Financial Secretary Paul Chan today attended a joint session of the Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Meeting and Structural Reform Ministerial Meeting, accompanied by Secretary for Justice Paul Lam, in Incheon, South Korea.

This year’s joint session focused on how APEC member economies can seize the opportunities and address the challenges brought about by artificial intelligence (AI) and digital transformation through policy co-ordination, regulatory reforms, capacity building and regional co-operation.

At the meeting, Mr Chan spoke of Hong Kong’s experience in developing AI and advancing digital transformation, and offered suggestions on APEC’s work in this regard.

He outlined that Hong Kong has adopted a dual strategy of developing AI as a core industry and empowering other industries through AI, through efforts focused on five key areas – computing power, algorithms, application scenarios, data and funding support.

Mr Chan said Hong Kong has invested more than $200 billion in innovation and technology, with AI development being a key focus. Major initiatives include the establishment of the Hong Kong AI Research & Development Institute, which promotes upstream innovation and cross-sectoral applications of AI, and the launch last year of the AI Supercomputing Centre, which provides computing resources to universities, research institutions and enterprises.

On regulation and governance, Mr Chan said that Hong Kong is committed to developing a framework for the responsible use of AI. Internally, the Hong Kong Special Administrative Region Government has set up an “AI Efficacy Enhancement Team” to streamline workflows through the application of AI technologies, and is also developing a Digital Corporate Identity platform to enhance delivery of public services.

Mr Chan stressed the importance of enhancing preparedness among the public to prepare for the future of AI. Hong Kong is incorporating AI into all levels of education and expanding professional training programmes to strengthen the readiness of the city’s workforce with regard to AI.

The finance chief added that Hong Kong is striving to attract top global talent in relevant fields and that it places strong emphasis on supporting the digital transformation of small and medium-sized enterprises, having put in place various funding schemes and support measures to help businesses adopt emerging technologies and enhance their competitiveness.

Mr Chan proposed that APEC should strengthen co-operation through capacity building, knowledge and experience sharing, and technical support, especially with a view to assisting emerging and developing economies in bridging the digital divide.

He also advocated enhancing policy dialogue on AI regulatory frameworks, cross-border data flows and digital trade, and bolstering the regional innovation and technology ecosystem to support startups and cross-border research and collaboration.

In his remarks, he emphasised Hong Kong’s readiness to strengthen collaboration with fellow member economies to harness emerging technologies for the benefit of people and the region’s economic development.

In the afternoon, Mr Lam attended a number of sessions of the Structural Reform Ministerial Meeting.

Speaking at a thematic session, he said that Hong Kong stands firm in supporting a rules-based international economic order and is eager to build stronger ties with various economies and international organisations. On innovation, he iterated that Hong Kong has been facilitating digitalisation of trade documents, and outlined that relevant legislation will be reviewed to support the wider application of artificial intelligence.

Mr Chan will depart Incheon for Beijing later today.