ebulletin

March 13, 2025
Capital works expenditure expected to reach HK$120 billion annually

The Hong Kong Special Administrative Region (HKSAR) government has unveiled its 2025-26 financial budget, emphasizing fiscal discipline, innovation, and sustainable growth. This year’s budget introduces a suite of initiatives to support economic recovery, technological advancement, and infrastructure development.
The budget highlights a significant boost in infrastructure investment, with annual capital works expenditure expected to rise from an average of HK$90 billion in recent years to approximately HK$120 billion annually between 2025-26 and 2029-30. Key projects include the Northern Metropolis development and other major infrastructure undertakings. These efforts aim to address housing, land use, and construction industry growth while meeting public needs.
Further, the budget emphasizes fostering Hong Kong’s role as a financial and technological hub. A dedicated HK$1 billion fund will establish the Hong Kong AI Research and Development Institute, promoting advancements in artificial intelligence and smart manufacturing. The government is also issuing bonds to finance infrastructure and enhance fundraising channels for technology enterprises.

Kai Tak Development, Hong Kong

Airport City Development
The Airport Authority Hong Kong is advancing the "Airport City" development, introducing the "SKYTOPIA" brand to position the airport as a world-class landmark that attracts visitors and bolsters the economy. This initiative complements the deepened cooperation between Hong Kong International Airport and Zhuhai Airport, alongside the "Hong Kong International Airport Dongguan Air Cargo Center" project, reinforcing Hong Kong’s position as a key aviation hub for the Greater Bay Area.

These measures showcase the government’s commitment to balanced fiscal policy, technological innovation, and comprehensive infrastructure planning, ensuring sustainable growth and resilience for Hong Kong's future.

SKYTOPIA