FS REVS UP CITY’S TRADE ENGINE

Financial Secretary Paul Chan said today that the Government will strive to bolster Hong Kong’s status as an international trade centre, supply chain management centre, and transportation and logistics hub.

In his 2025-26 Budget speech, he said efforts will be made to expand the city’s trade network, reinforce its connectivity and attract more inward investment, while also strengthening support for local enterprises.

As regards Hong Kong’s supply chain management capabilities, Mr Chan iterated that the Hong Kong Trade Development Council and InvestHK jointly provide assistance to Mainland enterprises in using Hong Kong as a base to manage their offshore trading and supply chain activities.

In terms of trade financing, he said the Trade Financing Liquidity Facility recently introduced by Monetary Authority (HKMA) and the People’s Bank of China provides greater flexibility for RMB financing. In addition, the Hong Kong Export Credit Insurance Corporation offers credit insurance to support enterprises seeking to go global.

Mr Chan said the Government is considering making legislative amendments to facilitate digitalisation of trade documents, and will submit proposals to the Legislative Council next year.

In efforts to expand Hong Kong’s trade network and attract more inward investment, the Financial Secretary said the Government is liaising with the governments of Malaysia and Saudi Arabia with a view to establishing Economic & Trade Offices in those countries. In addition, InvestHK has established consultant offices in Egypt and Türkiye, while the HKTDC has set up a consultant office in Cambodia.

Moreover, the Government is exploring investment agreements with Saudi Arabia, Bangladesh, Egypt and Peru, and is conducting negotiations with 17 countries on establishing Comprehensive Avoidance of Double Taxation Agreements.

Mr Chan outlined that Hong Kong will continue to cultivate markets in the Association of Southeast Asian Nations (ASEAN) and the Middle East, besides exploring opportunities in Central Asia, South Asia and North Africa. With regard to the Belt & Road (B&R) Initiative, he added that the HKTDC will strengthen project matching, particularly in relation to green development and innovation and technology (I&T).

Meanwhile, to support the development of local enterprises and help them to go global, the finance chief said the Government will inject a total of $1.5 billion into two funds: the Dedicated Fund on Branding, Upgrading and Domestic Sales and the Export Marketing and Trade and Industrial Organisation Support Fund. Application arrangements will also be streamlined.

In terms of support for Small and Medium Enterprises (SMEs), Mr Chan also highlighted that numerous banks have joined the Taskforce on SME Lending jointly established by the HKMA and the Hong Kong Association of Banks. He said that the funds dedicated for SME financing in the participating banks’ loan portfolios recently increased to over $390 billion.

In collaboration with large-scale e-commerce platforms, the HKTDC will also launch “E-Commerce Express”, in order to provide Hong Kong enterprises with one-to-one consultation services and thematic seminars. In addition, it will enhance the mentorship scheme it operates in collaboration with the Trade & Industry Department, and will organise a second edition of the Hong Kong Shopping Festival.

Turning to Hong Kong’s maritime industry, Mr Chan said the Government will adopt an “innovative spirit” with regard to its development.

He revealed that a Hong Kong Maritime & Port Development Board will be established this year to support research, industry promotion and manpower training. In addition, he said a half-rate tax concession for eligible commodity traders will be introduced.

With regard to logistics development, the finance chief said the Government has initiated a study on developing modern logistics sites in the Northern Metropolis and expects that its findings will be announced this year.

Meanwhile, with a view to developing a smart port, $215 million has been allocated to installing a port community system that will encourage the flow of data among stakeholders in the maritime, port and logistics industries. 

In relation to the Government’s plans to bolster Hong Kong’s reputation as an international aviation hub, Mr Chan said the Three-Runway System at Hong Kong International Airport was commissioned at the end of last year and that related passenger facilities will become operational in phases from the end of this year.

He also highlighted that the Airport Authority (AA) recently promulgated a development plan for the expansion of Airport City, and revealed that the Hong Kong International Aviation Academy will expand its training programmes to cover C919 aircraft following their official deployment in scheduled flights between Hong Kong and Shanghai in January.

Mr Chan added that the AA has signed a Memorandum of Understanding with a leading overseas professional aeronautic services company to explore the possibility of providing professional services such as aircraft dismantling, parts recycling and related training in Hong Kong.

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