Sun Dong: Hong Kong's traditional advantage industries are gradually upgrading and transforming, while strategic emerging industries are accelerating their development and growth.

On October 28, in a written reply to a question from a Legislative Council member, Secretary for Innovation, Technology and Industry Sun Dong said that innovation and technology development is the driving force for upgrading and transforming traditional industries. Hong Kong will continue to support various R&D institutions through the "Innovation and Technology Fund" in carrying out R&D and technology transfer projects covering advanced manufacturing, new energy, life and health, new materials, big data, AIoT, Siasun Robot&Automation technology, smart transportation, environmental protection technology and other fields, promoting the upgrading and transformation of traditional advantageous industries (including the textile and garment industry). Sun Dong mentioned that the Hong Kong government has been committed to building a new industrialization industry development system with Hong Kong characteristics. The "New Industrialisation Funding Scheme" (Funding Scheme) and the "New Industrialisation Acceleration Scheme" (Acceleration Scheme) have achieved positive results since their launch. Among them, the Funding Scheme, on a 1 (government): 2 (enterprise) matching basis, funds enterprises to set up new smart production lines in Hong Kong, with the maximum funding for each project being one-third of the total project expenditure or HK$15 million, whichever is lower. The Acceleration Scheme, on a 1 (government): 2 (enterprise) matching basis, funds enterprises engaged in life and health technology, AI and data science, and advanced manufacturing and new energy technology to set up new smart production facilities in Hong Kong, with each enterprise eligible for a maximum of HK$200 million in funding. He also said that since the Funding Scheme introduced optimisation measures in 2025 to simplify the documentary requirements and assessment procedures for applications involving funding of less than HK$2.8 million, the Innovation and Technology Commission has processed a total of 11 such applications, of which 10 were from SMEs and all were supported by the assessment committee. The average time from the submission of all documents by applicant enterprises to notification of the assessment results has been shortened to 21 working days, so that applicant enterprises can commence various tasks under the projects as early as possible, and the industry has responded positively. The Innovation and Technology Commission will continue to review the operation of the Funding Scheme and introduce optimisation measures in a timely manner. The Hong Kong government plans to announce the "Hong Kong New Industrialisation Medium- and Long-Term Development Plan" (the Plan) within this year, establishing a new industrialisation development path centred on "high technology and high value-added", actively cultivating strategic emerging industries such as life and health technology, AI and advanced manufacturing, as well as future industries such as embodied intelligence and biomanufacturing; on the other hand, focusing on consolidating and upgrading traditional advantageous industries, including textiles and garments. In addition, it will promote "dual-industry-driven" development, that is, placing equal emphasis on manufacturing and producer services. The content of the Plan will cover relevant development targets and policy measures. In addition, Hong Kong is actively building a high value-added supply chain service centre to better leverage its unique role and align with the national modern industrial system, including helping traditional industries upgrade and transform and cultivating and strengthening emerging pillar industries. Among them, the 2026 Policy Address proposes that the government will establish a "Task Force on High-Quality Development of the Textile and Fashion Industry" to coordinate and promote the high-quality development of the textile and fashion industry in areas such as innovation and technology, fashion design, supply chain management, sustainable development and brand promotion, and talent cultivation, and to assist the industry in connecting with mainland and overseas markets. The task force is expected to be established in the first half of 2027 and submit a report to the Chief Executive within 2027.