Tourism strategy, building the Hong Kong brand, attracting talent and supporting small and medium-sized enterprises (SMEs) are some of Hong Kong's main goals for next year outlined in the latest 2024 Budget.
In his opening speech at LegCo, Hong Kong's Treasurer Paul Chan said Hong Kong's economy grew by 3.2% in 2023. Additionally, the labor market continued to improve, with the seasonally adjusted unemployment rate decreasing from 3.5% in the fourth quarter of 2023. The latest from 2022 is his 2.9%.
Therefore, this is still a deficit budget, with the consolidated deficit for the 2023-24 financial year expected to be HK$101.6 billion.
He said the external environment will continue to put pressure on Hong Kong's merchandise exports. However, global financial conditions are likely to ease gradually over the course of the year, which should bode well for export performance.
Overall, Mr Chan said the increase in the general public's income will continue to support personal consumption. Chan added that the government's successive policies will also help improve consumer sentiment. As economic growth continues, fixed asset investment should also increase. The government expects Hong Kong's economy to grow at an average annual rate of 3.2% in real terms from 2025 to 2028.
He went on to outline Hong Kong's financial plans for its citizens and businesses. Below, MARKETING-INTERACTIVE presents some key points from his 2024 Budget proposal that Hong Kong businesses and marketers should take note of.
1. Attracting companies, capital, and human resources
More than 10 strategic companies are expected to sign partnership agreements with the Office of Strategic Enterprise Attraction (OASES) next month. Both companies have confirmed or have plans to establish or expand operations in Hong Kong.
Together with the first batch of 30 companies, they are expected to bring more than HK$40 billion in investment to Hong Kong and create around 13,000 jobs over the next few years.
The government has also introduced an easy-to-use fund resettlement mechanism for open-end fund companies and limited partnership funds, with the aim of attracting existing foreign funds to establish and operate in Hong Kong. The government plans to introduce legislation in the first half of 2024 that would allow companies domiciled overseas, particularly those with operations in the Asia-Pacific region, to re-domicile in Hong Kong.
Regarding the talent pool, the government has recently rolled out several measures to find talent, such as the Top Talent Pass Scheme (TTPS). In the past year or so, he has had over 140,000 applications approved under various talent admission schemes. About 100,000 of them have already arrived in Hong Kong.
Mr Chan said that Hong Kong Talent Engagement (HKTE) will hold the Global Talent Summit and the Guangdong-Hong Kong-Macao Greater Bay Area High-Quality Talent Development Conference (Global Talent Highlights Exhibition Conference) in May to promote Hong Kong's benefits as an international talent hub and enable the flow of talent between cities in the GBA.
2. Building the Hong Kong brand through mega events
The Government has set up a Mega Event Coordination Group to actively encourage more mega events to be held in Hong Kong and to strengthen inter-sectoral coordination to successfully hold such events. HK$100 million has been allocated to enhance promotion of large-scale events over the next three years.
The Hong Kong Tourism Board (HKTB) holds monthly fireworks and drone shows against the backdrop of the spectacular night view of Victoria Harbour. HKTB will also renew the light and sound show “Symphony of Lights'' (Gensai Eikae).
The Development Board (DEVB) will also pilot commercial facilities such as food and beverage, retail and entertainment in selected port-facing locations to provide convenience and a better experience for visitors. is.
Apart from inviting tourists to Hong Kong, the government plans to visit local areas and markets to tell the good stories of Hong Kong and expand the circle of friends. The government will begin a new sponsored overseas lecture program. Renowned academics and industry leaders are sponsored to attend events overseas and give speeches promoting Hong Kong and its many benefits.
3. Promotion of tourism revitalization
The government also plans to allocate additional funds totaling HK$1.095 billion to support the Tourism Board and HKTB in organizing events and activities in Hong Kong.
HKTB will promote immersive and profound tourism through themes such as “City Walk” (Castle City Walk), promoting youth-focused activities such as hiking, biking, stand-up paddleboarding, trail running, and stargazing in the great outdoors. All of this is part of a vigorous effort to soft-sell Hong Kong.
To cater to the interests of a wide range of visitor segments, HKTB is launching new seasonal, festival and event experiences with a variety of themes, featuring Chinese and Western art, popular culture, wine and food, suburban exploration, active sports and more. Develop.
In addition, HKTB will strengthen its quality tourism service plan and launch new public relations activities, such as a reality show and awards for outstanding front-line staff in the service industry. It aims to collaborate with various sectors to promote Hong Kong as a people-centered and hospitable city.
Additionally, HKTB will launch a new Hong Kong tourism brand and continue to target source markets and collaborate with GBA cities to jointly promote multi-destination tourism.
The government will promote mega-events, organize in-depth themed tours, enrich tourism resources, and offer more innovative products and experiences to cater to all types and sources of visitors. It aims to stimulate retail, consumption, catering and transportation demand across Hong Kong.
4. Support for small and medium-sized enterprises (SMEs)
The government has established the Small and Medium Enterprise Financial Guarantee System (SME Financial Guarantee System) to help small and medium-sized enterprises tackle their financing problems.Small and medium-sized plan financing planTotal guarantee commitments under this scheme will increase by a further HK$10 billion.
In addition, small and medium-sized enterprises in the food and beverage and retail industries are encouraged to participate in the Digital Transformation Support Pilot Program (Multi-turn support leading plan).
The solution will focus on three areas including digital payments and in-store sales, online promotions, and customer management solutions. At least 8,000 eligible small businesses are expected to benefit from the pilot program.
Additionally, the government will inject an additional HK$500 million into the Branding, Upgrading and Domestic Distribution Dedicated Fund (BUD Fund), with the aim of helping small and medium-sized enterprises strengthen their competitiveness and enter mainland and overseas markets. is proposed. This includes the launch of “e-commerce easy” (E-commerce) under the Fund. Provides support of up to HK$1 million per company for the implementation of e-commerce projects on the mainland.
5. Embracing the digital economy and artificial intelligence
The government commissioned a group of experts to conduct a detailed study on how to develop a robust data trading ecosystem in Hong Kong. Its scope also includes Hong Kong's role as a “super connector” (super connecter) Promote the formulation of international data transaction rules for data transactions.
The aim is to be able to unlock the potential of data elements, facilitate the development of new industries with significant growth momentum, and support the upgrading and transformation of traditional industries.
When it comes to Web3 development, the HKMA plans to roll out a “sandbox” soon (Sabox) Entities interested in issuing stablecoins conduct tests on the issuance process, business model, investor protection, and risk management systems under manageable conditions. The “sandbox” also facilitates communication regarding future regulatory requirements.
Artificial intelligence (AI) is key to driving the development of Hong Kong's digital economy, and Cyberport is expediting the establishment of an AI supercomputing center to meet the demand for computing power in research institutions and industry.
The first phase of the facility is expected to start operating as early as this year. By early 2026, the computing power of supercomputing facilities is expected to reach 3,000 petaflops. This amount of power equates to the ability to process nearly 10 billion images in an hour.
Meanwhile, the government will give Cyberport 3 billion to launch a three-year AI grant scheme to help local universities, research institutes and businesses leverage the centre's computing power to achieve scientific progress. We plan to allocate Hong Kong dollars.
The grant will also be used to strengthen the center's cybersecurity and data protection, and launch promotional and educational activities to encourage mainland and overseas AI experts, companies, and R&D projects to visit Hong Kong. be done.
6. Positioning Hong Kong as a center of international cultural exchange that fuses East and West
The government plans to inject approximately HK$1.4 billion and HK$2.9 billion into the Film Development Fund (Film Development Fund) and the CreateSmart initiative (Creative wisdom plan) in 2024/25, respectively, supporting projects in different fields such as film, art and design.
Among them, the government plans to host Hong Kong Fashion Design Week (hong kong fashion design circle) Every year from 2024 onwards. The aim is to make Hong Kong Fashion Design Week a mega event for fashion design in Asia, thereby introducing Hong Kong fashion design brands internationally.
Additionally, the government has launched a distinctive performing arts program plan (Key performance item plan), which is staged as a long-term production and supports the production of a major, large-scale local signature performing arts program that is another cultural symbol of Hong Kong. The Department of Culture, Sports and Tourism plans to develop key arrangements for a distinctive performing arts program scheme in the first half of 2024.
Furthermore, the government has announced that the first Hong Kong Performing Arts Expo (hong kong entertainment expo) was established in October this year to provide a comprehensive platform to showcase top-notch performing arts productions and strengthen exchanges to create business opportunities for these programs and creative talents.
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