HK to promote AI, 'Finance +' in upcoming Policy Address

The government hones in on "driving the economy", with attracting investments and enterprises being one of their focuses.

While government targets have been met ahead of schedule and the economy has grown, the city is still seeing a spike in unemployment. It's understood the upcoming Policy Address seeks to further promote artificial intelligence and "Finance +".

Alice, who comes from South Korea, works for a multinational property consultancy firm, she gave up an opportunity to go to Singapore and chose to be posted to Hong Kong two years ago.

She says: "I think Hong Kong has a competitive tax system which attracts more top talent from overseas. But at the same time, Hong Kong has many headquarters which allows you to expand your career development."

The company she works for has expanded its investment and leasing departments in Hong Kong recently, as the firm is optimistic about the city's prospects.

Various international funds, professional services, innovation and technology and retail enterprises, too, have a tendency to move or expand here as well.

An experienced consultant observes Hong Kong's IPO market continues to grow.

Southeast Asian, US-Canadian, and European capital that had not come to the city for a long time, are beginning to invest.

As the confirmed number of expatriates coming to the city continues to grow in the second half of the year, she expects a further growth of at least 10% in the coming year, citing momentum in the city.

The current government has made many overseas visits to emerging markets like the Middle East and Central Asia.

As of the end of last year, a total of 1,400 enterprises had set up or expanded operations in Hong Kong, exceeding the government's original target of 1,130.

At least 120 key enterprises have also been introduced ahead of schedule.

While this sustained economic growth has kept up with international levels, the city has been lagging behind Singapore over the past two years.

The median monthly domestic household income has maintained an annual increase of about 3%, but the unemployment rate has risen compared to three years ago.

Tang Heiwai, a business scholar explains economic growth and rising unemployment in tandem is not unique to Hong Kong.

In fact, the world as a whole is affected by the "K-shaped" economy. There's also a drop in labour-intensive industries and a spike in AI-related businesses.

Tang believes while the development of the Northern Metropolis, and innovation and technology can yield returns of up to seven times the investment, it will take 20 years to fully realise.

It's understood the new Policy Address includes measures to further promote artificial intelligence and "finance +", and he believes the priority is to build a good ecosystem.

He recommended creating an expert panel with representatives across different sectors to assess what the ecosystem is missing and draft new policies.