Government unveils plan to build HK as a global data hub

Secretary for Innovation, Technology and Industry Sun Dong hopes the new AI Research and Development Institute will help build Hong Kong into a “data hub.”

During a radio program on Sunday, Sun stated that artificial intelligence will reshape human life and drive high-quality development.

“Despite facing severe challenges in public finances, the SAR government is determined to implement measures in AI, reflecting its responsibility for future high-quality development,” he said.

Sun noted the government will continue to advance AI initiatives, expanding applications within the government and in sectors like finance, healthcare and education.

According to the Budget 2025/26 announced on February 26, the government has allocated HK$1 billion for the Hong Kong AI R&D Institute, which is expected to begin operations as early as next year.

Sun expressed his hope that the institute will facilitate breakthroughs in algorithms and technology, promote data sharing — including cross-border data flow with mainland — and introduce international data, ultimately transforming Hong Kong into a “data hub.”

Additionally, he emphasized the need to promote new industrial development alongside helping traditional industries transform. 

He stated that the government has approved the first application under the New Industrialization Acceleration Scheme, which supports the establishment of new smart production facilities.

Last year, Hong Kong’s number of startups reached 4,700, reflecting over 10 percent growth.

Sun noted this demonstrated the local business environment’s attractiveness, suggesting that more talent will come to the city for development.

To build an international innovation and technology center, Sun stated that Hong Kong needs star enterprises. 

Through the I&T Accelerator Pilot Scheme, the government aims to match funding for businesses to attract experienced startups to establish bases in the city.

Sun also highlighted the importance of focusing on high-value-added and distinctive projects while acknowledging that funding and land remain significant challenges, impacted by past industrial policies on the investment environment.

Meanwhile, the city launched the HKGAI V1 large language model (LLM) on February 25, marking its first locally developed generative AI.

Sun noted that the model was trained by Hong Kong’s native data with the assistance of Chinese AI firm DeepSeek, hoping it could be applied across various fields.

(Cheng Wong)