Secretary for Transport and Logistics Mable Chan on Monday said Hong Kong is at a critical juncture of reforms as it eyes becoming a hub for the low-altitude economy.

Such an economy covers applications such as drone deliveries, flying vehicles and taxis, aerial sightseeing and other agricultural and emergency rescue services using airspace below 1,000 metres.

Chan's remarks came as the SAR government launched the "Regulatory Sandbox X" pilot projects to explore more complex and mature application scenarios in this field, such as using low-altitude aircraft to carry passengers along designated cross-boundary routes.

Speaking at the launch event at the Hong Kong Productivity Council in Kowloon Tong, Chan said Hong Kong had to be "innovative" to be able to capture opportunities brought by this emerging industry.

"We will take on challenges in these projects and hope to set up our own standards and product certifications, whether it be in cross-border logistics and distribution or when we are selecting some of the most advanced unmanned aerial vehicle equipment," she said.

"So these would lead the city to become a hub for innovative applications in developing the low-altitude economy.

"After we accumulate sufficient data and experience, we will bring some of the most mature, advanced and qualified projects into commercial application, hoping they will truly bring economic benefits to Hong Kong."

The projects, outlined in Chief Executive's Policy Address in September, are expected to officially begin early next year, according to Chan.

The first batch of "Regulatory Sandbox" pilot projects came in March, with 29 out of 38 projects already commencing operations to explore applications, such as using drones to deliver medical resources from Cyperport to Cheung Chau in just 18 minutes, instead of the typical 45 minutes.

Chan said the "Regulatory Sandbox X" pilot projects would be an "extended" and more advanced version of such trials.

She noted that the government hopes to unveil an action plan by the end of next year to further boost the growth of the low-altitude economic sector.

"It's hoped that we can introduce this action plan as soon as possible, to serve as [a guide] to build the top-level design of the basic infrastructure for the entire low-altitude economy," Chan said.

"This blueprint would include flight routes and destinations, as well as the supporting facilities on the ground, so it can provide the industry with a very clear and forward-looking direction for development."

Also speaking at the event was Edmond Lai, the Productivity Council's chief digital officer, who noted that the new projects would focus more on technically complicated applications, such as having non-traditional aircraft weighing over 150 kilos conduct cross-border operations.