Hong Kong Business News

Various measures implemented by the Government could alleviate the operating pressure on the retail sector and help it further develop businesses, Secretary for Commerce & Economic Development Algernon Yau told the Legislative Council today.

Along with a rise in employment earnings, stabilisation of asset markets and further revival in inbound tourism, coupled with the Government’s continued efforts in promoting a mega event economy and stimulating consumption sentiment as well as the central government’s enhancement to the Individual Visit Scheme by extending its scope to 59 cities to cover all provincial capitals in the country, the local retail sector is expected to benefit directly.

In response to lawmaker Adrian Ho's question on the changing consumption pattern of residents and inbound visitors, which have posed a challenge to small and medium enterprises (SMEs) in the retail sector, Mr Yau said the Government has been providing assistance to SMEs, with a view to helping them cope with a liquidity shortage and encouraging them to enhance competitiveness and develop diversified markets.

The Special 100% Guarantee Product under the SME Financing Guarantee Scheme provides low-interest concessionary loans to SMEs. As at end-March, nearly $19 billion of loans have been approved under the scheme for SMEs in the retail sector, benefitting over 6,000 enterprises and some 53,000 employees.

At the same time, the SME Export Marketing Fund provides funding support for SMEs to participate in export promotion activities to expand their markets outside Hong Kong. As at end-April, the fund has approved more than 31,400 applications from the wholesale and retail sector, benefitting over 6,800 enterprises and involving a total funding of $700 million.

In addition, the Government has allocated funding to launch the Digital Transformation Support Pilot Programme, under which subsidies will be provided on a one-to-one matching basis to assist SMEs in the retail and food and beverage industries in applying e-payment and other ready-to-use basic digital solutions, so as to expedite their digital transformation.

Mr Yau added that as Hong Kong’s economy is recovering and the number of inbound visitors is increasing, the trade will be given a greater impetus of recovery.

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