Hong Kong Reviews Labour Measures and Business Facilitation Initiatives

Hong Kong officials have outlined a series of labour, talent attraction and business facilitation measures aimed at addressing persistent workforce shortages while strengthening employment protections. At its 59th meeting on 26 March 2026, the Business Facilitation Advisory Committee received updates from several bureaux and departments on policies designed to expand labour participation, enhance workforce skills and streamline regulatory processes. Details of the meeting and supporting materials were released by the government in an official statement.

The initiatives span workforce training, talent attraction, regulatory reforms and sector-specific support for industry. Committee members noted that the measures are intended to help businesses manage labour shortages while improving employment rights and strengthening Hong Kong’s long-term economic competitiveness.

Upskilling initiatives and talent attraction

The Labour and Welfare Bureau outlined reforms to the Employees Retraining Board (ERB), which is being upgraded into a new platform known as Upskill Hong Kong. Since early 2025, the ERB has broadened eligibility by removing restrictions based on educational attainment and expanding courses focused on emerging capabilities, including artificial intelligence applications.

The initiative also strengthens collaboration with higher education institutions while expanding career planning and employment support. The aim is to promote continuous learning across different sectors of society and reinforce the territory’s human capital base. These efforts align with broader initiatives supporting technological capability and innovation in the region, including programmes highlighted in Hong Kong’s push to advance AI and industrial innovation.

Alongside local skills development, the government continues to attract overseas professionals. Since late 2022, authorities have launched or expanded several schemes, including the Top Talent Pass Scheme, updates to the Talent List, and enhancements to existing admission programmes for professionals and migrants.

To coordinate these efforts, the government established Hong Kong Talent Engage in October 2023. The organisation develops strategies to attract global talent and provides one-stop support services for individuals relocating to the city.

Encouraging older workers to re-enter the labour market

Officials also reported progress on programmes aimed at increasing labour force participation among older residents. The Labour Department introduced a three-year Re-employment Allowance Pilot Scheme in July 2024 to encourage people aged 40 or above to return to work.

By February 2026, the scheme had recorded more than 40,000 job placements. Authorities are currently conducting a mid-term review of both the pilot programme and the Employment Programme for the Elderly and Middle-aged to assess how participation can be further strengthened.

In parallel, changes to the working-hours threshold under the “continuous contract” requirement of the Employment Ordinance took effect on 18 January 2026. The revised threshold is intended to allow more employees to qualify for statutory employment benefits.

Support for industrial upgrading and SMEs

During a joint session of its task forces, the committee also received an update from the Innovation and Technology Commission and the Hong Kong Productivity Council on the Pilot Manufacturing and Production Line Upgrade Support Scheme, known as Manufacturing+. The programme provides funding support to help manufacturers modernise production lines and adopt advanced technologies.

The scheme is open for applications year-round and includes digital application and procurement processes. Members noted that such support may be particularly relevant for small and medium-sized enterprises seeking to integrate new manufacturing technologies, including developments such as metal 3D printing used in infrastructure maintenance.

Trade facilitation and regulatory developments

The Wholesale and Retail Task Force was briefed by the Customs and Excise Department on the Hong Kong Authorised Economic Operator (AEO) Programme and related trade facilitation measures. Companies accredited under the programme benefit from reduced customs inspections, prioritised clearance and mutual recognition arrangements with other economies.

The Department of Health also outlined progress towards establishing the Hong Kong Centre for Medical Products Regulation. The new centre is expected to be operational by the end of 2026 and will introduce a “primary evaluation” mechanism for new drug registrations in four phases, with full implementation planned by 2030.

Measures to streamline business operations

Several initiatives presented to the Food Business and Related Services Task Force focused on reducing administrative complexity for businesses. The Food and Environmental Hygiene Department described a streamlined process for restaurant applications for outdoor seating accommodation. The revised mechanism introduces joint vetting among departments and is expected to shorten the approval process for straightforward cases to around one month.

The Hong Kong Tourism Board also updated members on efforts to strengthen the city’s appeal as a Muslim-friendly destination. A funding scheme launched in September 2025 provides subsidies covering half of the Halal certification fee for eligible restaurants, up to HK$5,000.

Meanwhile, the Fire Services Department reported that its Video Compliance Inspection Scheme for temporary places of public entertainment licences has been fully implemented in the first quarter of 2026. The measure allows inspections to be conducted remotely, reducing the turnaround time for issuing Fire Services Certificates to as little as one working day.

Committee members noted that the combined measures reflect a broader government effort to improve regulatory efficiency and strengthen the operating environment for businesses. These initiatives complement ongoing programmes supporting digital transformation and innovation across industries, such as efforts described in Hong Kong’s initiatives to support business innovation through digital technologies.