The 2026–27 Budget sets out a forward-looking and strategically grounded agenda that resonates strongly with the engineering profession. With its emphasis on innovation and technology (I&T), infrastructure investment and sustainable development, the Budget provides both clear direction and renewed momentum as Hong Kong advances into a new stage of high-quality development.
The Government’s proactive alignment with the proposed National 15th Five-Year Plan — including the establishment of a cross-bureau, cross-departmental task force led by the Chief Executive to guide Hong Kong’s comprehensive integration with the national development blueprint — is a significant step forward. The formulation of an overarching five-year development plan for Hong Kong will provide a clearer strategic roadmap to steer economic restructuring, industrial upgrading and infrastructure planning in a coordinated and systematic manner.
In parallel, local construction standards and specifications will be enhanced with reference to Guobiao (GB) and relevant overseas standards, while a set of Greater Bay Area construction standards will be formulated. These measures will strengthen interoperability, facilitate cross-boundary project delivery, and consolidate Hong Kong’s institutional and technical advantages. They also contribute to the strategic positioning envisaged for Hong Kong under the National 15th Five-Year Plan.
A key highlight is the Government’s decision to transfer HK$150 billion from the Exchange Fund to the Capital Works Reserve Fund over two years, alongside the issuance of longer-tenor bonds. These measures signal a firm and longterm commitment to the Northern Metropolis and other major infrastructure initiatives. The timely delivery of the Northern Metropolis, as a flagship development strategy, will not only support Hong Kong’s transformation into an international innovation and technology hub, but also sustain a stable pipeline of public works projects essential to long-term professional development, skills continuity and capacity building within the engineering sector.
Amid expectations of interest rate cuts, the Government’s plan to issue longer-term bonds to reduce short-term refinancing needs and broaden funding sources reflects prudent financial management. This approach will help stabilise infrastructure funding, ensure the orderly progression of large-scale projects, and align with the financing principle that infrastructure investments generate enduring social and economic returns over time.
On industry frameworks and regional collaboration, active exploration with the Qianhai Authority on the pilot implementation of Hong Kong’s New Engineering Contract form and the Smart Site Safety System (4S) in Qianhai demonstrates the continued leveraging of “Super Connector” strengths in fostering deeper integration within the Greater Bay Area (GBA). By exporting proven contractual models and smart safety practices, Hong Kong further reinforces its role as a bridge between the Chinese Mainland and international standards.
The Budget also lays a solid foundation for substantive progress in artificial intelligence and new industrialisation. The establishment of the “Committee on AI+ and Industry Development Strategy” introduces top-level planning to guide industrial transformation. Meanwhile, the Hong Kong Artificial Intelligence Research and Development Institute is expected to accelerate the translation of research outcomes into practical, market-ready applications. The HK$100 million allocation for the Government’s adoption of leading technologies will enhance administrative efficiency and serve as a catalyst for broader AI adoption across sectors. Together with strategic focus areas such as life and health technology and advanced manufacturing, these initiatives will strengthen the upstream, midstream and downstream I&T value chain.
On the green energy transition, the Budget outlines forwardlooking initiatives that open new avenues for sustainable development. The promotion of hydrogen energy through standards and certification frameworks aligned with Chinese Mainland and international systems will enhance regulatory clarity and market confidence. Exchange platforms such as Hydrogen Week can further foster crosssector collaboration and international engagement. At the same time, the plan to develop Hong Kong into a green maritime fuel bunkering and trading centre underscores the city’s commitment to decarbonisation, particularly in the transport and logistics sectors.
While additional funding for building maintenance and renewal schemes will help ease the financial burden on property owners and address ageing building stock, these measures should be complemented by a more robust and holistic risk management framework. The adoption of “defence-in-depth” principles — spanning design, construction, supervision and maintenance — will be critical in strengthening long-term building resilience. A dedicated task force has been established to conduct a comprehensive review of relevant systems and practices, with professional recommendations and operational guidelines to be submitted to enhance industry standards and safeguard public safety.
As Hong Kong enters a new stage of high-quality development, the engineering profession will continue to contribute expertise in support of I&T advancement, infrastructure delivery, sustainability and urban safety. Through collaboration with Government, industry and academia, the sector stands ready to help build a more resilient, innovative and sustainable city for the future.
The full response is available on the HKIE website.
Kowloon East has been successfully transformed from its manufacturing past into Hong Kong’s second Core Business District (CBD) through the pursuance of the Energizing Kowloon East initiative, and with the promotion of walkability as one of the key strategic directions. The success to the realisation of Walkable Kowloon East* relies on the collaborative efforts of the Government’s introduction of public infrastructure projects as well as encouraging private sectors’ contribution of additional pedestrian links, and integrating them together to create a pleasant pedestrian environment, which is “walkable”, “stayable” and “sittable”.
The policy of incentivising the private sector through land premium waivers was first introduced in Kowloon East as a pilot area, and subsequently extended across the territory. Under the policy, the private sector is responsible for the design, construction, management and maintenance of the pedestrian links and their associated costs, and the provision of barrier-free links for public use round the clock. The relevant projects are subject to an evaluation mechanism whereby the proposed pedestrian links are assessed as to whether benefits can be brought to the public.
The footbridge connecting Amoy Plaza and East Kowloon Cultural Centre (EKCC) initiated by private sector is one of the successful projects within Kowloon East under the policy. The Energizing Kowloon East Office has been actively assisting the private sector with various problems encountered during the footbridge construction. The office has also facilitated interdepartmental coordination and providing engineering advice to address project challenges, including the identification of works sites within the busy areas and assisting in managing the transportation of large footbridge components. The footbridge is expected to open to the public by mid-2026. Upon completion, the footbridge will provide a 24-hour barrier-free access between MTR Kowloon Bay Station and Amoy Plaza via EKCC, significantly enhancing the pedestrian connectivity between Kowloon Bay Business Area and the residential neighbourhood.
* For more information about “Walkable Kowloon East”, please scan the QR code below.
This article is contributed by the Development Bureau of the HKSAR Government.
The East Coast Rail Link (ECRL) is a double-track railway connecting Port Klang on the Straits of Malacca to Kota Bharu in northeast Peninsular Malaysia, linking the East Coast Economic Region states of Pahang, Terengganu, and Kelantan to one another and to the central region of the peninsula's west coast. This project, adopting Chinese system technology with construction commenced in August 2017, is set to carry both passengers and freight between the west coast and the east coast of Malaysia. In 2025, the contract for a 26km ECRL Spur Line aimed for alignment improvement by linking Port Klang to Westport and Northport was awarded with a targeted full completion in 2028. Hong Kong based railway consultancy firm Key Direction Limited was awarded the Independent Checking Engineer (ICE) contract for this Spur Line project under a JV with Malaysia and Mainland China partners, i.e. KL Prima Consult Sdn Bhd and Guangzhou Metro Design & Research Institute Co. Ltd respectively. This project represents the first collaboration in Malaysia among consultants from 3 different countries / cities, to jointly deliver ICE services to ensure all required safety and functional requirements are met following relevant Malaysian standards, Chinese rail standards and international rail standards.
This article is contributed by Key Direction Limited.