The Financial Secretary of Hong Kong released the 2018-2019 Budget, confirming the government’s new fiscal policy and budget strategies for the coming fiscal year. Hong Kong authorities said the budget’s primary goals are to create a more diversified economy, invest for the future, and address the needs of the people. Below are some of the details.
Key objectives
The initiatives put forward in this Budget are underpinned by three main objectives:
(1) Diversified economy: to diversify Hong Kong economy to create wealth for Hong Kong and provide wider and better development opportunities for our young people.
(2) Investing for the future: to improve health-care services, deploy resources and making early preparation, and to improve the living environment to make Hong Kong an ideal smart city to work and live in.
(3) Caring and sharing: children and young people should be given more care, protection and opportunities; middle-class families need relief from financial burdens, while the grassroots and underprivileged require more support. Besides, a fulfilling life calls for not only materialistic improvements, but also better quality of life and spiritual enrichment.
Seizing Opportunities
Hong Kong needs to consolidate and build on its existing strengths, rise with the tide and seize the opportunities before.
Belt and Road Initiative
The Belt and Road Initiative spans from east to west, covering both land and sea routes. By effectively improving the flow of people, goods and capital through facilities connectivity and policy co-ordination, the initiative will generate great demand for infrastructure, capital, as well as professional, legal and other high-end services over which Hong Kong has advantages. Supporting the Belt and Road development and assisting Mainland enterprises in going global will open up new room for the development of our enterprises as well as financial and professional services.
Bay Area
The Bay Area development is of strategic significance to Hong Kong in three key aspects, namely, “two markets”, “I&T industries” and “land resources”. The Bay Area covers not only Shenzhen which houses many leading I&T enterprises, but also a large number of cities transforming towards an advanced manufacturing economy. As such, the Bay Area and Hong Kong can complement each other in the field of I&T industries, thereby creating an international innovation and technology hub where talent, research and development (R&D) institutes and enterprises cluster.
Budget measures for 2018 to 2019
1. Innovation and Technology
To shine in the fierce I&T race amidst keen competition, Hong Kong must optimise its resources by focusing on developing its areas of strength, namely biotechnology, artificial intelligence, smart city and financial technologies (Fintech).
2. Financial Service Industry
Hong Kong must upgrade and enrich our pool of financial talent if we are to maintain our leading edge and firmly remain the most competitive financial centre in Asia. Developing Hong Kong into a preferred listing platform for emerging and innovative enterprises, developing Bond Market and Green Finance, and qualifying Debt Instrument Scheme.
3. Business and Professional Services
The Government has launched the Professional Services Advancement Support Scheme to provide funding support for business and professional organizations, thereby facilitating external promotion and enhancement of Hong Kong’s professional services. The professional services sector are encouraged to work with other sectors in applying for funding and exploring new business opportunities.
4. Support for Small and Medium Enterprises
Hong Kong is home to about 330 000 small and medium enterprises (SMEs), accounting for over 98 per cent of the total number of local enterprises. To help SMEs, including start-ups, grasp economic opportunities and boost their competitiveness,the government will enhance the current funding schemes.
Source: www.budget.gov.hk
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