In its 2025-26 Budget, delivered on 26 February, the HKSAR Government outlined its financial provisions for major initiatives in I&T, talent development, and infrastructure expansion etc. These provisions generally align with the HKIE’s vision.
The Budget demonstrates a commitment to talent development. The various investments in on-the-job training for 2,500 construction-related trainees and graduates, alongside the HK$245-million joint funding with the CIC for 3,500 young professionals, will contribute to mitigating industry-wide talent shortages and fortifying long-term workforce resilience.
Promising signs of Northern Metropolis (NM)’s transition from vision to execution are also in sight. With investment priorities spanning I&T, high-end professional services, and modern logistics, and with the first round of project tendering scheduled for later this year, momentum is being gathered for NM. Meanwhile, ongoing transport infrastructure developments will further enhance regional connectivity and reinforce NM’s projected role as a strategic hub.
Equally noteworthy is the Government’s adoption of the Institution’s earlier recommendation to develop Modular Integrated Construction (MiC) as an industry within the GBA. By driving research, accreditation, and international market expansion, and by working with Guangdong and Macao to establish GBA-wide skill standards, Hong Kong is positioning itself as a leader in construction innovation.
One progressive agenda, strongly advocated by the HKIE, is the development of low-altitude economy. Amendments to the Small Unmanned Aircraft Order, potential Advanced Air Mobility legislation, and deeper collaboration with Mainland authorities could position Hong Kong as a regional hub for unmanned aviation and smart logistics.
With the Budget sketching a promising blueprint for Hong Kong’s future, the Institution shall continue to collaborate with the Government and industry stakeholders to turn its vision into reality. A full response highlighting crucial areas of interest is accessible here.
In the 2025-26 Budget, the HKSAR Government has renewed its commitment to invest in infrastructural development. Over the next five years, average annual capital works expenditure will grow from about HK$90 billion to about HK$120 billion. To address the corresponding manpower needs, it is essential to enhance the development of our construction sector’s professionals and workforce.
Professional development
To attract young people to join the industry, the Government and the Construction Industry Council (CIC) will jointly allocate funding totalling about HK$95 million to continue the provision of on-the-job training subsidies for about 1,000 students enrolled in part-time construction-related degree programmes over the next two academic years.
To assist young graduates in obtaining professional qualifications and enriching their professional knowledge and experience, CIC will allocate around HK$150 million to subsidise on-the-job training for about 2,500 graduates of degree programmes in engineering, architecture, surveying, planning and landscape architecture.
The Government has also set aside HK$15 million for the Centre of Excellence for Major Project Leaders to enhance professionalism, innovation capabilities and cost-effective management in the construction industry.
Other manpower initiatives
To ensure continuous development of the construction industry’s manpower, we have made proactive efforts to instill an early interest in construction among our younger generation through provision of STEAM teaching and learning material and organisation of offline activities for all primary and secondary schools in Hong Kong, starting from December 2024. CIC also doubled training quotas for construction workers from 6,000 in 2021-2022 to at least 12,000 per academic year from 2022-2023 to 2027-2028.
Drive of innovation and technology (I&T)
In our multi-pronged approach to address the construction industry’s manpower needs, I&T play a pivotal role. The Government will continue to drive the wider use of technologies and High Productivity Construction (HPC) methods through the Construction Innovation and Technology Fund (CITF). In addition, the Building Technology Research Institute (BTRi), established in August 2024, is actively promoting the industry development of Modular Integrated Construction (MiC) and the establishment of “GBA standards” in related testing, accreditation and certification. Leveraging Hong Kong’s unique advantages in applying international construction standards, the BTRi continues to engage with the construction industry in Hong Kong, the Mainland and internationally to foster closer collaboration in construction innovation.
The Government, the industry, the academia, professional institutions and practitioners all have a part to play in enhancing productivity and enabling the vibrant development of our construction industry. We look forward to working with the HKIE and its members continuously to press ahead with the above-mentioned initiatives.
This article is contributed by the Development Bureau of the HKSAR Government.