2024 Budget Boost of $5 Billion to Support Logistics Industry Technology Adoption

In its 2024 fiscal budget, the Hong Kong government doubled down on supporting the development of the city’s logistics industry through a series of tangible aid measures. According to economic analysts, logistics contributes over 20% of Hong Kong’s GDP and many job opportunities, significantly impacting the economy.

Around 90% of global cargo trade is conducted via sea shipping. Hong Kong occupies an essential position in this shipping market because it has a prime geographic location, unique institutional strengths, and a wealth of international trade experience and networks. With support from China’s 14th Five-Year Plan and the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area, the government published the Marine and Port Development Strategy Action Outline in December last year to facilitate the sustainable growth of Hong Kong’s shipping and port industries and bolster their long-term competitiveness as an international shipping hub.

This year’s budget significantly increases funding for the Third-Party Logistics Service Provider Support Pilot Scheme to HK$5 billion, extending subsidies through March 2026. This policy aims to support businesses adopting new technologies like autonomous vehicles. Since launching, over 300 companies have received funding totaling nearly HK$2 billion.

Additionally, the budget continues pumping resources into projects promoting green transportation and workforce training. Infrastructure investments ramping up across the nine Greater Bay Area cities are expected to catalyze growth in Hong Kong’s logistics sector. The policies have earned widespread praise from logistics firms and industry bodies for being comprehensive and tangible, boding well for the industry’s long-term sustainable development.

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