Hong Kong maps new future with first five-year development plan

Hong Kong has unveiled its first five-year plan for economic and social development, setting out a roadmap for 2026-2030 focused on economic competitiveness, innovation and technology, the Northern Metropolis, Greater Bay Area integration, housing and social welfare.

Chief Executive John Lee announced the plan at the Legislative Council on Wednesday alongside his 2026 Policy Address. The blueprint covers seven major areas and sets out 105 indicators to monitor implementation, providing medium- and long-term direction for the city’s development.

Lee described the 2026-2030 period as crucial for Hong Kong’s transition from stability to prosperity, improving people’s well-being and building a better home for residents.

The plan seeks to strengthen Hong Kong’s position as an international financial, maritime and trading centre, while developing the city as an international innovation and technology hub and a global centre for high-calibre talent.

Innovation and technology are expected to play a growing role in the city’s economic transformation. The government aims to raise total local expenditure on innovation activities to 3 per cent of GDP after 2030, with artificial intelligence, microelectronics, life and health technology, robotics and other strategic technology sectors among its priorities.

The Northern Metropolis, along Hong Kong’s northern boundary with Shenzhen, is another major focus. The five-year plan targets 900 hectares of “spade-ready” sites and the completion of 70,000 housing units there during the period. The development is intended to provide land for industry, technology, housing and employment.

Greater integration with the Guangdong-Hong Kong-Macao Greater Bay Area is also a key priority. The plan calls for stronger connectivity and closer cooperation in transport, professional services, healthcare, culture and tourism. It also aims to facilitate cross-border flows of capital, talent and other resources while expanding Hong Kong’s international collaboration network.

The new blueprint comes as Hong Kong reports stronger economic performance following several years of disruption. According to the 2026 Policy Address, the economy contracted by 3.7 per cent four years ago but grew by 3.6 per cent in 2025. In the first half of 2026, GDP expanded by 5.1 per cent year on year, the strongest half-year performance in almost five years, while total exports of goods rose by more than 26 per cent. GDP exceeded HK$3.3 trillion in 2025.

The government also highlighted progress in employment and housing. Median monthly employment earnings among citizens rose by a cumulative 20 per cent over the past four years, according to the Policy Address.

On housing, the government plans to increase public housing supply, with total public housing production, including Light Public Housing, expected to reach about 196,000 units over the next five years. It also aims to reduce the composite waiting time for subsidised rental housing to below four years by 2030-31.

Social welfare and public services feature prominently in the strategy. The plan includes measures to strengthen the social protection system and improve people’s well-being, while the Policy Address covers healthcare, education, youth development, elderly care and workers’ protection.

The government has linked the five-year blueprint with China’s 15th Five-Year Plan, which began in 2026. Lee said the Hong Kong plan would align the city’s development more closely with national development strategies and enable it to better integrate into and contribute to national development.

The plan also places the “one country, two systems” principle at the centre of Hong Kong’s long-term development framework, alongside national security, executive-led governance and efforts to improve governance effectiveness.

The first five-year plan marks a move towards more structured long-term planning for Hong Kong. Alongside its traditional strengths in finance, trade and services, the city is seeking to broaden its economic base through technology, innovation, talent development, regional integration and new urban development.

The 2026-2030 period will now provide the framework for translating the plan’s targets into projects and measurable outcomes as Hong Kong seeks to shape its next phase of economic and social development.