Hong Kong government reports progress on industrial funding schemes
Hong Kong's Legislative Council received updates on two industrial funding schemes, including application numbers, approval rates, and simplified procedures. The government also outlined plans for a medium-to-long-term development strategy for new industrialisation, focusing on emerging sectors and
Hong Kong's government has provided detailed updates on its efforts to advance the city's new industrialisation, responding to questions from lawmaker Chan Chun-gok in the Legislative Council on 28 October. The replies cover two key funding schemes and plans for a forthcoming development strategy.
Since its launch in July 2020, the New Industrialisation Funding Scheme (formerly the Re-industrialisation Funding Scheme, renamed in October 2023) has received 12 applications, all of which were approved. The scheme provides matching grants on a 1:2 government-to-enterprise ratio, with a maximum subsidy of 15 million Hong Kong dollars per project or one-third of total expenditure, whichever is lower. A total of 179.4 million Hong Kong dollars in grants has been disbursed, supporting the establishment of 11 new smart production lines.
The New Industrial Acceleration Plan, introduced in September 2024, targets enterprises in life-health technology, artificial intelligence and data science, and advanced manufacturing and new energy technology. It offers up to 200 million Hong Kong dollars per enterprise on the same matching basis. To date, four applications have been received, with three approved, resulting in 30 million Hong Kong dollars in grants and three new smart production facilities.
Since June 2025, the Innovation and Technology Bureau has simplified procedures for projects seeking funding of 2.8 million Hong Kong dollars or less. Out of 11 applications processed under the streamlined system, 10 were from small and medium-sized enterprises, all of which received committee approval. The average processing time from submission of complete documents to notification of results has been reduced to 21 working days, a change that has received positive feedback from the industry.
The government plans to release the Hong Kong Medium-to-Long-Term Development Plan for New Industrialisation within the year. The plan will establish a development path centred on high technology and high value-added industries, while nurturing strategic emerging sectors such as life-health technology, artificial intelligence, and advanced manufacturing. It will also aim to consolidate and upgrade traditional industries, including textiles and apparel, through a dual-drive approach balancing manufacturing and producer services.
To support traditional industries, the government will continue to fund research and development projects through the Innovation and Technology Fund, covering areas such as advanced manufacturing, new energy, and artificial intelligence. Additionally, the 2026 Policy Address announced the establishment of a Textile and Fashion Industry High-Quality Development Task Force, chaired by the Secretary for Commerce and Economic Development. Expected to be formed in the first half of 2027, the task force will coordinate efforts across innovation, design, supply chain management, sustainability, and talent development, and is required to submit a report to the Chief Executive by the end of 2027.
