Media OutReach

KPMG: Government reserves remain robust, advocates for expanded asset management and innovation industries to boost economic growth

Published

11 months ago

28/02/2025

Resilient response to challenges, highlighting AI and Northern Metropolis

HONG KONG SAR – Media OutReach Newswire – 28 February 2025 – KPMG welcomes the Hong Kong Government’s Budget, recognising it as a well-considered strategy that balances the needs of society with economic development goals. The Budget focuses on key areas such as Artificial Intelligence (AI), infrastructure investment, and innovative industries, creating new opportunities for high-quality economic growth in Hong Kong while further strengthening its international competitiveness.

The Hong Kong SAR Government has revised its 2024/25 Budget, projecting a consolidated deficit of HKD 87.2 billion. By the end of March 2025, Hong Kong’s fiscal reserves are expected to reach HKD 647.3 billion, closely aligning with KPMG’s estimates of HKD 89.7 billion deficit and HKD 645 billion in reserves, indicating that fiscal reserves remain relatively robust. The projected GDP growth rate for 2025/26 has been adjusted to between 2% and 3%, down from the previous year’s forecast of 3.2%. KPMG attributes this revision to ongoing geopolitical uncertainties and a slower-than-expected decline in interest rates. To address these challenges, KPMG recommends that the government allocate more resources to high-growth sectors such as asset management and innovation, aiming to stimulate economic growth in Hong Kong and deliver benefits to the general public.

John Timpany, Head of Tax in Hong Kong, KPMG China, says: “In the Budget, the HKSAR Government has clearly positioned AI as the core driver for cultivating new quality productive forces, and is promoting its development through a series of policy measures, fully demonstrating Hong Kong’s ambition as an international innovation and technology hub. We are pleased to see the Government leveraging the advantages of ‘One Country, Two Systems’ to actively establish Hong Kong as an international exchange hub for the AI industry, and strengthening the integration of scientific research and industrial applications through projects such as Cyberport’s AI Supercomputing Centre, Hong Kong Microelectronics Research and Development Institute, and the soon-to-be-established Hong Kong Artificial Intelligence Research and Development Institute. This not only creates opportunities for local technology companies but also injects new momentum into the transformation and upgrading of traditional industries, narrowing the gap with other leading jurisdictions.”

Stanley Ho, Tax Partner, KPMG China, says: “To ensure the strategic infrastructure projects stay on schedule, KPMG believes that raising capital by issuing government bonds at a moderate pace is a wise move. We support the government’s commitment to using bond proceeds exclusively for infrastructure investments, ensuring they are not directed towards recurring government expenditures. This disciplined approach, outlined in the new bond program, should keep the government debt-to-GDP ratio at a manageable level and protect Hong Kong’s credit rating. We encourage the government to proactively explore ways to make infrastructure projects more cost-effective. Embracing technological innovations and encouraging public-private partnerships are two promising avenues for expense optimisation.”

Alice Leung, Tax Partner, KPMG China, says: “We welcome the Financial Secretary’s proposal to expand the classes of investments permitted under the family office tax regime. To make Hong Kong even more attractive to family offices, it makes sense to include digital assets and art as eligible investments. These are already common asset classes for family offices, so adding them to the regime could encourage more family offices to set up in Hong Kong. This would be a win-win, creating jobs and boosting demand across a range of professional services. Additionally, it is encouraging to see the government actively pursuing tax treaties with 17 jurisdictions – this is a significant step in supporting Hong Kong taxpayers investing overseas. We also applaud the government’s initiative to attract more commodity trading activity to Hong Kong through a competitive 8.25% tax rate. These measures will inject vitality into the local market, enhance liquidity, and further solidify Hong Kong’s role as an international financial centre.”

Chi Sum Li, Head of Government & Public Sector in Hong Kong SAR, KPMG China, said: “We support the government’s prioritisation of investment in developing the Northern Metropolis. The focus on key industries such as innovation and technology, high-end professional services, modern logistics, tertiary education, cultural, sports, and tourism in the area demonstrates a commitment to a diversified development blueprint. Meanwhile, the accelerated progress of projects like Kwu Tung North / Fanling North, along with the implementation of transport infrastructure including the Northern Link and Hong Kong-Shenzhen Western Railway, will enhance connectivity in the region and lay a solid foundation for commercial and innovation technology development. We believe the development of the Northern Metropolis will inject new vitality into Hong Kong’s economy and create better living and career prospects for citizens.”

In terms of nurturing and attracting talent, KPMG welcomes the government’s proposal to enhance the “New Capital Investment Entrant Scheme”. It is encouraging to know the scheme has already received over 880 applications with an expected HKD 26 billion in investments. We suggest lowering the residential property price threshold from HKD50 million to HKD 30 million. This would open up the scheme to a broader range of talents looking to invest in Hong Kong real estate and we don’t anticipate this change having a major impact on housing affordability for the general public. Additionally, the government can consider shortening the current seven-year waiting period for permanent residency applicants, to make the scheme even more attractive.

Amid fiscal constraints, the government has taken measures to control expenditure growth. For 2026/27 and 2027/28, the Financial Secretary announced a 2% annual reduction in the civil service, with an estimated reduction of approximately 10,000 positions by April 1, 2027. Additionally, a salary freeze for all personnel across the executive, legislative, judicial branches, and district councils has been proposed for 2025/26. KPMG believes that job cuts and the salary freeze are signals to the public that the government is closely monitoring its spending, as taxpayers would expect during a period of fiscal deficits. This demonstrates the Hong Kong government’s commitment to prudent management of public finances.

In light of the fiscal deficit and the aging population, KPMG supports the government’s proposed optimisation of the “HKD 2 Public Transport Fare Concession Scheme.” The proposal maintains eligibility for individuals aged 60 and above but introduces a monthly cap of 240 trips. Additionally, for fares of HKD 10 or more, the subsidy will be adjusted to a 20% discount of the full fare. These measures aim to balance the travel needs of the elderly and the silver economy with smarter use of public funds. At the same time, this will enable the government to more accurately forecast related expenditures in the future.

Hashtag: #KPMG

The issuer is solely responsible for the content of this announcement.

About KPMG

KPMG in China has offices located in 31 cities with over 14, 000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. It started operations in Hong Kong in 1945. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. In 2012, KPMG became the first among the “Big Four” in the Chinese Mainland to convert from a joint venture to a special general partnership.

KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.

KPMG firms operate in 142 countries and territories with more than 275, 000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.

Celebrating 80 years in Hong Kong

In 2025, KPMG marks “80 Years of Trust” in Hong Kong. Established in 1945, we were the first international accounting firm to set up operations in the city. Over the past eight decades, we’ve woven ourselves into the fabric of Hong Kong, working closely with the government, regulators, and the business community to help establish Hong Kong as one of the world’s leading business and financial centres. This close collaboration has enabled us to build lasting trust with our clients and the local community – a core value celebrated in our anniversary theme: “80 Years of Trust”.

Media OutReach

HKPC’s “Foresight 2026” Bridges Opportunities with the 15th Five-Year Plan Help Enterprises Grasp the Latest Economic and Technological Trends Create a Successful Road to Go Global

Published

1 day ago

04/02/2026

Media Outreach

HONG KONG SAR – Media OutReach Newswire – 4 February 2026 – The Hong Kong Productivity Council (HKPC) today successfully launched its annual flagship event, “ForeSight 2026”, at the HKPC Building, with the Office for Attracting Strategic Enterprises (OASES) as the strategic partner of the event. With the theme of “Empowering Hong Kong’s Innovation Ecosystem, Bridging Opportunities with the 15th Five-Year Plan”, the event brought together, both in online and offline, more than 500 government, business, industry leaders and approximately 16,000 viewers in Chinese Mainland to discuss how Hong Kong can proactively connect with the national “15th Five-Year Plan” and jointly promote innovation and industrial integration, helping enterprises achieve high-quality development and enhance international competitiveness.

The Honourable Paul CHAN Mo-po, GBM, GBS, MH, JP, Financial Secretary of the Government of the Hong Kong Special Administrative Region, officiated at the forum and expressed, “The country has consistently given strong support to Hong Kong’s development of innovation and technology. Whether in the ’14th Five‑Year Plan’ or in the recommendations for the ’15th Five‑Year Plan’, there is clear support for Hong Kong to develop into an international innovation and technology hub”. He added, “Looking ahead, we will continue to proactively align with national development strategies, promote the deep integration of technological innovation and industrial innovation, and further strengthen the linkage between technology and industry. We will encourage enterprises to devote more effort in research and development, expand the scope of technology applications, and nurture innovative enterprises with an international outlook and forward-looking vision, driving the economy toward a high value-added and more diversified future”.

The Honourable Sunny TAN, Chairman of Hong Kong Productivity Council, said in the closing remarks, “The ’15th Five-Year Plan’ brings significant and far-reaching development opportunities to Hong Kong. At the Political Bureau of the Communist Party of China Central Committee’s recent group study session, President Xi Jinping urged adopting a strategy whereby industry poses questions and science and technology provide the answers. HKPC will continue to play an active role in promoting innovation and industrial upgrading, closely echoing the overall development strategies of the national and HKSAR Government, and making good use of innovative technologies to address business challenges, providing comprehensive support to enterprises to accelerate their upgrading and transformation, enhance their competitiveness, and seize new opportunities”.

Unlocking Hong Kong’s Connectivity Advantages and Gathering Leadership Wisdom

The “ForeSight Visionary Leaders Panel” was held at the day, moderated by Mr Vincent WONG, Columnist and Media Veteran, and invited industry leaders including Ms ZHI Tao, Founder of Beijing Yunji Technology Ltd., Mr WANG Yong Chao, Founder and Chairman of Henan Oriental Materials Company Ltd., Mr Jonathan CHIU, President of Schneider Electric Hong Kong, Mr Peter YAN, JP, Director-General, Office for Attracting Strategic Enterprises of the Government of the Hong Kong Special Administrative Region, and Mr Mohamed D. BUTT, MH, Executive Director of Hong Kong Productivity Council, to share their insights. The topic features three key areas of enterprise going global, technological empowerment and talent development, and delved into the practical experience of how enterprises can achieve innovation-driven and high-quality development under the national “15th Five-Year Plan” through Hong Kong’s role as a “bridgehead”, Chinese brands going international through Hong Kong, Hong Kong’s advantages in technical support and innovative talent gathering, and how it can provide the Chinese Mainland enterprises with a one-stop platform for upgrading and going globally.

Realising the Full Empowerment of Enterprises to “Go Global”

HKPC echoes the national and HKSAR Government’s development strategies to address business challenges and industrial technology needs. Over the years, HKPC has successfully assisted many Chinese Mainland and local enterprises in expanding overseas markets, with many of these expansions implemented in Southeast Asia, Europe, ASEAN and the Middle East, etc., achieving upgrades and internationalisation. In recent years, HKPC and OASES have jointly established an “introduction-application-growth-go global” service model to help enterprises go global, with success cases include Westwell, Yunji Technology, UNISEE, etc. HKPC will continue to work with OASES to leverage the advantages of “Made in Hong Kong” to help enterprises connecting the world through Hong Kong.

Mr Peter YAN, JP, Director-General, Office for Attracting Strategic Enterprises of the Government of the Hong Kong Special Administrative Region, said, “Hong Kong possesses a robust financial system, deep talent pool, and an international environment that integrates with international regulations, standards and operation practices. Coupled with the government’s relevant industry policies and long-established overseas networks, Hong Kong provides unique support for Chinese Mainland enterprises to use Hong Kong as a base to go global, as well as for overseas enterprises to development in the GBA. OASES is dedicated to attracting global strategic enterprises from five strategic I&T sectors, actively aligning with the national 15th Five-Year Plan. We provide comprehensive landing support services and assist enterprises in establishing their ‘first project’ in Hong Kong, fully leveraging Hong Kong’s role as a ‘Super Connector’ and ‘Super Value-Added'”.

At the same time, HKPC, as a member of the GoGlobal Task Force of the HKSAR Government, will continue to focus on providing “Six Tactics to Go Global” for enterprises through “The Cradle Go Global Service Centre” (The Cradle), including smart production, Technology research and development and evaluation, international standards and testing, professional services, training and on-site visits, and funding schemes, to support Hong Kong to leverage its unique advantages and empower enterprises to expand overseas with high quality.

Since its establishment in April, The Cradle has attracted more than 350 companies that have expressed interest in using its services. Among these, over 100 cases have entered a concrete follow‑up stage. Together with overseas expansion projects supported prior to its establishment, the cumulative total exceeds 450 cases.

For more details, please watch the video “Six Tactics to Go Global“.

Bringing the strengths of Government, Industry, Academia, Research and Investment to Build an Innovative Industrial Ecosystem

HKPC has been working closely with the government, industry, academia, research and investment sectors to promote new industrialisation and enhance the new quality productive forces of industries, including:

The major project led by Harbin Institute of Technology on key technologies and equipment for circular economy: Provide dynamic identification and big data resource pool construction solutions for multi-source solid waste in megaurban agglomerations
The project led by Jiangsu University on wheat green smart processing and key technology integration and industrialisation demonstration: Provide core technical support such as AI and the Internet of Things
Tsinghua University: Jointly established a technology centre to focus on the industrial transformation of intelligent manufacturing and AI technology
Zuquan Research Institute of Fudan University: Signed a cooperation agreement to promote collaboration and transformation of scientific and technological outcomes between Shanghai and Hong Kong

HKPC will continue to promote cross-sectoral dialogue between government, industry, academia, research and investment, focusing on the implementation of future industries and technology applications, and helping to build Hong Kong into a key node in the global I&T value chain.

Click here to download the high-resolution photos

Photo caption:

HKPC’s annual flagship event, “ForeSight 2026”, themed “Empowering the Innovation Ecosystem and Bridging Hong Kong with New Opportunities under the 15th Five‑Year Plan,” brought together numerous government and business leaders.
The Honourable Paul CHAN Mo-po, GBM, GBS, MH, JP, Financial Secretary of the Government of the Hong Kong Special Administrative Region, delivered a speech as the guest of honour at the “ForeSight 2026”, pointing out that going forward, efforts will continue to proactively align with national development strategies and promote the deep integration of technological innovation and industrial innovation.
The Honourable Sunny TAN, Chairman of the Hong Kong Productivity Council and Legislative Council Member, said in his closing remarks that the Productivity Council will leverage innovation and technology to address enterprises’ real pain points, provide all‑round support to help enterprises accelerate their upgrading and transformation, enhance competitiveness, and seize new opportunities.
The Honourable Paul CHAN Mo‑po, Financial Secretary of the Government of the Hong Kong Special Administrative Region, GBM, GBS, MH, JP (centre); The Honourable Sunny Tan, Chairman of the Hong Kong Productivity Council and Legislative Council Member (second from right); Mr Peter YAN, JP, Director-General, Office for Attracting Strategic Enterprises (second from left); Mr Emil YU, BBS, JP, Deputy Chairman of the Hong Kong Productivity Council (far right); and Mr Mohamed D. BUTT, MH, Executive Director of the Hong Kong Productivity Council (far left), attended HKPC’s annual flagship event, “ForeSight 2026”.
Moderated by veteran media professional Dr. Vincent WONG, industry leaders shared their insights at the “ForeSight Visionary Leaders Panel”.

(From right to left) Mr Peter YAN, JP, Director-General, Office for Attracting Strategic Enterprises; Mr Jonathan CHIU, President, Hong Kong, Schneider Electric Hong Kong; Mr WANG Yong Chao, Founder & Chairman of Henan Oriental Materials Company Limited; Ms ZHI Tao, Founder of Beijing Yunji Technology Ltd.; and Mr Mohamed D. BUTT, MH, Executive Director of the Hong Kong Productivity Council.

Hashtag: #HKPC #Foresight2026

The issuer is solely responsible for the content of this announcement.

About Hong Kong Productivity Council

The Hong Kong Productivity Council (HKPC) is a statutory body established in 1967, dedicated to enhancing the productivity and competitiveness of Hong Kong enterprises through world-class applied R&D, innovative technology services, and integrated manufacturing solutions. As a market-oriented, international R&D organisation, HKPC leverages its deep expertise and extensive industry experience in key areas such as AI, advanced manufacturing, life and health technology, green technology and new energy to drive new industrialisation and support the growth of emerging and future industries.

HKPC focuses on addressing business challenges and industrial technology needs, promoting the full integration between technological and industrial innovation. Through technology transfer, product innovation, intellectual property protection and commercialisation of R&D outcomes, the Council fosters collaboration with the local business community as well as top global R&D institutions, delivering added value to industries and advancing the development of new productive forces. HKPC’s world-class R&D achievements have been widely recognised over the years, winning an array of local and overseas accolades, reinforcing Hong Kong’s role as an international innovation and technology centre and a smart city.

To help enterprises capitalise on Hong Kong’s strengths in international connectivity to expand into global markets, HKPC offers comprehensive overseas expansion services tailored to critical areas including product development, technology, manufacturing, and management, enabling businesses to successfully go global from Hong Kong.

HKPC is also committed to providing timely and practical support to SMEs and startups with timely and practical, assisting them in accessing Government funding programmes. Through its FutureSkills training initiatives, HKPC helps both industry and academia stay ahead in latest digital and STEM technologies, nurturing a future-ready talent pool for Hong Kong.

For more information, please visit HKPC’s website: www.hkpc.org/en.

Media OutReach

HKPC’s “Foresight 2026” Bridges Opportunities with the 15th Five-Year Plan Help Enterprises Grasp the Latest Economic and Technological Trends Create a Successful Road to Go Global

Published

1 day ago

04/02/2026

Media Outreach

Realising the Full Empowerment of Enterprises to “Go Global”

For more details, please watch the video “Six Tactics to Go Global“.

Bringing the strengths of Government, Industry, Academia, Research and Investment to Build an Innovative Industrial Ecosystem

The major project led by Harbin Institute of Technology on key technologies and equipment for circular economy: Provide dynamic identification and big data resource pool construction solutions for multi-source solid waste in megaurban agglomerations
The project led by Jiangsu University on wheat green smart processing and key technology integration and industrialisation demonstration: Provide core technical support such as AI and the Internet of Things
Tsinghua University: Jointly established a technology centre to focus on the industrial transformation of intelligent manufacturing and AI technology
Zuquan Research Institute of Fudan University: Signed a cooperation agreement to promote collaboration and transformation of scientific and technological outcomes between Shanghai and Hong Kong

Click here to download the high-resolution photos

Photo caption:

HKPC’s annual flagship event, “ForeSight 2026”, themed “Empowering the Innovation Ecosystem and Bridging Hong Kong with New Opportunities under the 15th Five‑Year Plan,” brought together numerous government and business leaders.
The Honourable Paul CHAN Mo-po, GBM, GBS, MH, JP, Financial Secretary of the Government of the Hong Kong Special Administrative Region, delivered a speech as the guest of honour at the “ForeSight 2026”, pointing out that going forward, efforts will continue to proactively align with national development strategies and promote the deep integration of technological innovation and industrial innovation.
The Honourable Sunny TAN, Chairman of the Hong Kong Productivity Council and Legislative Council Member, said in his closing remarks that the Productivity Council will leverage innovation and technology to address enterprises’ real pain points, provide all‑round support to help enterprises accelerate their upgrading and transformation, enhance competitiveness, and seize new opportunities.
The Honourable Paul CHAN Mo‑po, Financial Secretary of the Government of the Hong Kong Special Administrative Region, GBM, GBS, MH, JP (centre); The Honourable Sunny Tan, Chairman of the Hong Kong Productivity Council and Legislative Council Member (second from right); Mr Peter YAN, JP, Director-General, Office for Attracting Strategic Enterprises (second from left); Mr Emil YU, BBS, JP, Deputy Chairman of the Hong Kong Productivity Council (far right); and Mr Mohamed D. BUTT, MH, Executive Director of the Hong Kong Productivity Council (far left), attended HKPC’s annual flagship event, “ForeSight 2026”.
Moderated by veteran media professional Dr. Vincent WONG, industry leaders shared their insights at the “ForeSight Visionary Leaders Panel”.

Hashtag: #HKPC #Foresight2026

The issuer is solely responsible for the content of this announcement.

About Hong Kong Productivity Council

For more information, please visit HKPC’s website: www.hkpc.org/en.

Media OutReach

AUSTRIACARD Successfully Achieves mada Card Chip Profile Certification

Published

1 day ago

04/02/2026

Media Outreach

Major Milestone Enables AUSTRIACARD to Serve Banking Sector in Kingdom of Saudi Arabia

VIENNA, AUSTRIA – EQS Newswire – 4 February 2026 – AUSTRIACARD HOLDINGS is proud to announce it has successfully obtained the Card Chip Profile certification (Certificate No. CV071) with the Saudi Central Bank (SAMA) for the mada debit card scheme, marking a significant milestone in the company’s expansion strategy.

This certification represents a major and important achievement for AUSTRIACARD, demonstrating the company’s commitment to meeting the highest international standards for payment card technology. The successful completion of SAMA’s rigorous certification process validates AUSTRIACARD’s technical excellence and quality standards in chip card manufacturing.

“We are immensely proud of this achievement,” said Mohamed Chemloul, Group CTO of AUSTRIACARD HOLDINGS. “This certification stands as a testament to our team’s dedication to excellence and our commitment to delivering world-class payment solutions. This achievement allows AUSTRIACARD to add KSA banks and financial institutions to our growing family of satisfied customers worldwide, further strengthening our position as a trusted partner in the global payments industry.”

Burak Bilge, EVP Türkiye, Middle East and Africa at AUSTRIACARD HOLDINGS, emphasized: “This certification enables us to bring our full suite of payment card solutions to the Saudi market. We are committed to being a long-term partner in the KSA and the broader Middle East region’s success journey, supporting the digital transformation initiatives. We look forward to partnering with banks and financial institutions to support their growth objectives and enhance their customer’s experience.”

The Kingdom of Saudi Arabia (KSA) represents one of the most dynamic and rapidly evolving financial markets in the Middle East and North Africa region. With Vision 2030 driving digital transformation across all sectors, Saudi Arabia’s payment ecosystem is experiencing unprecedented growth and modernization. The mada scheme, as the national payment network, plays a crucial role in the KSA’s financial infrastructure, processing millions of transactions daily.

AUSTRIACARD is a global provider of identity and payment solutions with a strategic focus on digital transformation technologies powered by proprietary technology and AI capabilities. Headquartered in Vienna, Austria, the company operates 9 manufacturing hubs across strategic markets in Europe and the United States, maintaining a global sales footprint that ensures client proximity and service excellence.

ABOUT AUSTRIACARD HOLDINGS AG

AUSTRIACARD HOLDINGS AG leverages over 130 years of experience in information management, printing, and communications to deliver secure and transparent experiences for its customers. They offer a comprehensive suite of products and services, including payment solutions, identification solutions, smart cards, card personalization, digitization solutions, and secure data management. ACAG employs a global workforce of 2,400 people and is publicly traded on both the Athens and Vienna Stock Exchanges under the symbol ACAG. www.austriacard.com

Contact Person: Theoni Dimopoulou, Group Communications & Marketing Manager
Tel.: T: +43 (1) 61065 – 355
E-Mail: [email protected]
Website: www.austriacard.com
Symbol: ACAG
ISIN: AT0000A325L0
Stock Exchanges: Vienna Prime Market, Athens Main Market

Hashtag: #AUSTRIACARD

The issuer is solely responsible for the content of this announcement.