HKIE Responds to Hong Kong’s First Five-Year Plan and the 2026 Policy Address

(16 September 2026, Hong Kong) The Hong Kong Institution of Engineers (HKIE) welcomes the release of the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) (Hong Kong’s Five-Year Plan) and The Chief Executive’s 2026 Policy Address. The HKIE is pleased to note that the Government has adopted many of the recommendations previously put forward by the Institution in its submissions on Hong Kong’s Five-Year Plan and the 2026 Policy Address. These include expediting the development of the Northern Metropolis, advancing smart infrastructure, promoting innovation and technology (I&T) and artificial intelligence (AI) applications, developing green transport, and deepening the alignment of standards and talent development in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

The HKIE considers that Hong Kong’s Five-Year Plan sets out the medium- to long-term development directions, objectives and implementation pathways for the city, while the Policy Address translates the blueprint into annual policy initiatives and key projects. The two documents are interconnected and mutually reinforcing. Together, they enhance policy continuity and predictability, enabling the engineering profession to better plan its talent, technological capabilities and project resources in support of Hong Kong’s high-quality development.

The HKIE welcomes the two documents’ proactive alignment with the National 15th Five-Year Plan and their efforts to capitalise on Hong Kong’s unique advantages of being supported by our country while closely connected to the world. Their coordinated approach to advancing industry development, infrastructure, I&T, green transformation, city safety and talent development will help enhance Hong Kong’s competitiveness and enable the city to better integrate into and serve the overall national development. The HKIE is also pleased that the Government attaches importance to the views of the engineering profession, and looks forward to maintaining close collaboration with the Government and different sectors of the community to take forward the relevant policies.

Taking a Long-term View to Strengthen Development Momentum

The HKIE supports the formulation of Hong Kong’s first Five-Year Plan, which covers such areas as the economy, innovation, urban development, people’s livelihood and environmental protection. By setting out development objectives and major indicators, supported by monitoring and evaluation mechanisms, the Plan provides different sectors with a clearer understanding of Hong Kong’s medium- to long-term policy priorities and facilitates forward planning for investment, technological development and talent needs. The Plan’s seven underlying principles and five major objectives encompass the consolidation and enhancement of the “Four Centres and One Hub”, the development of new quality productive forces, the accelerated development of the Northern Metropolis and greater public governance efficiency.

The HKIE also notes that the five-year output of spade-ready sites in the Northern Metropolis, carbon emissions per unit of Gross Domestic Product, the share of zero-carbon energy in the fuel mix for electricity generation, and the average ambient concentration of PM2.5 are designated as binding indicators. This reflects the Government’s commitment to advancing the Northern Metropolis and Hong Kong’s sustainable development.

The HKIE supports the development of the Northern Metropolis under an approach that is planning-oriented, infrastructure-led, industry-driven and people-oriented, with the integrated advancement of education, technology, industry, talent and urban development. The Institution looks forward to the continued enhancement of transport links, utilities and community facilities, enabling the Northern Metropolis to serve as a key engine for nurturing emerging industries, attracting talent and deepening Hong Kong’s participation in the development of the Guangdong-Hong Kong-Macao Greater Bay Area.

The HKIE is also pleased to note that university towns will serve as a major development focus of the Northern Metropolis. The development of the university towns in San Tin, Hung Shui Kiu and Ta Kwu Ling, together with strengthened high-level coordination, will support the long-term strategic development of the Northern Metropolis University Town.

The HKIE supports the implementation framework under which the “Five-Year Plan leads, Policy Address implements, Budget supports, and annual reporting provides accountability”. With the medium- to long-term blueprint and objectives now established, the Institution welcomes the specific policies and projects set out in the Policy Address to take forward the relevant development directions in an orderly manner. The HKIE believes that the Five-Year Plan will create new economic space for Hong Kong, promote industrial upgrading and diversification, and ensure that economic development translates into improvements in people’s livelihood, allowing the wider community to share the benefits of development.

Expediting the Northern Metropolis Development and Strengthening Smart Infrastructure

The HKIE welcomes the measures set out in the Policy Address to further streamline development procedures for the Northern Metropolis through digital platforms, time limits for approval processes, framework procurement and Early Contractor Involvement, thereby expediting project delivery. The Institution is also pleased to note the development of the advanced construction industry park, which will incorporate testing and certification, R&D, training and production facilities for Modular Integrated Construction (MiC) and Multi-trade Integrated Mechanical, Electrical and Plumbing (MiMEP). These arrangements cover key areas previously highlighted by the HKIE and will help strengthen the advanced construction industry chain.

The HKIE is pleased to note the continued implementation of the whole-process management approach for the Northern Metropolis through the Working Group on Planning and Development, which coordinates matters involving planning, works, land, transport and environmental protection, with the dedicated project supervision office strengthening the coordination and oversight of works approval processes. The Institution believes that these arrangements can also be applied to the delivery of development projects beyond the Northern Metropolis, further enhancing the efficiency of public works implementation.

On utility infrastructure, the HKIE welcomes the continued development of underground common utility tunnels in Yuen Long South and San Tin Technopole, supported by real-time sensor monitoring and AI technologies for detecting abnormal conditions and issuing early alerts. These measures reflect the wider application of innovation and technology in infrastructure planning, monitoring and maintenance. In assessing such projects, the HKIE considers that attention should be given not only to upfront construction costs, but also to whole-life benefits, including reduced road excavation, disruption to communities, utility incidents and long-term maintenance costs.

The HKIE also welcomes the water supply network upgrading programme, under which 350 kilometres of aged water mains with a higher risk of leakage will be replaced or rehabilitated over the coming five years. The establishment of an intelligent water network, incorporating real-time monitoring, precise leak detection and AI predictive maintenance, will facilitate a shift from reactive repairs towards risk-based preventive management.

The Government will examine the establishment of an “AI City Brain” integrated city management system to consolidate data relating to works, the environment, transport and emergency response. It will also further develop Building Information Modelling, the 3D Digital Map, a digital twin city and drone inspections. The HKIE considers that these measures will strengthen inter-departmental collaboration and enhance infrastructure monitoring, risk alerts and city management. The Institution also supports the Government’s continued efforts to update infrastructure design standards, take forward drainage and coastal defence works, and apply new technologies to enhance weather monitoring and early-warning capabilities, thereby strengthening Hong Kong’s resilience against the impacts of extreme weather on residents, infrastructure and economic activities.

On transport infrastructure, the HKIE is pleased to note the investigation of the Northern Metropolis Highway, with priority accorded to the San Tin Section and its target commissioning advanced to 2034. The Institution also welcomes the Tsing Lung Bridge project at the southern end of Route 11 and the study of a preliminary proposal for the southern extension of the Hong Kong-Shenzhen Western Rail Link. These projects will strengthen connectivity between Hong Kong International Airport, the Northern Metropolis and the Mainland, supporting closer integration within the Greater Bay Area.

Advancing I&T Application, Strengthening AI and Aerospace Development

The HKIE is pleased to note the Government’s support for exploring the establishment of the Hong Kong Innovation and Technology Application Scenario Promotion Centre. Through matching application needs in the public and private sectors with innovative technology solutions, and assisting enterprises in aligning with industry standards, obtaining market certification and expanding into other markets, the proposed Centre will help bring promising local innovations from R&D and pilot testing into practical application.

The HKIE welcomes the launch of the Innovation and Technology Industry-Oriented Fund within this year and the additional earmarking of $1 billion for the enhanced scheme under the Innovation and Technology Venture Fund to strengthen support for local start-ups. The Institution also looks forward to the Government’s release of a medium- to long-term development plan for new industrialisation in Hong Kong, which will set out a development pathway centred on “high technology, high value-added” activities and accelerate the growth of emerging industries and producer services of strategic value.

AI will be widely applied across industries, public administration, public works and city management. While promoting its application, the HKIE supports the Government’s efforts to strengthen AI risk governance and coordination in such areas as application safety, ethics, product liability and the management of AI Agents. These efforts are broadly aligned with the safe, reliable, auditable and accountable governance framework previously highlighted by the Institution, and will enable the industry to apply AI to enhance the efficiency of design, construction, supervision and asset management.

The HKIE also notes the Government’s continued enhancement of the patent, trademark, registered design and copyright regimes, as well as its efforts to strengthen the in-house examination capacity under the original grant patent system and promote intellectual property valuation and financing. The Institution believes these measures will provide more timely legal protection for R&D outcomes and facilitate technology transfer, licensing and commercialisation.

The HKIE also welcomes the Government’s support for deep space exploration and commercial aerospace development, including research in satellite technologies and aerospace materials, as well as related popular science education and talent development. The Institution is actively preparing to bring aerospace technology within its broader framework for professional development and promotion, with a view to bringing together relevant engineering expertise, enhancing professional standards and raising public awareness of aerospace technology in support of Hong Kong’s participation in the country’s aerospace development.

In medical technology, the HKIE is pleased to note the Government’s plans to establish the International Clinical Trial Academy and the Greater Bay Area Clinical Research Talent Pool, as well as its continued funding support through the Health and Medical Research Fund for innovative medical research with translational potential, focusing on areas such as cancer prevention and treatment, clinical trials and digital healthcare. The Institution believes these measures will help strengthen the medical products industry chain and advance Hong Kong’s development as an international health and medical innovation hub.

Regarding the low-altitude economy, the HKIE welcomes the formulation of the Action Plan on Developing Low-Altitude Economy and the Government’s efforts to take forward cross-boundary low-altitude logistics trial flights, the Smart Low-altitude Traffic Management System, technical studies on low-altitude infrastructure facilities and the drafting of relevant legislation. The Institution looks forward to Hong Kong capitalising on the opportunities presented by the low-altitude economy by integrating logistics, AI, aviation technology and data services to foster new sources of economic growth.

Strengthening the Aviation Industry Chain and Advancing Green Transport

The HKIE supports the Government’s efforts to develop a new ecosystem for the aviation industry by promoting the production of high-end parts, maintenance support, and the leasing, dismantling and recycling of aircraft and parts. These measures echo the Institution’s earlier views on expanding aviation engineering and related professional services, and will help extend the scope of aviation engineering services and foster the development of supporting industries, including testing and certification, maintenance management, recycling and technical training.

The HKIE also welcomes the Government’s plans to construct Hong Kong’s first sustainable aviation fuel (SAF) blending facility, study the establishment of a mandatory SAF consumption-ratio mechanism and develop a green energy certification system, and set a target for flights departing from Hong Kong International Airport to achieve an SAF consumption ratio of 1% to 3% by 2030.

The Institution also supports the continued development of a green maritime fuel bunkering and trading centre and green shipping corridors, as well as the formulation of a roadmap for the smart transition and green transformation of the Kwai Tsing Container Terminals. These measures will help strengthen Hong Kong’s competitiveness as an international green maritime hub.

The HKIE is also pleased to note the Government’s efforts to support the large-scale development of home-grown aircraft by advancing the production of high-end parts, parts processing and storage, maintenance support, and the leasing and sale of aircraft and parts. The Government will also enhance training for pilots and aviation professionals to increase the added value of Hong Kong’s aviation services and consolidate the city’s status as an international aviation hub.

On green transport, the HKIE supports the expansion of fast-charging facilities and the introduction of megawatt-level flash charging, battery-swapping technology and ChaoJi charging technology compatible with different charging standards. The Institution also supports the electrification of public light buses and other commercial vehicles. These measures will help reduce carbon emissions and air pollution from road transport and promote the development of the green transport industry.

Developing Carbon Markets and Deepening Green and International Cooperation

The HKIE welcomes the Government’s efforts to advance international and cross-boundary carbon markets, including exploring Hong Kong’s participation in cross-boundary carbon trading and the development of SAF Certificates, green hydrogen certificates and other environmental equity products. These initiatives will help develop a regional platform for carbon-asset trading and services by leveraging Hong Kong’s strengths in finance, professional certification and international connectivity.

The Institution is also pleased to note the Government’s continued efforts to strengthen the sustainable finance ecosystem, including the introduction of the Green Equity Designation Scheme, the exploration of new application scenarios for the Hong Kong Taxonomy for Sustainable Finance, and Hong Kong’s participation in cross-boundary carbon trading. These initiatives will further consolidate Hong Kong’s position as a sustainable finance hub.

The HKIE considers that a credible carbon market requires measurable, traceable and verifiable data. The engineering profession can contribute to emissions quantification, energy management, whole-life assessment and technical verification, helping translate tangible decarbonisation outcomes into credible green assets. The Institution looks forward to further improvements in developing engineering carbon data, accounting methodologies and professional verification arrangements.

The HKIE also supports Hong Kong in serving as a “Green Technology Bridgehead”, leveraging its financial, legal, testing and certification, and engineering professional services to support the international expansion of green solutions and technologies. The Institution will continue to make use of its Mainland and international networks to foster professional exchange and technological cooperation, and plans to organise an international sustainability forum in support of Hong Kong’s global green engagement.

On energy transition, the HKIE supports the provision of additional capacity for strategic electricity facilities through the reclamation at Area 132 in Tseung Kwan O, as well as the exploration of options for transmitting electricity to Hong Kong. These measures will help diversify energy risks, enhance the stability of electricity supply and support the energy needs of I&T, data centres and emerging industries. The Institution also welcomes the Government’s continued efforts to increase the share of zero-carbon energy and enhance regulation of the hydrogen supply chain, thereby supporting the sound development of the hydrogen industry.

Promoting Standards Alignment and Nurturing Engineering Talent

The HKIE welcomes the establishment of the Task Force on Expediting the Alignment of Rules and Mechanisms in Guangdong, Hong Kong and Macao, as well as the continued advancement of GBA standards for construction, the “One Examination, Multiple Certification” arrangement for construction talent, the Cross-boundary Trading Guidebook on MiMEP, and cooperation on hydrogen standards. These measures will help reduce institutional differences affecting cross-boundary engineering activities and supply chains, broaden the development opportunities available to engineering talent and professional services, and reinforce Hong Kong’s bridging role between national and international standards.

In medical innovation, the HKIE is pleased to note the Government’s plan to establish the Centre for Medical Products Regulation and submit a legislative proposal on regulating medical devices. These measures echo the Institution’s earlier recommendations on enhancing the regulatory framework, formulating technical and quality standards, and introducing dedicated legislation. They will help establish a more complete pathway for locally developed innovative medical devices, from R&D and clinical application to access to international markets.

The HKIE also supports the continued promotion of digital and STEAM education, including the strengthening of AI literacy, mathematics, science and technology education, and cross-disciplinary learning. With the rapid development of AI, aerospace technology, advanced construction, green energy and biomedical engineering, the Institution will draw on its experience in engineering education, professional training and industry engagement to help nurture engineering talent equipped with cross-disciplinary and innovation capabilities.

The Institution also welcomes the Government’s consideration of adding more talent categories relating to AI application to the Talent List, and relaxing the requirements for technology start-up talent applying for extensions of stay under the Top Talent Pass Scheme, thereby facilitating their development in Hong Kong.

Building a Smart City and Enhancing Quality of Life

On elderly services and gerontechnology, the HKIE supports the pilot scheme to introduce suitable household gerontechnology equipment for elderly singletons of advanced years and all-elderly households, as well as the Gerontechnology Promotion Scheme to encourage local technology enterprises to develop products and solutions for elderly care. These initiatives will enable technology to better support people’s livelihood.

On resource management, the Institution supports the improvement of Hong Kong’s municipal solid waste treatment capacity through I·PARK1 and I·PARK2, alongside waste-reduction and recycling programmes, smart recycling facilities and the food-waste collection network. These measures are progressively reducing reliance on landfills and advancing the development of a circular economy and the “Zero Landfill” target.

The HKIE and the engineering profession will continue to contribute their expertise in support of the development directions and policy initiatives set out in Hong Kong’s Five-Year Plan and the Policy Address. Through professional advice, technological application, standards development, talent nurturing and international exchange, the Institution will work closely with the Government and different sectors of the community to take forward the relevant measures, leverage Hong Kong’s strengths to serve the country’s needs, and make substantive professional contributions to Hong Kong’s high-quality development and the advancement of Chinese modernisation.


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