Unlimited Business Opportunities Chapter V Unlimited Business Opportunities

Chapter V Unlimited Business Opportunities Chapter V Unlimited Business Opportunities

Chapter V Unlimited Business Opportunities

–71 My Belief “To maintain a city’s competitiveness is like sailing a boat against the current and it must forge ahead in order not to be driven back. Hence, Hong Kong must keep consolidating its existing strengths, exploring new advantages, expanding economic and trade ties with the world, and fostering closer exchange and co-operation with the Mainland.”

“The Hong Kong Special Administrative Region (HKSAR) Government is determined to boost the development of new and emerging industries in addition to our traditional industries, and considers that both innovation and technology and the creative industries have a competitive edge and much potential. They will not only promote a diversified economy, but also create more quality employment opportunities for our young people.”

Hong Kong has been acclaimed as the world’s most open, freest and most competitive city by many international organisations. Leveraging our unique strengths under “One Country, Two Systems”, we will continue to provide a business-friendly environment, uphold operation of the market and promote free trade. We will also strive to develop new areas of economic growth. The National 13th Five-Year Plan pledges support for Hong Kong to reinforce and enhance its status as an international financial, transport and trade centre; develop its innovation and technology (I&T) industry; and establish itself as a centre for international legal and dispute resolution services in the Asia-Pacific region. The Belt and Road Initiative, as well as the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) development have brought enormous opportunities for the economic development of Hong Kong. The HKSAR Government will do its best as a “facilitator” and “promoter”, seizing opportunities to actively connect with the world to explore more business opportunities. International Financial Centre Green Finance

Stock Market (Main Board) Hang Seng Index Movement Growing size and diversity of green bonds arranged and issued in Hong Kong Daily Average Turnover Value

28,000 2017 Sector September 2020 Financial Institutions 0% $122 billion 26,000 Corporate - Real Estate 4% Corporate - Energy 32% 2017 Amount 24,000 Corporate - Others 12% US$ (%) 60.5% Policy/ Development Banks 52% 22,000 Multilateral Development Banks 0% 3.2 September 2019 billion Government 0%

$76 billion 20,000 (%) 0 20 40 60 Jan'20 Mar'20 May'20 Jul'20 Sep'20

As of 30 Sep 2020 2019 Sector Financial Institutions 49.4% Stock Connect Bond Connect Corporate - Real Estate 18.8% 2019 Stock Connect average Foreign holding of Mainland Corporate - Energy 6.2% Amount daily trade value onshore bonds (RMB billion) Corporate - Others 11.2% US$ Policy/ Development Banks 4% 10 Multilateral Development Banks 0.3% billion 12 Times Government 10.1% 2,802.9 90 0 20 40 60 (%)

The average daily turnover Sources: Climate Bonds Initiative and the Hong Kong Monetary Authority of Bond Connect increases 23 882.4 10 10 by 12 times from RMB 1.5 billion in July 2017 2017 2020 2017 2020 to RMB 19 billion in FinTech Development (as of August) (as of August) September 2020. Figures at a glance Northbound Stock Connect (RMB billion) Soundbound Stock Connect (HK$ billion)

Asset and wealth management centre Initial Public Offering (IPO) Size of asset and wealth management business Hong Kong’s global fundraising ranking No. of FinTech Accumulated Fintech adoption rate Percentage of banks #3 #1 #1 #3 companies in investment in Hong by consumers in adopted or plan to 64% of assets sourced from Hong Kong (2020): Kong-based FinTech Hong Kong adopt Fintech 218 non-Hong Kong investors companies (from 2017 to 2019): solutions3 : 183 (2014 - 2019): 174 314.2 99 From 1 32% 288 Over 600 US$1.47 billion 2 86% 29 Private equity business: 211 to 67% 24 Hong Kong ranks 2nd in Asia 128.5 by asset under management 2017 2019 (US$163 billion in June 2020) 2017 2018 2019 2020 (as of September) 1: Accenture data HK$ trillion No of IPOs 2: Ernst & Young Global Fintech Adoption Index 2019 3: Survey on Fintech Adoption and Innovation in the Hong Kong Banking Industry Total IPO funds raised (HK$ billion) International Financial Centre Green Finance

Stock Market (Main Board) Hang Seng Index Movement Growing size and diversity of green bonds arranged and issued in Hong Kong Daily Average Turnover Value

$76 billion 20,000 (%) 0 20 40 60 Jan'20 Mar'20 May'20 Jul'20 Sep'20

Injected Input Introduced $20 billion into Implemented enhanced tax Research new pro-innovation deduction Endowment Fund government incentives for SME Financing Dedicated Fund on SME Export and launched procurement policy qualifying R&D Guarantee Scheme Branding, Upgrading Marketing Fund Technology Talent and TechConnect expenditure (From July 2017 to (SFGS) and Domestic Sales (EMF) Scheme (block vote) end September 2020) (BUD Fund) Secured Grants/loans $3 billion for approved $63 billion $1.1 billion $740 million Hong Kong Science Earmarked and Technology Parks $8.5 billion for Number of Corporation (HKSTPC) expansion of enterprises 22 000 over 1 600 12 000 to develop research Science Park and benefited and development (R&D) Cyberport Number of related facilities employees over 300 000 19 000 82 000 benefited

Distance Business Committed over $100 billion Reserved Technology Voucher Secured $7 billion Programme funding for I&T development $20.8 billion for (From July 2017 to Programme for HKSTPC and developing the end September 2020) (Introduced in May 2020) $200 million for Lok Ma Chau Loop into Cyberport to Hong Kong’s I&T Hong Kong-Shenzhen Grants support tenants I&T Park approved $864 million $460 million Ecosystem (5th in the IMD World Applications Digital Competitiveness approved 15 548 (95% cases for SMEs) 2 900 Output Ranking 2020*) (11th in 2018)

Hong Kong Export Hong Kong Monetary InnoHK Credit Insurance Authority Pre-approved Research Clusters Venture (From June to Corporation 100% Credit (From April to Principal Payment The first batch of capital investment end August 2020) end September 2020) Limit Top-Up Scheme Holiday Scheme R&D Centres will in Hong Kong Additional open in Q4 2020/ Aggregate coverage Q1 2021 $36.9 $6.6 billion amount of loan $580 billion approved billion (2017-2019) Applications Applications approved 6 424 approved 48 000 Start-ups

Research fellows 3 360 Total number of One-stop services for SMEs supported (2020) Locally developed tech applications government 70/year in fighting COVID-19: funding schemes “Four-in-one” SME Centres: • Electronic wristband one-stop consultation and referral services • “StayHomeSafe” mobile app for enterprises: • Local Situation Dashboard • CuMask+TM SME ReachOut Service Team: * Published by the International Institute 40 promote and help identify suitable funding for Management Development (IMD) schemes and loan guarantee schemes - FTA and IA forged between Hong Progress Made Kong and the ten member states of the A total of 194 new initiatives were announced Association of Southeast Asian Nations since July 2017 relating to diversifying Hong (ASEAN), which have come into effect Kong’s economy, of which 185 have been gradually since June 2019; completed or are progressing on schedule. - FTA and IA signed with Australia that Key initiatives completed or major progress came into effect in January 2020; made are as follows: - FTA signed with Georgia that came into effect in February 2019; Talent Hub - the HKSAR and Macao SAR Closer • Established the Human Resources Economic Partnership Arrangement Planning Commission in April 2018 (CEPA) that came into effect in January chaired by the Chief Secretary for 2018; Administration and launched a one-stop - IA signed with the United Arab Emirates online manpower information portal in that came into effect in March 2020; December 2019 to provide comprehensive and information to facilitate the local labour - IA signed with Mexico in January 2020. force to make informed choices in respect (CEDB) of career, training and development pathways. (CSO) • Concluded comprehensive avoidance of double taxation agreements (CDTAs) • Promulgated the first Talent List of with 45 tax jurisdictions. The target is Hong Kong in August 2018 covering to further expand our treaty network, 11 professions. (LWB) bringing the total number of CDTAs to 50 • Increased the annual quota under the by end-2022. (FSTB) Quality Migrant Admission Scheme to • Expanded the overseas Economic and 2 000 with effect from September 2020, Trade Office (ETO) network, with the with a view to enlarging Hong Kong’s Bangkok ETO commencing operation in talent pool and reinforcing our role as February 2019. (CEDB) Asia’s World City. In the first half of 2020, 735 quota were allotted. (SB) Enhanced Co-operation Government-to- with the Mainland Government Business • Signed the Agreement on Trade in Goods with the Mainland on 14 December 2018 • Signed four new free trade agreements under the framework of the Mainland and (FTAs) with 13 economies, thereby Hong Kong CEPA. The Agreement fully doubling the number of FTAs signed by implements zero tariff on goods of Hong the HKSAR Government to eight; and Kong origin imported into the Mainland signed four investment agreements (IAs) through the introduction of a general rule with 13 economies. They include: of origin. (CEDB)

50 | Unlimited Business Opportunities • Signed an amendment agreement to the • Set up a high-level Steering Committee CEPA Agreement on Trade in Services in for the Development of the Guangdong- November 2019 which came into effect Hong Kong-Macao Greater Bay Area in June 2020. The new liberalisation chaired by the Chief Executive, with measures cover legal services, membership comprising all Secretaries construction and related engineering of Departments and Directors of Bureaux, services, financial services, testing to more efficiently steer, co-ordinate and and certification, television and motion take forward the development of the GBA. pictures. (CEDB) (CMAB) • Extended the Single E-lock Scheme to 52 clearance points in Guangdong Belt and Road Initiative Province, of which 43 cover the nine • Signed the “Arrangement between Mainland municipalities in the GBA. the National Development and Reform (CEDB) Commission and the Government of the Hong Kong Special Administrative • Established a high-level co-operation Region for Advancing Hong Kong’s Full mechanism with Sichuan to deepen co- Participation in and Contribution to the operation with various provinces and Belt and Road Initiative” (the Arrangement) municipalities in areas such as trade, in December 2017. The Joint Conference finance, I&T, creative industries and youth mechanism set up between Hong Kong exchanges. (CMAB) and the relevant Mainland authorities on the implementation of the Arrangement Greater Bay Area Development held its third meeting in August 2020. • As a member of the Leading Group for Launched the Belt and Road Joint the Development of the Guangdong- Conference Policy Exchange and Capacity Hong Kong-Macao Greater Bay Area Building Programme in December 2019 to set up by the Central Government in forge collaboration on capacity building 2018, the Chief Executive has attended with relevant Mainland authorities for three plenary meetings and secured enhanced professionalism. (CEDB) 24 policy initiatives that are beneficial to • Established the Mainland and Hong Hong Kong’s participation in the GBA Kong Belt and Road Task Group to development. Of these, 19 have been co-ordinate related matters in the trade fully or partially implemented. Notable and economic co-operation areas by the ones are the assessment of 183 days HKSAR Government and the Ministry for personal tax purpose, support for of Commerce. The second high-level Hong Kong youth to start business in the meeting was held in November 2019. Mainland cities of the GBA and according (CEDB) Hong Kong permanent residents the same status as local residents when purchasing • Explore facilitation policy measures and residential properties in the Mainland assist local institutions in coming up with cities in the GBA. (CMAB) more flexible and innovative operation models to foster closer higher education co-operation in the GBA. (EDB)

Unlimited Business Opportunities | 51 • Formulated a five-pronged Belt and • Supported HKTDC’s enhancement Road key strategy (viz. enhancing policy of its Belt and Road Portal for a more co-ordination; fully leveraging Hong comprehensive and up-to-date one- Kong’s unique advantages; making the stop Belt and Road platform in July best use of Hong Kong’s position as a 2019 and its introduction of SME professional services hub; promoting Transformation Sandbox in April 2020 to project participation; and establishing support enterprises in capitalising on new partnership and collaboration to guide business opportunities, including at the the HKSAR Government’s participation Mainland’s overseas Economic and Trade in and contribution to the Belt and Road Co-operation Zones (ETCZs). (CEDB) Initiative). (CEDB) • Carried out a number of business and • Co-organised the fourth annual Belt professional missions to Southeast Asia, and Road Summit with the Hong Kong Middle East and Europe, etc., to showcase Trade Development Council (HKTDC) Hong Kong’s professional strengths and on 11 and 12 September 2019, which seek out new business prospects. (CEDB) attracted around 5 000 government • Secured the support of the Ministry of officials, entrepreneurs and professionals Commerce to promote interested Hong from nearly 70 countries and regions. Kong enterprises to establish presence More than 700 one-on-one business in the Mainland’s overseas ETCZs. (CEDB) matching meetings for over 240 projects were staged. The fifth Summit in dual • Relaxed the visa requirements for track (online and offline) will be held nationals of Belarus, Vietnam, Panama on 30 November to 1 December 2020. and Armenia visiting Hong Kong after (CEDB) reviewing the visa requirements of these Belt and Road countries. Extended • Established exchange and collaboration the mutual visa-free access period for platforms for promoting Belt and Road Belarus. (SB) participation of Hong Kong enterprises and professional services sector, including the seminar on “Strategies New Directions for Taxation and Opportunities under the Belt and • Implemented the two-tiered profits tax Road Initiative – Leveraging Hong Kong’s rates regime which reduces the tax Advantages, Meeting the Country’s burden on enterprises, especially small Needs” in Beijing in February 2018, and and medium enterprises (SMEs). About sharing sessions under the theme “Belt 89 000 profits tax payers in the year of and Road: Hong Kong-IN”, etc. (CEDB) assessment 2018/19 benefited with total tax savings amounted to $6 billion. (FSTB)

52 | Unlimited Business Opportunities Council of Advisers on • Doubled the ceilings of the annual funding Innovation and Strategic provided by the I&T Fund to each State Development Key Laboratory and Hong Kong branch of Chinese National Engineering Research • Established the Chief Executive’s Council Centre from $5 million to $10 million, and of Advisers on Innovation and Strategic to the technology transfer office of each Development in March 2018 to give advice designated university and each of the six on Hong Kong’s strategic positioning in universities under the Technology Start- the global and regional contexts and up Support Scheme for Universities from directions of economic development. $4 million to $8 million from 1 April 2019 (PICO/CSO) to promote technology transfer as well as realisation of R&D outcomes. (ITB) Innovation and Technology Supporting Technology Enterprises Policy Steer and Co-ordination • Started co-investing in local I&T start-ups • Established the Steering Committee on with partner venture capital funds through I&T chaired by the Chief Executive in the Innovation and Technology Venture December 2017 to steer Hong Kong’s I&T Fund (ITVF) in 2019. By September 2020, and smart city development. (ITB) the ITVF has closed 19 deals with a total • Committed a total of $100 billion to give investment of around $90 million. (ITB) technology development in Hong Kong a • Secured an injection of $7 billion into the big boost. (ITB) Hong Kong Science and Technology Parks • Implemented the new pro-innovation Corporation (HKSTPC) for enhancing government procurement policy since support for its tenants. (ITB) April 2019. (FSTB) • Injected $200 million into the Corporate Venture Fund in April 2019, which has Increased Resources for Research invested in 15 start-ups with a total and Development investment of $87 million. (ITB) • Introduced the enhanced tax deduction for qualifying research and development • Injected $200 million into Cyberport in (R&D) expenditure incurred by enterprises 2018 for enhancing support for its start- from 1 April 2018. The total amount of ups and tenants, including the increase relevant R&D expenditure for claiming in financial subsidy under the Cyberport tax deduction in the year of assessment Incubation Programme from $330,000 to 2018/19 was about $1.82 billion, a maximum of $500,000, and the launch representing an increase of 26% as of the Easy Landing Scheme and the compared with $1.44 billion in 2017/18. Overseas/Mainland Market Development (ITB) Support Scheme. (ITB)

Unlimited Business Opportunities | 53 • Injected $100 million into Cyberport Providing Technological Research in 2018 to promote the development Infrastructure of the e-sports industry. Opened the • Commenced land decontamination new dedicated e-sports competition and advance engineering works at the venue in the Cyberport Arcade in July Lok Ma Chau Loop in June 2018, with a 2019. Introduced the E-sports Industry view to providing the first batch of land Facilitation Scheme and the E-sports parcels in 2021 for development of the Internship Scheme in April 2019, with Hong Kong-Shenzhen Innovation and 71 projects and 36 intern positions Technology Park (HSITP). We will seek approved by end-August 2020. (ITB) funding approval for Main Works Package • Took forward the experience-sharing and 1 and the development of the first batch of business-promotion platform established buildings in the HSITP soon. (ITB) in conjunction with the HKTDC and • Commenced operation of the Cyberport I&T sector in June 2020, to share with Smart-Space 8 co-working space in Tsuen overseas governments and markets Hong Wan in July 2018, with its occupancy rate Kong’s research outcome and experience at 100% as at end-August 2020. (ITB) in applying technology to fight the • Secured an injection of $3 billion into the epidemic and address livelihood needs, HKSTPC in 2018 for developing R&D- especially the Belt and Road countries, related facilities, such as the Biobank and and at the same time open up more the Robotics Catalysing Centre, which business opportunities for Hong Kong’s have been progressively commissioned. I&T sector. (CEDB, ITB) (ITB) Promoting Technology Application • Completed the construction of the Data and Re-industrialisation Technology Hub by HKSTPC, which is • Launched the $2 billion Re- expected to commence operation in the industrialisation Funding Scheme in July fourth quarter of 2020. (ITB) 2020 to subsidise manufacturers to set up • Earmarked $5.5 billion for Cyberport new smart production lines in Hong Kong. 5 expansion and $3 billion for Science (ITB) Park Expansion Programme Phase 2. (ITB) • Regularised the Technology Voucher Programme in February 2019 Opening Up Government Data and introduced several rounds of • Promulgated the open data policy in enhancement measures, including raising October 2018 to promote opening up data the Government’s funding ratio to 75% owned by government, public and private and increasing the cumulative funding organisations. Over 880 new datasets ceiling per applicant to $600,000 in in machine-readable formats had been April 2020. (ITB) opened up by government departments since 2019. As at end-September • Developing the Advanced Manufacturing 2020, 4 187 datasets and around 1 400 Centre and Microelectronics Centre application programming interfaces by HKSTPC, with a view to promoting (APIs) are provided in the Public Sector re-industrialisation. (ITB) Information Portal. (ITB)

54 | Unlimited Business Opportunities Popular Science Education • Provided funding to support 74 technology • Allocated $500 million for organising the projects proposed by 28 departments annual City I&T Grand Challenge. The through the TechConnect (block vote) first Grand Challenge is expected to be to promote the use of technology for launched in end-2020. (ITB) enhancing operational efficiency and improving public services. (ITB) • Commence the pre-construction works of the expansion of Hong Kong Science • Launched the all-in-one “HKeMobility” Museum in the fourth quarter of 2020, mobile application in July 2018, which and continue to revamp its permanent allows the public to acquire real-time exhibitions. (HAB) traffic and transport information anytime and anywhere. As at mid-2020, the • Established the Science Promotion Unit number of downloads of “HKeMobility” in the Leisure and Cultural Services has exceeded 2.2 million. (THB) Department in April 2020. A series of programmes to promote and popularise • Set up the Technical Advisory Committee science to the general public are under on the Application of Autonomous Vehicle planning and will be launched by phases (AV) Technologies in Hong Kong in the in 2021. (HAB) Transport Department in November 2019, which is actively studying the necessary Smart City legislative amendments to create favourable conditions for the development • Published the first Smart City Blueprint and application of AVs. (THB) for Hong Kong in December 2017, with over 70 initiatives in six smart areas. • Commenced preparatory work for the Major developments include the launch of $1 billion Smart Traffic Fund, which will Faster Payment System (FPS), adoption accept applications from the first quarter of smart solutions at the Hong Kong of 2021 onwards. (THB) International Airport (HKIA), launching • Disseminated real-time parking vacancy the Next Generation Government Cloud information of about 73% of the hourly Platform and Big Data Analytics Platform parking spaces in Kowloon East to the and commissioning of the “iAM Smart” public, covering about 6 300 parking platform in December 2020. (ITB) spaces. (DEVB) • Set up a Smart Government Innovation • Launched a chatbot (“Bonny”) on the Lab in April 2019 to facilitate government GovHK portal in December 2019 to departments to make wider use of the facilitate the public to search and access solutions offered by the local information over 3 300 government forms and related technology sector to improve public e-Government services. (ITB) services. So far, 38 business needs • Launched the “Leading Towards Robotics of departments have been matched, Technologies” campaign in 2020 to and 44 thematic workshops have been inspire government departments to apply arranged. (ITB) robotics technologies to enhance public services and city management. (ITB)

Unlimited Business Opportunities | 55 • Introduced smart elements in prison Transportation and management (Correctional Services Logistics Department); launched the enhanced • Established the Air Accident Investigation “Post-dispatch Advice Computer System” Authority under the Transport and Housing to provide emergency service callers with Bureau on 10 September 2018. (THB) comprehensive and appropriate first-aid advice (Fire Services Department); rolled • Injected $200 million into the Maritime and out the “e-Ticketing Pilot Scheme” for Aviation Training Fund in May 2019. (THB) issuing fixed penalty tickets against illegal • Enhanced Hong Kong’s status as an parking (Hong Kong Police Force); and international aviation hub by actively commenced procurement of advanced expanding our aviation network and equipment such as CT scanners and intermodal connectivity, and enhanced auto-detection devices to enhance cross- high-value air cargo handling capacity. In boundary clearance efficiency and step 2019, around 120 airlines operated more up enforcement against smuggling and than 1 100 flights daily between HKIA other offences (Customs and Excise and around 220 destinations worldwide. Department). (SB) In the past three years, the HKIA has • Launched the Big Data Analytics Platform attained three International Air Transport in December 2019 by the Hospital Association accreditations related to Authority (HA) for local academics to handling of high-value air cargo. (THB) explore its clinical dataset for developing • Assisted the Airport Authority Hong Kong research ideas and carrying out (AAHK) in taking forward the Three- collaborative research projects with the Runway System Project. AAHK awarded HA. (FHB) 30 major contracts with a total sum of • Applied smart safety devices in public about $75.2 billion. (THB) works contracts by phases to enhance • Enhanced Hong Kong’s position construction safety. (DEVB) as a global maritime hub: including (i) establishment of the first-ever overseas Social Innovation branch of The International Chamber • Since the establishment of the Social of Shipping in Hong Kong in 2019; Innovation and Entrepreneurship (ii) designating Hong Kong by the Baltic Development Fund (SIE Fund) in 2013, and International Maritime Council as over $400 million has been allocated and the fourth arbitration venue, alongside 230 projects funded under three priority London, New York and Singapore; areas of work, namely, capacity building, (iii) setting up regional offices of the innovative programmes and research, Hong Kong Shipping Registry in three benefiting around 250 000 persons. An cities (London, Shanghai and Singapore) injection of $500 million to the SIE Fund in 2020; and (iv) enacting the Inland will be made in 2021–22. (ITB) Revenue (Amendment) (Ship Leasing Tax Concessions) Ordinance 2020 to provide tax concessions to qualifying ship leasing business. (THB)

56 | Unlimited Business Opportunities • Set up a dedicated task force comprising • Launched northbound trading of Bond industry members to study tax measures Connect in July 2017. As at August 2020, to encourage more commercial principals the amount of foreign holdings of bonds of the maritime industry to choose Hong through Bond Connect has reached Kong as their base of operation. (THB) Renminbi 2,800 billion. Hong Kong ranked second in Asia (after Mainland • Launched a $345 million pilot subsidy China) in 2019 in terms of asset under scheme to provide financial incentive management by private equity funds to qualified third-party logistics service (reaching US$163 billion). (FSTB) providers for adopting technology to enhance productivity. (THB) Fostering Development of the • Concluded the feasibility studies for two Financial Services Industry port back-up sites in Tsing Yi and Kwai • Incorporated the Financial Services Chung with a view to releasing the sites Development Council as a company by phases through public tender for limited by guarantee with effect from developing multi-storey port back-up and September 2018, which is being modern logistics facilities starting 2021. supported by Government subvention (THB) to strengthen its capacity to conduct strategic studies, provide advice, foster Finance market development and nurture talent. • Established the Financial Leaders Forum, (FSTB) chaired by the Financial Secretary, in • Launched a new listing regime in Hong August 2017 to provide policy steer on Kong since April 2018 for three types of strategic and forward-looking proposals issuers, including pre-revenue/pre-profit to strengthen Hong Kong’s position as an biotech issuers; issuers from emerging international financial centre. (FSTB) and innovative sectors with weighted voting rights structures; and qualifying International Asset Management issuers seeking secondary listing through Centre a new concessionary route. Since the • Commenced operation of the open-ended implementation of the listing reform, fund company regime since 30 July 2018. some 30 new economy companies have (FSTB) listed under the new regime, raising over • Commenced operation of the limited $300 billion of funds through initial public partnership fund regime since offerings. (FSTB) 31 August 2020. (FSTB) • Leveraged the opportunities presented • Offered profits tax exemption under the by the GBA development to promote the Inland Revenue Ordinance (Cap. 112) to sustainable development of the financial different types of onshore and offshore services industry with various measures, privately offered funds with effect from including preparation for launching the 1 April 2019. (FSTB) cross-boundary wealth management connect pilot scheme. (FSTB) • Entered into mutual recognition of funds arrangements with the Mainland, Switzerland, France, the United Kingdom, Luxembourg and the Netherlands. (FSTB)

Unlimited Business Opportunities | 57 • Strengthened Hong Kong’s position as • Granted licences to eight virtual banks an international insurance centre through by the Hong Kong Monetary Authority enactment of three pieces of primary (HKMA) as at August 2020, of which five legislation in July 2020 to introduce already commenced operations. (FSTB) new measures, including offering half- • Under the Open API Framework, 20 retail rate profits tax concessions for marine banks have launched over 500 and 300 insurance and specialty insurance, APIs respectively under the first two enabling the setting up of special purpose phases, covering information of deposits, vehicles in Hong Kong for issuance of loans, insurance, investments and other insurance-linked securities, expanding banking products and services. The the scope of insurable risks by captive HKMA is conducting a study on the insurers set up in Hong Kong as well as implementation of Phases III and IV Open enhancing the legal framework for the APIs, which covers the pace, scope, and regulation of insurance groups. (FSTB) standards for implementation. (FSTB)

Financial Innovation • Conducting a Proof-of-Concept (PoC) trial by eTradeConnect on connecting the • Issued the inaugural green bond under the People’s Bank of China Trade Finance Government Green Bond Programme in Platform. (FSTB) May 2019. (FSTB) • Authorised four virtual insurers under the • Elevated Hong Kong’s position as a Fast Track as at August 2020, of which regional green and sustainable finance two carry on life insurance business and hub to promote more entities to make use two carry on non-life insurance business. of Hong Kong’s financial platform for green (FSTB) and sustainable investment and financing. Launched a Green Bond Grant Scheme • Published a new licensing framework in June 2018 to subsidise eligible green for virtual asset trading platforms in bond issuers in obtaining certification November 2019 by the Securities and under the Green Finance Certification Futures Commission. (FSTB) Scheme. A total of US$10 billion of green • Took forward the development of the eMPF bonds were arranged and issued in Hong Platform to standardise, streamline and Kong in 2019, which was over three-fold automate the Mandatory Provident Fund of that in 2017. (FSTB) (MPF) scheme administration processes • Launched the FPS in September 2018. to create room for fee reduction. The As at end-August 2020, the FPS has eMPF Platform is expected to be fully recorded 6 million registrations. In August functional in 2025 at the earliest. (FSTB) 2020, the FPS processed 11.7 million transactions (worth HK$120 billion and Renminbi 2 billion). Starting from November 2019, taxes, rates and Government rent, and water charges can be paid by using the FPS, and counters and self-help kiosks of four Government departments will soon accept FPS payments. (FSTB)

58 | Unlimited Business Opportunities Financial Safety • Became the first jurisdiction in the Asia- • Implemented the new auditor regulatory Pacific region to achieve an overall regime on 1 October 2019 to enhance compliant result in the fourth round of the independence of the local regulatory mutual evaluation by the FATF. In the regime for listed entity auditors and to Mutual Evaluation Report published in align with international standards and September 2019, the FATF commended practices, which in turn strengthens Hong Kong for having established a strong investor protection and confidence in legal foundation and effective system for Hong Kong capital markets. (FSTB) combating money laundering and terrorist financing. (FSTB) • Commenced operation of the new regulatory regime for insurance intermediaries on 23 September 2019, Tourism which replaced the previous self- • The Financial Secretary convened the regulatory regime. (FSTB) high-level tourism co-ordinating meetings, directing bureaux and departments • Commenced operation of the Banking to drive the implementation of various (Amendment) Ordinance 2018, which tourism-related measures in the areas empowers the HKMA to prescribe rules of tourist support and management, on recovery planning and financial planning of tourism facilities and transport exposure limits for authorised institutions, support, and tourism diversification and a series of subsidiary legislation to through enhanced co-operation and co- align Hong Kong’s regulatory requirements ordination. (CEDB) on banks’ exposure limits, capital, disclosure and liquidity with international • Established the Travel Industry Authority standards. (FSTB) in end-2019. (CEDB) • Enacted the Anti-Money Laundering and Counter-Terrorist Financing (Financial Protection of Consumer Institutions) (Amendment) Ordinance Interests 2018 and the Companies (Amendment) • Provided a dedicated funding of Ordinance 2018 on 24 January 2018. $238 million since 2018–19 to support the Commenced operation of both amended Competition Commission’s litigation work. ordinances on 1 March 2018, ensuring that (CEDB) the regulatory framework of Hong Kong is in line with the international standards set Trade and Investment by the Financial Action Task Force (FATF). • Through the HKTDC, identified platforms (FSTB) in the Mainland for organising promotional activities to assist Hong Kong enterprises in developing the Mainland market; explored new trade platforms in developed markets outside the US to open up more channels for Hong Kong enterprises to get in touch with overseas buyers; and strengthened promotion activities in emerging markets. (CEDB)

Unlimited Business Opportunities | 59 • Through InvestHK, attracted more • Consolidated the services of four SME overseas and Mainland companies to set centres and introduced “four-in-one” up offices in Hong Kong, with the total integrated services to provide “one-stop” number increased from about 8 200 in consultation and referral services, and 2017 to over 9 000 in 2020. (CEDB) set up the SME ReachOut service team to help SMEs identify funding schemes Support to Small and that suit their needs and answer questions Medium Enterprises relating to their applications. About 70 000 enquiries have been handled. • Launched the new 90% and Special (CEDB) 100% Guarantee Products under the SME Financing Guarantee Scheme • Introduced a range of business support (SFGS) in December 2019 and April 2020 measures by the Hong Kong Export Credit respectively to help SMEs in obtaining Insurance Corporation (ECIC), including commercial loans to ease their cash flow free pre-shipment cover, premium problem. Introduced additional support discount, additional free buyer credit measures including raising the maximum checks and expedited claims settlement loan amount, extending the loan repayment etc. Introduced the “100% Credit Limit period, providing interest subsidy and Top-Up Scheme” in June 2020 by ECIC principal moratorium to help alleviate the to run for a period of six months, under financial burden of enterprises. Increased which it would automatically double the total government commitment under the credit limits of policyholders or uplift the SFGS to $183 billion. Since July 2017, limits to the amount applied for, whichever loans amounting to $63 billion have been is smaller, subject to a cap of $100 million. approved under the SFGS, benefiting As at end-September 2020, 6 424 credit 22 000 enterprises involving over 300 000 limits were uplifted under the Scheme, employees. (CEDB) involving a total of around $15 billion of credit limits, of which $6.61 billion (44%) • Injected $3.5 billion and $2 billion represented the top-up portions. (CEDB) respectively into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) and SME Export Marketing Convention and Exhibition Fund (EMF), and introduced a series of • Took forward plans to increase the supply enhancements, including expansion of of convention and exhibition facilities to funding scope and increase in funding maintain and enhance Hong Kong’s role limits for each enterprise. Since July 2017, as a premier international convention, $1.1 billion grant has been approved exhibition and sourcing centre. (CEDB) under BUD Fund, benefiting over 1 600 enterprises and 19 000 employees; and $740 million has been approved under EMF, benefiting 12 000 enterprises and 82 000 employees. (CEDB)

60 | Unlimited Business Opportunities Legal Services • Held the first meeting of the Guangdong- Hong Kong-Macao Bay Area Legal • Established the Mediation Mechanism for Departments Joint Conference on Investment Disputes in accordance with 12 September 2019 to discuss suggestions the IA signed under the CEPA framework. to promote legal developments in Announced the lists of designated the GBA, including further promotion mediation institutions and mediators on of mediation in the GBA. Signed a 14 December 2018. Published mediation Framework Arrangement on Exchange rules drafted by the Department of and Mutual Learning in Legal Aspects with Justice (DoJ) and adopted by designated the Guangdong High People’s Court of mediation institutions and mediators in Guangdong in September 2019. Carried Hong Kong. (DoJ) out various activities pursuant to the • Signed with the Mainland the Arrangement Arrangement, including seminars about on Recognition and Enforcement of common law in Shenzhen in September Judgments in Civil and Commercial 2019 and the Guangdong-Hong Kong- Matters and the Arrangements Macao Greater Bay Area Judicial Case Concerning Mutual Assistance in Court- Seminar in January 2020 in Guangzhou. ordered Interim Measures in Aid of Held the Inaugural Seminar on the Legal Arbitral Proceedings (Interim Measures Challenges and Strategies under the Arrangement). As of 27 August 2020, Belt and Road Initiative in Beijing on Hong Kong International Arbitration Centre 26 November 2019. (DoJ) has processed 25 interim measures • Sought liberalisation measures in applications to preserve evidence or Guangdong Province to remove the assets worth Renminbi 9.4 billion in minimum capital injection ratio for total and court orders in respect of partnership with Mainland law firms and Renminbi 8.7 billion worth of assets allow direct employment of the Mainland have been issued. (DoJ) and Hong Kong lawyers in the partnership • Launched the inaugural Hong Kong Legal associations’ own name. (DoJ) Week in November 2019, which is held • The decision of the Standing Committee annually in the first week of November of the National People’s Congress on to promote legal and dispute resolution special examination for legal practitioners services of Hong Kong. (DoJ) in the GBA allows Hong Kong eligible legal practitioners to practise specific areas of Mainland law after passing the relevant examination. The passing of the related laws and regulations for the Qianhai Shenzhen-Hong Kong Modern Service Industry Co-operation Zone allows wholly owned Hong Kong enterprises to choose Hong Kong law as the governing law in a contract in civil and commercial matters. (DoJ)

Unlimited Business Opportunities | 61 Telecommunications and • Set aside $300 million for the Hong Kong Broadcasting Design Centre (HKDC) to implement various initiatives to reinforce Hong Kong’s • Released a total of 4 500 MHz of 5G status as a city of design excellence in spectrum to the market in 2019 and Asia. (CEDB) facilitated the timely launch of 5G commercial services in the second quarter • Promoted design thinking within the of 2020. (CEDB) Government actively, including provision of training to about 7 000 civil servants • Opened up over 1 000 suitable in the past three years, and promulgation government premises and adopted a of guidelines in April 2019 to encourage “demand-led” model to include more departments to apply design thinking in government and public facilities (e.g. the procurement process. (CEDB) sheltered bus stops and payphone kiosks) for mobile service operators to install base • Supported government departments and stations. (CEDB) non-profit making organisations, through the CreateSmart Initiative, to apply design • Awarded six tenders for the subsidy thinking to enhance the quality of public scheme to extend fibre-based networks to services and facilities. Pilot projects villages in remote areas. Extend the new included enhancing support and services broadband networks in phases starting for SMEs. (CEDB) from 2021, benefiting some 110 000 villagers. (CEDB) • Provided funding support for the HKDC to set up an event space at No. 7 Mallory • Launched the “Community Care Fund Street in Wan Chai to promote design and Digital TV Assistance Programme” in design thinking to the public. (CEDB) January 2020 to provide digital TV sets or set-top boxes to needy households • Implemented the Design and Fashion so that they can continue to access free Project in Sham Shui Po to nurture young TV services upon the implementation of designers and support start-ups, promote Full Digital TV Broadcast on 1 December fashion design, as well as boost district 2020. (CEDB) economy and tourism. Commenced construction works of the project in early • Completed the public consultation on the 2019, which is expected to complete in review of telecommunications regulatory 2023–24. (CEDB) framework in early 2019. We will work on the relevant legislative amendments. • Completed the review on the operation of (CEDB) the Film Development Fund, and injected $1 billion into the Fund in May 2019 to Creative Industries promote further development of the local film industry through nurturing talent, • Injected $1 billion into the CreateSmart enhancing local production, expanding Initiative in May 2018 to promote further markets and building audience. Made development of the design sector and financial commitment of $300 million as other non-film creative industries. Made at end-June 2020. (CEDB) financial commitment of $600 million as at end-June 2020. (CEDB)

62 | Unlimited Business Opportunities • Secured support from relevant Central • Promoted the use of MiC proactively. authorities in April 2019 to implement five Designated government buildings such measures to facilitate the entry of Hong as schools, dormitories and office Kong’s film industry into the Mainland buildings, etc., in capital works projects market, thereby expanding the market are required to adopt MiC from April 2020 space for local films and film practitioners onwards. MiC played an instrumental in the Mainland. (CEDB) role in providing quarantine facilities and a temporary hospital in a timely manner Construction Industry for tackling the Coronavirus Disease-2019 (COVID-19) outbreak. (DEVB) • Took forward the strategic initiatives to implement “Construction 2.0” • Topped out the first batch of MiC pilot progressively and led the industry to make projects, including InnoCell at HKSTPC changes by advocating “Innovation”, and Disciplined Services Quarters for the “Professionalisation” and “Revitalisation”. Fire Services Department at Pak Shing Actively promoted the application of Kok in Tseung Kwan O in May 2020 and I&T, including digital works supervision August 2020 respectively. (DEVB) systems, building information modelling • Set up a pre-acceptance mechanism (BIM) and established the Construction for MiC systems and granted a 6% Innovation and Technology Fund (CITF). concession of the floor area constructed (DEVB) by MiC for new buildings. (DEVB) • Established the Centre of Excellence • Required public works projects to adopt for Major Project Leaders by the Project BIM technology from January 2018 Strategy and Governance Office (PSGO) onwards. As at end-August 2020, the to provide high-level training programmes estimated total contract value of public for major project leaders. PSGO has works projects which have adopted such been collaborating and exchanging technology has exceeded $147 billion. experience with counterparts in the (DEVB) Mainland, Australia, Singapore and the United Kingdom (UK) and entered into • Supplying prefabricated reinforcing Memorandum of Understandings with bar (rebar) products by the four steel the Ministry of Finance in Singapore and rebar prefabrication yards included in the Infrastructure and Projects Authority the Civil Engineering and Development in UK. (DEVB) Department’s List of Approved Steel Reinforcing Bar Prefabrication Yards for • Required capital works contracts local construction projects in 2020. The with pre-tender estimate exceeding total production is on the increasing trend. $300 million to adopt digital works (DEVB) supervision system from April 2020 onwards to strengthen site supervision. (DEVB) • Opened the Modular Integrated Construction (MiC) Display Centre in November 2018 with the joint efforts of the Development Bureau and the Construction Industry Council (CIC). (DEVB)

Unlimited Business Opportunities | 63 • Set up the $1 billion CITF in October 2018 Agriculture and Fisheries to encourage wider adoption of innovative Industry technologies and stimulate the provision • Commenced environmental impact of cutting-edge solutions by local I&T assessment for designating new fish enterprises for industry enhancement. culture zones in end-2019, and resumed So far, the Fund has approved more than issuance of new marine fish culture 1 200 applications and subsidised over licences starting from early 2020. (FHB) 700 enterprises for adoption of innovation construction technologies in local building • Introduced measures to remove barriers projects such as MiC and BIM, with a in making applications for the Sustainable total approved funding of more than $270 Agricultural Development Fund and million. (DEVB) Sustainable Fisheries Development Fund for promoting sustainable development of • Offering quality training to trainees of agriculture and fisheries industry, with a the Hong Kong Institute of Construction, view to making good use of the funds to which was established in 2018. In improve the operating environment for the particular, its Diploma in Construction trade. (FHB) Programmes have been accredited under the Qualification Framework by the • Put into effect the relevant legislative Hong Kong Council for Accreditation of amendment to facilitate relocation Academic and Vocational Qualifications. of chicken farms in July 2020, which About 70 000 participants have completed helps chicken farms improve their bio- its programmes every year, covering both security measures, with a view to further full-time and part-time training courses. enhancing the prevention and control of (DEVB) avian influenza. (FHB) • Allocated a funding of $200 million in • Obtained approval from the Legislative May 2020 to strengthen construction Council (LegCo) in July 2020 to increase manpower training in trades of keen the approved commitment of the fishing demand with a view to upskilling the moratorium loan scheme by $210 million. workers and attracting more young people (FHB) to join the construction industry. (DEVB) • Established a new registration system in collaboration with the Mainland Authorities that enables architectural and engineering related consultant firms on the HKSAR Government’s approved lists and related registered professionals to provide professional services for development projects in the GBA. (DEVB) • Invited the CIC to extend its waiver of registration and renewal fees for registered workers for a further 12 months to support the construction industry, involving about $9 million in total. (DEVB)

64 | Unlimited Business Opportunities New Initiatives Supervising Virtual Asset Services • Establish a robust regulatory framework to Financial Services supervise virtual asset trading platforms through a licensing system and attract high Strategic Investments Using Future quality virtual asset service providers to Fund domicile in Hong Kong. This would allow • Prepare for the launch of Hong Kong us to capitalise on financial innovation Growth Portfolio to make strategic whilst managing money laundering investments in projects with a Hong and market manipulation risks, thereby Kong nexus, with a view to enhancing promoting the orderly development of the returns while reinforcing Hong Kong’s market. (FSTB) status as a financial, commercial and innovation centre, and raising Hong Reconnect with Markets Kong’s productivity and competitiveness and Explore New in the long run. (FSTB) Opportunities Consolidating Hong Kong’s Position • Pursue the expansion of the overseas as Asia’s Premier Fund Hub for ETO network to foster closer economic Private Equity and trade relations with our trading • Provide tax concession for carried interest partners, thereby bringing about more issued by private equity funds operating business opportunities for Hong Kong. in Hong Kong subject to the fulfilment The Dubai ETO, our first ETO in the Middle th of certain conditions with a view to East region and the 14 ETO, is expected consolidating Hong Kong’s position as to commence operation in early 2021. Asia’s premier fund hub for private equity. (CEDB) We have consulted the industry and are • Devote extra efforts and resources to formulating the legislative proposal with strengthen in phases external promotion the target to introduce an amendment bill work taking into account the latest into the LegCo shortly. (FSTB) epidemic situation, with a view to restoring confidence in Hong Kong. Detailed Fintech Proof-of-Concept Subsidy measures include: Scheme - Explore with overseas economies • Launch the Fintech Proof-of-Concept with stabilised epidemic situation the Subsidy Scheme to provide financial gradual resumption of cross-border incentives for financial institutions to travel. Such arrangement would be partner up with Fintech companies to guided by science and based on the conduct PoC projects, with a view to advice of our health professionals encouraging innovation and accelerating according to the “Suppress and Lift” technology transformation. (FSTB) strategy;

Unlimited Business Opportunities | 65 - Adopt different engagement strategies • Encourage the Hong Kong professional by the overseas ETOs, taking into services sectors in stepping up promotion account the epidemic situation and of Hong Kong’s competitive edges and the specific concerns on Hong Kong their services to the GBA Mainland cities in their host countries. The ETOs and overseas markets after the pandemic will promote Hong Kong’s role as situation has stabilised. Set aside a a major international business and dedicated funding of $50 million under financial centre, as well as Hong the Professional Services Advancement Kong’s institutional advantages, core Support Scheme to sponsor major competitiveness, our level playing field professional bodies’ participation in and business friendly environment; relevant exchanges, promotion and - Dynamically adjust InvestHK’s professional standard enhancement promotion strategies by leveraging the activities organised by the Government, digital platforms; HKTDC and overseas ETOs. (CEDB) - Review by the Hong Kong Tourism • Support interested Hong Kong enterprises Board of the positioning of tourism in Hong Kong in light of the “new normal” and the professional services sector to due to the sustained epidemic situation explore opportunities in the Mainland’s and will, in association with the travel overseas ETCZs by promoting pilot and related trades, launch promotions matching of selected ETCZs in ASEAN and offers in source markets with with such enterprises with a view to readiness for travelling to Hong Kong; enhancing business collaboration. (CEDB) - Actively develop its digital platform • Launch a Mainland Enterprises by HKTDC to connect buyers and Partnership Exchange and Interface suppliers worldwide and help Hong Programme to serve as a “one-stop” Kong enterprises explore business platform for fostering exchanges and opportunities and develop overseas business matching with Hong Kong markets; and professional services sector. Stage the - Explore with foreign chambers of second edition of the Belt and Road Joint commerce to offer internship and Conference Policy Exchange and Capacity work opportunities in recommended Building Programme in conjunction with companies of relevant industries relevant Mainland authorities with a view (such as creative industries) to young to jointly enhancing professional capacity graduates for 12 months. (CEDB) for pursuing the Belt and Road Initiative. (CEDB) • Launch publicity programmes in the Mainland to rebuild the confidence in Hong Kong to pave way for the resumption of economic activities and people flow between the two places in an orderly manner after the epidemic. (CMAB)

66 | Unlimited Business Opportunities • Strive to establish after-sales service Cross-border centres of Hong Kong insurers in the Transportation Mainland cities of the GBA, with a view • Implement the “Quota-free scheme for to providing comprehensive support, Hong Kong private cars travelling to including claims and renewal and Guangdong via the Hong Kong-Zhuhai- surrender of policies, to holders of Hong Macao Bridge” (the Scheme) after the Kong policies by phases. (FSTB) commissioning of Tuen Mun-Chek Lap • Strive to implement the “unilateral Kok Tunnel, allowing eligible Hong Kong recognition” policy for Hong Kong motor private cars to travel between Hong Kong vehicles entering Guangdong (GD) and GD via HZMB without the need to through the Hong Kong-Zhuhai-Macao obtain a regular quota. (THB) Bridge (HZMB) control point. The policy • Commission an automated parking system extends the coverage of third-party at the Hong Kong Boundary Crossing insurance policies issued by Hong Kong Facilities Island for private vehicles from insurers to cover third-party liability in the Mainland and Macao. (THB) the Mainland, thereby deeming such policies as equivalent to the mandatory traffic accident liability insurance in the Innovation and Technology Mainland. (FSTB) Development • Support the Hong Kong Vocational The Loop Training Council and the Shenzhen • Take forward the development of the Polytechnic in exploring the joint HSITP located in the Lok Ma Chau development of vocational training and Loop in full swing. We will explore with coaching programmes, and attracting Shenzhen regarding the use of the existing students from Guangdong, Hong Kong facilities in the Shenzhen Innovation and and Macao to take part in vocational Technology Zone, before the completion coaching and internships. (EDB) of the HSITP’s first batch of buildings for • Discuss with the relevant Mainland the institutes that are interested in joining authorities the possibility of permitting the it to kick-start the research, so as to better use of Hong Kong-registered drugs and leverage the complementary strengths common medical devices in designated and to create synergy between Hong Hong Kong-owned healthcare institutions Kong and Shenzhen. (ITB) in the GBA by implementing the measure at the University of Hong Kong-Shenzhen Smart City Blueprint 2.0 Hospital on a pilot basis. (FHB) • Release Smart City Blueprint for Hong Kong 2.0 in November 2020, which will set out more than 130 smart city initiatives, including new proposals as well as enhancements and expansions to existing initiatives. In the coming year, two of the more livelihood measures are:

Unlimited Business Opportunities | 67 - use Internet of Things technology, Creative Industries launch the smart toilet pilot programme Development to improve hygienic conditions and services at public toilets; and (FHB) • Provide another $1 billion injection into the CreateSmart Initiative to continue with the - explore smart village pilot projects using Government’s commitment in promoting technology to solve daily issues faced creative industries as Hong Kong’s new by residents living in rural or remote areas, such as attending healthcare economic drivers. (CEDB) consultations by elders and traffic management. (ITB) Construction Industry • Implement the integrated capital works iAM Smart Platform platform in phases from 2021 onwards • Launch the “iAM Smart” service platform to enable data integration and analysis in December 2020 to provide a one- of works information for continuous stop platform for the public to access monitoring and review of project government services. In the first phase, performance with a view to enhancing some 20 frequently used public services the management of the Capital Works will be made available, including online Programme. (DEVB) application for vehicle licence renewal • Co-ordinate efforts of works departments and electronic submission of tax returns. for taking forward research and Other online public services will be development studies and piloting included in the platform incrementally. innovative construction methods, new (ITB) materials and digital technology, etc., for enhancing the cost-effectiveness, delivery Licensing of Employment Agencies capacity and performance of capital • Without affecting the regulatory and works projects. (DEVB) enforcement work, streamline the licence • Commence trial operation of an renewal process for employment agencies automated system for concrete cube (EAs) and reduce the information required testing in January 2021. (DEVB) for licence renewal applications as far as possible, including rolling out a new • Explore further the use of remote e-service system by early 2022 to allow monitoring, wireless sensors networks, EAs to submit licence applications and internet of things and other innovative check their application status easily and technologies to push forward digitisation conveniently. (LWB) of works supervision system, reduce interpersonal contact and improve Higher Education Employment occupational safety and health on site. Information e-Platform (DEVB) • Integrate the Higher Education Employment Information e-Platform of the Labour Department into its Interactive Employment Service website to achieve synergy in serving job seekers with higher education both within and outside Hong Kong. (LWB)

68 | Unlimited Business Opportunities Agriculture and Fisheries • Provide subsidies under the AEF to Industry prospective employers of engineering graduates with a view to sustaining • Strive to promote high value-added the provision of vocational training and sustainable development of the opportunities. A total of 1 000 trainees agriculture industry. Commence works of concerned have commenced training by the Agricultural Park Phase 1 with phased phase from July 2020, and their eligible completion from 2021 to 2023. (FHB) employers will start receiving a monthly • Support Hong Kong fishermen to subsidy of $5,610 per trainee for up to participate in the development of deep 18 months in October 2020 the earliest. sea mariculture in the GBA, including (LWB) providing assistance under the Sustainable Fisheries Development Fund, Job Advancement establishing a modern demonstration farm, and providing training to facilitate LawTech the mariculture sector to switch to deep • Enhance the capability of the profession water mariculture. (FHB) to harness modern technology in the provision of legal and dispute resolution Job Creation services. Further to the establishment of the LawTech Fund and COVID-19 • Provide an 18-month subsidy under the Online Dispute Resolution (ODR) Scheme Green Employment Scheme to private under the second round of AEF, the DoJ companies and suitable organisations to will actively explore the development employ about 550 university graduates of “Hong Kong Legal Cloud”, a state- of the 2019 and 2020 cohorts to work in of-the-art online facility equipped with environment-related fields, and offer them advanced information security technology, training in various environmental subjects. to provide the local legal and dispute (ENB) resolution profession a secured, reliable • Create around 30 000 time-limited jobs and affordable way for storing their in both the public and private sectors information, thereby facilitating the in the coming two years for people overall development of legal and dispute of different skills sets and academic resolution services in Hong Kong in the qualifications under the second round of long run. (DoJ) the Anti-epidemic Fund (AEF). Around 26 000 jobs have already been created. COVID-19 Online Dispute Resolution Proposals for creating the remaining Scheme 4 000 jobs are in the pipeline. (CSB) • Establish a COVID-19 ODR Scheme, engaging eBRAM Centre to provide ODR services for COVID-19 related disputes, with post-dispute dispute resolution agreement by the private parties. (DoJ)

Unlimited Business Opportunities | 69 Encourage the Early Deployment Investing in Capital Works and Adoption of 5G • Continue to invest substantially in • Encourage the early deployment and infrastructure development and various adoption of 5G by the public and private new projects. These projects cover land sectors with a view to enhancing Hong and housing supply, healthcare facilities, Kong’s competitiveness. The Government education, culture and recreation, water has launched the Subsidy Scheme supply, drainage and sewerage aspects, for Encouraging Early Deployment of etc., including the Tung Chung new town 5G under the second round of AEF. extension, new acute hospital at Kai Tak, Depending on the final response, we will special school with boarding facilities, pier consider extending the Scheme to further improvement programme, redevelopment promote the use of 5G. (CEDB) of Yuen Long Stadium, the Boardwalk underneath the Island Eastern Corridor, Supporting Small and Medium-Sized Tin Shui Wai New Public Market, and Enterprises other projects that are closely related to • Support business enterprises affected by people’s livelihood. We expect the annual the pandemic to carry out promotional capital works expenditure will continue to activities targeting the local market by grow from 2021–22 onwards and exceed making full use of both virtual and physical $100 billion in coming years. (DEVB) exhibitions, and maintain Hong Kong’s • Speed up the contract award of capital leading position as the hub for large- works projects which have secured scale commodity shows by expanding funding. (DEVB) the scope of the SME EMF for two years. (CEDB) • Adopt parallel tendering and shorten tender evaluation to expedite tendering • Update the online procurement plans process of works project, where of Government departments more appropriate, so as to speed up frequently in order to keep enterprises infrastructure development. Of the (especially SMEs and start-ups) abreast 86 major public works projects (at a total of Government’s latest procurement plans of $144 billion) approved by the Finance and encourage them to participate in Committee of the LegCo in 2019–20 tendering. (FSTB) session, works contracts for 47 projects have been awarded, and contracts for the other 39 projects are in the process of tendering. (DEVB) • Collaborate with works departments to explore the possibility of fast tracking the project schedule and shortening the time for completion of specific tasks for early delivery of housing, transportation, hospital and social infrastructure projects. (DEVB)

70 | Unlimited Business Opportunities Business Support Measures • Launch the Convention and Exhibition Industry Subsidy Scheme under the first round of AEF. The part of the Scheme relating to exhibitions and international conventions held at the Hong Kong Convention and Exhibition Centre and AsiaWorld-Expo will last for the one year period starting from 3 October 2020 to 2 October 2021, while the other part relating to events organised by HKTDC will also last for a one year period from a date to be announced later when it resumes holding events. (CEDB) • Support businesses and relieve individuals’ financial burden through time-limited measures including rental and fee concessions for eligible tenants of government premises, and short-term tenancies and waivers administered by the Lands Department; waivers/concessions of 35 groups of government fees and charges; and fee review moratorium. These measures benefit a wide range of sectors and will involve a total revenue forgone of about $3.5 billion on the part of the Government. (FSTB)

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