HONG KONG – The Hong Kong Special Administrative Region government has provided loans worth nearly HK$19 billion ($2.43 billion) to small and medium enterprises during the pandemic and will continue to provide financial assistance for two more years to help retailers facing challenges, Secretary for Commerce and Economic Development Algernon Yau Ying-wah said Wednesday.
Answering a query at the Legislative Council, Yau said the Special 100% Guarantee Product under the SME Financing Guarantee Scheme (SFGS), which provides low-interest concessionary loans to SMEs, has benefitted over 6,000 enterprises and nearly 53,000 employees since it was launched in April 2020.
Yau said Hong Kong's economy has been recovering steadily in the past year, with C&SD data showing that total retail sales increased by 16.2 percent from HK$350 billion in 2022 to HK$407 billion in 2023
“In view of the ongoing challenges faced by SMEs, the government extends in this year's Budget the application period for the 80% and 90% Guarantee Products under the SFGS for two years to end March 2026, so as to assist more SMEs (including those in the retail sector) in coping with cash flow problems,” Yau said.
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He said the government was actively supporting SMEs in carrying out promotion activities and developing their businesses through the SME Export Marketing Fund, which has benefitted over 6,800 enterprises with a total funding of HK$700 million.
The SAR government also provides subsidies to assist SMEs in retail and food and beverage industries in applying e-payment and other ready-to-use basic digital solutions to expedite digital transformation.
Yau made the statement after LegCo member Adrian Ho asked about the SAR government’s plans to help the retail sector amid changing consumption habits of locals and tourists alike.
According to data released by the Census and Statistics Department last week, Hong Kong’s retail sales declined sharply by 14.7 percent year-on-year in April to HK$29.6 billion.
Yau said Hong Kong's economy has been recovering steadily in the past year, with C&SD data showing that total retail sales increased by 16.2 percent from HK$350 billion in 2022 to HK$407 billion in 2023.
He said that, along with rise in employment earnings, the recent stabilization of asset markets and the further revival in inbound tourism-- the number of visitors is expected to increase by 35 percent year-on-year to 46 million in 2024—will benefit the retail sector directly.
He also pointed out the SAR government's continued efforts in promoting a “mega event” economy while stimulating consumption, and central government's further enhancement of the Individual Visit Scheme by extending its scope from 49 to 59 cities to cover all provincial capitals in the country.
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“In the first quarter of this year, the real gross domestic product grew by 2.7 percent over the preceding year, marking the fifth consecutive quarter of growth,” Yau said.
“Some recent data show that the economic performance remains positive in general, including the increase in the number of inbound visitors and the continuous improvement in the exports of goods. The forecast of economic growth for 2024 is maintained at 2.5 percent to 3.5 percent,” he added.
