(Policy Address 2025) Aircraft recycling and life sciences to drive economic diversification

Chief Executive John Lee, in his latest Policy Address, unveiled a strategic push to cultivate local and attract overseas emerging industries, targeting economic diversification through two high-value sectors: aircraft recycling and life and health technology.

In a significant move for the aviation industry, the Government has reached an agreement of intent with a leading European aeronautic services company to establish its operations in Hong Kong. The company will specialize in aircraft dismantling and the recycling and trading of high-value parts.

This initiative is designed to catalyze the development of ancillary industries such as trading, insurance, financing, and leasing, creating new job opportunities across the sector's entire value chain. Furthermore, the company will collaborate with the Hong Kong International Aviation Academy to provide specialized professional training, a step that will solidify Hong Kong's status as a leading international aviation hub.

Concurrently, a major focus will be placed on accelerating the life and health technology industry.

The government plans to attract more pharmaceutical companies to establish operations in Hong Kong for conducting clinical trials and treatments involving drugs for rare diseases, high-end cancer treatments, and advanced therapy products. A key part of this strategy involves proactively enhancing the efficiency of patient recruitment and trial initiation.

To foster greater regional cooperation, the plan will utilize the "GBA Clinical Trial Collaboration Platform" in the Hetao area, enabling pharmaceutical firms to conduct synchronized trials in both Hong Kong and Shenzhen. In parallel, preparations will begin to establish an "International Clinical Trial Academy" to nurture a new generation of clinical trial professionals within the Greater Bay Area.

To provide a robust regulatory foundation, the Government will establish the "Hong Kong Centre for Medical Products Regulation" within the next year and submit a legislative proposal for regulating medical devices. The objective is to become an internationally recognized regulatory authority for medical products as swiftly as possible.

The "1+" new drug approval mechanism will be accelerated, piloting a priority evaluation pathway for innovative drugs—especially those treating severe or rare diseases—that are recommended by the Hospital Authority (HA).

The government will also promote the standardization of clinical data within the GBA and construct a real-world data platform. This infrastructure is intended to help companies bring new drugs to the Mainland and international markets more rapidly.

To support this, the HA will form an "Office for Introducing Innovative Drugs and Medical Devices," which will leverage big data analytics to identify local patient needs and proactively introduce innovative, cost-effective drugs and devices that benefit patients.