More support for enterprises

April 9, 2020
Business boost
Business boost:

Secretary for Commerce & Economic Development Edward Yau (left) chairs the Trade & Industry Advisory Board video conference to brief members on new measures to further support enterprises.

The Government will enhance the Dedicated Fund on Branding, Upgrading & Domestic Sales (BUD Fund) and the SME Export Marketing Fund (EMF) within April to strengthen support for enterprises facing difficulties amid the COVID-19 outbreak.


Briefing Trade & Industry Advisory Board members during a video conference today, Secretary for Commerce & Economic Development Edward Yau said the COVID-19 outbreak, together with the US-China trade conflict since 2018 and the social incidents in the latter half of 2019, poses unprecedented challenges to the business environment.


“Notwithstanding that the Government has since last year launched several rounds of relief measures and substantially raised funding support to help shore up affected enterprises, having regard to the rapidly deteriorating business environment, we consider it necessary to introduce further support measures to tide enterprises over this difficult time and get well prepared for long-term economic development.”


For the BUD Fund, the cumulative funding ceilings of $2 million for each enterprise to undertake projects in the Mainland or projects in the economies with which Hong Kong has signed Free Trade Agreements will be removed so that enterprises can flexibly make use of the total funding of up to $4 million to expand to new markets.


With virtual exhibitions becoming a new avenue for business promotion in the face of the epidemic, enterprises participating in virtual exhibitions organised by Government-related organisations or reputable exhibition organisers with good track records will be eligible for funding support under the BUD Fund and the EMF.


Meanwhile, the Hong Kong Export Credit Insurance Corporation (HKECIC) has launched a new round of measures for one year to support Hong Kong’s export trade, including the provision of free pre-shipment cover on approved buyers for Small Business Policy (SBP) holders in all of the corporation’s insured markets.


The credit limits of all buyers for SBP holders in HKECIC-insured markets will also be increased by 20% with a maximum of $5 million, plus a provision of an extra 20% discount on premiums for SBP holders so that each holder can enjoy a total 50% discount on premiums.


Moreover, the payment period for each approved credit limit will be extended to 120 days across the board.


The HKECIC’s new measures will benefit about 2,600 policyholders, including approximately 1,250 SBP holders.


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