Hong Kong: Chief Executive John Lee on Wednesday delivered his fourth annual policy address, unveiling an extensive plan aimed at revitalizing Hong Kong’s economy, strengthening its position in emerging industries, and deepening integration with Mainland China while pledging to improve housing and social welfare.
At the heart of the address was the accelerated development of the Northern Metropolis, a vast urban project bordering Shenzhen. Lee announced the formation of a high-level Committee on Development of the Northern Metropolis, which he will personally lead. Three working groups will oversee industry models, the construction of a University Town, and the streamlining of planning and approvals. Concrete timelines were laid out, with sites for new universities expected to be released in phases beginning in 2026 and extending into the next decade.
Lee emphasized new measures to attract high-tech and innovation-driven industries, including artificial intelligence, biotechnology, and renewable energy. A 10-hectare data facility cluster is set to be tendered later this year, while an AI research institute is scheduled to open in 2026. Hong Kong will also launch its first large-scale electric vehicle battery recycling facility by mid-2026. In addition, the city is setting an ambitious goal to become a gold trading and storage hub, with a capacity of more than 2,000 tonnes within three years.
Education and talent attraction formed another key pillar of Lee’s address. The government will raise the quota for non-local students in government-funded universities from 40 percent to 50 percent, alongside new hostel projects and a HK $40 million allocation to support international recruitment of students and faculty.
On the economic front, Hong Kong is targeting growth of 2 to 3 percent in 2025, compared to 2.5 percent last year. Measures will include tax incentives, reforms to initial public offering regulations, and greater support for structured products and financial services. Lee also pledged to make Hong Kong more attractive to multinational headquarters and international firms.
Addressing livelihood concerns, Lee said the average waiting time for public rental housing had dropped from 6.1 years to 5.1 years, with continued efforts underway to expand housing supply. He also promised stronger support for healthcare, social welfare, and job creation, particularly in the new development zones.
National security and patriotic education remained a priority, with new initiatives including cross-border educational programs with Shenzhen and efforts to reinforce awareness of wartime history.
Despite the broad vision, challenges loom over the pace of implementation, from regulatory hurdles to funding pressures and talent shortages. Analysts warn that while the blueprint signals a strong commitment to diversification and integration with the Greater Bay Area, success will depend on swift execution and public confidence in the government’s ability to deliver.