The introduction of enterprise digital identities refers to the use of a company-specific version of the government-developed iAM Smart platform, which is expected to launch in 2026.

The existing iAM Smart platform allows residents to use a single digital identity and authentication to make government and commercial transactions online. It also automatically fills in personal details on electronic forms and handles statutory documents and procedures.

Chan further elaborated on the HK$300 million (US$38.3 million) measure to roll out the enterprise version, as highlighted in his February budget blueprint, which aimed to streamline processes and eliminate unnecessary complexities for companies.

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“It will provide four key functional services to 1.8 million Hong Kong companies, including enterprise identity authentication, digital signing, authorised access to pre-filled forms using data from electronic service systems and storage of electronic credentials,” he said.

“The platform will also integrate with various government departments’ electronic services to enhance service efficiency. It will support the operation of the Hong Kong Monetary Authority-run Commercial Data Interchange to facilitate financial institutions in conducting due diligence on their customers.”

In terms of promoting local and cross-border data flow, the Commercial Data Interchange will extend its coverage to allow more businesses to easily obtain loans by consenting to share data with partnering banks.

The initiative helped to facilitate more than 13,000 loan applications worth about HK$12 billion by the end of last year.

“Data itself is an exclusive and immensely promising new industry and it has been recognised as a valuable asset that not only assists businesses in enhancing decision-making and creating new business models, but also serves as an asset for cross-border collaboration and even tradeable production factors,” Chan said.

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He stressed an efficient data ecosystem had become one of the factors attracting businesses to set up in the city, whether they were working in artificial intelligence, or technology for the life and health sector or finance industry.

“These companies recognise Hong Kong’s unique advantage of being able to harness data from both mainland China and international sources under the ‘one country, two systems’ framework,” he said, adding this advantage was crucial for market expansion.

Authorities will set up an office this year, guided by 12 recommendations from a government committee in February, to promote the development of the digital economy and Hong Kong as a smart city, aligning with the vast market potential of the mainland.

The size of the mainland’s digital economy last year was estimated to be more than 50 trillion yuan (US$6.9 trillion), accounting for more than 40 per cent of the jurisdiction’s gross domestic product.

“Technology innovation has become a vital driving force for production and data is an indispensable element,” Chan said. “The new qualitative productivity centred on innovation and technology is key to propelling Hong Kong’s economy towards high-quality development.”

He said authorities would review legislation and guidelines to enhance data governance and establish clearer guidelines for collection and processing while staying flexible to respond to updated technology.

Authorities would also advance efforts to mitigate risks related to data security and personal data protection, he said.

Separately, the government on Sunday said about 80,000 people in more than 160 villages were benefiting from an expanded network of high-speed broadband, with the latest coverage extending to areas of Tai O and Mui Wo, both on Lantau Island.

The coverage is part of a government scheme launched in 2018 to extend fibre-based broadband to villages in remote areas.

The scheme also provides infrastructure for other telecommunications services, such as 5G and Wi-fi.