Briefing by the Secretary for Innovation and Technology and the Secretary for Commerce and Economic Development on the Chief Executive’s 2018 Policy Address
Measures to support research and development
Mr CHAN Chun-ying noted that in the 2017 Policy Address, CE had set a goal to double the Gross Domestic Expenditure on research and development (“GERD”) as a percentage of the Gross Domestic Product (“GDP”) to 1.5%, equivalent to about $45 billion, by 2022, so as to bring Hong Kong’s expenditure level on par with international competitors. However, he was concerned that Hong Kong scored relatively low in terms of expenditure on research and development (“R&D”), according to the 2018 Global Competitiveness Report released by the World Economic Forum recently. While the Administration had proposed to implement an enhanced tax deduction regime for qualifying R&D activities by introducing the Inland Revenue (Amendment) (No. 3) Bill 2018, and increased the source of research funding through a series of measures, Mr CHAN queried whether such incentives were conducive to raising R&D investment by private enterprises, thus contributing to GERD in the next few years.
S for IT advised that currently GERD as a ratio to GDP was about 0.79%, with public sector expenditure dominating. The Administration would introduce super tax deduction for qualifying R&D expenditure to encourage private enterprises to invest more in R&D in Hong Kong. Under the proposed regime, there would be no cap on the amount of the relevant tax deduction. The Administration would continue to induce further investment in R&D by supporting the development of “re-industrialization” on various fronts, such as establishing a $2 billion re-industrialization funding scheme to subsidize manufacturers, on a matching basis, to set up smart production lines in Hong Kong.
Open data
Mr CHAN Chun-ying noted that all government departments were required to publish their first annual open data plans by end-2018. He enquired whether and when the Administration would open up all government data. Mr CHAN suggested that the Administration should impose conditions on the licensing system to require franchised bus companies to release their data. He also asked whether the Administration could disseminate public transport data collected by smart lampposts.
S for IT responded that under the new policy, bureaux and departments (“B/Ds”) were required to publish annual open data plans, which would facilitate the public to provide feedback and suggestions on the types of data to be further opened up and their potential applications. In addition, B/Ds were required to explore options in collaboration with the concerned organizations with a view to releasing more data such as public transport data. City data collected from smart lampposts would be released in machine-readable formats via the Public Sector Information portal (data.gov.hk) for free use by the public.
Registering electronic identity
Mr CHAN Chun-ying noted that the electronic identity (“eID”) system was expected to come into operation in mid-2020 while the territory-wide smart identity card replacement exercise would continue until 2022. He asked whether the Administration would consider allowing holders of existing smart identity card to register and obtain their eID when they applied for new identity cards.
S for IT explained that the objective of eID was different from that of smart identity card as eID itself would not store any personal data. The core data in the eID system would be encrypted so as to ensure data security and integrity during transmission over the Internet. Members of the public could register for eID through mobile applications on their personal mobile devices, or dedicated self-service kiosks and government counters.
Space Sharing Scheme for Youth
Mr CHAN Chun-ying noted that the Administration had introduced the Space Sharing Scheme for Youth (“the Scheme”) in the 2017 Policy Address for young end users, especially those engaged in I&T, creative industries as well as arts and culture. So far, property owners participating in the Scheme had contributed more than 100 000 square feet of shared space in total, in which available spaces were located in Kwun Tong, Tsuen Wan, Wong Chuk Hang, Lai Chi Kok, Wan Chai and other districts. Noting that the properties were managed by non-governmental organizations (“NGOs”) or directly operated by participating owners such as Cyberport, Hong Kong Arts Development Council, Po Leung Kuk, Federation of Hong Kong Industries, Mr CHAN enquired how the Administration would ensure that a certain percentage of co-working space would be allocated for use by young entrepreneurs from related creative industries, and whether the Administration had provided guidelines for the operating agencies in this regard. Mr CHAN commented that the Administration should set a specific target in respect of providing working space for young entrepreneurs.
S for IT replied that the Scheme aimed at creating a fervid I&T atmosphere, while at the same time supporting start-ups of emerging industries and youth entrepreneurship though the provision of working space. For example, Cyberport had set up a Smart-Space co-working space of about 20 000 square feet in Tsuen Wan, same as all other Smart-Space on the Cyberport campus,offering various supporting services to start-ups and young entrepreneurs in order to help them lay down business foundation and accelerate their growth. Taking the financial technology (“Fintech”) ecosystem being developed at Cyberport as an example, S & IT said that Cyberport had attracted more than 300 Fintech companies to Cyberport, which far exceeded the Administration’s initial target. While no target had been set for the provision of working space for young end users, the Administration would endeavour to offer a wide spectrum of entrepreneurial support to help young people start their own businesses.