Hong Kong Business News

In July 2020, the Government launched the New Industrialisation Funding Scheme (NIFS) to subsidise local manufacturers in setting up new smart production lines in Hong Kong. The NIFS involves awarding grants, with the Government topping up sums spent by companies on new equipment on a 1:2 basis.

Established in 2010, Sam Chan’s company – a family-owned firm that produces fresh fruit and vegetable juices – is among the beneficiaries to date. As with many other traditional manufacturing enterprises in Hong Kong, heavy reliance on manpower and manual manufacturing processes limited the firm’s development in its early years.

After taking over the business in 2018, Mr Chan resolved to upgrade and transform its operations, and with the help of the Hong Kong Productivity Council, he set up a smart production line.

The whole production process is now done by machines, making it more hygienic. The company has also introduced a retort machine, which uses high-pressure steam to sterilise products.

“In the past, the shelf life of our products was only about 10 to 12 days, but with the new steriliser it can be extended to 90 days at most,” said Mr Chan.

In addition, the production line is equipped with smart sensors that enable data to be collected on aspects such as electricity and water consumption, for cost analysis.

Innovative solutions

Believing that innovation and technology (I&T) are the cornerstones of smart production, the HKPC actively assists enterprises in applying I&T solutions to address industry pain points. The technologies it helps companies to adopt correspond to the actual needs of different industries.

In the case of the food and beverage industry, focus on sterilisation has grown over the years. In working with Mr Chan’s company, the council’s priorities have been to extend the shelf life of products while avoiding the use of preservatives or additives in the sterilisation process.

The council’s Chief Digital Officer Edmond Lai explained that the application of I&T in manufacturing varies according to the characteristics of different products. He added that the council provides customised services to different sectors, with the overall aim of enhancing the competitiveness of Hong Kong’s manufacturing industry.

Policy support

The Chief Executive announced plans to enhance the NIFS in his 2023 Policy Address. From January 8 this year, applicants are able to carry out a maximum of three projects at any one time, accessing a maximum of $45 million in total funding.

Commissioner for Industry (Innovation & Technology) Ge Ming emphasised that the enhanced policy is designed to further promote the development of new industrialisation.

“The Government's target is to achieve a total of at least 130 smart production lines by 2027,” he said.

Mr Ge added that Hong Kong should apply its I&T strengths, and its scientific research capabilities, to promote new industrialisation, giving a new impetus to the city’s economic development.

As of mid-July, the New Industrialisation Vetting Committee had agreed to support 43 applications to the NIFS, delivering a total of 68 production lines in sectors ranging from food manufacturing and processing, to textiles and clothing, construction materials, medical devices, and more.

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