Hong Kong budget earmarks HK$20m for maritime sector enhancement studies

Hong Kong's financial secretary Paul Chan delivers 2023 Budget

 
Hong Kong’s maritime sector has long bemoaned the territory’s lack of a long-term strategy for its development. This year’s budget speech, delivered yesterday by financial secretary Paul Chan teased the possibility that the Government is willing to support such a strategy.
 
In order to further promote the development of Hong Kong as an international maritime centre, Mr Chan said: “The Transport and Logistics Bureau will set up a task force with the aim of putting forward, in collaboration with the Hong Kong Maritime and Port Board (HKMPB) and representatives of the high-end maritime services industry, an action plan on the following strategies by the end of the year.”
 
Enhancing business sectors such as ship finance, marine insurance, maritime arbitration and ship management, thereby enabling Hong Kong to become a global leading high-end maritime service market;
 
Facilitating transformation of global maritime and port business towards zero emission;
 
Promoting the development of smart initiatives and digitalisation in the maritime industry; and
 
Promoting exchanges and collaboration among maritime industries in the GBA and those around the world.
 
To this end the budget allows for HK$20m to carry out studies on strategies for promoting the high-end maritime services industry and enhance exchanges among industries in the international arena and the Greater Bay Area. The scale of the annual flagship event “Hong Kong Maritime Week” will also be expanded.
 
In his speech Mr Chan referred to earlier measures introduced over the past three years including tax concessions to maritime sectors with aim of attracting enterprise to set up business in Hong Kong. The target of such measures included ship leasing firms, marine insurance providers and ship management companies as well as ship’s agents. The firms in these categories all received 50% cuts to their corporate tax bills. In certain circumstances ship leasing companies escaped corporate tax entirely. With ship managers, ship finance and marine insurance again chosen for enhancement, the details are keenly awaited.
 
This website has long argued that tax concessions were a less than optimum measure to improve the lot of marine insurers, so measures along the lines recommended here would be welcome. Meanwhile, In Anglo-Eastern and Fleet Management Hong Kong is home to probably the two most successful ship management companies in the world.
 
In November 2021 the Transport and Housing Bureau (now the Transport and Logistics Bureau) in collaboration with the HKMPB formed a Task Force to trigger a drive toward a smart, green port in Hong Kong. It’s deliberations have yet to be released into the public domain.
 
Source: The Hong Kong Maritime Hub

The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.