ASTRI Welcomes the Budget Timely, Prudent and Proactive in Accelerating I&T Development

[26 February 2025] – The Hong Kong Applied Science and Technology Research Institute (ASTRI) welcomes the 2025-26 Budget, unveiled today by HKSAR Financial Secretary Mr Paul Chan. The Third Plenary Session of the 20th CPC Central Committee reaffirms technology’s pivotal role in national development, particularly emphasising the drive towards technological self-reliance, setting a clear direction for Hong Kong’s development. The timely, prudent and proactive initiatives outlined in the Budget demonstrates the HKSAR’s long-term commitment in accelerating innovation and technology (I&T) development. The increased investment in emerging fields such as artificial intelligence while expanding the I&T talent pool in the city, bolstering Hong Kong’s integration into the national agenda for technological independence.

ASTRI Chairman Ir Sunny Lee expressed full support for the Budget. “We are pleased that HKSAR Government is allocating more resources for advancing the development of the I&T industry chain. The key initiatives outlined in the Budget, ranging from infrastructure development, R&D and industry applications, funding support, talent attraction, to technology transfer and commercialisation, undoubtedly laying a solid foundation for sustained technological advancement and long-term economic growth. ASTRI is proud to play a pivotal role in driving innovation to support Hong Kong’s progress in smart manufacturing and new industrialisation, digital economy and smart city development, while contributing to the New Quality Productive Forces,” he said.

As Hong Kong’s largest government-funded R&D centre, ASTRI remains committed to connecting Hong Kong with the global tech ecosystem and forming partnerships, to promote international collaboration and transform innovations into commercial successes, Lee added.

Ir Chris Chong, Acting Chief Executive Officer and Chief Operating Officer of ASTRI welcomed the Budget’s strong emphasis on I&T, highlighting the HKSAR Government’s commitment in investing in the future by accelerating I&T development and innovative industrial application. “The new I&T supportive measures outlined in the Budget, covering technologies like artificial intelligence, smart manufacturing, smart city, low-altitude economy and microelectronics. These are our R&D areas and align closely with ASTRI’s mission to enhance Hong Kong’s development and competitiveness in the technology-based industries through applied research.”

Ir Chong added that ASTRI looks forward to collaborating with stakeholders from all sectors. Through I&T, ASTRI aims to empower the transformation and upgrading of traditional industries, injecting fresh impetus into sustainable economic development and promoting Hong Kong as an international I&T hub.

Advancing Low-altitude Economy
ASTRI focuses on driving impactful innovations and smart solutions that address societal challenges and create new economic opportunities. These include integrated sensing and communication technology, which is crucial for low-altitude economy. ASTRI’s extensive expertise in smart mobility, sensor technology and 5G networks can be effectively adapted to support the development of low-altitude economy, particularly in integrating 5G and sensor technologies to mitigate the risk of drone collisions in Hong Kong’s high-density environment.

The 2025-26 Budget focuses on technology, placing emphasis on developing various emerging I&T industries, and introducing key measures to strengthen Hong Kong’s I&T ecosystem. These measures include launching a new round of Research Matching Grant Scheme, totalling HK$1.5 billion to attract organisations to support research endeavours of institutions; hosting the first International Conference on Embodied AI Robot and the International Young Scientist Forum on Artificial Intelligence this year to promote Hong Kong’s technologies and attract I&T talents from overseas; enhancing the New Capital Investment Entrant Scheme to provide greater flexibility; setting aside HK$1 billion to establish the Hong Kong Artificial Intelligence Research and Development Institute to promote the application of research outcomes; earmarking HK$100 million to launch Pilot Manufacturing and Production Line Upgrade Support Scheme this year, which will provide funding of up to HK$250,000 on a 1 (government) to 2 (company) matching basis for enterprises; announcing the results of Low-altitude Economy Regulatory Sandbox soon and considering dedicated legislation for various types of Advanced Air Mobility; and reviewing tax-deduction arrangements for the purchase of intellectual property usage rights and related transactions, among other initiatives.