Policy address complements Five-Year Plan in Hong Kong

Chief Executive CY Leung promised to submit proposals to complement the National 13th Five-Year Plan in last year's address. Many complementary proposals are spotted in this year's policy address. Most notably, a section was devoted to "13th Five-Year Plan and the Belt and Road Initiative". Initiatives broadly include the setting up of offices and platforms for communication with the mainland and Belt and Road countries.

A whole new section was dedicated to "Innovation and Technology", with emphasis on both hardware (develop Science Park and Industrial Estates) and software (Wi-Fi improvements, formulate plans on big data applications and smart city development). Subsidies to specialized technology funds are being mobilized to foster local entrepreneurship ($2 billion to set up an Innovation and Technology Venture Fund). The emphasis on innovation and entrepreneurship is strikingly similar to that of the 13th Five-Year Plan. Similarities can also be found in the "economy" section. 

The focus this year is largely on manpower training in high value-added sectors, such as maritime services and cultural/creative tourism. This rings a familiar bell as mainland China is also actively supporting high value-added sectors. Leung offered no surprises on housing policies as expected. The government promises to produce 76,700 public rental housing units and 20,400 subsidized sale units over the next five years. The potential primary market supply would be 87,000 units in the next 3-4 years. 

Most significant of all is the implementation of free kindergarten education from the 2017/18 school year, meaning an estimated 70%-80% of places in half-day kindergartens will become free-of-charge. Specific policies to foster a more inclusive society, such as those helping to integrate the disabled and the elderly, were also covered in detail.