The 2019 Policy Address was delivered on 16 Oct 2019, according to survey conducted by the HKSAR government, there are more than 9,000 business operations with parent companies in Mainland China or overseas, approximately 20% of them have set up regional headquarters in Hong Kong. Notably, the number of startups have been dramatically rising by almost 50% between 2017-2019. (You can find out the reason by reading our previous blog) With the unstable global economy, the HKSAR government will adopt a variety of policy to support the business development of Startups and SMEs, below are some of the highlights.
(Photo from 2019 Policy Address)
👉Tips from WYND team: Facing an unstable global economy, a coworking space could be a good option for SMEs business development due to its diversified membership, lower rental price and flexible lease term compared to the traditional office.
Market Expansion Support to Trade & Investment
Expanding market to other regions is never an easy decision; lack of capital could be the most common difficulties for entrepreneurs. Hence, the Financial Secretary has announced an increase in funding.
- SME Export Marketing Fund: $1 billion injections
Double the ceiling of cumulative funding to $800,000
- Dedicated Fund on Branding, Upgrading and Domestic Sales: $2 billion injections
The BUD’s fund Mainland Programme and FTA Programme will offer a double of funding to $2 million per enterprises.
- SME Financing Guarantee Scheme: A new 90% guarantee for approved loans to help individuals seeking to establish startups, SMEs with relatively less operating experience.
- SME Financing Guarantee Scheme and the SME Loan Guarantee Scheme: A new measure in which enterprises may apply for principal moratorium of up to 6 months. (Only interest is required to be paid during that period)
Taxation Concession to Logistics Industry
Facing the potential worsening trade barriers in the global market, the government decided to help minimizing the cost of logistics industry.
- Plan to provide concessionary on taxation for qualified ship lessors and qualified ship leasing managers so as to attract companies to develop ship leasing business in Hong Kong
- Plan to introduce tax concessionary measures to encourage more commercial principals of the maritime industry
Collaboration with Cyberport
Cyberport has been a well-know location for different business such as fin-tech since they provide many of the support. In the upcoming future, the government and Cyberport will have collaboration in supporting them.
- Enhance Fintech specific training for in-service financial practitioners to enrich the Fintech talent pool and promote Fintech applications in the traditional financial industries
- Collaboration with Cyberport to establish an event space called “Fintech@Gloucester”, for stakeholders such as traditional financial industries, Fintech companies, training institutions, to exchange ideas and have meeting
👉Tips from WYND team: Besides Cyberport, choosing an office/ a coworking space in CBDs like Central can help you get the first-hand market information. Try to find out some recommendation by search keywords like “Coworking Space Central”.
Extended Coverage of Innovation and Technology Industry
It’s popular that Innovation and Technology industry is a potential industry. However, R&D always requires investment and time. In order to support them, there will be a widening coverage of programme to related businesses.
- Extended coverage of the Researcher Programme and Postdoctoral Hub, Public Sector Trial Scheme to all technologies companies conducting R&D activities
- $500 million injections through the Lotteries Fund into the Social Innovation and Entrepreneurship Development Fund
To understand the full version in Policy Address 2019, please click me.
Follow up on WYND’s blog page, keep checking out our latest blogs and we will offer various useful information and tips for Startups, SMEs. We hope this year’s Policy Address can help you overcome this year’s economic difficulty and have great success on your business.
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