Both the UGC and the institutions are aware of the need to ensure the evolving needs of Hong Kong are effectively met. The UGC carries out an academic development planning exercise on a triennial basis with the aim of reviewing recent developments within the institutions and assessing and working with the institutions on their development proposals for the future. The UGC ensures that in deliberating institutions' academic planning and funding proposals, the development requirements of individual institutions is given proper consideration - appropriate to their respective roles and missions.

The UGC also works with the institutions to advance various initiatives responding to the changing needs of the economy and the community. Two key initiatives are the development and extension of normative length of undergraduate study from 3 to 4 years and internationalization.