The Special Administrative Region (SAR) Government continues to vigorously take forward infrastructure projects related to the economy and people’s livelihood. The Government’s capital works expenditure is projected to increase to an average of about $120 billion annually in the future. As the economy recovers, the volume of private sector works projects is expected to rebound. It is anticipated that the future demand for construction professionals will remain keen. To help the construction industry retain talent, we have adopted a multi-pronged approach in collaboration with the Construction Industry Council (CIC) to enhance funding support for nurturing local talent. On this occasion, I have invited the Permanent Secretary for Development (Works), representatives from the construction industry and academic institutions, as well as subsidised trainees to share their insights with you.

Two measures to support the continuous development of young professionals

Mr Ricky LAU, Permanent Secretary for Development (Works), points out that talent is essential for the development of the construction industry. The 2025-26 Budget introduced two measures to subsidise employers and trainees respectively. These initiatives aim to support young practitioners in different positions in receiving on-the-job training and to provide on-the-job training subsidies for young graduates in the construction sector, thereby assisting the industry in building a sustainable talent pool.

Measure 1: Extending the provision of on-the-job training subsidies, expected to benefit an additional 1 000 students

The first measure is the extension of the On-the-job Training Subsidy Pilot Scheme (the Scheme). Mr Thomas HO, Chairman of the CIC, explains that the Scheme aims to encourage Higher Diploma graduates to join the construction industry and gain work experience by subsidising them to enrol in part-time construction-related degree programmes. Since the initial launch of the Scheme in 2023-24, around 1 000 in-service trainees have been subsidised to pursue part-time construction-related degrees. The Scheme has been well received by young people and the industry alike. In its first year of launch, the number of applicants for the relevant degree programmes increased by an average of over 50%.

The Development Bureau (DEVB) and the CIC will jointly allocate funding totalling about $95 million to extend the Scheme over the next two academic years. Each trainee may receive a subsidy for up to three years, subject to a cap of $90,000 in total. It is expected to benefit an additional 1 000 trainees.

Subsidy eases the financial burden on trainees, attracting more young talent to the industry

Mr SIN Ka-ki, who currently works in property and facilities management, is one of the trainee beneficiaries. With the subsidy provided under the Scheme, he is pursuing a Bachelor of Engineering (Honours) in Building Services Engineering at the Technological and Higher Education Institute of Hong Kong (THEi). He says that he is delighted to receive the subsidy, which has eased his financial burden of further studies. He hopes to climb the professional career development ladder in the construction industry through this degree programme and pursue continuous professional development in engineering after gaining more work experience. At the same time, he believes that the Government’s provision of subsidies reflects its strong commitment to the development of construction talent, which in turn boosts young people’s confidence in joining the industry.

The College of Professional and Continuing Education of the Hong Kong Polytechnic University (PolyU CPCE) is one of the institutions offering the programmes. Dr Sandy TANG Lai-yee, Scheme Leader of the Bachelor of Science (Honours) Scheme in Surveying and Built Environment, believes that for Higher Diploma graduates or those looking to change careers, the subsidy scheme can significantly alleviate their burden of paying tuition fees. She notes that many promising students have successfully entered the construction industry after completing the programmes and found excellent career opportunities in the sector.

Measure 2: Introducing a new subsidy scheme to help employers provide on-the-job training to nurture 2 900 young professionals

The second measure is the launch of the “Construction Industry Professional Degree Graduate On-the-Job Training Subsidy Scheme” (the “Subsidy Scheme”) supported by the Government through the CIC’s allocation of $174 million. The Scheme subsidises employers to recruit and retain talent by assisting construction-related degree graduates in receiving continuous on-the-job training to attain professional qualifications.

Mr Thomas HO states that the Subsidy Scheme subsidises employers to provide on-the-job training for a total of approximately 2 500 graduates from degree programmes in engineering, architecture, surveying, planning, and landscape architecture disciplines, as well as 400 young graduates (aged 35 or below) of construction-related higher diploma programmes. Construction employers who are successful in their applications must employ no fewer than the approved number of young professionals throughout the entire subsidy period (12 months). These employers will receive a monthly subsidy of $5,000 for each young professional hired for 12 months, amounting to $60,000 in total.

The CIC indicates that the application for the Subsidy Scheme was closed in mid-April. The industry response has been overwhelming. The vetting process is expected to be completed with the notification of result issued within May.

Industry and young employees support the Scheme, which helps the sector weather difficult times

Mr Albert CHAN Chung-yee, Council Member of the Hong Kong Institute of Architects (HKIA), believes that the launch of the Subsidy Scheme is well-timed to help the industry transition through this period. Although the recent decrease in private sector construction volume has presented challenges in retaining talent, the industry must ensure that a sufficient workforce is ready for the next peak of development when the economy thrives again in the next two to three years. The rollout of this scheme by the Government is so timely that it can help the industry retain talent and ride out the hard times together.

Ronald and Hilarie, young employees at an architectural design firm, also express support for the Subsidy Scheme. They note that it helps fresh graduates secure employment as quickly as possible and provides opportunities for them to remain in the industry to pursue professional qualifications and further learning. All of this is highly beneficial to their long-term development.

Mr LIU Sing-pang, President of the Hong Kong Construction Association, believes that the Subsidy Scheme is of vital importance to the construction sector, including contractors. It supports the industry in continuing to nurture and recruit young professionals, training graduates with relevant degrees and higher diplomas to become the backbone of site management, and providing them with career progression pathways that bolster their confidence in joining the sector. Contractors will fully support this government initiative by providing practical on-the-job training for the younger generation in construction.

I am delighted to see that both schemes have received strong support from industry employers and trainees alike. The schemes not only respond to industry needs in a timely manner by helping employers and the sector retain talent, but also support young people in pursuing continuing education and career development within the field, achieving a “win-win” outcome.