The article outlines the Financial Secretary's budget speech, focusing on enhancing Hong Kong's industries and infrastructure to maintain a competitive edge in a changing global landscape. It emphasizes strengthening international trade, attracting enterprises, supporting local and Mainland enterprises, and improving the aviation, maritime, and logistics sectors. Specific initiatives include expanding free trade agreements, supporting SMEs, and developing the city as an international aviation and maritime hub.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On 25 February 2026, the Financial Secretary's budget speech emphasizes Hong Kong's strategic importance as an international trade center and outlines various policy initiatives to maintain and enhance its competitive edge amid complex geopolitical and economic conditions.
The Government will strengthen Hong Kong's role within the Belt and Road ("B&R") Initiative by collaborating with industry players to expand commercial networks, focusing on the ASEAN, Middle East, and Central, South, and North African markets. Efforts include negotiating additional free trade and investment agreements.
Hong Kong has signed 55 Comprehensive Avoidance of Double Taxation Agreements ("CDTAs") and will continue to expand this network. The Government will also explore more project matching opportunities in B&R regions and support external organizations through roadshows in Hong Kong.
A comprehensive policy package, including preferential tax rates, aims to attract more enterprises to establish in Hong Kong. The new policy will be guided by an Advisory Committee on Tax Policy, ensuring diverse views are considered in reform.
Supporting Mainland enterprises going global will be facilitated by organizing promotional activities through the GoGlobal Task Force. A cross-sectoral professional services platform will offer legal, accounting, financial, and marketing services to enterprises.
To support local enterprises, a $200 million injection into the Dedicated Fund on Branding, Upgrading, and Domestic Sales (BUD Fund) will raise funding ceilings and provide targeted funding support, including for AI applications. A pilot scheme will also protect SMEs from higher-risk buyers.
The Government will extend the SME Financing Guarantee Scheme's loan guarantee commitment by $20 billion, with an extended application period until the end of March 2028 and principal moratorium arrangement until mid-November 2026.
The food industry's expansion into Mainland and international markets will be supported by waived certification fees for two years and the introduction of a new unified brand for local agricultural and fisheries products, backed by a certification and traceability mechanism.
Investment of $100 million to attract large-scale international exhibitions aims to develop Hong Kong into a platform for showcasing brands and attracting high-spending business visitors, promoting the convention and exhibition industry.
The Hong Kong International Airport ("HKIA") continues to lead as an aviation hub, with cargo and passenger throughput exceeding five million and 61 million in 2025, respectively. Efforts will focus on entering new air services agreements and expanding traffic rights.
Airport City SKYTOPIA will develop into a world-class landmark, attracting businesses and investments. Collaboration with a leading overseas aircraft services company aims to establish Hong Kong as the first aircraft parts processing and trading center in Asia.
Enhanced collaboration between Hong Kong and Greater Bay Area airports, with over 100,000 passenger trips since the direct service launch from Zhuhai, will support the sea-air intermodal cargo transhipment mode.
Smart port initiatives, including the Port Community System ("PCS"), provide real-time tracking of sea, land, and air cargo. The system is connected to the Guangdong e-Port, offering value-added services to over 3,000 registered companies.
High-value maritime services will be supported by tax concession enhancements and an incentive scheme for the maritime service industry's green transformation.
Hong Kong's green maritime fuel bunkering center development will be supported by providing port dues concessions for green fuel vessels. An incentive scheme will also be launched for green vessels registered in Hong Kong.
Synergies between financial and maritime services will be promoted, leveraging Hong Kong's strengths to support co-development. Efforts will focus on opening new cargo sources through an intermodal transport system and developing a smart logistics hub.
The Government aims to develop the Hung Shui Kiu/Ha Tsuen New Development Area as a center for modern logistics services, reserving about 32 hectares for a modern logistics cluster.
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