Business

The Hong Kong government is  ramping up its artificial intelligence (AI) development through massive new computing capacity and funding, but industry players raised concerns that AI adoption levels in the city remain too low. Lillian Cheong Man-lei, Under Secretary for Innovation, Technology and Industry of the Hong Kong SAR Government, said at a thematic seminar during InnoEX 2026 on Tuesday that AI is a key driving force for industrial transformation. Hong Kong has been taking a multi-pronged approach to building its AI ecosystem, she said, covering research and development (R&D), computing power, data infrastructure, talent and funding. She mentioned that to accelerate the R&D and commercialization of AI workflows and drive industry empowerment in AI, Hong Kong is moving forward with the establishment of a dedicated AI research and development center.  On the data infrastructure front, the city plans to build a data center cluster in Sha Ling, which is expected to boost total computing power from the current 5,000 petaflops to 180,000 petaflops by 2032, a 36‑fold increase. Furthermore, an array of key funding programs has been launched to bolster the AI ecosystem, including the HK$3 billion AI Subsidy Scheme, which assists local institutions, R&D centers and enterprises in advancing AI research and applications. Henry Mak, the Assistant Marketing Manager of Ricoh Hong Kong Limited, a provider of workplace technology, said the HK$3 billion government subsidy is a source of sales opportunities for technology providers like his company. He explained that amid economic uncertainty, clients such as businesses and schools rely on government funding to adopt technology solutions.  Anthony Ribout, a French startup Founder and CEO of ARSK in Hong Kong, also highlighted the value of government support, noting that Hong Kong’s AI support policies are more efficient than those in France, with clearer funding schemes and stronger financial …

Art Basel Hong Kong recorded multiple seven-figure transactions and completed its first Ether-denominated sales through a new digital art sector, as the global art market ended a two-year sales decline. The five-day fair at the Hong Kong Convention and Exhibition Centre drew 91,000 visitors and featured 240 galleries from 41 countries and regions, including Gagosian, David Zwirner, and Tang Contemporary. David Zwirner sold a 2006 Liu Ye painting for $3.8 million and a 2002 Marlene Dumas work for $3.5 million, according to the fair's website. The fair's strong results came amid a broader market rebound. According to the Art Basel and UBS Global Art Market Report 2026, global art market sales rose four percent to $59.6 billion last year, with the U.S., U.K., and China accounting for a combined 76 percent of revenue. https://playful-khapse-3e93c2.netlify.app/ Auction sales climbed six percent to $24.8 billion, driven by high-value works. Transactions above $1 million rose 21 percent year-on-year, while those above $10 million gained 30 percent. Dealer sales rose two percent to $34.8 billion, constrained by rising operating costs. Zero 10, Art Basel's global digital art initiative, made its Asian debut at the fair, featuring 14 institutions presenting works using artificial intelligence, algorithms, and immersive technology. Korean digital artist DeeKay Kwon's work I WANNA RUN sold multiple editions at 6 Ether (ETH), approximately $13,000 each, according to his gallery, AOTM. The gallery said the transactions reflect growing collector demand for digital art. Digital, film, and video art represented three percent of total dealer sales in 2025, up two percentage points from 2024 but still below the five percent peak recorded in 2022, the report said. Reporters: Zhou Yun, Hui Tsun Ka, Li Ka Yu, Gu Chun Kai Editor: Wang Yunqi

Zhou Haoming, a marketing and editing position in a publishing company at Park Commercial Centre in Tin Hau, observed that an increasing number of companies had moved out of the building over the past six months, leaving the premises noticeably quieter and less populated. After the companies moved away, the number of partner businesses in the office building, with which  Zhou’s company could jointly carry out promotional activities, decreased significantly. Corporate relocation activity was active in 2025. AIA Hong Kong announced in 2024 that it would expand into AIRSIDE, an A-grade commercial building in Kai Tak, as a new operations and training base for its financial planners. Activities gradually moved into the new office in 2025. Cory Tsai, a financial planner at AIA, said the new location offers better transport connectivity and amenities, as Kai Tak is now regarded as Hong Kong’s new economic centre. AIA’s relocation to new business areas is not an isolated case. Since the second half of 2025, Hong Kong’s office market has seen a period of heightened activity driven by large-scale leasing transactions and relocations.   Among the more notable cases is UBS, which announced on February 3, 2026, that it would relocate and consolidate all of its Hong Kong offices into a single hub at the International Gateway Centre in West Kowloon.  Sam Gourlay, JLL Head of Office Leasing Advisory, also noted that more firms are expanding to emerging business centers such as West Kowloon and Tsim Sha Tsui, drawn by their strategic connectivity and access to the high-speed rail link to mainland China. While Hong Kong’s office market has found some stability supported by such high-profile leasing deals, the improvement has come mostly from corporate relocations, Gourlay said. JLL said in its press release that the office market showed a gradual recovery in the …

At 11 pm on a weeknight, Reenice Lim was still on her feet. The head of House of Roasted Meats, a homegrown roasted meat brand, was juggling walk-in customers and a stream of online delivery orders. Even with four outlets in Singapore, Lim stressed that running the business still comes with significant challenges. In 2025, Singapore’s dining scene underwent a major shake-up. Between Jan. 1 and Oct. 23, 2,431 food and beverage (F&B) outlets shuttered, while 3,357 new ones opened. Among those bowing out were homegrown brands like Fluff Stack, a six-year-old Japanese-style soufflé pancake chain that closed all five of its outlets in May, citing a challenging F&B environment in Singapore.  Accounting and Corporate Regulatory Authority (ACRA) data shows that over 60% of 2025’s shuttered F&B outlets had operated for fewer than five years. Amid the fierce market competition marked by a major reshuffle, Lim said for local operators like herself, “the biggest difficulties are the increasing rental costs and manpower costs”. This struggle is echoed by 33-year-old Xia Ziwen, a veteran Chengdu restaurateur turned Singapore entrepreneur, who noted that a local labor shortage has pushed manpower costs to 30% of total operating costs. Starting in March 2025, Ministry of Manpower (MOM)  regulations further mandate a minimum gross monthly wage of S$2,080 (HKD 12,850) for F&B stall assistants, intensifying the financial pressure on small-scale operators. To comply with the manpower quotas set by MOM, businesses must hire a specific number of locals to “unlock” foreign work permits. Xia noted that this regulatory obligation can push the total monthly cost of employing a single Malaysian retail assistant to S$5,000 (HKD 30,900).  Businesses heavily reliant on migrant workers, such as Lim’s roasted meat stalls, are especially hard hit by the mounting costs brought by higher government levies and stricter wage requirements. …

Mainland Chinese gold manufacturers are increasingly looking to expand overseas through Hong Kong, as record-high gold prices squeeze domestic consumption, exhibitors said at the five-day 42nd Hong Kong International Jewellery Show, which wrapped up today (Mar 8). The World Gold Council rolled out its Hard Pure Gold Pavilion at the show this year, bringing together 10 leading mainland gold manufacturers to showcase innovative gold technologies and explore global business opportunities via the exhibition platform. Chen Yujie, General Manager of Trade of Shenzhen Guanhua Jewelry Co. Ltd., has observed a growing trend of many mainland gold brands expanding their footprint in overseas markets. As a supplier, Chen said that given falling consumption caused by sustained high gold prices, the company is also expanding overseas, with Hong Kong as a strategic hub to understand international market demand, develop tailored products for overseas markets, and seek new market breakthroughs. The World Gold Council’s Q4 2025 Global Gold Demand Trends report shows that total global gold demand surged to US$550 billion last year, up 45% year-on-year.  The average gold price reached US$4,135 per ounce in Q4 2025, up 55% year-on-year. This drove the full-year average to a record US$3,431 per ounce, a 44% increase.  Chen added that as elevated gold prices deter consumers, turnover volumes have fallen, eroding the cost advantage that high-volume production once provided. With costs increasingly  difficult to control, manufacturers have raised selling prices across the board over the past two years. On Jan. 26, the Financial Services and the Treasury Bureau signed a co-operation agreement with the Shanghai Gold Exchange, with the government’s gold central clearing system scheduled to launch trial operations this year. In the 2026-27 Budget, Financial Secretary Paul Chan Mo-po also unveiled plans to explore tax incentives for gold trading institutions, assist in establishing a trade association, …