CMA Submits Recommendations for the 2025 Policy Address
The Chinese Manufacturers’ Association of Hong Kong (the CMA) met today with Chief Executive Mr John Lee to submit its recommendations for the 2025 Policy Address and engaged in a discussion on a range of issues affecting Hong Kong’s industrial and commercial sectors. The meeting was also attended by senior government officials, including Mr Algernon Yau, Secretary for Commerce and Economic Development; Ms Yip Man Kuen, Director of the Chief Executive’s Office; and Dr Wong Yuen Shan, Head of the Chief Executive’s Policy Unit.
CMA President Dr Wingco Lo emphasised that Hong Kong, amid profound shifts in the global economic landscape and an accelerated transformation of its economic structure, must strengthen its alignment with national development strategies to chart a clear path toward high-quality development. He stressed the need for a dual-track strategy that focuses on modernising traditional industries while demonstrating strategic agility in cultivating emerging sectors and new economic growth drivers. Dr Lo also underscored the importance of reinforcing Hong Kong’s unique position as a hub for connecting with the Mainland and the international community to create fresh opportunities amidst ongoing global changes.
Under the theme “Integrate & Innovate: Breaking Through with New Momentum”, the CMA’s proposal outlines more than 100 recommendations across seven key strategic areas. These include strengthening international connectivity, aligning more deeply with national strategies, promoting innovation, technology and new industrialisation, accelerating the development of the Northern Metropolis, stimulating economic momentum, supporting SMEs, and deepening cooperation within the Greater Bay Area. These proposals aim to reinvigorate Hong Kong’s development momentum with coordinated, forward-looking policy actions.
The CMA highlighted the need to enhance Hong Kong’s international engagement as part of its mission to serve the country’s development goals. It recommends that the government actively promote “people-to-people diplomacy,” while strengthening the reach and functional capacity of overseas Economic and Trade Offices (ETOs) to better support businesses in exploring emerging markets. In addition, the CMA calls for a targeted strategy to attract more international organisations to establish a presence in Hong Kong. It proposes creating a dedicated task force to coordinate these efforts and reserving land in the Northern Metropolis for office facilities catering to such organisations, thereby reinforcing Hong Kong’s role as a global hub for international institutions.
Another key recommendation focuses on supporting Mainland enterprises in “going global.” The CMA believes Hong Kong can play a renewed role in advancing the nation’s modernisation drive by leveraging its advantages in talent, finance, logistics, information, and investment facilitation. A more systematic implementation of the “joint venturing” strategy between Hong Kong and the Mainland would unlock synergistic benefits and enhance Hong Kong’s positioning as a high-value-added international supply chain management hub.
The CMA also sees the Northern Metropolis as a pivotal engine for Hong Kong’s future economic development. It urges the government to adopt innovative and forward-thinking strategies to accelerate its progress. This includes the early establishment of a dedicated management company for industrial parks within the Northern Metropolis, working in partnership with experienced Mainland and international operators to improve planning efficiency and investment attraction. A tailor-made policy framework should also be introduced for these parks, incorporating innovative measures for land allocation, lease terms, taxation, and engineering standards. Furthermore, the CMA advocates for streamlined cross-border movement of talent, goods, and capital between these parks and the Mainland to enhance their attractiveness for investment.
In advancing new industrialisation, the CMA stresses the importance of medium- to long-term planning. It recommends aligning with Mainland practices by prioritising the high-quality development of “new, distinctive, specialised, and sophisticated” enterprises as a core strategy. To this end, the CMA proposes that the government establish localised evaluation criteria and certification mechanisms to provide tiered and targeted support for SMEs. It also calls for the creation of a Hong Kong Food Industrial Park in the Northern Metropolis, with a focus on silver-generation food, halal food, health food, local specialty food, and future food. This initiative would serve as the city’s first demonstration base for high-quality development under the “new, distinctive, specialised, and sophisticated” model.
Recognising the continued pressures faced by SMEs, the CMA strongly urges the government to extend the principal moratorium arrangement for an additional year to ease their financial burden. It also recommends that the government prepare contingency measures to mitigate the adverse effects of declining commercial property valuations on corporate financing. To further support export-driven enterprises, the CMA advocates for the reinstatement of the Hong Kong Export Credit Insurance Corporatione continued pressures faced by SMEs, along with relaxed application requirements and reduced premium rates for pre-shipment insurance. These measures would help SMEs navigate global trade uncertainties and maintain resilience in a volatile economic environment.
The CMA office-bearers attending today’s meeting also included Dr Warren Ma, Executive Vice President of the CMA; Professor Simon Wong, Mr Dennis Ng Kwok On, Mr Jackson Leung, Mr Calvin Chan, Mr Robert Lok, Mr Albert Chuang, and Dr Ellis Wong, Vice Presidents of the CMA; as well as Ms Ida Ng, Chief Executive Officer of the CMA.
CMA’s Key Recommendations for the 2025 Policy Address
1. Reinforcing Hong Kong’s position as a global connectivity hub
1.1 Enhance the development of “Eight Centres”: Expedite a strategic blueprint for the “Eight Centres” strategy to bolster Hong Kong’s international advantages. Encourage broader societal participation in “people-to-people diplomacy” through incentives schemes that recognise and support such efforts.
1.2 Deepen cooperation with the Global South: As global economic momentum shifts eastward, Hong Kong should expedite its accession to the Regional Comprehensive Economic Partnership (RCEP) and actively pursue free trade agreements with Global South countries to expand its trade network. We also recommend strengthening the geographical reach and functional capacity of ETOs through a four-pronged strategy—merging, transforming, adding, and expanding offices. New offices should be established in Africa, South America, and Southeast Asia to align with global supply chain realignments and market diversification.
1.3 Go global with Mainland enterprises: Building upon the success of the Chief Executive-led delegation to the Middle East in May, we propose establishing a regular mechanism for joint outbound missions led by HKSAR government officials. These missions would facilitate overseas visits by both Hong Kong and Mainland entrepreneurs to explore emerging markets together. The government should institutionalise a “joint venturing” framework, with officials actively participating in trade association missions and facilitating the inclusion of Mainland enterprises in such delegations.
1.4 Attract international organisations: Proactively attract international organisations, particularly those where China holds significant influence, to set up regional headquarters in Hong Kong. We recommend forming a dedicated committee to devise targeted outreach strategies, supported by the Office for Attracting Strategic Enterprises (OASES) in coordinating land allocation, tax incentives, and other support measures. Land should be reserved in the Northern Metropolis for office facilities to accommodate these organisations. In parallel, we should encourage local youth and professionals to join international organisations to cultivate globally minded talent.
2. Aligning with national development strategies
2.1 Engage early in the “15th Five-Year Plan”: Establish a dedicated task force under the Steering Group on Integration into National Development, comprising officials from relevant government bureaus and representatives from industry and business sectors. This task force would be responsible for identifying development priorities and formulating policy recommendations to enhance Hong Kong’s integration into national strategies. Drawing on Macao’s successful approach, we recommend proactively formulating medium-to long-term development plans, supported by clear implementation mechanisms. These efforts should be backed by strengthening the research capacity of the Chief Executive’s Policy Unit, supplemented by commissioned policy studies from academic institutions and think tanks.
2.2 Reshape Hong Kong as a Brands’ Hub: Propose to the Central Government the inclusion of “International Brand Hub” as a strategic goal for Hong Kong. This initiative should involve close collaboration with public institutions and industry associations to develop a comprehensive brand accreditation system and support infrastructure, including the revitalisation of the “Hong Kong Brand” campaign. We recommend accelerating the commercialisation of intangible cultural heritage IP and strengthening protection of geographical indications for local specialty products. These efforts should be reinforced through enhanced government-to-government (G2G) cooperation with the Mainland to improve cross-border brand promotion and protection. In line with broader investment attraction policies and Northern Metropolis development, Hong Kong should actively attract international and Mainland brands to establish regional headquarters, logistics hubs, and production facilities. Concurrently, fostering strategic partnerships between local brands and Mainland enterprises will position Hong Kong as a brand supply chain management hub and advance the vision of “Brand Greater Bay.”
2.3 Strengthen talent strategies: We propose setting up a dedicated task force—comprising senior leadership from all eight publicly funded universities—to develop a “Top Talent List” and lead proactive global outreach through academic networks. A high-impact “Hong Kong for Talents” global promotion campaign should be launched, with dedicated officers providing personalised support to prospective talents. Additionally, the accelerated development of the Northern Metropolis University Town will be key to attracting world-class institutions to establish branch campuses and research centres in Hong Kong.
3. Promoting I&T and new industrialisations
3.1 Build a Hong Kong model for new industrialisation: To align with the national New Industrialisation strategy while adapting to Hong Kong’s unique strengths, we propose establishing a comprehensive framework based on “three elements, three regions, and three dimensions.” The three elements are Innovation & Technology (I&T), Hong Kong brands, and Hong Kong’s inherent advantages. The three regions refer to Hong Kong enterprises operating locally, in the Pearl River Delta, and across Belt and Road economies. The three dimensions encompass emerging strategic industries, the high-quality transformation of traditional industries, and the outward expansion of Hong Kong-funded enterprises. The Innovation, Technology and Industry Bureau, in collaboration with the Trade and Industry Department, should jointly lead the implementation of this framework.
3.2 Support “new, distinctive, specialised, and sophisticated” enterprises: These enterprises should serve as the second pillar of Hong Kong’s new industrialisation strategy. We propose establishing local evaluation standards and tiered support mechanisms, overseen by a dedicated Industrial Commissioner and a cross-departmental steering committee. This would guide enterprise development at various growth stages. We also recommend collaborating with Mainland authorities to create a whitelist of eligible Hong Kong-funded enterprises for dual-region benefits and establishing a service desk under the OASES to support returning Hong Kong firms. Additionally, we propose developing a dedicated industrial park in the Northern Metropolis focused on these high-potential enterprises.
3.3 Develop a Hong Kong-style pilot manufacturing platform: Pilot manufacturing is essential for bridging R&D and commercialisation. Hong Kong should develop a demand-driven pilot manufacturing platform to support technological upgrades for local manufacturers, particularly in strategic sectors and cross-industry enabling technologies. A dedicated fund should be launched to support non-profit organisations in building shared platforms for pilot services. Talent development should be strengthened through academic programmes and the inclusion of pilot manufacturing specialists in the Talent List. Institutional measures should include mandatory procurement of pilot manufacturing services in government-funded projects and expanded coverage under the Innovation and Technology Fund. Statutory pilot testing verification should be introduced as a core funding requirement.
3.4 Develop a regional IP trading centre: To establish a robust intellectual property (IP) industrial chain, Hong Kong should adopt a multi-pronged strategy covering IP creation, utilisation, transactions, services, and cross-border collaboration. Key measures include updating accounting standards to facilitate R&D cost capitalisation, incorporating IP valuation into funding assessments for the Innovation and Technology Fund and university research, and introducing KPIs for knowledge transfer from research outcomes. Enhanced fiscal incentives should support the original grant patent system, while IP information platforms should be upgraded with advanced matching capabilities. New patent pledge financing products should also be developed. To maximise regional synergies, Hong Kong should deepen IP collaboration with the Mainland, enabling broader market access and accelerating regulatory convergence.
4. Accelerating the development of the Northern Metropolis
4.1 Adopt innovative development strategies: Accelerate the establishment of a dedicated management company for the Northern Metropolis industrial parks, potentially supported by investment from the Hong Kong Investment Corporation. Strategic partnerships with experienced developers should be considered to accelerate the development. Special regulatory regimes should be introduced to provide greater flexibility in land use and tax policies. Additionally, the government should proactively seek support from the Central Government to implement cross-border facilitation measures—enhancing the flow of people, goods, and capital between the industrial parks and the Mainland to increase their appeal to enterprises.
4.2 Review the development direction of the San Tin Technopole: We propose establishing two pilot manufacturing bases with distinct roles: the Loop base should focus on incubating cutting-edge technologies, while the San Tin base should cater to enterprises seeking to upgrade and commercialise mature technologies. The Hong Kong Investment Corporation should be encouraged to support the development of the San Tin base. To further promote technology transfer, rental concessions and dedicated space should be provided to third-party pilot testing facilities, incentivising them to assist SMEs in adopting market-ready innovations.
4.3 Establish a “specialised and innovative” food industrial park: Create a Hong Kong Food Industrial Park in the Northern Metropolis to build a comprehensive food technology ecosystem integrating R&D, pilot production, testing, and advanced manufacturing. The initial phase will target five key segments: silver-generation food, functional health food, halal food, local specialty food, and future food. This cluster will serve as Hong Kong’s flagship demonstration base for “new, distinctive, specialised, and sophisticated” development. It will feature full-service infrastructure and be supported by coordinated promotional campaigns in Mainland and international markets to attract investment and industry leaders.
5. Stimulating economic momentum
5.1 Promote industrial tourism: Position “industry + tourism” as the fifth pillar of Hong Kong’s tourism strategy, and consider developing high-tech industrial tourism in the Northern Metropolis. To encourage industry participation, the government should relax lease restrictions and revitalise policies on industrial building use to lower entry barriers. Financial incentives should be provided to encourage both enterprises and travel agencies to co-develop specialised industrial tour routes. A dedicated agency should be appointed to set operational standards, while tourism vocational curricula should integrate industrial tourism modules. Additionally, curated “multi-destination in one day” industrial tour packages should be designed to attract diverse visitor segments.
5.2 Expand the halal market: Establish a comprehensive support framework—coordinated by the Hong Kong Trade Development Council, overseas ETOs, and international chambers of commerce—to provide targeted market intelligence and enhanced business support for engaging with Islamic economies. Promote widespread adoption of halal certification and offer incentives for enterprises developing Muslim-friendly products and services. Organise business delegations and themed promotional events, with financial subsidies, to attract halal businesses to Hong Kong. To support local enterprises in expanding into global Islamic markets, the BUD Fund’s coverage should be extended to include halal economies worldwide.
5.3 Establish a high value-added supply chain service centre: To position Hong Kong as a global hub for high value-added supply chain services, the city must enhance its capabilities in four key areas: talent, logistics, finance, and information flow. This includes attracting professionals in emerging fields such as ESG and digital supply chain management; strengthening cross-border e-commerce and high-value goods transshipment by leveraging the international airport and low-altitude economic opportunities; and accelerating the development of diversified RMB-based supply chain finance products. Outbound enterprises should be supported through policy interpretation, capacity building, and talent training to better navigate international markets. A digital matching platform should also be created to connect supply chain service providers with clients, alongside the formation of a dedicated investment team to attract global leaders in supply chain services. The government should also organise targeted investment promotion missions in collaboration with business chambers and develop a verified directory of premium service providers. Concurrently, academic institutions should take the lead in creating a Global Competitiveness Index and publishing a benchmark ranking for global supply chain management centres to reinforce Hong Kong’s positioning and thought leadership.
6. Supporting SMEs
6.1 Enhance financial support: To stabilise SME cash flow amid ongoing economic challenges, the government should consider extending the principal moratorium arrangement for another year and prolong the application period for the 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme—while reducing guarantee fees and interest rates. Additionally, contingency financing measures should be introduced to address the impact of declining commercial property valuations, and banks should be encouraged to offer flexible financing arrangements to ease cash flow pressures.
6.2 Address the US-China trade war: Reinstate the Hong Kong Export Credit Insurance Corporation’s “100% Credit Limit Top-Up Scheme,” with relaxed eligibility criteria and lower pre-shipment premiums to bolster export support. Following the merger of the BUD Fund and the SME Export Marketing Fund, maintain the funding cap at HK$8 million per enterprise, with sustained or enhanced support for local market expansion. Banks should be encouraged to provide long-term, low-interest loans and financing services to support SMEs in their internationalisation efforts.
6.3 Optimise supportive schemes to enhance competitiveness: Expand the “Incentive Scheme for Recurrent Exhibitions 2.0” to include all exhibition venues across Hong Kong. Extend the “Digital Transformation Support Pilot Programme” to encompass all industries. Broaden the “Professional Services Advancement Support Scheme” to fund cross-sector initiatives, such as digital transformation and ESG-related training and services.
6.4 Facilitate ESG adoption: Prioritise standard development and capacity building. Establish a high-level cross-departmental task force to coordinate ESG policy efforts and introduce fiscal incentives, including tax deductions for ESG-related expenses. Expand the scope of the Environment and Conservation Fund to support ESG initiatives led by business chambers. Accelerate the development of locally adapted ESG assessment and certification standards—such as product carbon audits and green labelling—through collaboration among government, industry, academia, and research institutions. Promote Hong Kong’s ESG professional services to position the city as a regional ESG hub.
6.5 Enhance labour importation schemes: Streamline the median wage determination process and introduce fast-track channels for repeat applications from trusted employers. Expand the sector-specific labour importation scheme to cover more industries, such as tourism and manufacturing, and relax restrictions on work locations for imported employees. Raise the cap on deductible accommodation expenses to 20% of wages and consider allowing employers to provide accommodation allowances in lieu of physical housing. Explore removing the rigid median wage requirement under the current scheme to enhance flexibility.
7. Advancing GBA cooperation
7.1 Support Hong Kong businesses operating beyond the territory: Establish a dedicated task force to liaise with Mainland authorities and develop targeted support measures for offshore industrial activities. Strengthen staffing at ETOs in both Mainland and overseas to assist businesses in expanding production bases, supply chains, and brand promotion. Formally include offshore industrial activities under the “Manufacturing and New Industrialisation-related Industries” classification by the Census and Statistics Department. To gain a clearer understanding of the sector, we recommend conducting a comprehensive survey of Hong Kong-funded manufacturing enterprises operating in the Mainland and overseas, and exploring the creation of a regular statistical reporting mechanism on offshore industrial development.
7.2 Support business expansion into the Mainland market: Enhance the coverage of the Hong Kong Export Credit Insurance Corporation to include domestic sales in the Mainland, with reduced premium rates. Advocate for the nationwide adoption of simplified market entry procedures for Chinese proprietary medicines and the expansion of scope to include more product categories. Promote the introduction of tax relief measures for Hong Kong-originated goods in the Mainland. Additionally, establish a dedicated section on major Mainland e-commerce platforms to showcase Hong Kong products and brands.
7.3 Promoting GBA Standards: Collaborate proactively with Guangdong and Macao to develop internationally aligned standards in emerging sectors, such as silver economy products, biotechnology, and ESG solutions. The Trade and Industry Department and the Innovation and Technology Bureau should jointly coordinate stakeholder engagement across industry, academia, and business sectors to co-develop these standards. Establish GBA standards that integrate customs procedures, clearance protocols, and market access frameworks with the Mainland. Simultaneously, pursue mutual recognition agreements for product testing and certification to accelerate regulatory convergence and facilitate cross-boundary trade.
Full version of CMA’s 2025 Policy Address Suggestions, please visit here.
The CMA office-bearers met with Mr John Lee, Chief Executive of the HKSAR; Mr Algernon Yau, Secretary for Commerce and Economic Development; Ms Yip Man Kuen, Director of the Chief Executive’s Office and Dr Wong Yuen Shan, Head of the Chief Executive’s Policy Unit, to discuss a range of issues affecting Hong Kong’s industrial and commercial sectors
The CMA office-bearers submitted its recommendations for the 2025 Policy Address to Mr John Lee, Chief Executive of the HKSAR
The CMA office-bearer introduced its recommendation to the media after meeting with the Chief Executive (from the left: Dr Ellis Wong, Mr Robert Lok, Mr Jackson Leung, Professor Simon Wong, Vice Presidents of the CMA; Dr Wingco Lo, President of the CMA; Dr Warren Ma, Executive Vice President of the CMA; Mr Dennis Ng Kwok On, Mr Calvin Chan, Mr Albert Chuang, Vice Presidents of the CMA; and Ms Ida Ng, Chief Executive Officer of the CMA)
CMA President Dr Wingco Lo emphasised that Hong Kong, amid profound shifts in the global economic landscape and an accelerated transformation of its economic structure, must strengthen its alignment with national development strategies to chart a clear path toward high-quality development. He stressed the need for a dual-track strategy that focuses on modernising traditional industries while demonstrating strategic agility in cultivating emerging sectors and new economic growth drivers. Dr Lo also underscored the importance of reinforcing Hong Kong’s unique position as a hub for connecting with the Mainland and the international community to create fresh opportunities amidst ongoing global changes.
Under the theme “Integrate & Innovate: Breaking Through with New Momentum”, the CMA’s proposal outlines more than 100 recommendations across seven key strategic areas. These include strengthening international connectivity, aligning more deeply with national strategies, promoting innovation, technology and new industrialisation, accelerating the development of the Northern Metropolis, stimulating economic momentum, supporting SMEs, and deepening cooperation within the Greater Bay Area. These proposals aim to reinvigorate Hong Kong’s development momentum with coordinated, forward-looking policy actions.
The CMA highlighted the need to enhance Hong Kong’s international engagement as part of its mission to serve the country’s development goals. It recommends that the government actively promote “people-to-people diplomacy,” while strengthening the reach and functional capacity of overseas Economic and Trade Offices (ETOs) to better support businesses in exploring emerging markets. In addition, the CMA calls for a targeted strategy to attract more international organisations to establish a presence in Hong Kong. It proposes creating a dedicated task force to coordinate these efforts and reserving land in the Northern Metropolis for office facilities catering to such organisations, thereby reinforcing Hong Kong’s role as a global hub for international institutions.
Another key recommendation focuses on supporting Mainland enterprises in “going global.” The CMA believes Hong Kong can play a renewed role in advancing the nation’s modernisation drive by leveraging its advantages in talent, finance, logistics, information, and investment facilitation. A more systematic implementation of the “joint venturing” strategy between Hong Kong and the Mainland would unlock synergistic benefits and enhance Hong Kong’s positioning as a high-value-added international supply chain management hub.
The CMA also sees the Northern Metropolis as a pivotal engine for Hong Kong’s future economic development. It urges the government to adopt innovative and forward-thinking strategies to accelerate its progress. This includes the early establishment of a dedicated management company for industrial parks within the Northern Metropolis, working in partnership with experienced Mainland and international operators to improve planning efficiency and investment attraction. A tailor-made policy framework should also be introduced for these parks, incorporating innovative measures for land allocation, lease terms, taxation, and engineering standards. Furthermore, the CMA advocates for streamlined cross-border movement of talent, goods, and capital between these parks and the Mainland to enhance their attractiveness for investment.
In advancing new industrialisation, the CMA stresses the importance of medium- to long-term planning. It recommends aligning with Mainland practices by prioritising the high-quality development of “new, distinctive, specialised, and sophisticated” enterprises as a core strategy. To this end, the CMA proposes that the government establish localised evaluation criteria and certification mechanisms to provide tiered and targeted support for SMEs. It also calls for the creation of a Hong Kong Food Industrial Park in the Northern Metropolis, with a focus on silver-generation food, halal food, health food, local specialty food, and future food. This initiative would serve as the city’s first demonstration base for high-quality development under the “new, distinctive, specialised, and sophisticated” model.
Recognising the continued pressures faced by SMEs, the CMA strongly urges the government to extend the principal moratorium arrangement for an additional year to ease their financial burden. It also recommends that the government prepare contingency measures to mitigate the adverse effects of declining commercial property valuations on corporate financing. To further support export-driven enterprises, the CMA advocates for the reinstatement of the Hong Kong Export Credit Insurance Corporatione continued pressures faced by SMEs, along with relaxed application requirements and reduced premium rates for pre-shipment insurance. These measures would help SMEs navigate global trade uncertainties and maintain resilience in a volatile economic environment.
The CMA office-bearers attending today’s meeting also included Dr Warren Ma, Executive Vice President of the CMA; Professor Simon Wong, Mr Dennis Ng Kwok On, Mr Jackson Leung, Mr Calvin Chan, Mr Robert Lok, Mr Albert Chuang, and Dr Ellis Wong, Vice Presidents of the CMA; as well as Ms Ida Ng, Chief Executive Officer of the CMA.
CMA’s Key Recommendations for the 2025 Policy Address
1. Reinforcing Hong Kong’s position as a global connectivity hub
1.1 Enhance the development of “Eight Centres”: Expedite a strategic blueprint for the “Eight Centres” strategy to bolster Hong Kong’s international advantages. Encourage broader societal participation in “people-to-people diplomacy” through incentives schemes that recognise and support such efforts.
1.2 Deepen cooperation with the Global South: As global economic momentum shifts eastward, Hong Kong should expedite its accession to the Regional Comprehensive Economic Partnership (RCEP) and actively pursue free trade agreements with Global South countries to expand its trade network. We also recommend strengthening the geographical reach and functional capacity of ETOs through a four-pronged strategy—merging, transforming, adding, and expanding offices. New offices should be established in Africa, South America, and Southeast Asia to align with global supply chain realignments and market diversification.
1.3 Go global with Mainland enterprises: Building upon the success of the Chief Executive-led delegation to the Middle East in May, we propose establishing a regular mechanism for joint outbound missions led by HKSAR government officials. These missions would facilitate overseas visits by both Hong Kong and Mainland entrepreneurs to explore emerging markets together. The government should institutionalise a “joint venturing” framework, with officials actively participating in trade association missions and facilitating the inclusion of Mainland enterprises in such delegations.
1.4 Attract international organisations: Proactively attract international organisations, particularly those where China holds significant influence, to set up regional headquarters in Hong Kong. We recommend forming a dedicated committee to devise targeted outreach strategies, supported by the Office for Attracting Strategic Enterprises (OASES) in coordinating land allocation, tax incentives, and other support measures. Land should be reserved in the Northern Metropolis for office facilities to accommodate these organisations. In parallel, we should encourage local youth and professionals to join international organisations to cultivate globally minded talent.
2. Aligning with national development strategies
2.1 Engage early in the “15th Five-Year Plan”: Establish a dedicated task force under the Steering Group on Integration into National Development, comprising officials from relevant government bureaus and representatives from industry and business sectors. This task force would be responsible for identifying development priorities and formulating policy recommendations to enhance Hong Kong’s integration into national strategies. Drawing on Macao’s successful approach, we recommend proactively formulating medium-to long-term development plans, supported by clear implementation mechanisms. These efforts should be backed by strengthening the research capacity of the Chief Executive’s Policy Unit, supplemented by commissioned policy studies from academic institutions and think tanks.
2.2 Reshape Hong Kong as a Brands’ Hub: Propose to the Central Government the inclusion of “International Brand Hub” as a strategic goal for Hong Kong. This initiative should involve close collaboration with public institutions and industry associations to develop a comprehensive brand accreditation system and support infrastructure, including the revitalisation of the “Hong Kong Brand” campaign. We recommend accelerating the commercialisation of intangible cultural heritage IP and strengthening protection of geographical indications for local specialty products. These efforts should be reinforced through enhanced government-to-government (G2G) cooperation with the Mainland to improve cross-border brand promotion and protection. In line with broader investment attraction policies and Northern Metropolis development, Hong Kong should actively attract international and Mainland brands to establish regional headquarters, logistics hubs, and production facilities. Concurrently, fostering strategic partnerships between local brands and Mainland enterprises will position Hong Kong as a brand supply chain management hub and advance the vision of “Brand Greater Bay.”
2.3 Strengthen talent strategies: We propose setting up a dedicated task force—comprising senior leadership from all eight publicly funded universities—to develop a “Top Talent List” and lead proactive global outreach through academic networks. A high-impact “Hong Kong for Talents” global promotion campaign should be launched, with dedicated officers providing personalised support to prospective talents. Additionally, the accelerated development of the Northern Metropolis University Town will be key to attracting world-class institutions to establish branch campuses and research centres in Hong Kong.
3. Promoting I&T and new industrialisations
3.1 Build a Hong Kong model for new industrialisation: To align with the national New Industrialisation strategy while adapting to Hong Kong’s unique strengths, we propose establishing a comprehensive framework based on “three elements, three regions, and three dimensions.” The three elements are Innovation & Technology (I&T), Hong Kong brands, and Hong Kong’s inherent advantages. The three regions refer to Hong Kong enterprises operating locally, in the Pearl River Delta, and across Belt and Road economies. The three dimensions encompass emerging strategic industries, the high-quality transformation of traditional industries, and the outward expansion of Hong Kong-funded enterprises. The Innovation, Technology and Industry Bureau, in collaboration with the Trade and Industry Department, should jointly lead the implementation of this framework.
3.2 Support “new, distinctive, specialised, and sophisticated” enterprises: These enterprises should serve as the second pillar of Hong Kong’s new industrialisation strategy. We propose establishing local evaluation standards and tiered support mechanisms, overseen by a dedicated Industrial Commissioner and a cross-departmental steering committee. This would guide enterprise development at various growth stages. We also recommend collaborating with Mainland authorities to create a whitelist of eligible Hong Kong-funded enterprises for dual-region benefits and establishing a service desk under the OASES to support returning Hong Kong firms. Additionally, we propose developing a dedicated industrial park in the Northern Metropolis focused on these high-potential enterprises.
3.3 Develop a Hong Kong-style pilot manufacturing platform: Pilot manufacturing is essential for bridging R&D and commercialisation. Hong Kong should develop a demand-driven pilot manufacturing platform to support technological upgrades for local manufacturers, particularly in strategic sectors and cross-industry enabling technologies. A dedicated fund should be launched to support non-profit organisations in building shared platforms for pilot services. Talent development should be strengthened through academic programmes and the inclusion of pilot manufacturing specialists in the Talent List. Institutional measures should include mandatory procurement of pilot manufacturing services in government-funded projects and expanded coverage under the Innovation and Technology Fund. Statutory pilot testing verification should be introduced as a core funding requirement.
3.4 Develop a regional IP trading centre: To establish a robust intellectual property (IP) industrial chain, Hong Kong should adopt a multi-pronged strategy covering IP creation, utilisation, transactions, services, and cross-border collaboration. Key measures include updating accounting standards to facilitate R&D cost capitalisation, incorporating IP valuation into funding assessments for the Innovation and Technology Fund and university research, and introducing KPIs for knowledge transfer from research outcomes. Enhanced fiscal incentives should support the original grant patent system, while IP information platforms should be upgraded with advanced matching capabilities. New patent pledge financing products should also be developed. To maximise regional synergies, Hong Kong should deepen IP collaboration with the Mainland, enabling broader market access and accelerating regulatory convergence.
4. Accelerating the development of the Northern Metropolis
4.1 Adopt innovative development strategies: Accelerate the establishment of a dedicated management company for the Northern Metropolis industrial parks, potentially supported by investment from the Hong Kong Investment Corporation. Strategic partnerships with experienced developers should be considered to accelerate the development. Special regulatory regimes should be introduced to provide greater flexibility in land use and tax policies. Additionally, the government should proactively seek support from the Central Government to implement cross-border facilitation measures—enhancing the flow of people, goods, and capital between the industrial parks and the Mainland to increase their appeal to enterprises.
4.2 Review the development direction of the San Tin Technopole: We propose establishing two pilot manufacturing bases with distinct roles: the Loop base should focus on incubating cutting-edge technologies, while the San Tin base should cater to enterprises seeking to upgrade and commercialise mature technologies. The Hong Kong Investment Corporation should be encouraged to support the development of the San Tin base. To further promote technology transfer, rental concessions and dedicated space should be provided to third-party pilot testing facilities, incentivising them to assist SMEs in adopting market-ready innovations.
4.3 Establish a “specialised and innovative” food industrial park: Create a Hong Kong Food Industrial Park in the Northern Metropolis to build a comprehensive food technology ecosystem integrating R&D, pilot production, testing, and advanced manufacturing. The initial phase will target five key segments: silver-generation food, functional health food, halal food, local specialty food, and future food. This cluster will serve as Hong Kong’s flagship demonstration base for “new, distinctive, specialised, and sophisticated” development. It will feature full-service infrastructure and be supported by coordinated promotional campaigns in Mainland and international markets to attract investment and industry leaders.
5. Stimulating economic momentum
5.1 Promote industrial tourism: Position “industry + tourism” as the fifth pillar of Hong Kong’s tourism strategy, and consider developing high-tech industrial tourism in the Northern Metropolis. To encourage industry participation, the government should relax lease restrictions and revitalise policies on industrial building use to lower entry barriers. Financial incentives should be provided to encourage both enterprises and travel agencies to co-develop specialised industrial tour routes. A dedicated agency should be appointed to set operational standards, while tourism vocational curricula should integrate industrial tourism modules. Additionally, curated “multi-destination in one day” industrial tour packages should be designed to attract diverse visitor segments.
5.2 Expand the halal market: Establish a comprehensive support framework—coordinated by the Hong Kong Trade Development Council, overseas ETOs, and international chambers of commerce—to provide targeted market intelligence and enhanced business support for engaging with Islamic economies. Promote widespread adoption of halal certification and offer incentives for enterprises developing Muslim-friendly products and services. Organise business delegations and themed promotional events, with financial subsidies, to attract halal businesses to Hong Kong. To support local enterprises in expanding into global Islamic markets, the BUD Fund’s coverage should be extended to include halal economies worldwide.
5.3 Establish a high value-added supply chain service centre: To position Hong Kong as a global hub for high value-added supply chain services, the city must enhance its capabilities in four key areas: talent, logistics, finance, and information flow. This includes attracting professionals in emerging fields such as ESG and digital supply chain management; strengthening cross-border e-commerce and high-value goods transshipment by leveraging the international airport and low-altitude economic opportunities; and accelerating the development of diversified RMB-based supply chain finance products. Outbound enterprises should be supported through policy interpretation, capacity building, and talent training to better navigate international markets. A digital matching platform should also be created to connect supply chain service providers with clients, alongside the formation of a dedicated investment team to attract global leaders in supply chain services. The government should also organise targeted investment promotion missions in collaboration with business chambers and develop a verified directory of premium service providers. Concurrently, academic institutions should take the lead in creating a Global Competitiveness Index and publishing a benchmark ranking for global supply chain management centres to reinforce Hong Kong’s positioning and thought leadership.
6. Supporting SMEs
6.1 Enhance financial support: To stabilise SME cash flow amid ongoing economic challenges, the government should consider extending the principal moratorium arrangement for another year and prolong the application period for the 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme—while reducing guarantee fees and interest rates. Additionally, contingency financing measures should be introduced to address the impact of declining commercial property valuations, and banks should be encouraged to offer flexible financing arrangements to ease cash flow pressures.
6.2 Address the US-China trade war: Reinstate the Hong Kong Export Credit Insurance Corporation’s “100% Credit Limit Top-Up Scheme,” with relaxed eligibility criteria and lower pre-shipment premiums to bolster export support. Following the merger of the BUD Fund and the SME Export Marketing Fund, maintain the funding cap at HK$8 million per enterprise, with sustained or enhanced support for local market expansion. Banks should be encouraged to provide long-term, low-interest loans and financing services to support SMEs in their internationalisation efforts.
6.3 Optimise supportive schemes to enhance competitiveness: Expand the “Incentive Scheme for Recurrent Exhibitions 2.0” to include all exhibition venues across Hong Kong. Extend the “Digital Transformation Support Pilot Programme” to encompass all industries. Broaden the “Professional Services Advancement Support Scheme” to fund cross-sector initiatives, such as digital transformation and ESG-related training and services.
6.4 Facilitate ESG adoption: Prioritise standard development and capacity building. Establish a high-level cross-departmental task force to coordinate ESG policy efforts and introduce fiscal incentives, including tax deductions for ESG-related expenses. Expand the scope of the Environment and Conservation Fund to support ESG initiatives led by business chambers. Accelerate the development of locally adapted ESG assessment and certification standards—such as product carbon audits and green labelling—through collaboration among government, industry, academia, and research institutions. Promote Hong Kong’s ESG professional services to position the city as a regional ESG hub.
6.5 Enhance labour importation schemes: Streamline the median wage determination process and introduce fast-track channels for repeat applications from trusted employers. Expand the sector-specific labour importation scheme to cover more industries, such as tourism and manufacturing, and relax restrictions on work locations for imported employees. Raise the cap on deductible accommodation expenses to 20% of wages and consider allowing employers to provide accommodation allowances in lieu of physical housing. Explore removing the rigid median wage requirement under the current scheme to enhance flexibility.
7. Advancing GBA cooperation
7.1 Support Hong Kong businesses operating beyond the territory: Establish a dedicated task force to liaise with Mainland authorities and develop targeted support measures for offshore industrial activities. Strengthen staffing at ETOs in both Mainland and overseas to assist businesses in expanding production bases, supply chains, and brand promotion. Formally include offshore industrial activities under the “Manufacturing and New Industrialisation-related Industries” classification by the Census and Statistics Department. To gain a clearer understanding of the sector, we recommend conducting a comprehensive survey of Hong Kong-funded manufacturing enterprises operating in the Mainland and overseas, and exploring the creation of a regular statistical reporting mechanism on offshore industrial development.
7.2 Support business expansion into the Mainland market: Enhance the coverage of the Hong Kong Export Credit Insurance Corporation to include domestic sales in the Mainland, with reduced premium rates. Advocate for the nationwide adoption of simplified market entry procedures for Chinese proprietary medicines and the expansion of scope to include more product categories. Promote the introduction of tax relief measures for Hong Kong-originated goods in the Mainland. Additionally, establish a dedicated section on major Mainland e-commerce platforms to showcase Hong Kong products and brands.
7.3 Promoting GBA Standards: Collaborate proactively with Guangdong and Macao to develop internationally aligned standards in emerging sectors, such as silver economy products, biotechnology, and ESG solutions. The Trade and Industry Department and the Innovation and Technology Bureau should jointly coordinate stakeholder engagement across industry, academia, and business sectors to co-develop these standards. Establish GBA standards that integrate customs procedures, clearance protocols, and market access frameworks with the Mainland. Simultaneously, pursue mutual recognition agreements for product testing and certification to accelerate regulatory convergence and facilitate cross-boundary trade.
Full version of CMA’s 2025 Policy Address Suggestions, please visit here.
The CMA office-bearers met with Mr John Lee, Chief Executive of the HKSAR; Mr Algernon Yau, Secretary for Commerce and Economic Development; Ms Yip Man Kuen, Director of the Chief Executive’s Office and Dr Wong Yuen Shan, Head of the Chief Executive’s Policy Unit, to discuss a range of issues affecting Hong Kong’s industrial and commercial sectors
The CMA office-bearers submitted its recommendations for the 2025 Policy Address to Mr John Lee, Chief Executive of the HKSAR
The CMA office-bearer introduced its recommendation to the media after meeting with the Chief Executive (from the left: Dr Ellis Wong, Mr Robert Lok, Mr Jackson Leung, Professor Simon Wong, Vice Presidents of the CMA; Dr Wingco Lo, President of the CMA; Dr Warren Ma, Executive Vice President of the CMA; Mr Dennis Ng Kwok On, Mr Calvin Chan, Mr Albert Chuang, Vice Presidents of the CMA; and Ms Ida Ng, Chief Executive Officer of the CMA)