The Hong Kong General Chamber of Commerce (HKGCC) welcomes the carefully considered measures outlined by Financial Secretary Paul MP Chan in today’s Budget Speech. These initiatives aim to spur innovation and investment amid challenging economic conditions, while sensibly balancing cost management with investments in Hong Kong’s future growth.

“We support this sensible and logical budget, especially given the challenges that the Financial Secretary faces with the budget deficit,” said Chamber Chairman Agnes Chan. “It is also encouraging to know that the projected deficit will be brought to balance in a few years’ time.”

HKGCC is pleased that several of its fiscal management proposals have been incorporated. Steps such as reducing civil service posts by 2% in 2026-27 and 2027-28, and capping the $2 transport subsidy scheme to 240 monthly trips (with users paying 20% of the fare for amounts above $10), will help maintain affordability while ensuring long-term financial stability.

Revenue-enhancing measures—including adjustments to cross-boundary car fees, tunnel tolls, and parking charges—will create steady income streams without imposing excessive burdens on the public. The planned implementation of a global minimum tax under BEPS 2.0 is expected to boost government revenue by $15 billion annually.

To stimulate consumption and provide relief, the Budget includes support measures such as a 100% salaries and profits tax reduction (capped at HK$1,500) and concessions for property rates. These initiatives will ease financial pressures on individuals and businesses while encouraging consumer spending.

The injection of HK$1.5 billion into SME support funds like the BUD Fund, alongside the launch of the “E-Commerce Express” programme, will empower SMEs to upgrade their operations and access the Mainland market more easily.

The Chamber also welcomes the Government’s adoption of its proposal to issue bonds to fund major infrastructure projects, including the Northern Metropolis, which is projected to require up to $120 billion annually in capital works over the next five years. With government debt projected at a manageable 12% to 16.5% of GDP—lower than in many developed economies—this approach is viewed as prudent.

Recognizing that innovation and technology are critical to Hong Kong’s competitiveness, HKGCC supports the Financial Secretary’s initiatives, including a $3.7 billion investment in Phase 1 of Hong Kong Park in the Hetao Cooperation Zone, a $1 billion commitment to establish the Hong Kong Artificial Intelligence R&D Institute, and $100 million to help companies upgrade production lines and develop talent.

Emerging sectors like the low-altitude economy also present promising opportunities. HKGCC looks forward to reviewing sandbox findings and collaborating with the Government to develop a regulatory framework to support the sector’s growth.

The Chamber emphasizes the importance of accelerating green development. A $300 million subsidy programme to install 3,000 fast chargers across Hong Kong, along with initiatives to promote sustainable aviation and marine fuels, will strengthen Hong Kong’s role as a green transportation hub.

Further investments in culture and tourism will enhance Hong Kong’s international appeal, especially through the hosting of major global events that attract diverse visitors.

“In the face of geopolitical uncertainty, economic restructuring in Hong Kong, and a fiscal deficit resulting from support measures provided to businesses and the public during the pandemic, this Budget takes into account the needs of various stakeholders, offers incentives, and controls costs while supporting Hong Kong’s long-term development through bond issuance,” said Chan. “HKGCC is committed to working closely with the Government to promote these initiatives, support the business community, and reinforce Hong Kong’s status as an international financial hub.”

SOURCE:

https://www.chamber.org.hk/en/media/press-releases_detail.aspx?ID=3800

Media inquiries: Please contact Ms. Chloe Lee at 2823-1297 / clee@chamber.org.hk