Immediate Takeaways from AmCham

This year’s Budget outlines a cautious yet strategic approach to Hong Kong's economic recovery and development. The following are some immediate reflections, particularly of interest and relevant to international and American businesses.

•  Economic Growth: The projected economic growth of 2-3% for 2025 will be crucial to maintain stability in supporting local businesses and the employment market, including foreign businesses operating in Hong Kong. The deficit for the 2024-2025 fiscal year is recorded at $87.2 billion, while fiscal reserves are estimated at $579.1 billion by the end of March 2030.

• Expenditures: Although total government expenditure will increase by 8.9% to $822.3 billion in 2025-26, this is accompanied by a reinforced fiscal consolidation program that aims for a cumulative reduction of 7% in government recurrent expenditure by 2027-28.

• Focus on Investing on Innovations: AmCham is pleased to see a focus on investing in innovation, especially in artificial intelligence, which aligns with the global trends and positions HK as a competitive player in the tech sector.
• Reduction: The reduction in recurrent government expenditure demonstrates a responsible approach to public finance and essential for foreign investors and companies which are looking to navigate the HK market without excessive fiscal unpredictability.

• Green Development: The focus on green development and sustainability is a timely response to global climate challenges. Initiatives such as expanding the electric vehicle charging network and promoting green industries will appeal to international businesses committed to environmental responsibility and sustainability.

• Talent: AmCham is pleased to see continuous efforts to attract talent through various admission schemes to address talent shortages and driving innovation. The upcoming “Global Talent Summit” could further solidify Hong Kong’s status as a global talent hub, making it an attractive destination for international companies looking for skilled labor.

• Financial Services: The initiatives for financial services are seen as proactive steps to bolster Hong Kong's financial ecosystem. The integration of sustainable finance initiatives is applauded, as it aligns with global trends towards responsible investing. This could position Hong Kong as a leader in green finance, attracting environmentally-conscious investors. Also, members appreciate the proposed collaborations with ASEAN and Middle Eastern markets. These efforts to expand market access and create new investment opportunities are viewed as beneficial for diversifying Hong Kong's investor base.

• Northern Metropolis: AmCham applauds the Government’s focus on the Northern Metropolis, which resonates with a diverse range of Chamber members. This commitment to developing the region highlights various opportunities for the business community, spanning sectors such as innovation and technology (I&T), healthcare, China business, and real estate.