Latest news with #HongKongAIResearchandDevelopmentInstitute
South China Morning Post
25-03-2025
- Business
- South China Morning Post
Hong Kong deepens push into AI, tech to boost its edge over Singapore, Paul Chan says
Hong Kong is channelling funds into several dozen innovative companies to further bolster the city's appeal as a hub for technology, banking and finance compared with regional competitors like Singapore, according to Financial Secretary Paul Chan Mo-po. Advertisement The Hong Kong Investment Corp (HKIC), funded by the city's reserves, has invested in nearly 100 start-ups involved in artificial intelligence (AI) and pharmaceutical research among others, Chan told the HSBC Global Investment Summit on Tuesday. 'I think artificial intelligence is the future,' he said. 'It will define the competitiveness of not just businesses but also economies, and it will have a significant impact on geopolitics in the future.' In the budget for the 2025-2026 financial year, the government proposed an outlay of HK$1 billion (US$128 million) to establish the Hong Kong AI Research and Development Institute, as well as other technology-related initiatives worth billions of dollars. Financial Secretary Paul Chan (right) at the HSBC Global Investment Summit on Tuesday. Photo: ISD He said that Hong Kong, under the 'one country, two systems' arrangement, was in a unique advantageous position to develop the AI sector, and the city's 'superconnector' role allowed investors access to the vast market on the mainland. Advertisement The HKIC's investments in AI-related start-ups showed the government's commitment to promoting the technology and fostering companies to undertake research to develop new uses, he said.
South China Morning Post
11-03-2025
- Business
- South China Morning Post
France and Hong Kong can tap AI possibilities together, top diplomat says
Artificial intelligence (AI) has opened up new opportunities for business and academic exchanges between France and Hong Kong, the country's top diplomat to the city has said. Advertisement French Consul General Christile Drulhe was confident the city would attract talent and businesses if it refocused on the economy after having concentrated on national security in recent years. While the French community in Hong Kong was smaller than before the Covid-19 pandemic, the French still believed the city offered many opportunities as a major financial hub, she told the Post. Financial Secretary Paul Chan Mo-po made AI a centrepiece of his budget address last month, outlining a slew of investments in the sector, including HK$1 billion (US$128.7 million) to establish the Hong Kong AI Research and Development Institute. French President Emmanuel Macron also announced €109 billion (US$118 billion) worth of investment pledges involving the fast-changing technology last month during a meeting of world leaders and tech experts who gathered in Paris to discuss AI governance. Finance chief Paul Chan watches a robot demonstration at launch ceremony for Hong Kong Investment Corporation and Galbot related to their joint push in AI at the Island Shangri-La. Photo: Dickson Lee Speaking to the Post, Drulhe said the two-day summit should create conditions for investment opportunities, as well as business and academic exchanges, between Hong Kong and France.
South China Morning Post
09-03-2025
- Business
- South China Morning Post
Hong Kong must avoid jumping on AI bandwagon and focus on what it does best
As an artificial intelligence (AI) craze sweeps across China following the rise of DeepSeek and Unitree Robotics , Hong Kong is eager to get on the bandwagon. Advertisement In unveiling Hong Kong's 2025-26 budget late last month, Financial Secretary Paul Chan Mo-po expressed enthusiasm about the prospect of turning the city into 'an international exchange and cooperation hub for the AI industry'. As a result, he has earmarked HK$1 billion (US$128.6 million) to establish the Hong Kong AI Research and Development Institute. The organisation is expected to support the city's innovative R&D sector and industrial application of AI. Tentative signs indicate Hong Kong wants to go big on building AI into a core industry to drive the city's innovation and technology even though it announced cuts in public spending to tackle its deficit, which amounted to HK$87.2 billion for the previous financial year. While officials tout AI as a transformative force, scepticism is warranted. Hong Kong's track record in pursuing cutting-edge technologies has been less than satisfactory, to say the least, and its current fiscal constraints raise doubts about its capacity to compete in this costly arena. Advertisement
South China Morning Post
28-02-2025
- Business
- South China Morning Post
Delay to revised Hong Kong fares scheme a setback for city with AI ambitions
Amid the flurry of measures announced in the budget by Financial Secretary Paul Chan Mo-po it was good to see the pledge to transform Hong Kong into a hub for international exchange and cooperation for artificial intelligence (AI). The plan to leverage technology to create a new economic driver would come with HK$1 billion (US$128.6 million) to establish the Hong Kong AI Research and Development Institute, along with other investment initiatives among the many spending cuts to help address a looming deficit. Advertisement Given the global race for rapid AI development is well afoot on the mainland, the United States and Europe, it would have been far more worrying if Chan had made little mention of it. Yet worrying news emerged all the same. Changes to the public transport subsidy scheme that were announced as cost-cutting measures will take a mind-boggling 18 months to implement, the Post has learned. The changes, which would cap fares for the elderly and passengers with disabilities at HK$2 for fares under HK$10, but charge 20 per cent for routes above HK$10, can only be implemented in September 2026. Authorities placed the blame on Octopus, citing a lack of technical capability and the need for a systems update, among other issues. Hong Kong Financial Secretary Paul Chan Mo-po's budget measures included a pledge to transform the city into a hub for international exchange and cooperation for artificial intelligence. Photo: Elson Li The stored-value card company said it was ready to help authorities with their optimisation plans and timetables. Advertisement
South China Morning Post
27-02-2025
- Business
- South China Morning Post
Hong Kong finance chief announces spending cuts in 2025-26 budget address as city faces HK$87.2 billion deficit
Before you read: The Hong Kong government is navigating a substantial budget deficit by implementing a range of spending cuts. Measures include public sector pay freezes, civil service restructuring, decreased spending on education and transforming the city into an AI hub. Reflect on this: How might these budget changes affect different parts of Hong Kong? How could they shape the city's future, and what role can young people play in that future? Hong Kong's finance chief, Paul Chan Mo-po, unveiled a budget on Wednesday that included various measures focused on tapping new sources of revenue and easing the city's HK$87.2 billion deficit. Chan pledged a 7 per cent cut in recurrent expenditure by 2027-28, aiming to save HK$62.4 billion over four years. Measures include a public servant pay freeze, civil service downsizing, and reduced education spending. The pay freeze will affect all civil servants, including Chief Executive John Lee Ka-chiu, senior officials, lawmakers, district councillors and members of the judiciary. Chan said 10,000 civil service posts will be cut within this term, although a source said there would be no lay-offs. The HK$2 fare scheme for the elderly and disabled will now have a 240-trip monthly cap, with beneficiaries paying 20 per cent of fares over HK$10. The government will cut funding for the city's eight public universities by HK$2.8 billion – or 4 per cent – in the coming three years. It is asking the institutions to return HK$4 billion from their reserves to the public coffers for the first time. Meanwhile, a student grant of HK$2,500 for each kindergarten, primary and secondary pupil that began in 2019 will be scrapped in the next school year, saving HK$2 billion annually. Education spending will drop 2.3 per cent overall. 'The operating account will return to a surplus in the financial year of 2026-27. Under all these considerations, we think that freezing the salary of senior government officials is the appropriate thing to do,' Chan said. Hong Kong's civil servants, including Chief Executive John Lee Ka-chiu, will take a pay freeze over the next year. Photo: Sun Yeung Focus on AI Chan outlined plans to make Hong Kong an artificial intelligence (AI) hub, citing the benefits of 'one country, two systems' amid China's tech growth. The government will spend HK$1 billion on the Hong Kong AI Research and Development Institute. 'We have to seize the opportunity to make the most out of this critical window to speed up our development, establishing the new before abolishing the old,' Chan said on AI. 'Transformation and innovation will lead our way into the future, and we are poised to fast track the high-quality development of Hong Kong's economy.' Delivering his 'most challenging' budget, Chan focused on spending cuts and revenue increases. 'Strictly containing public expenditure is a must, but we should proceed in a steady and prudent manner and be careful to find a balance among the various impacts that may arise in the process,' Chan said, promising to minimise effects on public services. The deficit, though smaller than last year's HK$101.6 billion, will reduce fiscal reserves to a decade-low of HK$647.3 billion. Chan aims to restore fiscal balance within the government's current term. Rising costs in Hong Kong means more people are buying second-hand, shopping abroad Betting on gambling Chan forecast 'moderate' economic growth of 2 to 3 per cent. 'The pressure brought by geopolitics is big and has impacts on capital flow and investment sentiment. That is why we adopted this conservative estimate,' he said. Tax deductions and rate concessions will be reduced. Revenue will rise via increased fees, charges and the air passenger departure tax. Pointing to another new source of revenue, Chan said the government had invited the Hong Kong Jockey Club to submit a proposal to expand its sports gambling options to cover basketball and 'combat illegal betting activities'. If approved, legalisation would bring in HK$2 billion in additional betting duties yearly. Lawmakers generally welcomed the budget, seeing it as the government's best effort to improve the fiscal balance. Heiwai Tang, an economics professor, said the government's tax choices aimed to raise revenue without harming the economy. 'But it's still a good sign to see the government making cuts in major areas, including education ... I believe market confidence will improve as fiscal reserves start to grow again.'
