(18 September 2025, Hong Kong) The Hong Kong Institution of Engineers (HKIE) welcomes the 2025 Policy Address delivered by the Chief Executive of the HKSAR on 17 September 2025, and expresses support for the initiatives that benefit people’s livelihoods, drive economic growth, and advance social development. As the nation concludes the 14th Five-Year Plan and prepares for the 15th, the HKIE acknowledges the Policy Address’s alignment with national strategies and its emphasis on deepening reform, prioritising well-being, and leveraging Hong Kong’s strengths to build a solid foundation for the future.
Infrastructure Development
The HKIE notes the Government’s proactive measures to remove barriers and streamline processes to accelerate development of the Northern Metropolis, a key driver of Hong Kong’s future economic growth. This includes establishing the “Working Group on Planning and Development” under the “Committee on Development of the Northern Metropolis” to oversee end-to-end planning and delivery, coordinating efforts across engineering, land, transportation, and environmental protection to anchor industries, create job opportunities, and raise productivity. A dedicated project supervision office will also be set up to strengthen coordination and oversight of approval processes with time-bound, phased reporting mechanisms, further speeding up development progress.
We believe these innovative approaches can be applied beyond the Northern Metropolis. For example, simplifying works approval procedures, setting clear performance pledges, and enhancing coordination among relevant departments on vetting processes–together with the Housing Department’s (HD) new Project Facilitation Office for public housing projects–should expedite development. The Housing Bureau (HB) has implemented a new management approach with target completion times to accelerate project milestones. The HKIE is pleased to note the Government’s continued “facilitator” mindset that prioritises efficiency and cost-effectiveness without compromising safety.
The HKIE also supports the adoption of technology to reduce development costs. The Development Bureau’s forthcoming Project Cost Management Platform will provide a market price database and use AI to analyse historical government project data, improving cost-effectiveness in future designs. The HD’s has adopted a self-developed Building Information Modelling (BIM)-enabled Systematic Approach to Foundation Design that automates design processes to further reduces costs. Building standards and requirements will be kept under regular review, and the HB will explore recognising additional building material standards for public housing projects to further enhance efficiency.
Innovation and Technology
To advance new industrialisation, the HKIE supports relaxing the application threshold for the New Industrialisation Acceleration Scheme by lowering the minimum total project cost from $300 million to $150 million, alongside matching funding for the employment of relevant technical personnel, encouraging the establishment of more smart production facilities. The launch of the I&T Industry-Oriented Fund in 2026-27 will enable the Government to channel market capital into emerging and future industries of strategic importance.
For low-altitude economy, the Government will formulate an Action Plan on Developing Low Altitude Economy to position Hong Kong as a major hub for low-altitude applications and innovation, through institutional innovations and technological breakthroughs. Measures include refining civil aviation legislation and regulatory framework, introducing dedicated legislation for unconventional aircraft, enhancing core infrastructure facilities, designating spectrum, early planning and deployment of vertiports and air route networks, developing a smart low-altitude traffic-management system. In addition, advanced low-altitude economy “Regulatory Sandbox X” pilot projects will test more complex scenarios such as cross-boundary routes and passenger-carrying operations. Relevant insurance products are also anticipated. The HKIE believes these efforts will address current bottlenecks and foster an innovative, efficient, and safe low-altitude economy.
Supporting the Construction Industry
The HKIE welcomes the Government’s additional allocation of $30 billion over the next two to three years to increase expenditure on works projects, supporting the local construction industry and the wider economy. This investment can improve living standards while sustaining industry development.
International Aviation and Maritime Hub
To reinforce Hong Kong’s position as an international aviation hub, the HKIE applauds the Government’s adoption of our recommendation to attract a leading aeronautic services company from Europe to establish operations in Hong Kong. Dismantling, recycling and trading high-value aircraft parts will stimulate related sectors such as trading, insurance, financing, and leasing, creating vast job opportunities across the value chain. Collaboration with the Hong Kong International Aviation Academy will also strengthen talent develop and advance the “Airport City” vision. With comprehensive development of the aviation industry, Hong Kong can build a more complete aviation value chain and attract investments and talent.
In maritime development, the Government will establish a comprehensive “Rail-sea-land-river” intermodal transport system, promoting cargo movement from the Mainland’s inland regions to global markets through Hong Kong. The HKIE advocates leveraging Hong Kong’s unique advantages to deepen international exchanges and co-operation, connecting the Mainland and the world, to consolidate Hong Kong’s status as an international aviation and maritime hub.
Education
The HKIE welcomes the allocation of $2 billion from the Quality Education Fund to promote digital education in primary and secondary schools. The Blueprint for Digital Education in Primary and Secondary Schools, to be released in 2026, will enhance the interface between primary and secondary curricula of Information Technology and I&T education, introduce an “AI literacy” learning framework, embed AI education in the core curriculum, and enhance teacher training and partnerships with industry. The HKIE will leverage our expertise in engineering education to support the promotion of STEAM education and prepare students for the AI era.
We also recommend prioritising development of a multi-tiered engineering workforce, aligning vocational education with emerging industry needs, and subsidising continuing professional development.
Smart City Development
The HKIE is pleased to note the Government’s adoption of our recommendations to enhance the charging network for electric vehicles (EV), including the provision of six sites for fast-charging stations, while bus operators will open up their charging facilities to other vehicles. We also support efforts to commercialise green I&T outcomes, support market development of battery-swapping EVs and automated battery-swapping stations, encourage non-government entities to build district cooling systems, and drive the market to accelerate carbon reduction in existing buildings.
Following the successful the pilot schemes of the Traffic and Transport Strategy Study, the HKIE looks forward to the forthcoming Transport Strategy Blueprint, which aims to deliver people-oriented, green journeys and improve the reliability and intelligence of the transport system.
The HKIE is uplifted by the Government’s comprehensive agenda across various domains. The engineering sector will continue to support the implementation of people-centric measures outlined in the Policy Address through its professional expertise, contributing to building a better Hong Kong.
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