Hong Kong is continuing to refine a range of fiscal support measures to promote the development of small and medium-sized enterprises (SMEs) and help high-quality companies expand overseas. Senior officials of the special administrative region government said on Friday that SMEs play a vital role in driving the city’s economy.
Hong Kong’s 2026-27 Budget proposed the allocation of an additional HK$200 million ($25.56 million) into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund).
Algernon Yau Ying-wah, secretary for Commerce and Economic Development, said on Friday that related measures are expected to be rolled out in the second quarter of this year.
The funding ceiling per application under the “Easy BUD” mechanism — designed specifically to assist Hong Kong enterprises in exploring the Chinese mainland and other markets under Hong Kong’s free trade agreements — will be raised from HK$100,000 to HK$150,000. This streamlined scheme allows for fast-track approval within 30 working days.
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Companies that adopt artificial intelligence in their operations will receive more targeted funding support. "AI is the future. We will give special consideration to SMEs using AI in their business," Yau said.
To encourage Hong Kong enterprises to proactively expand overseas and develop new business lines, the Hong Kong Export Credit Insurance Corp will also introduce a pilot scheme this year to provide protection for SMEs engaging in exports with higher-risk buyers.
Additionally, the application period for the 80 percent Guarantee Product under the SME Financing Guarantee Scheme has been extended to the end of March 2028. The application period for the principal moratorium arrangement has been extended to mid-November this year. The total loan guarantee commitment under the scheme will be increased by an additional HK$20 billion.
“About 90 percent of companies in Hong Kong are SMEs. And as the global landscape is changing, it’s very challenging (for them),” Yau said.
Yau highlighted that the authorities will strengthen Hong Kong's role as a key node in the Belt and Road Initiative, collaborating closely with industry stakeholders to deepen engagement in the Association of Southeast Asian Nations and the Middle East markets, while exploring growth potential in Central Asia, South Asia, and North Africa, with the aim of concluding more free trade agreements and investment agreements.
He said that the SAR government has already completed investment agreement negotiations with Qatar, Bangladesh, and Peru, and is currently discussing new investment agreements with Saudi Arabia and Egypt.
Meanwhile, providing support to enterprises from the Chinese mainland that want to use Hong Kong as a base for outbound expansion remains a key priority for the government this year. Yau pointed out that promotional activities for dedicated programs to help mainland enterprises "go global" will be held in Hong Kong, as well as in various cities across the mainland.
A cross-sectoral professional services platform will also be established, bringing together Hong Kong providers of legal, accounting, financial, testing and certification, and marketing services to support mainland companies in their international ventures, he said.
