2017 Policy Address – Key Takeaways


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.hk/2017/eng/index.html 



  • 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   


  • 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 


  • 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