Artificial intelligence will be at the heart of the government's efforts to turn the city into an Innovation and Technology (I&T) and science centre for Asia, according to the financial secretary.

As he delivered the budget for 2025-26, Paul Chan pledged the government would support Hong Kong's R&D efforts as well as the industrial application of AI.

Chan said the government would set aside HK$1 billion for the establishment of the Hong Kong AI Research and Development Institute.

The finance chief also said the city would enter the Low Earth Orbit satellite sector, calling it the "new trend in global satellite development".

The Commerce and Economic Development Bureau and the Office of the Communications Authority would explore a set of streamlined procedures for vetting licence applications for operating Low Earth Orbit satellites, with the relevant work to be completed by this year.

Additionally, the government would draw up a medium- to long‑term development plan for new industrialisation in Hong Kong, with a HK$10 billion I&T Industry‑Oriented Fund to channel more capital to invest in emerging and future industries of strategic importance.

Chan said the government would invite relevant organisations show their interest in the plans and will to seek funding approval from Legco in the middle of this year.