Trade and Industry Department expects funding ratio and disbursement adjustments to reduce problematic cases

The optimization of two funds to support small and medium-sized enterprises will help reduce problematic cases, said Aaron Liu Kong-cheung, director-general of Hong Kong’s Trade and Industry Department.
The department previously announced the optimized measures for the Dedicated Fund on Branding, Upgrading and Domestic Sales and the SME Export Marketing Fund. 
The initial payment is slashed from 75 percent to 20 percent of the approved government funding, while the funding ratio has been adjusted from 1:1 to 1:3 between the government and enterprises.
The changes were made in response to the government’s spending adjustments in the budget, Secretary for Commerce and Economic Development Algernon Yau Ying-wah said at the Legislative Council’s panel on commerce, industry, and innovation.
He added that authorities would regularly review the situation and consider revisions if conditions allow, with the goal of ensuring effective use of public funds while supporting a large number of SMEs.
STAFF REPORTER