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Hong Kong budget plans put education, AI and talent at the center

Hong Kong will spend $112 billion on education in 2026-27 as it pushes AI, STEAM and campus expansion to draw global talent.

Opinion | How markets will test Hong Kong’s new economic model
Opinion | How markets will test Hong Kong’s new economic model

Hong Kong will spend $112 billion on education in 2026-27 as the government moves to deepen links between schools, technology and talent development. Education Secretary said on April 16 that the administration wants to push the city toward its goal of becoming an international hub for education and high-calibre talent.

Choi told a special meeting of the that education is key to nurturing talent and said the government aims to proactively align with the . She said Hong Kong Special Administrative Region Government intends to promote the integrated development of education, technology and talent, a line that now runs through its spending plans and campus expansion agenda.

Education spending in 2026-27 will account for about 13.3 per cent of total government expenditure, while recurrent education expenditure will reach $102.3 billion, or around 17.1 per cent of recurrent spending. The figures show how central education remains to the budget as Hong Kong tries to reinforce its standing in a region where universities, research and skilled workers compete for the same attention and funding.

The has also set aside $40 million in the 2025-28 triennium for the eight UGC-funded universities to promote the brand. In the same period, those universities will introduce 27 undergraduate programmes related to STEAM, including artificial intelligence, creative industries and data science, giving the sector a stronger pipeline of courses tied to the city’s push into higher-value areas.

The government said it will roll out three sites at the Hung Shui Kiu/Ha Tsuen New Development Area for UGC-funded universities and universities of applied sciences to apply for campus development, and has earmarked $10 billion in loans to support such projects in the Northern Metropolis. The Northern Metropolis University Town is being positioned as a place where campus development and supporting facilities can grow alongside the wider buildout of the area.

There is also a clearer policy shift toward AI. Starting from the 2027/28 academic year, the government will give priority consideration to AI-related programmes under the , and it is backing the in adding AI applications and related content to the compulsory generic information technology module.

The direction is straightforward: Hong Kong is using education policy, land supply and targeted subsidies to build a talent base that fits its economic ambitions. The open question is not whether the city wants more students and more advanced training, but how quickly those plans can turn into campuses, courses and graduates.

Tags: hong kong
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