Deloitte: Hong Kong budget allocates 150 billion Hong Kong dollars in financial support, accelerating the transformation of the Northern Metropolis Development Plan from a blueprint to substantial construction.

Today, Hong Kong announced a new "Budget" document. Kelvin Wong, Partner in Strategy and Economics at Deloitte China, stated that the new budget adopts an "industry-oriented" development model for the Northern Metropolis Area, covering systems, funding, and industries to accelerate the transformation of the blueprint into actual construction. In terms of institutional innovation, the Hong Kong government will submit a draft of the Northern Metropolis specific legislation within the year and establish two dedicated companies focusing on the New Territories Technology City and Hung Shui Kiu Industrial Park to accelerate development. In terms of funding arrangements, the Hong Kong government will allocate 150 billion Hong Kong dollars to support the Northern Metropolis and related infrastructure, providing strong financial support. An additional application of 10 billion Hong Kong dollars will be made to the Legislative Council for funding the industrial park company to accelerate the development of the remaining land parcels in the first phase and to establish a venture capital fund to support start-up companies. Regarding industry and talent introduction, the Hong Kong government has launched a "New Industrial Elite Enterprise Cultivation Program" to support high-growth enterprises that contribute to the development of new industries in Hong Kong, nurture emerging and future industry leaders, and establish a National Manufacturing Innovation Center in Hong Kong to create a talent ecosystem that complements local and international innovation forces. Ming Yeung, Head of Tax and Business Advisory Services at Deloitte China Hong Kong, welcomed the Hong Kong government's continuation of last year's "Policy Address" concept to formulate incentive packages to promote industries and investment. These packages include land allocation, financial assistance, or tax relief (with a half-rate or 5% tax rate) to further attract high value-added industries and high-potential enterprises to settle in Hong Kong and promote high-quality development.