Full text of "The Chief Executive's 2026 Policy Address" (6)

Strategic Framework and Policy Mandate

On 16 Sep 2026, The Chief Executive's 2026 Policy Address (Chapter V: Expedite the Development of the Northern Metropolis) set out a comprehensive development programme for the NM. Encompassing approximately one-third of Hong Kong's total land area and projected population, the NM has commenced delivering tangible outcomes and is now transitioning into its maturity phase. It has been strategically positioned as an integrated vehicle to advance high-quality post-secondary education, integration of industry with information technology ("'I&T'"), international talent aggregation, deepened engagement within the Greater Bay Area ("'GBA'"), alignment with national development strategies, and the cultivation of new quality productive forces.

University Town Development Strategy ("NMUT")

The Northern Metropolis University Towns programme adopts a 'One Town, Five Elements' framework converging education, technology, industry, talent and urban development. Three university towns — San Tin, Hung Shui Kiu and Ta Kwu Ling — will be developed under a unified spatial concept comprising four functional zones: campus area, technology area, industry area and living community area. The strategic positioning is anchored on four pillars of talent cultivation, scientific research, transformation of outcomes and industry development, thereby driving synergistic collaboration among Government, industries, academia, research institutions and investment sectors to achieve integrated education-technology-talent development.

San Tin University Town – Campus and Research Infrastructure

The combined campus areas across the three university towns amount to approximately 300 hectares; when aggregated with adjoining technology, industry and living community zones, total planned area will exceed 1,000 hectares. The San Tin UT is designated for medicine, life and health technology, artificial intelligence ("'AI'"), robotics, microelectronics and emerging industries. Its campus is situated in proximity to future Northern Link stations at San Tin and Ngau Tam Mei, while the associated technology and industry areas encompass Loop Hong Kong Park (commissioned 2025) and the San Tin Technopole.

The Greater Bay Area International Clinical Trials Institute ("'GBAICTI'"), established within Loop HK Park as a wholly Government-owned entity with the University of Hong Kong serving as operator, collaborates with the GBA International Clinical Trials Center at Shenzhen Park in Hetao zone for medical innovation. A biobank jointly administered by Hospital Authority and Chinese University of Hong Kong is co-located on site. Building 1 ('Loop Academy One'), scheduled for completion by year-end, will constitute the flagship NMUT project consolidating frontier research from leading local and non-local universities including InnoHK. The HKJC Charities Trust has allocated $3 billion to fund construction of a further integrated teaching and research building dedicated to scientific exchange and talent cultivation.

Hung Shui Kiu and Ta Kwu Ling University Towns

The Government will invite Hong Kong-Shenzhen Innovation and Technology Park Limited and San Tin Technopole Company Limited to participate in university town development. The Hung Shui Kiu UT, together with its adjoining technology and industry areas (including HS Industry Park, Lau Fau Shan Digital Technology Hub, Yuen Long InnoPark and the Microelectronics Research & Development Institute), will be developed as a 'Centre for Applied Post-secondary Education in Smart Manufacturing and Global Talent Cultivation.' Applications from post-secondary institutions for campus construction are to be invited this year. The Ta Kwu Ling UT integrates arts disciplines with blue-green development principles, supporting emerging, traditional and new industries while reserving strategic land for future requirements.

Governance Architecture for NMUT Development

The existing Working Group on Planning and Construction of the University Town (chaired by the Chief Secretary) will be elevated to a Committee on Construction and Development of the University Town with inclusion of non-official expert members. The reconstituted body is mandated to provide high-level strategic direction for NMUT development, facilitate inter-departmental coordination, and explore enabling measures for research outcome transformation including technology transfer funding mechanisms, accelerators and incubator programmes, and capital injection frameworks for commercialisation.

Expansion of Post-Secondary Education and Research Capacity

To enhance Hong Kong's scientific research capabilities, the Government has committed to a phased expansion programme: (i) UGC-funded research postgraduate places will be increased by approximately 30% from the current level of 7,200 to 9,600 in the 2030/31 academic year; (ii) commencing from the 2027/28 academic year, the annual quota under the Hong Kong PhD Fellowship Scheme will be progressively raised from 400 to 550 places by 2029/30; (iii) an additional $20 million per academic year for knowledge transfer support will be provided from 2027/28 onwards; and (iv) commencing in 2029/30, $40 million annually under the Fund for Innovative Technology-in-Education will promote widespread adoption of AI and emerging technologies across higher education institutions.

I&T Enterprise Occupancy and Technopole Progress

Since Loop Hong Kong Park was officially commissioned in December 2025, over 100 I&T enterprises and research institutions have taken up occupancy; both wet laboratory buildings are fully leased. Results of open tenders for eight land parcels within remaining Phase 1 batches will be announced by year-end. The Government is advancing the cross-river connection project on the western side of Loop to facilitate efficient movement of researchers and data between Hetao's two parks.

In July, the HKSAR Government and MIIT executed a Co-operation Agreement for joint establishment of Hong Kong's first national manufacturing innovation centre under MRDI leadership. The MRDI has relocated into the Microelectronic Centre in Yuen Long; its two pilot lines dedicated to R&D and trial production of third-generation semiconductors are targeted to commence operation by year-end.

San Tin Technopole Company Limited will pursue a multi-pronged approach leveraging market forces for land formation across 210 hectares designated for I&T purposes. The Hung Shui Kiu Industry Park Company is actively attracting enterprises in advanced construction and testing/certification sectors, including engagement with the Qianhai Authority (Shenzhen) toward execution of an MoU.

Advanced Infrastructure: Computing Power and Construction Industry Parks

Construction has commenced on the Sandy Ridge Data Facility Cluster. Projected computing capacity is expected to reach 180,000 peta-FLOPS by 2032 — equivalent to approximately 36 times Hong Kong's current aggregate computing power. Estimated cumulative investment stands at no less than $23.8 billion. The Government will inject $1 billion into the AI Subsidy Scheme for AIRDI high-performance computing support.

Thirty hectares of NM land are designated for a large-scale advanced construction industry park accommodating steel rebar prefabrication yards, innovative concrete batching plants and MiC/MiMEP testing/certification facilities. In the first half of 2027, expressions of interest will be invited for an approximately 10-hectare park in Yuen Long South; tendering is to commence no later than the first half of 2028.

New Development Area Site Formation Pipeline

Development across nine NM NDAs — Kwu Tung North/Fanling North, Hung Shui Kiu/Ha Tsuen, Yuen Long South, San Tin Technopole & Loop, Ngau Tam Mei, Lau Fau Shan, Ta Kwu Ling, Ma Tso Lung and Au Tau — is well advanced. A cumulative total of approximately 120 hectares of spade-ready sites were delivered up to 2025-26; no fewer than 200 hectares are projected for delivery in each of the 2026-27 and 2027-28 periods. Construction has commenced at four NDAs encompassing approximately 800 hectares. Site formation works at Ngau Tam Mei will commence in the first half of next year, with spade-ready sites available from end-2028 onwards.

Statutory planning proceedings are to be initiated this year for Lau Fau Shan NDA and progressively extended into next year covering an over-200-hectare Priority Development Area (including a portion of the university town) spanning Ta Kwu Ling, Au Tau and part of Ma Tso Lung NDAs.

Implementation of Prior Policy Measures

Measures announced in last year's Policy Address — including the 'Pay for What You Build' Pilot Scheme, flexible land-grant arrangements and voluntary land surrender to offset premiums — have been implemented. Following tender award at Hung Shui Kiu/Ha Tsuen NDA in August, the second pilot area in Fanling North is scheduled to launch by year-end.

Streamlining of NM Approval and Construction Processes

The Government has undertaken a multi-faceted programme to accelerate NM development: (i) The Working Group on Planning and Development (chaired by Deputy Financial Secretary) coordinates departments to expedite approvals through deployment of a digital platform shortening works project approval timelines by three to six months; reduction of first building plan approval for new railway projects by 50% to 30 days; optimisation of rock layer bearing capacity in foundation designs yielding savings of approximately $1.4 billion on NM public housing construction costs; and introduction of time limits with escalation mechanisms applicable to private developments. (ii) Framework procurement models and Early Contractor Involvement will be adopted to enhance cost effectiveness and compress construction timelines. (iii) The EPD is expanding the Hong Kong Environmental Database application, consolidating over 200 environmental datasets and optimising planning through AI, thereby reducing EIA processing from 36-48 months to approximately 15-24 months with NM projects targeted at 15-20 months. By way of illustration, a road works project achieved nearly 70% reduction in affected ecologically sensitive area while shortening the tunnel section from approximately five kilometres to 0.8 kilometres, substantially reducing an estimated $40 billion project cost.

Legislative Framework: Northern Metropolis Development Bill

The Government is working toward securing passage of the Northern Metropolis Development Bill through LegCo this year and will submit a first batch of five pieces of subsidiary legislation covering town planning processes, land compensation, building works approval, noise control and cross-boundary flows of persons.

Preferential Policy Packages and Incentive Regimes

The preferential policy package mechanism announced last year has been operationalised. A cross-departmental committee chaired by the Financial Secretary formulates dedicated incentive packages encompassing land grants, premium concessions, financial subsidies and tax incentives for strategic enterprises; applications from aerospace and new materials sectors are currently under review. FSTB intends to introduce an amendment bill into LegCo by year-end providing preferential corporate income tax rates of 5% (half-rate) for selected enterprises in finance, advanced manufacturing, I&T R&D, headquarters activities and logistics/supply chain management.

Financial Infrastructure for NM Investment

The Northern Metropolis Financial Advisory Taskforce — jointly established by HKMA and the Hong Kong Association of Banks in April — is exploring public-private partnership frameworks with Government entities and industry park companies. The 23 participating banks will offer tailored financing solutions supporting NM development. IA will implement reduced capital requirements for eligible infrastructure investments effective year-end.

Social Infrastructure: Housing, Healthcare and Cultural Facilities

For SSF projects completed from the 2031-32 financial year onwards, HKHA will increase the proportion of larger flats (saleable area approximately 45 sqm or above) from 20% to 25%. HA is planning establishment of a New Territories North Cluster commencing in 2027 and proceeding with construction of an integrated teaching/research hospital at Ngau Tam Mei; assessment of need and feasibility for Hung Shui Kiu Hospital will also be undertaken.

LCSD is progressing development of cultural facilities including the Hong Kong Conservation Repository (formerly Heritage Conservation and Resource Centre) in Tin Shui Wai, expected completion 2028, and the New Territories East Cultural Centre in Fanling, expected completion 2030.

Urban-Rural Integration Programme

The $200 million NM Urban-rural Integration Fund has been launched; applications will be invited with first-batch project approvals anticipated next year to promote rural tourism. Guidelines on Promoting Urban-rural Integration in the NM are scheduled for publication within this year. The signature 'San Tin Timewalk' project, launching next year, is designed to link traditional rural architecture with historical and cultural heritage attractions.

Transportation Corridors and Connectivity

The Government has commenced investigation of the Northern Metropolis Highway, prioritising the San Tin Section (serving Kwu Tung North, STT and Ngau Tam Mei) with a target to invite tenders for main construction works next year; commissioning is targeted two years earlier at 2034. The Tsing Lung Bridge project (southern terminus of Route 11) targets commissioning in 2033. Kwu Tung Station, expected to commence operation next year as the 100th heavy rail station in Hong Kong's network; Hung Shui Kiu Station will be constructed using MiC methodology with target commissioning for 2030. A preliminary proposal for southern extension of HK Shenzhen Western Rail Link is scheduled for presentation next year.