Hong Kong lawmakers have heaped praise on the annual budget address, particularly the focus on promoting artificial intelligence (AI) and funding for Northern Metropolis projects.

Speaking to reporters on Wednesday, after Financial Secretary Paul Chan delivered his budget speech, lawmakers said they were pleased authorities had adopted many of their parties’ suggestions, such as injecting HK$500 million into the Chinese Medicine Development Fund and raising the child allowance to HK$140,000.

Elizabeth Quat, a lawmaker from the Democratic Alliance for the Betterment and Progress of Hong Kong (DAB), said the government’s AI initiatives showed its aim to promote AI to the whole community.

She highlighted the government’s allocation of HK$50 million to boost AI literacy, including through university courses.

“This will allow young people, the public, and students to further use AI effectively,” Quat said in Cantonese.

At a separate press conference, Jimmy Ng, chairperson of the Business and Professionals Alliance (BPA), reiterated the party’s long support for the Northern Metropolis plan, the government’s ambitious HK$224 billion infrastructure initiative to develop 30,000 hectares of land along the Shenzhen border.

He lauded the government’s HK$10 billion injections each towards developing the San Tin Technopole, the Hetao Hong Kong Park, and the Hung Shui Kiu Industry Park Company – all part of the Northern Metropolis project.

“The Northern Metropolis is the most important… for Hong Kong’s future development,” Ng said in Cantonese. “It absolutely cannot wait.”

Chan said during the budget speech that the government would provide HK$10 billion in loans to “support campus development.”

Priscilla Leung, BPA vice chairperson, applauded the government’s support for universities to open campuses in the Northern Metropolis University Town – a move she said could help attract talent to Hong Kong.

Electric vehicle scheme axed

Chan’s budget speech was the first for the sitting Legislative Council (LegCo) members, who began their term in January.

The current legislature is the second cohort of lawmakers elected after an electoral reform in 2021, designed to ensure only those deemed “patriots” can run for office.

This year’s budget included sweeteners for the public, such as tax concessions, allowances, and extra payments under social security schemes. However, the government did not take on the DAB’s suggestion to distribute retail and catering vouchers via a lucky draw.

DAB lawmaker Holden Chow said during the party’s press conference that he would not say the relief measures were “not enough,” citing a volatile external environment.

Gary Chan, DAB chairperson, expressed some concern over the government ending its electric vehicle tax reduction measures, known as the “One-for-One Replacement Scheme.”

“I think this could cause the development of the electric vehicle [industry] in Hong Kong to slow down,” Chan said in Cantonese.

He added that this could affect the supply chain and stakeholders, including those running charging and battery recycling businesses.

New People’s Party member Dominic Lee said he was worried that the scheme’s suspension could affect China’s carbon neutrality goals.