Chief Executive John Lee today identified innovation in the health sector, digitalisation across key industries, and an expansion of the city’s Intellectual Property (IP) trading ecosystem as key drivers of new quality productive forces in Hong Kong.

Delivering his 2024 Policy Address, Mr Lee said the Government will combine technological and institutional innovation to develop Hong Kong into an international health and medical innovation hub, accelerate the development of the digital economy and its integration with the real economy, and take steps to strengthen the city’s position as a regional IP trading centre.

On the first of these ambitions, the Chief Executive pledged to expedite reforms to the approval mechanism for drugs and medical devices, enhance Hong Kong’s clinical trial capabilities on all fronts, and facilitate the translation of innovative biomedical research into clinical applications.

With regard to the approval of drugs, the “1+” mechanism will be extended to all new items, including vaccines and advanced therapy products, and refined to speed up the registration process. Meanwhile, preparatory work will be undertaken for the statutory regulation of medical devices, and timetables will be drawn up for establishing a Hong Kong Centre for Medical Products Regulation, the adoption of “primary evaluation”, and measures to facilitate research and development (R&D).

In terms of clinical trial capabilities, Hong Kong will join hands with Shenzhen to establish the Greater Bay Area (GBA) Clinical Trial Collaboration Platform. A Real-World Study and Application Centre will also be established to open up local health and medical databases and promote co-operation between Hong Kong and Shenzhen on the integration of data generated from the “special measure of using Hong Kong-registered drugs and medical devices used in Hong Kong public hospital in the GBA.”

In addition, Mr Lee set forth a number of policies designed to accelerate the digital transformation of industries and promote integration of the digital economy with the real economy.

He outlined that the Government will push forward reforms relating to the digitalisation of enterprises and trade. The Commerce & Economic Bureau is developing a Trade Single Window, a one-stop electronic platform that will allow enterprises to lodge import and export trade documents more conveniently and efficiently.

In the area of fintech, Mr Lee said that the Financial Services & the Treasury Bureau (FTSB) is due to issue a policy statement setting out its position on the application of AI (Artificial Intelligence) in the financial market. The FTSB will also complete the second round of a public consultation on regulatory proposals for over-the-counter trading of virtual assets.

In addition, the Monetary Authority (HKMA) is looking into add-on technology solutions and use cases related to cross-boundary trade settlement on the mBridge platform. It is also exploring the application of real-world asset tokenisation and the use of digital money for interbank settlements, and will work with the FTSB to introduce a bill on the regulation of fiat-referenced stablecoin issuers later this year.

Mr Lee also mentioned efforts by the Hong Kong Housing Authority (HKHA) to promote smart construction and management of public rental housing estates. The HKHA has selected 10 such estates as pilot sites for smart estate management, and plans to introduce digital technologies in daily estate management work.

Meanwhile, the Department of Justice will set up an Advisory Group on Promoting the Development of Lawtech to formulate policies and measures on the application of lawtech.

With regard to expansion of Hong Kong’s IP trading ecosystem, Mr Lee highlighted that IP-intensive industries account for about 30% of Hong Kong’s Gross Domestic Product and total employment. He vowed to strengthen the city’s position as a regional IP trading centre in relation to innovation and technology, as well as the creative industries.

Specifically, he said a proposal will be put forward next year to enhance the Copyright Ordinance with regard to AI technology development. A consultation will be launched, also in 2025, on the registered designs regime, and legislative amendments to streamline IP litigation processes will be proposed.

Moreover, the Trade Marks Registry, under the Intellectual Property Department, will next year launch a new AI-assisted image search service for public use.

Mr Lee added that the Government will continue discussions with patent agents and other stakeholders about introducing regulatory arrangements for local patent agency services, with the aim of nurturing professional talent and enhancing service quality.