Algernon Yau: A multi-pronged approach to consolidate Hong Kong's status as an international trade centre and full support for SMEs' upgrading and transformation

On October 12, Secretary for Commerce and Economic Development Algernon Yau introduced to members at a meeting of the Trade and Industry Advisory Board the main measures related to economic and trade development in the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) (the "Five-Year Plan") and the Chief Executive's 2026 Policy Address (the "Policy Address"). Algernon Yau said that this year's Policy Address, in accordance with the overall arrangements and development blueprint of the Five-Year Plan, launched a series of measures to strengthen Hong Kong's position and role as an international trade centre, give play to Hong Kong's internationalisation advantages, deepen the building of a regional intellectual property trading centre, and create more opportunities for the business and industrial sectors. Algernon Yau pointed out that even in the face of various challenges brought by geopolitics and trade protectionism, Hong Kong's external trade has demonstrated strong resilience. In 2025, Hong Kong was the world's fifth-largest merchandise trading economy, and since the beginning of this year, Hong Kong's export performance has been encouraging. In August, the value of Hong Kong's total exports rose by 53% year on year, recording double-digit growth for the 19th consecutive month. In this connection, he shared with members the Hong Kong Special Administrative Region Government's multi-pronged measures to continuously expand the international economic and trade network and consolidate and enhance Hong Kong's status as an international trade centre. At the same time, the SAR Government will promote high-quality trade development, strive to upgrade in the direction of digitalisation and diversification, and give play to Hong Kong's advantages in the professional services sector to build Hong Kong into a high value-added supply chain service centre, helping enterprises connect with overseas supply chains and expand international business. Algernon Yau also mentioned that, in response to the National 15th Five-Year Plan's clear support for Hong Kong to build a regional intellectual property trading centre, the SAR Government is working through a number of mutually reinforcing measures, including launching an intellectual property financing sandbox, implementing a patent valuation pilot support scheme, establishing the Hong Kong Intellectual Property Academy, and setting up an Intellectual Property Trading Development Strategy Committee, to make every effort to build a vibrant intellectual property ecosystem, thereby deepening the foundation for Hong Kong's development as a regional intellectual property trading centre. In addition, Algernon Yau pointed out that small and medium-sized enterprises account for 98% of Hong Kong's enterprises and are crucial to Hong Kong's economic development. Therefore, the Policy Address announced the launch of 10 measures to support the diversified development and upgrading and transformation of SMEs. Among them, the funding ceiling for "Easy BUD" under the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) has been raised to $150,000; the BUD Fund provides more targeted funding for artificial intelligence projects, and the fund's geographical scope of funding will also be expanded to Uzbekistan and Qatar. In addition, the Trade and Industry Department will, through the "four-in-one" SME service centre, assist SMEs in formulating brand development strategies, while the Hong Kong Trade Development Council will also strengthen the "E-Commerce Express" service to enhance the visibility and coverage of Hong Kong brands in overseas e-commerce markets. Algernon Yau looks forward to working hand in hand with the industry, using the Five-Year Plan and the Policy Address as the action agenda, to further promote economic and trade development, especially to drive the development of the Northern Metropolis and assist mainland enterprises in going global, strengthen Hong Kong's important role as a "super connector" and "super value-adder", and inject new momentum into the economy.