HKSTP Re-iterates Its Development Policy And Commitment For Balancing The Interests And Needs Of Diverse Innovation And Technology Industries

27 September 2022, Hong Kong - Hong Kong Science and Technology Parks Corporation (HKSTP) today held a press conference in relation to its lease with Secure Information Disposable Services Limited (SSID) and responded to questions from the media.

Continuous Support and Communication with SSID

HKSTP reiterated that a three-year lease was signed with SSID in 2018, with a term effective from 1 January 2019 to 30 December 2021. Apart from providing SSID with an existing factory to operate its business, we also offered them rental relief exceeding HKD one (1) million during the pandemic.

In mid-2020, we took the initiative to approach SSID to remind them that their three-year lease will expire at the end of 2021. In 2021, knowing that they had been unable to find a suitable site to relocate its operations at SSID’s request, we agreed to extend their lease for another one year to end of 2022 so as to give them more time to look for a new location. Despite our best efforts to assist them, regrettably they have not been able to find a suitable site to relocate its operations when the one-year extension is due to expire. 

We have been discussing with relevant stakeholders including the Environment and Ecology Bureau to explore various options. We also communicated to the Environmental Protection Department of SSID’s intent to meet with them. We understand the Bureau is actively arranging the meeting to discuss further options with SSID.

Implementation of the Long-term Re-industrialisation I&T Development Plan to Drive a Diversified Economy

Land is scarce in our city. HKSTP shaped its strategy, policies and principles for the management of InnoParks through the eight “Reindustrialisation Guiding Principles”. It is essential for us to follow them to ensure proper utilisation of land. Meanwhile, it is a challenging process to balance the diverse interests of the stakeholders in various industries and at times, HKSTP has to make difficult decisions which might not be acceptable to all parties concerned. As such, we offer both short-term and long-term leases under our policy. In SSID’s case, the space was intended for a short-term three-year lease at the outset in light of our long-term development plan for the Yuen Long InnoPark.

The opening of the Data Technology Hub (DT Hub), Advanced Manufacturing Centre (AMC) at the Tseung Kwan O InnoPark and the Manufacturing Centre for Medical Suppliers, MARS Centre at Tai Po InnoPark, has already attracted advanced manufacturing, technology and data companies to land in our InnoParks. These examples demonstrate how we are transforming through reindustrialisation by developing multi-storey, purpose-built and high-performance buildings to accommodate more enterprises and meet the needs of different industries.

HKSTP has always been supportive of innovation and technology-led sustainability. In fact, many of our start-ups and companies within our ecosystem are playing an important role in enabling a greener Hong Kong. For instance, Dunwell Group, Integrated Waste Solutions Group and ASB-Biodiesel (Hong Kong) Ltd are tenants in our InnoParks. Within the Science Park campus in Pak Shek Kok, more than 80 partner companies are conducting sustainability-related R&D.

HKSTP has been tasked with the mission of driving technology-led re-industrialisation, an important initiative to promote our economy, create job opportunities and boost our city’s long-term competitiveness.

The Need to Fairly Balance Various Industry Stakeholders’ Interests

As a statutory and public organisation, every decision is made after due consideration of various factors, such as fairness to our stakeholders, development timelines and financial impact. In response to the allegation that HKSTP has a HK $10bn time deposit, we would like to clarify that the money is reserved for enhancing various support services and research facilities for I&T enterprises, as well as to further promote the I&T ecosystem in our city, which is also in line with the huge development opportunities in the Greater Bay Area. We have a responsibility to manage our finances prudently and make good use of public funds.

Over the past 20 years, the number of technology companies in our park has grown to over 1,100, the current size of the I&T community exceeds 18,000 and we have nurtured several homegrown unicorns. For this I&T ecosystem to continue to thrive, we have to make many tough choices in order to balance the interests of all parties concerned. Re-industrialisation is not simply a development initiative, but the driving force for Hong Kong’s long-term economic growth.

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