Government Enhances Funding Schemes for SMEs
Hong Kong has enhanced two funding schemes: the Dedicated Fund on Branding, Upgrading & Domestic Sales (BUD Fund) and the SME Export Marketing Fund (EMF) schemes for SMEs. Specifically, new measures aiming to provide more focused and sustainable assistance have been introduced. These changes apply to applications received from 14 March, as announced by the Trade and Industry Department.
With uncertainties in the global economy persisting, the updates seek to help small and medium-sized enterprises (SMEs) better adapt to evolving market conditions.
Key Changes to the BUD Fund and EMF
Applicant enterprises are now permitted to submit one “Easy BUD” application every three months, instead of the previous six-month interval. This adjustment is designed to expedite access to funding and enable businesses to respond more promptly to market opportunities.
Moreover, the funding scope has been expanded to include the establishment of online sales platforms. Professional fees related to setting up new business entities in eligible markets are now also covered, supporting companies as they restructure their operations in response to rising trade protectionism and geopolitical tensions.
Consolidation and Future Sustainability
The merger is designed to focus resources on helping enterprises achieve upgrading and transformation goals. Promotional activities connected to these efforts will continue to be supported under the new structure.
To ensure the long-term financial sustainability of the funding schemes, adjustments to the funding ceiling and matching ratio will be introduced. Other parameters will also be rationalised to ensure resources are deployed in the most productive manner possible.
Broader Economic Context
The enhancements form part of a broader initiative outlined in the 2024 Policy Address and the 2025-26 Budget, which allocated a combined total of $2.5 billion to SME support programmes. Officials have emphasised that these efforts are crucial in helping businesses navigate global uncertainties and sustain growth in an increasingly complex economic landscape.
As global conditions continue to shift, sustained attention to upgrading, digitalisation, and market expansion will likely remain key to the competitiveness of Hong Kong’s business community. The measures introduced, which enhance funding schemes to strengthen SME support, mark a notable step towards equipping enterprises for ongoing challenges.
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