Interview with CMA Innovation & Technology Convenor Mr. Samuel Lam Hong Kong Low-Altitude Economy: The Drone Take-off Reliability Index

In 2025, Hong Kong officially launched its Low-Altitude Economy Regulatory Sandbox, a milestone that signals the city’s decisive first step toward a coherent regulatory regime for low-altitude activities. The sandbox offers a controlled yet flexible testing ground for new business models and technologies, allowing them to be trialled and validated under a unified framework. This lays a solid foundation for industry-wide innovation.

In May 2025, the government gazetted amendments that raise the maximum take-off weight for Category C drones to 150 kg. The change dramatically expands the payload capacity and operational envelope of unmanned aircraft, while also clarifying insurance requirements, pilot licensing and other standards. Together, these measures safeguard airspace safety, foster orderly market development and mark a major breakthrough in standardisation—creating the institutional bedrock for a sustainable low-altitude economy.

Among the technical initiatives under the sandbox, the “Drone Take-off Reliability Index” championed by Mr. Samuel lam, CEO of X Social Group, deserves special attention. By integrating meteorological, topographical and technical parameters into a rigorous risk-assessment model, the index sets precise safety benchmarks and provides insurers with actuarially sound data. Beyond its local impact, the index positions Hong Kong as an international reference for low-altitude regulation and could catalyse the global upgrading of governance frameworks across the sector.

Hong Kong’s low-altitude economy now stands at a new starting line. With strong government impetus, active corporate participation and continuous technological advances, this sector is poised to become a fresh engine of growth, injecting robust momentum into Hong Kong’s prosperity and social progress.

Hong Kong’s unique strengths in developing a low-altitude economy

• Prime geographic location: Centrally located in the Asia-Pacific, Hong Kong is the super-connector between Mainland China and the rest of the world. Its strategic position can attract domestic and international drone companies to use Hong Kong standards as a springboard to ASEAN and Middle-Eastern markets.

• Robust R&D ecosystem: As a global innovation hub, Hong Kong hosts advanced research capabilities and rich scientific resources, drawing top talent to advance drone technologies.

• Financial edge: As an international financial centre, Hong Kong offers diversified financing channels—from venture capital to bank loans—to support capital-intensive low-altitude ventures.

Challenges and constraints

•  Complex built environment: Hong Kong’s high-density skyline and strict air-traffic control create signal interference and complicate flight-path planning, raising safety and efficiency hurdles.

• Stringent regulations: The legal regime is still evolving. Tight rules and difficult cross-border coordination currently limit operational scope.

• Public-safety concerns: Citizens worry about accidents, while supporting infrastructure—take-off/landing pads, charging stations and communication bases—remains under-developed.

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Strategic Responses

• Continuously refine regulations: Adapt rules to diverse business models and low-risk zones; deploy reliable airspace-management systems; deepen collaboration with Mainland and overseas regulators to craft unified cross-border licensing

• Strengthen cross-border cooperation: Work with Mainland and international agencies to set common standards and create a world-leading demonstration zone in the Greater Bay Area.

• boost public confidence: Launch education campaigns and safety showcases to demystify drones.

• Expand infrastructure: Invest in pads, chargers and communication networks to improve operational efficiency.

• By aligning its standards with the Greater Bay Area and Southeast Asia, Hong Kong can establish world-class low-altitude airspace management and secure a competitive edge worldwide.

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Synergies with the Mainland

• Regulatory learning: Leverage Mainland experience in flight-safety standards and airspace management to craft Hong Kong-specific rules.

• Industrial integration: Tap the Mainland’s full-spectrum drone value chain—manufacturing, retail, finance, insurance—through Greater Bay Area Partnership.

• Technology transfer: Import cutting-edge Mainland advances in AI and IoT for drones, combining them with Hong Kong’s research strengths to drive innovation.

Transformative impact on urban governance

• New industrial chains & jobs: From R&D and manufacturing to operations and maintenance, the low-altitude economy will spawn high-value employment.

• Enhanced competitiveness: Greater operational efficiency and public-service quality will bolster Hong Kong’s global standing.

• Industrial upgrading: Accelerate the digital and smart transformation of traditional sectors, diversifying the economy.

Strategic recommendations for HK Low-Altitude Economy Development

• Nurture Hong Kong “unicorns”: Through policy support, funding and market cultivation, create world-class champions.

• Champion the Drone Take-off Reliability Index: Lead global standard-setting to amplify Hong Kong’s voice.

• Establish a dedicated Hong Kong fund: Subsidise R&D to spur technological breakthroughs.

China’s low-altitude economy is projected to reach RMB 1.5 trillion by the end of the year—a colossal opportunity. Hong Kong should pool Greater Bay Area resources, unify standards and issue cross-border drone licences. As a key partner, Hong Kong can help Mainland companies penetrate ASEAN and Middle-Eastern markets. With strategic positioning and targeted incentives, the city is well placed to attract top drone firms and investors, unlocking commercial value and powering Hong Kong’s next chapter of prosperity.

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