Hong Kong's Budget Focuses on AI and Technological Advancements

Hong Kong's Financial Secretary, Paul Chan, presented the 2026-2027 fiscal budget to the Legislative Council, emphasizing the theme of 'Innovation and Technology Driven, Financial Empowerment; Diversified Development, Caring for the People.' According to Foresight News, the budget highlights Hong Kong's unique advantages in AI, life health technology, fintech, new materials, and new energy, aligning with the national '15th Five-Year Plan' to accelerate the integration of finance and technology. The budget outlines initiatives to advance AI industrialization and its integration across various sectors, promoting widespread AI application. A new 'AI+ Industry Development Strategy Committee' will be established to guide AI-driven industrial transformation, focusing initially on life health and embodied intelligence. In basic research, the InnoHK platform has funded 16 AI and robotics labs, focusing on AI-driven robotics applicable in healthcare, logistics, smart manufacturing, and construction. The government has also launched a $3 billion AI funding scheme, supporting nearly 30 projects in large language models, new materials, and biomedicine. Hong Kong is aligning with the national 'AI+' initiative, driving AI industrialization through application scenarios. The Hong Kong Institute of Artificial Intelligence will commence operations later this year, supporting AI project development and providing governance and regulatory advice. The Hong Kong Monetary Authority and Cyberport have initiated the second phase of sandbox testing, exploring 'AI against AI' to enhance safe and responsible AI use in banking. Hong Kong's computing power infrastructure currently supports 50 million trillion floating-point operations per second, crucial for AI development. The Sha Ling Data Park will further expand this capacity, offering 250,000 square meters of floor space, with tender results to be announced soon. Embodied intelligence, involving interaction with the physical world through various carriers like robots, is set to transform production processes, business operations, and lifestyles. Local tech parks and investment companies support startups in this field, with the government actively promoting the development of an embodied intelligence ecosystem. Quantum technology, which significantly enhances computing power, communication security, and sensing precision, is also a focus. Universities are conducting research through platforms like InnoHK, developing AI quantum simulation platforms and integrating AI with quantum computing. Hong Kong has established two national key laboratories related to quantum technology, with the government advancing foundational research and industrial applications in this area.