Govt to support local SMEs by Pre-approved Principal Payment Holiday Scheme and increased compensation rate, Algernon Yau says

The Secretary for Commerce and Economic Development, Algernon Yau, attended a policy briefing for the Legislative Council's Panel on Commerce, Industry, Innovation and Technology today (Oct. 28), stating that the government will strengthen the cultivation of new momentum for the external trade of local enterprises.

Yau noted that the government will reintroduce the Pre-approved Principal Payment Holiday Scheme under the SME Financing Guarantee Scheme, allowing small and medium-sized enterprises (SMEs) more room to seize the opportunities brought about by the economic recovery. On the other hand, the maximum compensation rate of the Hong Kong Export Credit Insurance Corporation (HKECIC) will be increased from 90% to 95%, providing exporters with greater protection during transactions.

According to Yau, the HKECIC will also increase the number of free credit assessments for exporters and expand its service coverage from the Association of Southeast Asian Nations (ASEAN) to include Mainland China and the Middle East.

He further indicated that the government will continue to launch measures to assist SMEs in expanding their cross-boundary e-commerce business.

"A fund of HK$1 billion will be injected into the BUD Fund (a special fund for the development of brands, upgrading, transformation, and expansion of domestic sales markets) to support SMEs in upgrading and transforming, as well as exploring new markets while expanding the geographical funding scope of 'E-commerce Easy' to the ten ASEAN countries."

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