SME support:
Secretary for Commerce & Economic Development Gregory So briefs the media on measures to support enterprises on February 3.
More aid set for SMEs
February 03, 2012
To support small and medium enterprises during the global economic slowdown, Secretary for Commerce & Economic Development Gregory So has proposed launching concessionary measures within the first half of this year.
Speaking at a press conference today, Mr So said the Government has proposed special time-limited concessionary measures under the existing SME Financing Guarantee Scheme administered by the Mortgage Corporation to further assist enterprises in tackling the economic uncertainties and possible liquidity problems.
Under the measures, the loan guarantee ratio will rise from the existing ceiling of 70% to 80% while the guarantee fee will be reduced.
Lending institutions can get an 80% loan guarantee by paying 30% of the existing guarantee fee for a 70% guarantee for approved loans.
The application period will last nine months and the Government will make a total guarantee commitment of $100 billion. The maximum loan guarantee period is five years.
Estimated government expenditure will be $11 billion, taking into account the anticipated default rate.
All guarantee fees collected by the corporation will be used to cover default compensations and related expenses, such as administrative costs for recovery of compensated default payments.
"We hope to seek funding approval from the Legislative Council in April, with a view to introducing the measures within the first half of this year," Mr So said.
Special insurance policy
The Export Credit Insurance Corporation will introduce new terms in their insurance policy on February 6 to provide special concessions for SMEs, which will benefit more than 2,000 exporters.
The Government also proposes halving the charges for import and export declarations and each enterprise in import and export businesses will save $9,000 a year on average. This will cost the Government $750 million a year.
The Government will seek funding approval from the Legislative Council in the first half of this year, and will launch the dedicated fund by mid-2012 to provide enhanced support for Hong Kong enterprises to tap the Mainland domestic market.
Data centre development
Mr So said the Government will exempt the waiver fee for changing parts of industrial buildings aged 15 years or above into data-centre use and it will be applicable to data centres of all tiers.
On the development of high-tier data centres involving lease modification on industrial lots, the Government will assess the premium for lease modification on the basis of actual development intensity and high-tier data-centre use instead of optimal use.
"We believe the new measures can encourage more conversion of industrial buildings for data-centre use," Mr So said.
The two measures will be introduced within 2012-13 for application until March 31, 2016.
My Briefcase