The first phase of pilot projects on developing the low-altitude economy will focus on using drones for food delivery and transporting cargo with Cyberport and Science Park being in the pipeline, the government said on Saturday.

In this week's Policy Address, the chief executive said the government will set up a working group that will explore how the city can benefit from the use of drones and other aerial technology to provide services such as transporting goods and people.

Deputy Financial Secretary Michael Wong, who led the working group, told a press conference that officials will work with industry partners on pilot projects, starting applications at the end of this year and launching "regulatory sandboxes" early next year.

"We expect that the first phase will mainly focus on aerial monitoring and some drone cargo delivery, such as delivering food and transporting lightweight goods like mail and medications," he said.

"We also hope that the pilot locations and routes can cover areas in Hong Kong with different terrains, landscapes, and densities. Some areas that could be considered include Science Park, Cyberport, outlying islands, and the Northern Metropolis."

This plan requires amending existing laws and creating new ones, especially a regulatory framework for drones over 25 kg.

Wong said the government aims to submit a draft bill to the Legislative Council in early 2025.

He said while the mainland's low-altitude economy is growing rapidly, it's too early to estimate Hong Kong's potential revenue from this sector.

"As our work is in its initial stages, it would be somewhat unrealistic to mention many specific figures at this point or to predict future economic contributions. This is because the mainland is a bit ahead of us in this area, and their data comes from big data."