Hong Kong should endeavor to diversify its economy as any economic downturn in the major markets will deal a direct blow to the city’s service industries and hence its economic outlook.

Financial Secretary Paul Chan made the statement when delivering his 2019-20 Budget at the Legislative Council today.

He said apart from strengthening the industries currently enjoying competitive edges, the city should identify new areas of growth by vigorously developing emerging industries.

To enhance the development of lawtech in Hong Kong and consolidate the city’s position as an international dispute resolution services centre, the finance chief said he will deploy $150 million to support the development of a dispute resolution online platform by non-governmental organisations.

The platform will benefit local micro, small and medium enterprises, as well as those in the Belt & Road economies, members of the Association of Southeast Asian Nations and beyond.

Emerging industries

Mr Chan said there are plans to develop the city as a ship leasing centre in the Asia-Pacific Region, with a Hong Kong Maritime & Port Board task force studying tax and other measures to attract ship finance companies to Hong Kong. The study is expected to be completed in the second half of this year.

Meanwhile, a 50% profits tax concession will be offered to eligible insurance businesses including the marine insurance industry. The move aims to boost the development of marine insurance, he added.

On tourism, Mr Chan said about $353 million will be allocated to the Hong Kong Tourism Board for stepping up promotion of Hong Kong’s image as a premier tourism destination.

Other new initiatives to be rolled out include enhancing the capability of the Ngong Ping Nature Centre in providing hiking information and upgrading country trail facilities in the vicinity, studying ways to improve the Wetland Park facilities, and giving the Travel Industry Council extra funding to develop thematic tourism products.

A consultancy study on strategies and initiatives to promote smart tourism and enhance visitors’ travelling experience with technology will also be commissioned.

Vigorous development

The Financial Secretary said Hong Kong’s emerging creative industries are worthy of vigorous development.

Following the injection of $1 billion into the CreateSmart Initiative, the Government will inject another $1 billion into the Film Development Fund in 2019-20 to help the local film industry thrive.

This will bring the new resources devoted to creative industries to $2 billion within two years.

Mr Chan said with the injection of new funds, the Government will upscale the sixth First Feature Film Initiative by doubling the number of winning teams to six and increasing funding by about 50%.

The production budget limit of the Film Production Financing Scheme and the maximum subsidy for each film will be raised to $60 million and $9 million respectively to support local mid-budget film productions.

To address of the issue of labour shortage and an ageing workforce in the construction industry, the Government will deploy $200 million to expand the apprenticeship scheme for the construction industry.

The Government will also lead the construction industry in implementing Construction 2.0 to improve the industry’s productivity, quality, safety and environmental performance by advocating innovation, professionalisation and revitalisation.