs to offer end-of-life care services over a three-year period.

394. To facilitate Hong Kong elderly persons to receive medical treatment in the Mainland cities of the GBA, the Government will explore extending the service points under the Elderly Health Care Voucher Greater Bay Area Pilot Scheme to cover the "community health centres" operated by the current participating medical institutions, and including additional pilot medical institutions in the scheme.

395. With reference to the existing regime for admitting foreign domestic helpers, the Government will admit foreign domestic carers with more advanced training and experience in elderly care on a pilot basis. This will help meet the care needs of elderly persons living at home.

Promote a Sense of Worthiness among the Elderly

396. We will launch a three-year "Young-Old Mentorship Programme", establishing a mutual support network for young-olds with vitality and the skills to make the most of their abilities, share their experience and integrate into society, raising their sense of self-worth and enjoying active ageing.

397. The LWB will collaborate with Octopus Cards Limited to launch the mobile version of JoyYou Card by the end of the year. It will offer elderly persons an option to enjoy the "$2 flat rate or 80 per cent discount" concession without a physical card. We will also explore making better use of the mobile platform in disseminating useful information to elderly persons via push notifications.

Continuously Build a Gerontechnology Ecosystem

398. The Government has been subsidising social welfare service units in procuring or renting relevant products under the Innovation and Technology Fund for Application in Elderly and Rehabilitation Care.

399. The HKHA will launch a pilot scheme introducing suitable household gerontechnology equipment to elderly singletons of advanced years and all-elderly households in selected public housing estates with a higher elderly population. The scheme will gradually be extended to other public housing estates.

400. The Government will earmark $100 million to launch the Gerontechnology Promotion Scheme. It will encourage and support local technology enterprises in developing elderly-care products and solutions, accelerating product optimisation for the benefit of the people of Hong Kong.

(K) Build a Green and Liveable City

401. To achieve carbon neutrality before 2050, the Government is committed to implementing Hong Kong's Climate Action Plan 2050, with measures including the use of zero-carbon energy, popularisation of electric vehicles (EVs) and promotion of waste reduction and recycling. Our per capita greenhouse gas emissions reached a new low of 4.41 tonnes in 2024.

Zero-carbon Energy

402. To boost the resilience of Hong Kong's power system, stabilise electricity prices and support emerging industries, the Government is pressing ahead with the reclamation project at Area 132 in Tseung Kwan O to accommodate new strategic electricity facilities, and is working with relevant Mainland counterparts and the two local power companies to explore options for transmitting electricity to Hong Kong. These efforts aim to increase the share of zero-carbon energy in our fuel mix for electricity generation from around 25% at present to between 60% and 70% by 2035, ultimately achieving net-zero electricity generation by 2050.

Development of Hydrogen Energy

403. The Government will continue to promote the development of hydrogen energy by advancing hydrogen trial projects in areas such as transport and power generation at construction sites. This will underline Hong Kong's role as a demonstration base for green technology and a platform for green finance and professional services.

404. The Government plans to submit the relevant subsidiary legislation under the Gas Safety (Amendment) Ordinance 2025 to the LegCo this year. It will set out implementation details for regulating the hydrogen supply chain, bolstering investor confidence in developing related businesses.

Enhance Waste Reduction and Recycling

405. The current-term Government promotes the circular economy. The disposal rate of municipal solid waste (MSW) has declined for four consecutive years, with an average of 10 326 tonnes per day last year, a decrease of 9.1% compared to 2021. The recovery amount climbed to about 2.02 million tonnes in 2024, a recovery rate rise from 28% to 34%.

406. I·PARK1 will come into full operation this year, processing 3 000 tonnes of MSW each day. The I·PARK2 project has also begun, with an operational target in the early 2030s, moving towards "Zero Landfill".

407. The Government has implemented the five-year waste reduction and recycling plan to optimise recycling facilities, starting in 2026-27. All Recycling Stores under GREEN@COMMUNITY across the territory have introduced self-service time slots since August this year and are being progressively upgraded into 24-hour, self-service smart facilities. The first 24-hour self-service smart Recycling Store will begin operation by year-end, and the rest will be completed in 2027. The number of smart recycling bins will gradually increase from about 140 sets at present to around 3 000 sets starting in mid-2027. The GREEN@COMMUNITY will also be consolidated into a district-based recycling network to create economies of scale.

408. Our average daily quantity of food waste collected increased from about 130 tonnes in 2021 to about 400 tonnes in the first half of this year. The number of food waste, smart recycling bins will increase by 600, to approximately 2 500 in the first quarter of 2028. We will achieve "one bin per block" in PRH estates across the city by the end of the year, as scheduled.

Promote the Popularisation of Electric Vehicles

409. The Government has been vigorously promoting the popularisation of EVs. There are now over 180 000 EVs in Hong Kong, and more than 7 out of every 10 first registered private cars are EVs. That growth rate ranks among the world's highest.

410. Parking spaces with charging-enabling infrastructure have increased from about 28 000 in 2021 to over 170 000. The number of public chargers has increased by more than twofold, from around 4 700 to approximately 17 300. The overall charging infrastructure is sufficient to support more than 270 000 EVs. We will continue to adopt fast chargers as the future backbone of our public charging network, with plans to increase the number of fast chargers to 5 000 within five years, supporting some 250 000 more EVs.

411. Our country leads the world in innovative charging technology. The megawatt-level, flash-charging technology can fully charge a private car in just nine minutes, while the battery swapping technology can replenish a vehicle in about 100 seconds at its fastest. With Government support, it is expected that these charging technologies will soon be adopted in Hong Kong. The Environment and Ecology Bureau, in collaboration with the National Energy Administration, will construct the first ChaoJi charging technology demonstration station in Hong Kong in 2027, showcasing its compatibility with national and European charging standards.

412. The Government will promote the adoption of electric commercial vehicles (e-CVs)⁴⁵ in a pragmatic manner. We have set up a working group to explore the introduction of suitable vehicle types for public light buses as a first step. We will also promote the use of mobile charging robots to offer a more flexible quick-charging solution for e-CVs.

Promote Animal Care and Control and Ecological Conservation

Animal Care and Control

413. The Government will consult the LegCo on legislative proposals to step up efforts to combat cruelty to animals, and the illegal possession or use of hunting appliance at the end of the year. It will work to complete the legislative amendment exercise in 2027. We will also review the provisions on pet ownership and control, including those under the Dangerous Dogs Regulation, to further optimise the regulatory framework while enhancing publicity and education on the proper care of animals by pet owners.

Align with the National Biodiversity Strategy in a Proactive Manner

414. We will proactively align with the national biodiversity strategy by implementing the priority actions outlined in the Hong Kong Biodiversity Strategy and Action Plan 2035. In addition, we will take forward various habitat conservation projects, such as beginning the first phase of construction for the Sam Po Shue Wetland Conservation Park, designating the Sharp Island Marine Park, consolidating local ecological conservation red lines, strengthening the conservation of wetlands and coral communities and offering a more diverse and high-quality eco-recreational experience. We will also begin the legislative process to amend the Wild Animals Protection Ordinance, to strengthen the protection of cetaceans in Hong Kong waters.

Underground Common Utility Tunnels

415. Hong Kong's roads are more than 2 200 kilometres long in total, with various utilities buried underground spanning an aggregate length of about 110 000 kilometres. The excavation and road works conducted for the laying and maintenance of utilities cause inconvenience to the public.

416. In recent years, the Government has started to design and construct underground common utility tunnels under selected suitable major roads in NDAs on a pilot basis. Appropriate utilities⁴⁶ will be centrally accommodated in these tunnels, enabling inspection and maintenance to be carried out without the need for excavation and road works. Real-time sensor monitoring systems and AI technologies will also facilitate the detection and identification of abnormal conditions, enabling the issuance of alerts to prompt early inspection and maintenance. They include:

Construction of the first underground common utility tunnel in the Kai Tak Development Area has been completed.
An underground common utility tunnel in the Tung Chung New Town Extension is expected to be completed in phases, starting from year's end.
In the NM, a section of an underground common utility tunnel is under construction in Yuen Long South and one in San Tin Technopole is being designed.

417. In light of the relatively high construction cost of an underground common utility tunnel, the Government will assess the implementation of the projects and proceed in a pragmatic manner.

Remark 29: Science, Technology, Engineering, the Arts and Mathematics.

Remark 30: It will include the Y Cube in Chai Wan, Youth Link · Nam Cheong, and the Youth Post in Kai Tak.

Remark 31: Eastern District, Yau Tsim Mong District, Yuen Long District and Sha Tin District.

Remark 32: The number of cases waiting for cataract surgery recorded a downward trend instead of upward since the HA strengthened its cataract surgery service in 2024. The 90th percentile waiting time was also shortened from 37 months to 32 months. Waiting time is expected to be further shortened to 18 months by 2032.

Remark 33: The 90th percentile waiting time.

Remark 34: Ear, Nose and Throat, Ophthalmology, Gynaecology, Medicine, Orthopaedics and Traumatology, Psychiatry and Surgery.

Remark 35: Including 27 new drugs/expanded clinical indications and 26 recommendations for out‑of‑pocket medical devices.

Remark 36: Including digital health.

Remark 37: Including the implementation of the Bonus Plot Ratio Pilot Scheme and the cross-district transfer of plot ratio scheme.

Remark 38: Accounting for about 3% of the total annual expenditure on public works projects.

Remark 39: Artificial Intelligence of Things

Remark 40: Including new technologies such as construction robots, AI and digital construction technologies.

Remark 41: During the International Arts Season, cultural mega events such as the Hong Kong Arts Festival, Art Basel, Art Central, the Hong Kong International Film Festival and the French May Arts Festival will be hosted, consolidating Hong Kong's position as the East-meets-West centre for international cultural exchange.

Remark 42: The Chinese Arts Season will cover the Chinese Culture Festival and the Hong Kong Intangible Cultural Heritage Month, promoting the sophisticated traditional Chinese culture for citizens and visitors to experience its charm.

Remark 43: The Festive Mega-Event Season will offer a line-up of festive events such as Mid-Autumn Festival and Halloween mega events, the Hong Kong Wine and Dine Festival, Hong Kong Winterfest, immersive light shows, Hong Kong New Year Countdown Celebrations and the International Chinese New Year Night Parade, showcasing Hong Kong's festive ambiance and convergence of Chinese and international cultures to visitors from around the world.

Remark 44: These include enhancing the Electronic Business System to allow one-stop online completion of arrival and port formalities, setting up designated anchorage areas and relaxing berthing requirements, and authorising Mainland institutions to conduct examinations and provide training for yacht masters.

Remark 45: For example, medium and heavy goods vehicles and public light buses.

Remark 46: Including water supply pipes, cables, chilled water pipes of district cooling systems and communications facilities.