Hong Kong unveils major initiatives to propel AI and innovation

A sum of HK$1 billion has been set aside to establish the Hong Kong AI Research and Development Institute, as announced by Paul Chan. 

The government will also launch a two-year Pilot Manufacturing and Production Line Upgrade Support Scheme with HK$100 million this year, aimed at assisting around 400 enterprises in developing smart production strategies and integrating advanced technologies into their existing production lines.

Chan said that the Digital Policy Office will establish the AI research and development institute’s arrangements and specific goals, focusing on enhancing upstream Research and Development (R&D), transforming R&D outcomes, and expanding application scenarios. 

He said that the AI Subsidy Scheme has already approved five projects led by local universities and research institutions to accelerate R&D in areas such as large language models, new materials, and synthetic biology since its launch last October.

Also, Chan introduced an upcoming HK$180 million I&T Accelerator Pilot Scheme, which will offer up to HK$30 million in funding on a one-to-two matching basis to professional start-up service agencies, aiming to bolster the city’s start-up ecosystem through their networks and expertise.

“AI is at the core of developing new quality productive forces. We will leverage the edge of One Country, Two Systems and our internationalized characteristics to develop Hong Kong into an international exchange and cooperation hub for the AI industry,” he said.

Regarding financial and tax support, Chan said that the HKEX is working to establish a dedicated “technology enterprises channel” to assist specialist technology and biotechnology companies with listing applications, with backing from the Securities and Futures Commission to streamline the process.

On the licensing of Low Earth Orbit satellites, he said that the Commerce and Economic Development Bureau, along with the Office of the Communications Authority, is exploring streamlined procedures for vetting license applications for Low Earth Orbit satellites, aiming to complete this work within the year.

(Cheng Wong)