(Policy Address 2024) Hong Kong re-launches principal moratorium for SMEs

To address the challenges commonly encountered by small and medium enterprises (SMEs) during economic restructuring, John Lee said the government will re-launch the principal moratorium.

Borrowing enterprises under the SME Financing Guarantee Scheme, including the existing loans already granted under the 80%, 90% and special 100% guarantee products as well as new loans under the 80% and 90% guarantee products, will be allowed to apply for principal moratorium for up to 12 months.

The maximum loan guarantee periods of the 80% and 90% guarantee products will be extended to ten years and eight years respectively, while the partial principal repayment options will be offered to new loans under the two guarantee products. 

Meanwhile, Lee said HK$1 billion will be injected into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) to provide support for SMEs, including expanding the geographical coverage of E-commerce Easy to the 10 ASEAN countries, and providing targeted funding support for enterprises to implement green transformation projects.

Furthermore, in supporting digital transformation of SMEs and capitalising on e-commerce opportunities, the scope of Cyberport's Digital Transformation Support Pilot Programme will be expanded to cover the retail and food and beverage sectors, as well as industries such as tourism and personal services, subsidizing SMEs for digital transformation on a one-to-one matching basis.

The Hong Kong Shopping Festival will also be relaunched in the next two years to help SMEs tap into the Mainland e-commerce sales market, and will be held in the ASEAN market in due course.

Meanwhile, Lee said the HKTDC will formulate plans for setting up more Hong Kong Pavilions in Mainland and overseas exhibitions to further promote Hong Kong brands. The Trade and Industry Department and the HKTDC will also enhance support for SMEs in developing brands and expanding the sales network of e-commerce.

The organization and functions of the Hong Kong Design Centre will be re-structured, so as to assist SMEs in the design industry to enhance their services in product and brand design, and strengthen collaboration and interface with start-ups and Mainland enterprises operating in Hong Kong, Lee added.