Edward Yau: To establish "Digital Policy Office" in mid-year to accelerate digital transformation

According to the Zhitong Finance and Economics APP, Hong Kong Financial Secretary Paul Chan Mo-po stated in his blog that after the Hong Kong Legislative Council completes the relevant review process, a "Digital Policy Office" will be established in the middle of this year to comprehensively formulate and implement policies to promote the development of the digital economy and smart cities. On the other hand, relevant legislation and guidelines will also be reviewed to enhance data governance, establish clearer guidelines for data collection and processing, while preserving space to address technological developments. Addressing various challenges in data governance, such as mitigating risks in data security and personal data protection, is also a key focus of the work.

Chan Mo-po mentioned that we are in the midst of a wave of technological change, whether it is artificial intelligence, biotechnology, or new industrialization, technology research and development, innovation, and application are important, but equally crucial is the proper collection, classification, labeling, management, and application of data. Promoting comprehensive digital operations in different industries and enterprises not only affects the operational efficiency and competitiveness of future enterprises, but also relates to the innovation of products, services, and business models, as well as providing more personalized services to consumers or corporate clients. It can be said that technological innovation has become an important driving force for production, and data is an indispensable element. The new quality productivity centered on innovation and technology is a key element in promoting high-quality development of the Hong Kong economy.

Two years ago, Chan Mo-po established the Committee on Digital Economy Development, which brought together industry experts, scholars, and representatives from Hong Kong government departments to discuss how to further advance Hong Kong's digital economy. The committee set up several working groups to conduct in-depth research on cross-border data flows, digital infrastructure construction, digital transformation, and talent development, and collected opinions from the industry and stakeholders. The committee has submitted 12 core recommendations to the Hong Kong government, covering five main areas, providing important references for future work, some of which have been reflected in previous Policy Addresses and Budgets.

First, optimize Hong Kong's overall digital policy. The top-level architecture and regulatory system for policies, governance, and implementation are key. After the Hong Kong Legislative Council completes the relevant review process, Hong Kong will establish a "Digital Policy Office" in the middle of this year to comprehensively formulate and implement policies to promote the development of the digital economy and smart cities. On the other hand, relevant legislation and guidelines will be reviewed to enhance data governance, establish clearer guidelines for data collection and processing, while preserving space to address technological developments. Addressing various challenges in data governance, such as mitigating risks in data security and personal data protection, is also a key focus of the work.

Second, strengthen digital infrastructure. This includes enhancing the use and coverage of 5G networks; encouraging the construction of efficient computing and data centers; further promoting electronic payments; introducing corporate digital identities (Corp ID); and developing a unique geolocation coding system for assigning digital coordinates to building addresses.

Last year's Budget proposed the establishment of an Artificial Intelligence (AI) Supercomputing Center in Hong Kong, and the related construction work is progressing rapidly, with the first phase of services expected to be launched within this year. This year's Budget proposes allocating HKD 3 billion for a three-year AI funding program to support local universities, research institutions, and companies in utilizing the center's computing power to drive research breakthroughs. In addition, Hong Kong has also announced a HKD 300 million allocation to establish an enterprise version of "Smart Convenience" The "Digital Enterprise Identity" platform is expected to be gradually launched starting from 2026, providing four main services to 1.8 million Hong Kong enterprises. The system will also interface with electronic services of different government departments to enhance service efficiency, while supporting the operation of the Hong Kong Monetary Authority's "Business Data Interchange."

Third, promoting local and cross-border data flow in Hong Kong. Locally, efforts will be made to encourage the public and private sectors to open up more data. Hong Kong will also expand the scope of the "Business Data Interchange," making it easier for banks to access data with enterprise authorization, facilitating especially the loan approval process for small and medium enterprises. By the end of last year, the "Business Data Interchange" had facilitated over 13,000 loan applications, with a total loan amount close to HKD 12 billion.

Hong Kong and mainland China have also made good progress in promoting cross-border data flow. In December last year, Hong Kong and the National Internet Information Office launched a pilot scheme for the cross-border flow of personal information in the Guangdong-Hong Kong-Macao Greater Bay Area, inviting the banking, credit reporting, and medical industries in the initial phase, with a very positive industry response. They will gradually expand facilitation measures based on the implementation effects of the initial phase, promoting more industries in both places to utilize cross-border data, providing more convenient cross-border services for citizens and enterprises.

Fourth, accelerating digital transformation. In supporting the digital transformation of small and medium enterprises, Cyberport launched the "Digital Transformation Support Pilot Scheme" at the end of March, subsidizing the purchase of ready-made basic digital solutions for small and medium enterprises in the catering industry, covering electronic payments, online promotion, and customer management. The plan will next expand to the retail industry, benefiting at least 8,000 eligible small and medium enterprises.

Fifth, developing a sustainable digital talent strategy. Hong Kong will cultivate and retain digital talents through strengthening education and training, while attracting talents and tech companies from outside Hong Kong. Hong Kong will also continue to enhance the digital literacy and capabilities of the entire society, creating an atmosphere embracing digitalization and digital development.

Edward Yau stated that Hong Kong's digital economy is accelerating forward, and the development of innovation and technology is bringing more business opportunities. This month, Hong Kong is hosting the "International Innovation and Technology Business Week," with various innovation and technology events taking place, from digital economy summits to international innovation and technology exhibitions, from startup fundraising competitions to the third-generation Internet carnival. These series of activities bring together industry leaders and pioneers from Hong Kong and overseas, building a platform for exchange in the digital economy and smart innovation future, gathering various insights, enriching the connotation of Hong Kong's event activities, and enhancing economic empowerment