Hong Kong’s 2026/27 Budget introduces HK$10 billion funds to support AI, life sciences and advanced industries, reinforcing its ambition to become a global innovation hub.
On February 25th, Hong Kong unveiled its 2026/2027 Budget, rolling out a major HK$10 billion innovation push. The plan targets life and health technology, artificial intelligence (AI), robotics and other strategic industries. It also aims to strengthen collaboration between universities, research institutes and the private sector, CNS reported.
Financial Secretary Paul Chan Mo-po announced the creation of a HK$10 billion Innovation and Technology Industry-Oriented Fund. The fund will guide market capital into high-growth sectors such as life sciences, AI and robotics. Officials are now selecting fund managers. The government expects the fund to begin operations within the year.
Meanwhile, the HK$10 billion Industry-University-Research 1+ Scheme continues to support commercialisation efforts. Under the matching funding model, the government co-invests with universities to translate research outcomes into market-ready products. Authorities have approved 49 projects so far. These projects cover health and medical sciences, new materials, new energy, AI and advanced manufacturing. More products will reach the market in phases.
In addition to innovation measures, Chan outlined the economic outlook. He projected underlying inflation at 1.7 per cent in 2026, with headline inflation at 1.8 per cent. Both figures are slightly higher than in 2025.
Looking ahead, Hong Kong’s economy is expected to grow by an average of 3 per cent per year in real terms from 2027 to 2030. Over the same period, underlying inflation should average 2 per cent annually.
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