Key Highlights from Policy Address 2025

Chief Executive John Lee Ka-chiu delivered his fourth Policy Address on Wednesday morning, pledging to deepen reform and prioritise public livelihood. 

The following are the key takeaways.

New action plan for the low-altitude economy

• More legislation to promote the low-altitude economy, mostly about drone activities. Including the improvement of civil aviation legislation and regulatory framework, promotion of infrastructure facilities, organisation of more talent training, enhancement of the application system and development of low-altitude economy insurance products 
• Potential activities in airspace under 1,000 metres include drone rescues, surveys and deliveries
• Satellite positioning, three-dimensional spatial data systems and a smart traffic-management system for low-altitude passenger aircraft will be established

Patriotic Education

• Collaboration with Shenzhen to promote a red education route and patriotic education venues in the mainland 
• A series of activities called "Love Our Home, Treasure Our Country" by the Education Bureau will be organised and the Constitution and Basic Law Student Ambassadors Training Scheme will be strengthened

Arts and Culture

• A premium arts trading hub will be built
• An arts ecosystem in the Airport City with studios, galleries, and trading facilities will be established
• Large-scale art storage and arts plaza buildings will be constructed to attract galleries and family offices
• West Kowloon Quay will be opened and a cultural district academy will be set up
• The Hong Kong Fashion Fest will be launched, and the government will further support the local cultural and creative industries 

Education 

• Cap on self-financing non-local students' enrolment will be increased from 40% of available spots to 50%
• The over-enrolment ceiling of self-financing places of funded research postgraduate programs will be increased from 100% to 120%
• Task Force on Study in Hong Kong to be established to step up promotion of higher education in Hong Kong
• Eight supported universities will be given HK$40 million to improve their recruitment of teachers and students, both on the mainland and abroad

Yacht Economy

• Approximately 600 additional yacht berths to be provided, and more than 500 additional berths at yacht bay at the Airport City
• Allow visiting yachts to anchor at government-designated waters and navigate without reservation
• To invite expressions of interest in the development of a yacht bay and its ancillary facilities early next year - these facilities are to be completed in phases, starting in 2028

Platform for mainland enterprises' overseas expansion

• Task Force on Supporting Mainland Enterprises in Going Global to be set up
• Hong Kong Monetary Authority to encourage the banking sector, especially banks in the Mainland, to establish regional headquarters in Hong Kong
• US$1 billion (about HK$8 billion) new investment fund to be established to cater to enterprises in Hong Kong and other GBA cities looking to expand into Saudi Arabia

Innovation and Technology 

• Set up an AI Efficacy Enhancement Team to coordinate and steer government departments, and promote technological reform in departments
• Allocate HK$1 billion for the Hong Kong AI Research and Development Institute's construction in 2026
• Offer a 10-hectare plot of land (nearly half of the Victoria Park) in Sandy Ridge, North District, for the construction of a cluster of data facilities

Housing 

• Resale restriction for new flats to be shortened from 15 years to 10 years  
• Owners 60 years of age or older who have owned unpaid premium apartments for ten years or longer will be allowed to sell and purchase a more compact or distant unit
• Green Form and White Form quota ratio to be adjusted from 40:60 to 50:50

Talent

• The maximum amount of investment to be counted to be raised from HK$10 million to HK$15 million for the purchase of non-residential properties under the New Capital Investment Entrant Scheme
• The transaction price threshold will be lowered from HK$50 million to HK$30 million
• Young Talent Training Program for young people to be launched participate in international organisations' internships and attend international conferences
• The Youth Post hostel will commence operation on a trial basis and officially open this year

Finance

• Financing for Mainland technology enterprises to be promoted in Hong Kong 
• Chinese Yuan bond issuance to be expanded to strengthen Hong Kong’s offshore Chinese Yuan business 
• Airport Authority Hong Kong and financial institutions will be encouraged to build gold storage facilities in Hong Kong, with a three-year goal of having a capacity of more than 2,000 tonnes

Accelerate Northern Metropolis development

• A "Pay-For-What-You-Build" mechanism will be adopted to lower land premium costs, reduce the burden on businesses, and boost development incentives
• The Fast Track Processing System will be introduced to accelerate project implementation and incorporate advanced construction methods from around the world
• A phased development approach will be used, advancing construction based on regional characteristics and market demand, such as in Hung Shui Kiu and Lau Fau Shan
• The Kwu Tung and Hung Shui Kiu MTR stations are expected to open by 2034 
• The development plan for innovation and technology industries in the San Tin Technopole will be formulated