Chief Executive Carrie Lam revealed the details of her maiden Policy Address at the Legislative Council today.
In the meantime, full details can be found at: https://www.policyaddress.gov.
Highlights:
Economy
- Support SMEs by reducing profits tax to 8.25% for first $2 million (US$255,000) profits. Remaining profits to be taxed at current rate of 16.5%
- Encourage R&D investment with 300% tax deduction for first $2 million R&D expenditure, and 200% deduction for remainder
- Increase CDTAs to 50 within the next few years
- Sign and FTA and IPPA with ASEAN in November; and sign a CEPA with Macao this year
- Open an Economic and Trade Office in Thailand – the third ETO in ASEAN
- Demolish and redevelop the three government towers in Wan Chai to create a new, integrated wing for the HKCEC with 23,000 sq m of convention and exhibition facilities
- Boost diversified development of tourism sector, including cultural, heritage, green and creative tourism.
- Issue “green bonds” to encourage investment in green projects via HK capital markets
- HKMA to launch a Faster Payment System in 2018 to promote more diversified and flexible payment products
Innovation and Technology
- Set aside at least $10 billion in university research funding to further encourage private companies to increase R&D spend
- Kick-start a $500 million “Technology Talent Scheme” to train and pool technology talent
- Inject $3 billion into the Research Endowment Fund
- Use $2 billion of the Innovation and Technology Venture Fund Scheme to co-invest on matching basis with VC funds investing in local tech startups
- Invest $700 million to take forward Smart City initiatives, including “smart lampposts”; and develop an intelligent transport system (parking meters, payments, real-time parking information)
Creative Industries
- Inject $1 billion into the CreateSmart initiative to boost support for design and creative industries
Labour Rights
- Propose a way forward to abolish the offsetting mechanism for MPF contributions
- Increase paternity leave from 3 to 5 days; and study enhancing maternity leave for working women
Education
- Set up a $12 billion Hostel Development Fund to provide unit cost subsidy for university hostels
Arts, Sports, Culture
- Increase resources for local artists and groups to perform outside Hong Kong
Countryside
- Establish a Countryside Conservation Office and earmark $1 billion to implement revitalisation and conservation efforts
The Policy Address also contains a number of new initiatives on land and housing supply, healthcare, care for the elderly and underprivileged, improving livelihood, and youth development
