2025-26 Budget: Reform and Innovation for New Development

The Financial Secretary, Mr Paul Chan, presented the 2025-26 Budget on 26 February 2025 and announced a series of measures, aiming to promote high-quality economic development. Some of the highlights that may be of interest to the Central and Eastern European markets include -

Innovation and Technology

To develop Hong Kong into an international exchange and co-operation hub for the AI industry, a total of HKD 1 billion (about EUR 124 million) would be set aside to establish the Hong Kong Artificial Intelligence Research and Development Institute to promote the application of research outcomes. Another HKD 100 million (about EUR 12.4 million) would be earmarked to launch the Pilot Manufacturing and Production Line Upgrade Support Scheme this year to provide funding on a matching basis to enterprises.

Tourism and Mega Events

The Hong Kong Tourism Board, allocated with HKD 1.23 billion (about EUR 153 million), would collaborate with international brands to develop and promote tourism. A three-year global strategic partnership agreement with Art Basel has been signed to enhance cooperation at all four annual Art Basel shows around the world. A series of mega sports and entertainment events have been scheduled to take place in Hong Kong, notably at the Kai Tak Sports Park recently opened in March.

The 50,000-seat stadium at Kai Tak Sports Park

Education and Talent

A total of HKD 1.5 billion (about EUR 185 million) would be allocated for launching a new round of the Research Matching Grant Scheme to attract more organisations to support research ventures of institutions located in Hong Kong. The quota of the Hong Kong PhD Fellowship Scheme will be increased to 400 places per year. By stepping up promotion of the “Study in Hong Kong” brand, Hong Kong is anticipated to developing into an international education hub, attracting outstanding talent from all over the world.

For more information on the 2025-26 Budget, please click here.