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Budget proposals at a glance

Budget proposals at a glance

A look at the budget proposals and how they affect the economy, individuals, community, society and land supply

How the budget proposals affect the economy, individuals, community, society & land supply

Hong Kong Budget Summary
2019-2020

Budget proposals at a glance

Economy

International transportation centre
  • Consider introducing tax and related measures to attract ship finance companies to develop ship leasing businesses in Hong Kong
  • Provide a 50% tax concession to marine insurance businesses
Financial services
  • Consider establishing a limited partnership regime and introducing a tax arrangement to attract private equity funds to set up and operate in Hong Kong
  • Provide tax concessions for marine insurance and underwriting of specialty risks, and allow the setting up of special purpose vehicle companies to issue insurance-linked securities
  • Provide HKD 400 million seed capital to the Financial Reporting Council and enable it to waive the levy for the first two years under the new regulatory regime
Construction
  • Promote the digitisation of the works supervision system to enhance the standard and efficiency in public works monitoring
  • Implement Construction 2.0 to improve productivity, quality, safety and environmental performance
Innovation and technology
  • Set aside HKD 5.5 billion for the development of Cyberport 5 to accommodate more technology companies and start-ups
  • Inject HKD 20 billion into the Research Endowment Fund of the Research Grants Council under the University Grants Committee to provide research funding
  • Establish two innovative clusters in the Science Park focusing on “artificial intelligence and robotic technologies” and “healthcare technologies”
  • Launch the HKD 2 billion Re-industrialisation Funding Scheme in 2019
  • Expand the Corporate Venture Fund of the Science Park to HKD 200 million
  • Allocate HKD 800 million over five years to support research and development (R&D) work and the realisation of R&D results by universities, key laboratories and engineering research centres
International transportation centre
  • Consider introducing tax and related measures to attract ship finance companies to develop ship leasing businesses in Hong Kong
  • Provide a 50% tax concession to marine insurance businesses
Financial services
  • Consider establishing a limited partnership regime and introducing a tax arrangement to attract private equity funds to set up and operate in Hong Kong
  • Provide tax concessions for marine insurance and underwriting of specialty risks, and allow the setting up of special purpose vehicle companies to issue insurance-linked securities
  • Provide HKD 400 million seed capital to the Financial Reporting Council and enable it to waive the levy for the first two years under the new regulatory regime
Construction
  • Promote the digitisation of the works supervision system to enhance the standard and efficiency in public works monitoring
  • Implement Construction 2.0 to improve productivity, quality, safety and environmental performance
Innovation and technology
  • Set aside HKD 5.5 billion for the development of Cyberport 5 to accommodate more technology companies and start-ups
  • Inject HKD 20 billion into the Research Endowment Fund of the Research Grants Council under the University Grants Committee to provide research funding
  • Establish two innovative clusters in the Science Park focusing on “artificial intelligence and robotic technologies” and “healthcare technologies”
  • Launch the HKD 2 billion Re-industrialisation Funding Scheme in 2019
  • Expand the Corporate Venture Fund of the Science Park to HKD 200 million
  • Allocate HKD 800 million over five years to support research and development (R&D) work and the realisation of R&D results by universities, key laboratories and engineering research centres

Smart city

Earmark HKD 300 million to develop a geospatial data sharing platform and 3D digital maps of the whole territory

Assign and auction spectrums by batches to prepare for the development of 5G

Allocate HKD 200 million from the Lotteries Fund to provide Wi-Fi service to welfare facilities, and encourage them to make use of technology products to enhance services

  • Earmark HKD 300 million to develop a geospatial data sharing platform and 3D digital maps of the whole territory
  • Assign and auction spectrums by batches to prepare for the development of 5G
  • Allocate HKD 200 million from the Lotteries Fund to provide Wi-Fi service to welfare facilities, and encourage them to make use of technology products to enhance services

Community development and infrastructure

Healthcare
  • Earmark HKD 10 billion as a Public Healthcare Stabilisation Fund to ensure stable funding for public healthcare services and for coping with unexpected circumstances
  • Earmark HKD 5 billion to expedite the upgrading and acquisition of medical equipment
  • Provide HKD 400 million additional recurrent funding to expand the scope of the Drug Formulary
  • Provide over HKD 700 million additional recurrent funding for the Hospital Authority to implement measures to boost staff morale and retain staff
  • Allocate HKD 1.2 billion to establish the Hong Kong Genome Institute for promoting the application and development of genomic medicine
Arts and culture
  • Provide HKD 176 million for hosting large-scale world-class arts programmes and strengthening district arts activities in the next five years
  • Allocate HKD 20 million to support the digital conversion of film copies and film heritage
  • Provide additional recurrent funding of HKD 54 million to support the operation of art groups
District facilities
  • Earmark HKD 6 billion for the enhancement of the waterfront
  • Allocate HKD 600 million to refurbish public toilets
  • Set up a HKD 200 million Urban Forestry Support Fund to strengthen public education and promotion of tree care, enhance professionalism of the arboriculture and horticulture sector, and attract new blood
Sports
  • Inject HKD 250 million into the Hong Kong Athletes Fund to support athletes in pursuing athletic training and academic studies concurrently
  • Allocate around HKD 100 million in the next two years to support the operation of 60 national sports associations
Healthcare
  • Earmark HKD 10 billion as a Public Healthcare Stabilisation Fund to ensure stable funding for public healthcare services and for coping with unexpected circumstances
  • Earmark HKD 5 billion to expedite the upgrading and acquisition of medical equipment
  • Provide HKD 400 million additional recurrent funding to expand the scope of the Drug Formulary
  • Provide over HKD 700 million additional recurrent funding for the Hospital Authority to implement measures to boost staff morale and retain staff
  • Allocate HKD 1.2 billion to establish the Hong Kong Genome Institute for promoting the application and development of genomic medicine
Arts and culture
  • Provide HKD 176 million for hosting large-scale world-class arts programmes and strengthening district arts activities in the next five years
  • Allocate HKD 20 million to support the digital conversion of film copies and film heritage
  • Provide additional recurrent funding of HKD 54 million to support the operation of art groups
District facilities
  • Earmark HKD 6 billion for the enhancement of the waterfront
  • Allocate HKD 600 million to refurbish public toilets
  • Set up a HKD 200 million Urban Forestry Support Fund to strengthen public education and promotion of tree care, enhance professionalism of the arboriculture and horticulture sector, and attract new blood
Sports
  • Inject HKD 250 million into the Hong Kong Athletes Fund to support athletes in pursuing athletic training and academic studies concurrently
  • Allocate around HKD 100 million in the next two years to support the operation of 60 national sports associations

Caring society

Allocate HKD 1.36 billion to provide 500 residential care places and 300 subsidised day-care places for the elderly, and launch a pilot scheme to offer outreach services for private elderly homes

Allocate HKD 290 million to strengthen rehabilitation services, including increasing service places, support centres and relevant manpower

Allocate HKD 20 billion to purchase 60 properties for accommodating over 130 welfare facilities

Provide a one-off grant of HKD 2,500 to each student in need one-off grant to student in need

Propose one-off additional Elderly Health Care Vouchers of HKD 1,000 Health Care Vouchers

Allocate HKD 1.298 billion to enhance services for toddlers, children and youths, including increasing the number of school social workers to two per secondary school

Inject HKD 150 million into the Enhancing Self-Reliance Through District Partnership Programme

  • Allocate HKD 1.36 billion to provide 500 residential care places and 300 subsidised day-care places for the elderly, and launch a pilot scheme to offer outreach services for private elderly homes
  • Allocate HKD 290 million to strengthen rehabilitation services, including increasing service places, support centres and relevant manpower
  • Allocate HKD 20 billion to purchase 60 properties for accommodating over 130 welfare facilities
  • Provide a one-off grant of HKD 2,500 to each student in need
  • Propose one-off additional Elderly Health Care Vouchers of HKD 1,000
  • Allocate HKD 1.298 billion to enhance services for toddlers, children and youths, including increasing the number of school social workers to two per secondary school
  • Inject HKD 150 million into the Enhancing Self-Reliance Through District Partnership Programme

Land and housing

Set aside HKD 2 billion to support NGOs in constructing transitional housing

Public housing: Estimated production for the next five years is about 100,400 units

Potential land supply for private housing in 2019-20 is expected to have a capacity to produce about 15,500 units

Private housing: Projected supply of first-hand private residential property of about 93,000 units in the next 3 to 4 years. Estimated average annual production will be about 18,800 residential units in the next 5 years

  • Set aside HKD 2 billion to support NGOs in constructing transitional housing
  • Public housing: Estimated production for the next five years is about 100,400 units
  • Potential land supply for private housing in 2019-20 is expected to have a capacity to produce about 15,500 units
  • Private housing: Projected supply of first-hand private residential property of about 93,000 units in the next 3 to 4 years. Estimated average annual production will be about 18,800 residential units in the next 5 years