06-11-2026 
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Hong Kong plans to allocate HK$300 million (US$38.29 million) this year to enhance its ‘Digital Transformation Support Pilot Programme,’ aimed at helping small and medium enterprises (SMEs) in adopting artificial intelligence and cybersecurity solutions.
- Hong Kong invests in digital transformation for SMEs
- AI applications for life sciences, health, and ’embodied intelligence’
- Hong Kong’s AI research and innovative technology development
In a June 7 blog post about Hong Kong’s AI investment and development, Hong Kong Financial Secretary Paul Chan revealed that the Special Administrative Region is planning to allocate the new funds to “promote the optimized Digital Transformation Support Pilot Scheme.”
The injection of HK$300 million (US$38.29 million) will focus on helping SMEs “leverage existing AI and cybersecurity digital solutions, including helping them predict consumer trends, optimize marketing, and automate daily operations,” read the post.
Hong Kong’s Digital Transformation Support Pilot Programme (DTSPP) was launched in January 2024 to speed up the pace of digital transformation of SMEs by providing eligible businesses—SMEs from the food and beverage, retail, tourism or personal services industry sectors, either registered in Hong Kong or with a valid fixed-pitch hawker license—1:1 matching funding of up to HK$50,000 (US$6,381), to assist them in applying ready-to-use basic digital solutions.
Initially, the Government of Hong Kong set aside HK$500 million (US$63.81 million) for implementing the program. However, with rapidly evolving AI technology reshaping the way businesses operate across the globe and sectors, the Special Administrative Region deemed it necessary—or beneficial—to provide a further injection of funds specifically aimed at boosting local SMEs’ use of AI.
“In recent years, we have been rapidly advancing AI development around key areas such as computing power, basic research, talent, and application scenarios,” said Financial Secretary Chan. “The AI era will test society’s overall readiness for technological innovation, including digital infrastructure, regulatory systems, technology applications, innovation systems, and talent training. We must plan ahead, prepare well, and seize the future.”
Chan also announced on Sunday that the “AI+ and Industry Development Strategy Committee”—established by the 2026-2027 Budget that was revealed at a Hong Kong Legislative Council session on February 25, 2025—has been formally set up.
The committee’s members include experts, scholars, and representatives from chambers of commerce, enterprises, and park companies.
The first meeting is expected to be held this month, with Chan saying the initial focus will be on life sciences, health, and “embodied intelligence,” as well as on strategies for AI applications across various fields, such as transportation, cultural and creative industries, and sustainable development.
Further, the government has allocated HK$50 million (US$6.38 million) to launch “AI training for all,” a series of 200 events expected to be hosted over the course of the next two years, including courses on AI application, lectures, and competitions. Chan said the series should benefit some 50,000 people.
These initiatives announced by the Financial Secretary on Sunday are very much in keeping with the government’s increased push to embrace AI development and investment.Hong Kong AI focus
In March 2025, Hong Kong’s digital business hub, “Cyberport,” unveiled its 2025-2026 budget that showed significant spending by the Chinese Special Administrative Region on AI.
Specifically, Cyberport secured HK$1 billion (US$127.6 million) to establish the ‘Hong Kong AI Research and Development Institute’, aimed at pioneering cutting-edge research and development.
A lump sum was also earmarked to increase Cyberport’s computing power to 3,000 petaFLOPs annually, with the expansion serving as the foundation for ecosystem development in Hong Kong, while an additional HK$3 billion (US$383 million) was designated to fund research and development efforts for large language models (LLMs).
In August 2025, Cyberport collaborated with the Hong Kong Monetary Authority (HKMA), the territory’s central bank, to launch a GenAI Sandbox that provided a risk-controlled environment for authorized banking-sector institutions to develop and test innovative AI-based solutions. It also explored AI vs. AI strategies to manage risks associated with AI adoption, including the use of AI to perform automated quality checks on AI-generated outputs.
More recently, Hong Kong’s finance and banking sector regulators expanded this sandbox by launching the ‘GenAI Sandbox++,’ a collaboration among regulators, financial institutions, and technology firms, with a focus on risk management, anti-fraud measures, and customer experience.
The updated sandbox was launched this March by the HKMA, the Securities and Futures Commission (SFC), the Insurance Authority (IA), and the Mandatory Provident Fund Schemes Authority (MPFA), in collaboration with Cyberport.
The new Sandbox++ expands the project to cover multiple financial sectors, including banking, securities and capital markets, asset and wealth management, insurance, mandatory provident fund (MPF), and stored value facilities, whilst continuing to implement strategies to “manage the risks associated with AI adoption.”
Sunday’s blog from Hong Kong Financial Secretary Chan appears to suggest the Special Administrative Region remains committed to its AI strategy, and intends to bring as many local businesses as it can along for the ride.
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