FINTECH MANPOWER DEVELOPMENT IN ASIA-PACIFIC FINANCIAL CENTERS WITH A FOCUS ON ARTIFICIAL INTELLIGENCE AND BIG DATA PROFESSIONALS

11 10 Artificial Intelligence and Big Data Talent Development in Asia Pacific 2.1.1 Supply and demand of AI, big data, and data analytics talent One of the main sources of AI, big data, and data analytics talent are graduates of local universities. Hong Kong has five universities among the world’s top 150.9 They offer high-quality data science and computing programs. As of May 2021, there are 14 bachelor’s programs, 12 postgraduate programs and a wide range of non-degree and short certificate courses related to AI, big data, and data analytics offered by local universities and other institutes (Table 2.4). For engineering and science disciplines specifically, the city’s five universities currently rank among the top global 100, producing a steady stream of talent to support Hong Kong’s technological development (Table 2.5). Universities in Hong Kong also produce high quality research outputs in the area of AI and data science. They have produced highly-cited and impactful AI research.10 Not only do these research activities establish a solid intellectual foundation in Hong Kong, but they also enhance the R&D training for local researchers in the field of AI and data science. In the area of fintech, the HKMA expects a shortfall of 20,000 tech workers compared to other financial centers. More skilled professionals will need to be trained in order to fill Hong Kong’s growing talent gap in AI, big data and data analytics.11 2.1.2 Initiatives/Government, Industry and Education sector policies that address the demands of AI, big data, and data analytics talent The HKSAR Government and regulators have launched a number of initiatives in recent years to bridge the talent gap. In 2016, the HKMA launched the FinTech Career Accelerator Scheme (FCAS). 12 By collaborating with the Hong Kong Applied Science and Technology Research Institute (ASTRI), the program offers a gap year placement for local university students to engage in FinTech-related projects in banks or to work at the HKMA for six months to one year. Participating banks could also consider co-university programs, i.e. they can choose to offer a one-year internship program to students to enlarge and sustain the fintech talent pipeline in Hong Kong. By rolling out incentives to meet the talent shortage challenge in AI and big data, the HKSAR Government has proposed initiatives and formulated policies to develop, retain, and attract talent locally and from overseas. In 2018, the HKSAR Government launched a talent list welcoming overseas talent who are most desired in Hong Kong for its future development. Data scientists, cybersecurity specialists, and Innovation and Technology (I&T) experts 13 were on the list. Qualified overseas talent will be granted immigration facilitation under the Quality Migrant Admission Scheme (QMAS). 14 The Scheme provides incentives to overseas data scientists and AI experts to come and contribute to Hong Kong. 9. Times Higher Education (2021). | World University Rankings 2021 . | https://www.timeshighereducation.com/world-university- rankings/2021/world-ranking#!/page/0/length/25/sort_by/rank/sort_order/asc/cols/stats 10. Research Office, Legislative Council Secretariat (2019, October 23). | Study of development blueprints and growth drivers of artificial intelligence in selected places. | https://www.legco.gov.hk/research-publications/english/1920in01-study-of- development-blueprints-and-growth-drivers-of-artificial-intelligence-in-selected-places-20191023-e.pdf 11. Fintech Facilitation Office, Hong Kong Monetary Authority (2020, September). | Fintech Manpower Study. [Confidential] 12. FinTech Career Accelerator Scheme (2019). | FinTech career accelerator scheme (Gap year placement programme). | http://www.fcas.hk/ 13. Innovation and technology (I&T) experts include 1) pharmaceutical and life science/biotechnology; 2) data engineering (e.g. data mining/data analytics), artificial intelligence, robotics, distributed ledger technologies, biometric technologies, industrial/ chemical engineering, etc.; and 3) materials science/nanotechnology 14. Talent List Hong Kong, the Government of the Hong Kong Special Administrative Region (2019). | Immigration Facilitation. | https://www.talentlist.gov.hk/en/imf.html 15. The HKSAR Government (2020, Jan 30). | Government launches enhanced Technology Talent Admission Scheme. | https://www.info.gov.hk/gia/general/202001/30/P2020012900480.htm 16. Yau, C. (2019, February 27). Hong Kong to spend HK$45 billion grooming the next leaders of technology and boosting innovation. | South China Morning Post. | https://www.scmp.com/news/hong-kong/hong-kong-economy/article/2187966/hong-kong- spend-hk45-billion-grooming-next-leaders 17. The Government of the Hong Kong Special Administrative Region (2019, February 27). | The 2019-20 Budget: Speech by the Financial Secretary, the Hon Paul MP Chan moving the Second Reading of the Appropriation Bill 2019. | https://www.budget.gov. hk/2019/eng/pdf/e_budget_speech_2019-20.pdf 18. Ho, K. (2021, February 24). Hong Kong Budget 2021: Gov’t to inject HK$500m to attract overseas STEM scholars. | Hong Kong Free Press. | https://hongkongfp.com/2021/02/24/hong-kong-budget-2021-govt-to-inject-hk500m-to-attract-overseas-stem- scholars/ 19 . Interactive Employment Service, Labour Department, The HKSAR Government. | G reater Bay Area Youth Employment Scheme. | https://www2.jobs.gov.hk/0/en/information/gbayes/ 20. The HKSAR Government (2017). Study Subsidy Scheme for Designated Professions/Sectors. | https://www.cspe.edu.hk/en/ sssdp/sssdp.html The Government also rolled out the Technology Talent Admission Scheme in June 2018 to provide a fast-track arrangement for the admission of overseas and Mainland technology talent to undertake R&D work in Hong Kong. Apart from the tenants and incubates of Hong Kong Science and Technology Parks Corporation (HKSTP) and Cyberport, the scheme was extended to local companies conducting R&D activities outside the premises of HKSTP and Cyberport in January 2020. The areas covered are biotechnology, AI, cybersecurity, robotics, data analytics, financial technologies and material science. It has recently also expanded to include 5G communications, Internet-of-Things, integrated circuit design, microelectronics, digital entertainment and green technology. 15 Nurturing talent with big data and AI skills is a long-term investment. Aside from policies to meet short and medium-term needs, the HKSAR Government has invested significantly in STEM education at the primary and secondary school levels. In 2019, the HKSAR Government committed HK$500 million (US$64 million) to Hong Kong secondary schools to help them organize IT Innovation Lab programs. In terms of hardware enhancements, HK$1 million was granted to each secondary school to procure IT technology equipment and services as well as to organize IT-related extracurricular activities for students, so as to strengthen their IT foundation and skills. 16 Announced in the HKSAR 2019-20 Budget, the Government injected HK$16 billion (US$2 billion) to strengthen or renovate university campuses in order to facilitate and allow students and researchers to engage in a modern and effective learning and research environment. 17 Added to this, announcements were made in the HKSAR 2021-22 Budget plan to commit an additional HK$200 million (US$25 million) to primary schools to organize IT Innovation Labs similar to those in secondary schools. The “Knowing More About IT” program will be launched in subsidized primary schools with each getting HK$400,000 (US$50,000) in government support. 18 The STEM Internship Scheme offers opportunities for STEM graduates to acquire relevant work experience in the early stages of their career. With the intention to enlarge the IT talent pool, the HKSAR Government provides allowances to undergraduates and postgraduates enrolled in a full- time university STEM program funded by the University Grants Committee (UGC) to take up short- term internships. This internship program serves as a training ground to hone and retain talent for AI, big data, and data analytics as well as to build a talent pipeline for the industry. Notably, in 2021, the Greater Bay Area Youth Employment Scheme intends to provide Hong Kong’s university graduates with around 700 internship places in Hong Kong and other GBA cities. 19 Starting from the 2018-19 academic year, the Study Subsidy Scheme for Designated Professions/ Sectors (SSSDP) 20 has increased its subsidized study places from 1,000 to about 3,000 places per cohort. In the same academic year, five computer science programs and four financial technology programs were subsidized under the Scheme, with 306 and 265 subsidized first-year places made