Support for Enterprises
109. Recent changes in the global economic and trade environment have affected Hong Kong enterprises, especially those engaging in external trade and SMEs. I will introduce measures to support local enterprises in tiding over uncertainties in the present environment, with a view to achieving our goal of "supporting enterprises, safeguarding jobs and stabilising the economy". They include:
| (a) | waiving the business registration fees for 2019-20, benefiting 1.4 million business operators. This will reduce government revenue by $2.9 billion; |
| (b) | regularising the Technology Voucher Programme and rolling out enhancement measures, including doubling the funding ceiling for each enterprise from $200,000 to $400,000 to encourage the wider adoption of technology by local enterprises to improve their efficiency and services; |
| (c) | injecting another $1 billion into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) this year, following the injection of $1.5 billion last year; |
| (d) | following the extension of the geographical scope of the BUD Fund from the Mainland to ASEAN countries in August 2018, to further extend the scope to include all economies which have entered into an FTA with Hong Kong, thereby enabling enterprises to take advantage of the FTAs to explore new markets and new business opportunities; |
| (e) | following an increase in the funding ceiling per enterprise under the BUD Fund from $0.5 million to $2 million last year, to further increase the ceiling to $3 million this year, including $1 million for the Mainland market and $2 million for other FTA markets; and |
| (f) | to help SMEs facing liquidity problems, we implemented enhancements to the special concessionary measures under the SME Financing Guarantee Scheme operated by the HKMC Insurance Limited last November, including reducing the guarantee fee rates by 50 per cent, increasing the maximum loan amount to $15 million, and lengthening the maximum loan guarantee period to seven years. We also extended the application period of the special concessionary measures. I have decided to further extend the application period of the special concessionary measures under the scheme and the three enhancement measures mentioned above to 30 June 2020. |
110. With uncertainties prevailing in the global political and economic scenes, we need to get well prepared at all times. I will keep a close watch on the external and local economic situation and introduce appropriate measures when necessary to support enterprises and stabilise the economy.
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