Chen Baili: The SAR government promotes the diversified development of small and medium-sized enterprises. Both the Market Promotion Fund and the BUD Special Fund provide financial support.

On May 6th, Deputy Director of Hong Kong's Commerce and Economic Development Bureau, Dr. David Chen, responded to questions from Legislative Councilor Shiu Ka Fai during a Legislative Council meeting. He mentioned that the Hong Kong SAR government has been actively promoting the diversified development of small and medium enterprises (SMEs). The Market Promotion Fund for SMEs and the Dedicated Fund for Branding, Upgrading and Transformation (BUD Fund) provide support to encourage businesses to participate in export promotion activities and expand overseas markets. As a measure to address the COVID-19 pandemic, the Market Promotion Fund has implemented special measures from the end of April 2021 to the end of June 2026, covering local market targeted exhibitions and online exhibitions, while easing the requirements limited to SMEs. Since 2018, the government has optimized the BUD Fund several times, including injecting a total of HKD 7.75 billion, expanding the funding region, increasing the cumulative funding ceiling per enterprise from HKD 500,000 to HKD 7 million in stages, and introducing simplified application processes and E-commerce initiatives. In March 2025, the government implemented streamlining measures for the BUD Fund, ensuring the most effective use of the fund while considering its financial sustainability. In 2025, the BUD Fund received about 5,350 applications, an increase of over 210% compared to 2019; at the same time, the approved funding amount increased by over 320%, reflecting the industry's strong demand for the fund. Participating companies acknowledge that the BUD Fund can provide comprehensive assistance, including enhancing their reputation, brand/product/service visibility, and overall competitiveness. As of the end of March 2026, about 98% of surveyed companies that completed projects believed that the BUD Fund helped them develop their businesses, and about 98% of companies responding to the annual review questionnaire believed that the BUD Fund contributed to their long-term development. Additionally, in March 2025, the government introduced optimization measures under the BUD Fund, including relaxing the frequency of simplified applications, providing more targeted support for green transformation and production line restructuring projects, and planning to implement a series of measures announced in the 2025 Policy Address and the 2026-2027 Budget, including expanding the fund's coverage area, increasing the funding limit per application under the simplified application process from HKD 100,000 to HKD 150,000, and offering more targeted support for projects involving artificial intelligence elements. Therefore, a review of the financial impact of these measures is necessary. The government will continue to prudently manage the fund, ensuring its financial sustainability while extending support to more businesses and maintaining a broad range of beneficiaries. The government will continue to engage closely with the industry, continuously review the operation of funding programs, and make adjustments and optimizations as needed. Signed, May 6th, 2026 (Wednesday) 15:10 Hong Kong Time