Key Takeaways from Budget Speech

This week, Financial Secretary Paul Chan delivered the 2026-27 Budget outlining Hong Kong’s economic outlook, fiscal strategy, and the Government’s planned resource allocation for the year ahead. The Budget adopts a prudent approach aimed at supporting Hong Kong’s economic recovery and fostering long-term development.

The following are some key highlights that are of interest to the international business community:

• Economic Growth and Outlook: Overall economic growth reached 3.5% in the past fiscal year. For 2026, growth is projected at 2.5%-3.5%, and a consolidated surplus of HK$22.1 billion is forecast, ending three years of deficit.  
• Tax Reduction: AmCham welcomes the Government’s efforts on tax reduction, including salaries and profits tax relief and rates concessions for households and businesses. These measures help reinforce Hong Kong’s competitiveness by strengthening its simple, low‑tax regime.
• Focus on Investing in Innovations: AmCham is pleased to see an emphasis on investment in innovation, especially in artificial intelligence (AI). The introduction of a HK$10 billion Innovation and Technology Industry Oriented Fund, initiatives in life and health technologies and support for embodied intelligence demonstrate Hong Kong’s commitment to AI development. These measures, in addition to initiatives to establish AI regulatory regime, align with global trends and position Hong Kong competitively in the tech sector.
• Financial Services: AmCham welcomes listing‑regime reform and the launch of an electronic bond‑trading platform, which boost Hong Kong’s market efficiency. These initiatives fortify Hong Kong’s competitive strengths and create opportunities for growth in emerging sectors. This could position Hong Kong as a leader in financial and capital markets. Also, members appreciate the continued effort in promoting trade 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 and promoting professional services.
• Northern Metropolis: AmCham applauds the Government’s continued efforts in the development of Northern Metropolis and its new breakthrough, this resonates with a diverse range of Chamber members. The acceleration of Northern Metropolis’ development and completion of infrastructure in the area would bring various opportunities for the business community, spanning sectors such as innovation and technology (I&T), healthcare, China business, and real estate.
• IP Economy: The initiatives to build Hong Kong as the regional intellectual property trading center are seen as proactive steps to leverage Hong Kong existing expertise to boost the city’s industry diversity. Initiatives such as an IP Financing Sandbox, creating tax incentives, and structured patent examination should make Hong Kong a more competitive IP trading center in the region.