PoD Research Institute

Recommendation for the 2026-27 Budget

News / /

Our team at the POD Research Institute met with the Financial Secretary to present our 2026–27 Budget Recommendations. We called for a strategy of prudent management and targeted investment, focusing on accelerating AI development, advancing the low‑orbit economy, strengthening public financial management, improving family‑friendly policies, and introducing a safeguarded mechanism for first‑time buyers to use limited MPF funds for down payments. With Hong Kong’s finances stabilising, this is a pivotal moment to invest in the city’s long‑term competitiveness.

We propose strengthening AI governance and establishing a strategic fund, launching low-track talent and international cooperation initiatives, introducing cost-benefit analysis and zero-based budgeting to enhance fiscal discipline, while also increasing the child tax exemption and introducing support vouchers for first-time parents. We also suggest allowing first-time homebuyers limited withdrawals of their Mandatory Provident Fund (MPF) for down payments under a prudent mechanism. With public finances returning to stability, now is the best time for Hong Kong to invest in its future.

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Centrist political groups strive to survive and win government research projects

Media Interviews / , /

Following the official liquidation and dissolution of the Civic Party last year, the Democratic Party Central Committee also decided a few days ago to set up a team to follow up on the dissolution process. In addition to political space, the survival of centrists in Hong Kong's political arena has attracted much attention, and fiscal constraints are another test. As far as I know, one of the self-proclaimed centrist organizations, Democratic Ideas, is currently conducting a research project with government resources. It is conducting in-depth interviews with stakeholders such as industry professionals, scholars and experts on the changes in press freedom in Hong Kong in recent years. These funded projects can alleviate financial pressure.

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The Hetao Cooperation Zone becomes a data "demonstration unit" to provide an ideal experimental platform for enterprises

Media Interviews / , /

Last month, the government announced the "Outline for the Development of the Hong Kong Park in the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone," proposing a number of innovative policies to promote circulation in the park. A think tank convener believes that the cooperation zone can serve as an ideal demonstration, allowing citizens and the industry to observe how cross-border data can meet the needs of different industries and services. Observe how to effectively manage and protect data.

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Cross-border circulation in the Bay Area is wider and easier. Data security legislation must be detailed and in place.

Media Interviews / , /

The data interconnection between Hong Kong and the Greater Bay Area brings convenience to Hong Kong. Last year, the government signed the "Standard Contract on Cross-border Flow of Personal Information in the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland and Hong Kong)" to simplify the procedures for cross-border data flow between the nine mainland cities in the Greater Bay Area and Hong Kong. The measures have had successful cases in the financial and medical sectors, and were expanded to all industries last month. Sectors such as education, culture and arts, and new productivity are also expected to benefit. Some data experts pointed out that Hong Kong needs to pay attention to protecting "data property rights" and data classification and classification, and suggested referring to the strict laws and regulations of the Mainland, establishing a legal framework and speeding up the formulation of a data security law. The digital economy is becoming a new main body of Hong Kong's development. Some lawyers have suggested that the authorities promote mutual recognition of identities, promote high-quality cross-border development in all aspects, and help integrate it into the overall national development.
Data interconnection and interoperability with the Greater Bay Area has brought many conveniences and benefits to Hong Kong. Last year, Hong Kong and the Cyberspace Administration of China signed the "Memorandum of Cooperation on Promoting Cross-Border Data Flows in the Guangdong-Hong Kong-Macao Greater Bay Area," and subsequently signed the "Standard Contract for Cross-Border Flows of Personal Information in the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland and Hong Kong)." This simplifies the compliance arrangements for cross-border flows of personal information between nine mainland cities and Hong Kong, removes quantitative restrictions on cross-border transfers of personal information, and simplifies personal information protection impact assessments. More sectors, including education, culture, and the arts, benefit.

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Crucial financial soft power

Economic Development / , /

"Hong Kong is finished" is full of lies, and the statement that it has lost its status as an international financial center is truly alarmist. Wang Linggui, deputy director of the Hong Kong and Macao Affairs Office of the State Council, sternly retorted, pointing out that Hong Kong’s prosperous economy is supported by the central government’s active policies and cannot become a relic. The volatile world situation creates ups and downs in the economic cycle. To simply judge Hong Kong’s status based on this would undoubtedly be to miss the forest for the trees and ignore the soft power of Hong Kong, which has long been ranked among the top international financial centers.

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Cross-border data flow in the Greater Bay Area

Greater Bay Area / , /

In order to develop a Bay Area economy with global influence and competitiveness, the Greater Bay Area emphasizes the circulation of factors such as people flow, logistics, capital flow, and information flow. The first three types of circulation have been promoted in recent years through cross-border transportation infrastructure, employment and residence certificates, streamlined customs clearance procedures, negative lists for market access, and foreign exchange management facilitation. The interconnection of information flows depends on eliminating cross-border data barriers. Last year, the SAR Innovation and Technology Bureau and the Cyberspace Administration of China signed a memorandum of understanding, which brought a breakthrough in the cross-border flow of data in the Guangdong-Hong Kong-Macao Greater Bay Area. In order to further promote the development of the digital economy, a standard contract for the cross-border flow of personal information was further launched at the end of last year, which is expected to reduce the compliance costs of enterprises.

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Fiscal budget is the politics of people's hearts and minds

Economic Development / , , /

This fiscal year is expected to record a fiscal deficit of more than 100 billion, and the tax revenue and land sales are not as strong as they were in the past. The next budget will undoubtedly be a deficit budget for the fifth consecutive year. The accounts are not ideal, but there is nothing wrong with it, because the epidemic has affected the global economy in the past three years, and the government's revenue has decreased, but it needs to allocate more resources to help citizens solve their difficulties. However, a long-term deficit economy always affects investor confidence. From a forward-looking perspective, Hong Kong needs to review long-term public finances from multiple parties, restore fiscal discipline within its means, and consolidate citizens' sense of security in economic operations. 

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Innovative thinking drives consumption growth

Economic Development / , , /

From February's "Hello, Hong Kong!" to launch global promotions, April's "Happy Hong Kong" to focus on local fun, to September's "Hong Kong Night Fun" to create nighttime vitality, the SAR government has prescribed prescriptions to revitalize the economy, aiming to Social mobilization to stimulate consumption and attract tourists. In the past, countercyclical measures were taken to do everything possible to rescue the market and preserve employment, but this also resulted in five consecutive years of fiscal deficit, making it difficult to expect the government to make large investments again. In the first half of the year, the interest rate differential between Hong Kong and the United States impacted the linked exchange rate. It was still too early to announce the interest rate cut cycle, and there were not many policy tools available to the government.

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