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The Language Fund was established in March 1994 and held in trust by the Permanent Secretary for Education Incorporated as the Trustee to enhance the Chinese (including Putonghua) and English language proficiency of the people of Hong Kong through funding a wide range of initiatives for students, the workforce and the general public.

SCOLAR was appointed to advise the Trustee on the policies and procedures governing the operation of the Language Fund. SCOLAR is supported by the SCOLAR Secretariat, which is the Language Education and SCOLAR Section of the Education Bureau.

The Language Fund Audit Reports