The government of the Hong Kong Special Administrative Region is vigorously promoting the connection between scientific research results and the business sector to unleash the development potential of the low-altitude economy (LAE) as a new economic driver in Hong Kong, Chief Executive John Lee Ka-chiu said.

ALSO READ: Response to low-altitude economy regulatory sandbox highlights chances

The SAR government on Thursday announced the first batch of 38 LAE regulatory sandbox pilot projects out of 72 applications. These projects cover various fields and application scenarios such as emergencies and rescues, drone deliveries, inspections and safety maintenance, surveillance and low-altitude infrastructure. Applicants include Chinese mainland and local organizations, commercial enterprises, universities/research institutions, public utility organizations, and government departments.

“The LAE involves a series of industries with lots of technology and innovation elements and broad application scenarios, and has huge development potential. In addition to improving city management and business efficiency, it can also bring new smart life experiences to local residents and serve as a new growth engine for the economy,” the chief executive said in the opening speech at the LAE regulatory sandbox launch event on Thursday.

READ MORE: HK seeks more collaboration with GBA on low-altitude economy

“Through the regulatory sandbox, we allow enterprises, academia, and government departments to build demonstration projects for the LAE on a trial-and-error basis, provide a safe test field and (serve as) incubators for innovative technologies, and establish a LAE ecosystem suitable for Hong Kong,” Lee added.

The chief executive said that the pilot program can spur market vitality for building a smart city and diversifying economic development, while making the public more aware of the benefits the LAE will have in their daily lives.

Based on the feasibility and readiness of the projects, the government will require safety to be the top priority when implementing the projects. A progressive approach will be adopted in terms of flight paths, route planning and flight distances to ensure the safety of low-altitude flying activities.

READ MORE: HKSAR forges ahead with plans to develop low-altitude economy

One of the pilot projects will focus on delivering drinks or food over the Science Park to Ma On Shan by crossing the Shing Mun River and Tolo Harbour. The project will test the entire supporting facilities and low-altitude infrastructure measures. Another application scenario involves a logistics company utilizing its self-developed drones for transporting medical supplies to remote islands and for intercity cargo delivery, which is more efficient than traditional truck transportation.

The Fire Services Department is using drones in conjunction with image analysis software to shorten the time it takes to locate people seeking help during search and rescue missions. CLP Power Hong Kong is leveraging small, unmanned aircraft to conduct aerial inspections of transmission towers and overhead power lines in outlying regions to ensure power supply stability in the city.

READ MORE: HKU, alliance team up to help boost low-altitude economy

“Some of the pilot projects will be implemented for a six-month trial starting from April, after which a review will be conducted, with the hope of launching the second phase of the plan as soon as possible. We hope to turn the pilot project into a commercial operation in the future,” Secretary for Transport and Logistics Mable Chan said.

Chan added that the government hopes to submit amendments to the Small Unmanned Aircraft Order to the Legislative Council in the second quarter of this year, including relaxing the weight limit for small drones and allowing heavier or manned aircraft models to be used for experimental purposes.

“The government plays a pivotal role in shaping policies and building infrastructure, and is crucial in lowering entry barriers and enhancing investor confidence. Today’s launch marks a significant step in transforming LAE innovation with a tangible impact,” said Harry Shum, chairman of the Hong Kong University of Science and Technology Council.

READ MORE: HK eyes low-altitude economy pilot projects, cross-boundary exchanges

The chief executive announced in the 2024 Policy Address the establishment of the Working Group on Developing Low-altitude Economy to promote the development of the LAE in Hong Kong through various measures, including the implementation of pilot projects, with the first batch of applications having been submitted in November and December.