The Financial Secretary of Hong Kong, Paul Chan, unveiled pivotal allocations and initiatives during the announcement of the 2025-2026 budget on Wednesday, touching across several sectors aimed at boosting economic stability and enhancing quality of life for residents.
One of the standout proposals is the HK$300 million subsidy scheme aimed at promoting electric vehicle (EV) adoption. Chan highlighted the growing concern for more electric vehicle charging infrastructure, noting there are now over 100,000 EVs registered in Hong Kong, marking an increase of eight times over the past five years. The scheme is expected to facilitate the installation of 3,000 fast chargers across the city by 2030, providing much-needed support as the demand for EVs continues to rise.
Chan emphasized, "We recognize the importance of enhancing our EV infrastructure to support our sustainable development goals and to respond to increasing consumer needs for environmentally friendly transportation options." This initiative aligns with the city's broader strategy to reduce carbon emissions and promote greener urban living.
To build on the sustainability theme, the government is also allocating HK$180 million to bolster waste reduction initiatives. This funding will increase the number of residential food waste smart recycling bins and improve waste collection facilities throughout the city. It aims to expand the recycling network and increase waste recovery, illustrating the government's commitment to environmental management.
Alongside sustainability efforts, major changes were announced to the subsidized public transport fares for seniors over 60. Dubbed the "HK$2 flat rate cum 80 percent discount," this new arrangement will adjust journeys priced at HK$10 or more to only provide 80 percent off their fare, with capped subsidized trips set at 240 per month, or about eight trips per day. Chan stated, "This fine-tuned proposal preserves our policy intent...while minimizing the impacts on beneficiaries." This adjustment remains subject to public reaction as no implementation date has been provided.
Meanwhile, the expanded Public Transport Fare Subsidy Scheme, which is available to all ages, will also undergo modifications. Starting June, the subsidy will only kick-in for expenses surpassing HK$500 each month instead of HK$400 previously, anticipating savings of HK$6.2 billion for taxpayers over five years.
On the issue of gambling regulations, Chan addressed concerns over illegal basketball betting activities and stated plans to invite the Hong Kong Jockey Club to submit proposals for regulatory measures. Last year's turnover from illegal basketball betting was estimated between HK$70 billion and HK$90 billion, prompting the government to take action to safeguard the integrity of betting activities.
Chan also discussed the real estate market, announcing no commercial sites will be sold over the next year due to high vacancy rates and ample supply. The government is, nevertheless, optimistic about providing residential units with expectations to roll out eight plots set to yield about 13,700 new residential units. Chan reaffirmed, "We will closely monitor the market situation and develop sites in a paced and orderly manner," indicating strategic foresight to address housing shortages.
Innovation remains at the forefront of the budget, with HK$1 billion allocated for establishing the Hong Kong AI Research and Development Institute. This initiative is set to position Hong Kong as a competitive player within the Asia-Pacific region's technological corridor, as the government pledges to support research and development efforts, particularly focusing on industrial applications of artificial intelligence.
Chan remarked on the ambitions to enter the Low Earth Orbit satellite sector, identifying it as the future trend for global satellite development. The government will push to streamline application processes for operating such satellites, pointing toward advanced technological initiatives on the horizon.
Tourism is also receiving attention, with the Hong Kong Tourism Board set to receive HK$1.2 billion aimed at rejuvenate interest from visitors. Emphasizing the mantra of "tourism is everywhere," Chan noted initiatives to promote niche tourism markets including panda tourism, horse-racing tourism, and eco-tourism, all seeking to invigorate local economies.
The HKTB is expected to collaborate with international brands to improve storytelling of Hong Kong's tourism offerings, and, according to Chan, the board's efforts could lead to approximately 183,000 additional visitor arrivals and raise spending by about HK$1.4 billion.
Chan also added plans to attract cruise ships to see Hong Kong as their home port and assure enhancements along Victoria Harbour to enrich the visitor experience. Initiatives will also explore opportunities for developing commercial and residential spaces over waterfront sites south of Hung Hom Station.
Overall, the 2025-2026 budget reveals the government's strategic direction to stimulate growth, embrace sustainability, and position Hong Kong competitively within the global economy. By supporting innovation and public welfare, the budget aims not only to address immediate concerns but also to set forth ambitious plans for future development.