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Carrie Lam policy address 2017
Hong KongHong Kong Economy

‘New mentality’ needed to support innovation and technology in Hong Kong, CY says in final policy address

Chief executive, without going into specifics, says tax and policy support needed to allow city to be competitive

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Chief Executive Leung Chun-ying at his final policy address. Photo: Sam Tsang
Raymond YeungandZen Soo

Tax concessions and financial incentives “must be” explored as Hong Kong needs a “new mentality” to support the innovation and technology industry amid stiff competition, the chief executive said in his final policy address.

Without elaborating, Leung Chun-ying said providing hardware alone would not be enough for Hong Kong to drive innovation and technological development, even hinting that the current financial regulatory framework was too rigid.

“Hong Kong in the past has been competing with her arms tied up,” Leung said on Wednesday.

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“In the innovation and technology business, are we able to provide some sort of financial, tax and policy support? Because this is what our competitors have been doing,” he said.

In six pages and 22 paragraphs, Leung stressed innovation and technology “are no slogan” and outlined a list of achievements under his reign, including an Innovation Node set up by the Massachusetts Institute of Technology, as well as a HK$1 billion Entrepreneurs Fund launched by Alibaba Group. Alibaba owns the South China Morning Post.

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Generous funding – amounting to HK$18 billion – will be injected in various fields in a timely manner, he said.

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