Hong Kong’s low-altitude economy is no longer an abstract vision. With the government’s launch of 38 regulatory sandbox pilot projects, it is now a tangible part of the city’s economic landscape. Drone deliveries, medical logistics, and urban air mobility are no longer theoretical discussions but operational trials unfolding in real time. The question is no longer whether the Hong Kong Special Administrative Region should pursue this industry, but how it should scale up — and whether it can move fast enough to stay ahead.
The sandbox approach is a pragmatic step. It allows regulators and industry players to test applications in controlled conditions before wider implementation. This is the right path. Hong Kong’s unique urban density, airspace constraints, and privacy concerns require careful navigation. A hasty rollout would be reckless; a cautious, well-regulated push is necessary. But caution should not mean stagnation. If the city hopes to lead rather than follow, regulatory efficiency and infrastructure readiness must match the ambition.
The Guangdong-Hong Kong-Macao Greater Bay Area provides a natural extension for growth. Shenzhen has already been pushing ahead with drone logistics, and cross-border integration presents opportunities the HKSAR should seize. The Northern Metropolis, with its broader land resources and fewer airspace restrictions, is well positioned to be a testing ground. Coordinating regulations with the Chinese mainland, establishing dedicated air corridors, and integrating supply chains can turn the HKSAR into a regional hub rather than a late adopter.
The early-stage projects are promising. Drone food deliveries, led by players like Meituan, are already in motion. Medical logistics, such as China Mobile’s collaboration with public hospitals for pharmaceutical transport, offer another compelling use case. These are not futuristic experiments; they are market-driven responses to real-world inefficiencies. The key now is moving beyond the pilot phase. Scaling requires infrastructure investment — dedicated takeoff and landing zones, 5G network optimizations, and updated aviation regulations. Without this foundation, the sandbox will remain just that — a sandbox.
Other cities are already making aggressive moves. Shenzhen, Guangzhou, and Shanghai have all introduced dedicated low-altitude economic zones, with infrastructure tailored for urban air mobility. In Europe, cities like Paris and Amsterdam are laying the groundwork for drone-based services. Singapore is developing a structured approach to urban drone operations, integrating regulatory support with commercial adoption. If Hong Kong lags behind in implementation, the city risks ceding leadership in a sector that aligns perfectly with its strengths — high connectivity, advanced logistics, and a dense urban environment where efficiency is paramount.
The legislative path is also clear. The Civil Aviation Department has outlined a two-step process, first amending the Small Unmanned Aircraft Order, then introducing a dedicated low-altitude aviation law. The urgency cannot be overstated. Global standards are evolving, and regulatory inertia could push Hong Kong further behind. Other regions are moving ahead with dedicated air traffic management systems for drones. A sluggish legislative process could turn an early-mover advantage into a missed opportunity.
Public perception will play a role. A city accustomed to efficiency will not tolerate disruptions or safety risks. Demonstrating reliability and security will be as important as technological capability. The first visible successes — seamless food deliveries, faster medical logistics — will help build confidence. Regulation should focus on enabling responsible innovation, not stifling it.
Investment from the private sector will also be crucial. While government support through policy and regulation is essential, the long-term success of the low-altitude economy depends on sustained investment from logistics firms, telecom providers, and infrastructure developers. Hong Kong has no shortage of capital, and this is precisely the kind of high-tech, scalable industry that fits within the city’s economic DNA. But to attract serious investors, there must be a clear road map — one that moves beyond the sandbox stage and into full-scale implementation.
Education and talent development will also play a role. Pilots, engineers, and regulatory experts with experience in urban air mobility will be in high demand. Hong Kong’s universities and research institutions should be integrating this sector into their curricula now, ensuring a steady pipeline of talent that can drive innovation forward. Partnering with international institutions that are already leading in this space could accelerate local expertise and adoption.
Hong Kong has the ingredients for success: a robust financial sector, world-class infrastructure, and a highly connected urban environment. The low-altitude economy is not just about drones — it is about logistics, smart city integration, and new economic frontiers. The sandbox initiative is a necessary first step, but the real challenge lies ahead. Execution will determine whether Hong Kong becomes a leader in this space or remains a follower in an industry moving fast. The opportunity is here. The time to act is now.
The author is chairman of the Asia MarTech Society and sits on the advisory boards of several professional organizations, including two universities.
The views do not necessarily reflect those of China Daily.
