Government Launches New Support Plan to Help SMEs Stay Strong and Grow
In the 2025 Policy Address, the Hong Kong Government announced a new support plan to help Small and Medium Enterprises (SMEs) and encourage economic growth and diversification. These measures aim to help small businesses handle current challenges and build for the future.
Financial Help for Businesses
To make it easier for SMEs to get loans, the Government will extend the 80% Guarantee Product under the SME Financing Guarantee Scheme for two more years. It will also allow one more year of delayed loan repayments.
These steps have been designed to help small businesses manage their cash flow, allowing them to focus on staying open and adapting to new market conditions.
Cutting Costs and Simplifying Rules
The Government has also announced that it will help lower operating costs by reducing water and sewage charges by 50% for business users. About 260,000 businesses will benefit from this. Similarly, the trade effluent surcharge (paid mainly by restaurants) will also be halved, benefiting around 35,000 enterprises, particularly in the food sector.
To further support businesses, Hong Kong will waive licence and permit fees, such as for food businesses, hawkers, agriculture/fisheries, and liquor licences. This waiver will be in effect for one year, benefiting over 60,000 licensees.
Additionally, the restaurant licensing process will be expedited. The approval process for outdoor seating areas will also be made quicker, with various departments collaborating to implement the plan.
Helping SMEs grow and reach new markets
The Government will add HK$1.43 billion to the BUD Fund (Branding, Upgrading, and Domestic Sales Fund) and allow SMEs to utilise it in eight additional economies, including Belt and Road countries. The new “Easy BUD” plan will simplify the process for SMEs to participate in trade fairs and promote their products internationally.
There will also be additional support for online businesses, including free buyer credit checks from the Hong Kong Export Credit Insurance Corporation.
To help companies expand globally, a new platform called “Economic & Trade Express” will be launched by Invest Hong Kong, the Trade Development Council, and overseas offices. This will help SMEs and startups discover business opportunities and connect with investors overseas.
Other new projects include:
- Improving Cyberport’s Digital Transformation Support Pilot Programme
- Launching a new initiative called “Creativity • E-commerce – Beyond Limits”
- Offering one-stop business matching services
- A two-year pilot scheme to help tech SMEs with patent evaluations
Goal to Make Economy More Diverse
The Government also plans to strengthen local industries like farming and fishing.
From mid-2026, a new brand will be introduced for local farm and seafood products to help increase their value.
New fish culture zones will be opened, and deep-sea fish cages will be available for rent. The goal is to increase local fish production tenfold within 15 years.
The livestock industry will also get support to build Hong Kong’s first eco-friendly multi-storey pig farm in Lo Wu. The second phase of the Agricultural Park will also start soon, and leisure farming and fishing will be promoted.
A new rule will also allow dogs in certain restaurants, helping create new opportunities in the pet-friendly dining market. These restaurants will show clear signs to let customers know dogs are welcome.
Protecting local jobs
The Government said it will put local workers first and crack down on illegal employment.
Under new rules for the Enhanced Supplementary Labour Scheme (ESLS):
- Employers wanting to hire foreign waiters or junior cooks must extend local job recruitment from 4 to 6 weeks.
- They must also attend weekly job fairs during this time.
- To bring in foreign workers, they must already employ at least two local waiters and two local junior cooks.
A new hotline will be established to report illegal work, and enforcement will be strengthened.
The Government will also update laws to give better work injury protection to gig and platform workers (like delivery riders or app-based drivers).
What this means for SMEs
The new support plan demonstrates the Government’s commitment to assisting SMEs by reducing costs, enhancing access to funding, promoting technology and exports, and creating new opportunities across various industries.
A survey by DBS Bank found that more than 70% of SMEs identified financial support, market growth, and digital technology as their top needs. The good news is that all of these issues are addressed in the new measures.
While these are positive steps forward, experts say the results will also depend on how quickly and smoothly the plans are implemented.
