Following is the speech by the Financial Secretary, Mr Paul Chan, at the 2026 APEC (Asia-Pacific Economic Cooperation) Finance Ministers' Working Luncheon with the ABAC (APEC Business Advisory Council) on digital infrastructure financing today (October 20):
Minister Lan (Minister of Finance, Mr Lan Fo'an), fellow ministers, ABAC colleagues,
Good afternoon. Let me first thank the ABAC for hosting this luncheon. Our discussion goes beyond mobilising more capital. It is about making digital infrastructure investable, while ensuring that it delivers affordable and reliable services which are accessible to underserved communities.
In our view, three elements are essential.
First, create an enabling environment for investment. Investors need predictable government policies, transparent licensing and data-governance rules, enforceable contracts, and clarity over the availability of land, power supply and network connections. These pre-conditions should be co-ordinated early to provide a friendly and attractive investment environment.
Hong Kong's experience illustrates that governments need to go beyond just providing clear policies and rules. We have to be proactive and facilitative. For example, for data centre operators, Hong Kong provides them with one-stop assistance, bringing various statutory approvals and compliance requirements under one office, with procedural facilitation. Policy certainty, clear delineation of responsibilities among government departments, and co-ordinated procedures greatly reduce uncertainty and delays, and are very much appreciated by investors.
Second, develop shared digital infrastructure. Beyond physical infrastructure and networks, we should provide common platforms and trusted frameworks on which both the public and private sectors can work together, rather than leaving them to operate in isolation.
For example, Hong Kong's "iAM Smart" digital identity platform allows residents to access different public and private services using a single identity, thereby reducing paperwork and repeated identity verification. Its value lies not simply in putting services online, but in making them more convenient to use. We are planning to extend this digital platform to the business sector later this year.
Similarly, the Hong Kong Monetary Authority's Commercial Data Interchange securely connects banks with commercial data providers, allowing banks, with the prior consent of clients, to use their transaction data and other business records in credit assessment. By doing so, loans can be extended to the SMEs (small and medium-sized enterprises) on the basis of transaction documents, filling the financing gap much needed by SMEs who may not be able to provide real assets as collateral.
Third, we need financing approaches suited to different markets and stages of development. Private utility companies and operators play an important role in Hong Kong's public utility and infrastructure development. In the railway sector, we adopt a railway plus property development approach while in the public utility sector, we implement a franchise approach with schemes of control over their tariff. These require forward-looking policy certainty, with careful calibration to avoid unnecessary subsidies and excessive tariff on consumers.
In our view, MDBs (Multilateral Development Banks) can contribute not only in financing, but also in expertise and experience in project preparation, implementation and operation. There is a lot that MDBs can assist economies in the region in terms of assessing project viability, structuring viable revenue models, allocating risks and establishing transparent procurement arrangements.
On financing, besides bonds and syndicated loans, public listing and securitisation can provide economies with a useful refinancing channel for infrastructure. By bringing mature projects with established cash flows to the capital market, funds can be recycled to invest in new projects. The Hong Kong Mortgage Corporation and the HKEX (Hong Kong Exchanges and Clearing Limited) stand ready to provide the technical and financial help.
Finally, Chairman, success should be measured not only by capital mobilised, but also by affordable, reliable services delivered, and improvement to people's lives. Hong Kong, China, stands ready to share our experience and expertise with governments, businesses and MDBs to translate their priorities into bankable projects to accelerate their sustainable and inclusive growth. Thank you.
