What Can We Learn From the 2025 Policy Address?

Five days ago, Chief Executive John Lee released Hong Kong's 2025 Policy Address. In Chapter 7, titled "Integrated Development of Education, Technology, and Talent," the second section on the International Innovation and Technology Hub concludes with an intriguing mention of "Promoting Aerospace Technology and Supporting the Space Economy."

Key Takeaways and Comparisons with 2024

A comparison with the 2024 Policy Address reveals some interesting shifts. The positioning of the International Innovation and Technology Hub has been noticeably downplayed. In 2024, this initiative was featured prominently in Chapter 4, "Developing New Productive Forces Aligned with Local Strengths," as the first section. However, in 2025, it appears in Chapter 7, under "Integrated Development of Education, Technology, and Talent," as the second section.

This change reflects a more pragmatic approach by the Hong Kong government, focusing on integrating technology, education, and talent rather than pursuing technological development in isolation. The government seems to have recognized that importing talent alone is insufficient to drive sustainable growth. Without a robust foundation of locally educated talent, technology development may struggle to create meaningful job opportunities for Hong Kong residents.

Moreover, the International Innovation and Technology Hub has yet to attain the status of a critical pillar supporting Hong Kong’s international stature, unlike finance, trade, shipping, aviation, or international legal and dispute resolution services. Technology and innovation, by their nature, require long-term investments and do not yield quick results. Coupled with the government’s significant focus on the Northern Metropolis, it is clear that technology development is not the highest immediate priority.

A Positive Evolution in Aerospace

On a brighter note, the 2024 Policy Address demonstrated early interest in aerospace, highlighting Hong Kong’s participation in national aerospace projects. It mentioned Hong Kong researchers’ involvement in aerospace R&D and the selection of a Hong Kong resident as a prospective astronaut. The government also announced the establishment of a research center under the InnoHK platform to contribute to the Chang’e 8 mission.

The 2025 Policy Address builds on this foundation with two notable paragraphs:

1. Strategic Importance of Commercial Aerospace The report acknowledges that the central government has identified "commercial aerospace" as a strategic emerging industry. Hong Kong is well-positioned to support this initiative due to its international connectivity, robust research capabilities, and strengths in investment and financing. The government aims to foster aerospace technology development while promoting the space economy.

2. Recent Investments and Next Steps The government has established the Hong Kong Space Robotics and Energy Center under the InnoHK platform to support the Chang’e 8 mission. Furthermore, over HK$100 million has been allocated through the Innovation and Technology Support Programme (Aerospace Technology Call) to fund six university-led research projects. On the regulatory front, the Commerce and Economic Development Bureau is reviewing ways to simplify licensing for low-earth orbit satellites to drive future 6G applications. Additionally, the Hong Kong Investment Corporation will explore investments in commercial aerospace and space economy-related ventures.

A Balanced and Practical Approach

The first paragraph emphasizes the strategic importance of commercial aerospace, taking into account national priorities, Hong Kong’s unique strengths, and the dual goals of advancing research and fostering the space economy. The second paragraph highlights the resources allocated over the past year, responding to the commitments outlined in the 2024 Policy Address. The HK$100 million investment, averaging HK$15 million per project, demonstrates a targeted and resource-efficient approach to fostering innovation.

However, while the simplification of satellite licensing and government-led investments in commercial aerospace startups are steps in the right direction, practical implementation will likely face challenges. These initiatives may remain at the “research and exploration” stage for now.

Final Thoughts

The 2025 Policy Address reflects a more pragmatic and measured approach to innovation and technology. Funding is primarily directed through public institutions such as universities, ensuring accountability and tangible outcomes. Meanwhile, the narrative of the space economy will likely depend on the entrepreneurial efforts of private-sector players to make it a compelling success story.

Hong Kong’s government is clearly focused on leveraging its unique strengths to support national priorities, while balancing resources and expectations. The road ahead may be challenging, but this is a step forward for Hong Kong’s aerospace ambitions.

Let’s connect to discuss how the evolving tech landscape in Hong Kong aligns with global trends and opportunities in aerospace and beyond.