Hong Kong Business News

Secretary for Commerce & Economic Development Algernon Yau today briefed members of the Trade & Industry Advisory Board on major initiatives related to economic and trade developments in the 2024 Policy Address.

Mr Yau said that the Policy Address announced a series of initiatives, including a reduction of the duty rate for liquor, to create new impetus for Hong Kong’s economic development.

Currently, the import prices of about 85% of duty-paid liquor in Hong Kong stand at $200 or below, meaning that such products will not benefit from the duty reduction.

The commerce chief pointed out that this can avoid providing an incentive for citizens to increase liquor consumption as a result of the duty deduction, adding that the proposal has struck a balance between various policy considerations such as facilitating high-end liquor trade, maintaining healthy public finances and safeguarding public health.

Mr Yau also briefed the members on the proposal introduced in the Policy Address to build a high value-added supply chain service centre.

He noted that Invest Hong Kong and the Trade Development Council will set up a mechanism and enhance their interfaces for attracting Mainland enterprises to establish international or regional headquarters in Hong Kong for managing offshore trading and supply chains, and providing one-stop diversified professional advisory services for enterprises in Hong Kong looking to go global.

Mr Yau also highlighted that the Policy Address rolled out various support measures for small and medium-sized enterprises (SMEs), including relaunching the principal moratorium arrangement under the SME Financing Guarantee Scheme, as well as raising the maximum indemnity ratio of the Hong Kong Export Credit Insurance Corporation to 95%.

Separately, the Trade & Industry Department briefed the meeting attendees on the Second Agreement Concerning Amendment to the Mainland & Hong Kong Closer Economic Partnership Arrangement Agreement on Trade in Services (Amendment Agreement II).

Mr Yau said the series of measures will provide better support for SMEs while further promoting economic and trade developments, thereby enabling the steady advancement of Hong Kong’s economy.