Policy Address

Support for Small and Medium Enterprises

Credit Facilities

107.     In response to the global financial crisis, the Government rolled out a series of measures to “stabilise the financial system, support enterprises and preserve employment” to help small and medium enterprises (SMEs) tide over the difficult times.  Over the past year, some 39 000 applications have been approved under loan guarantee schemes, involving total loans of over $97 billion.  The measures have benefited some 20 000 enterprises and helped preserve more than 330 000 jobs.

108.     The Hong Kong Mortgage Corporation Limited is exploring the establishment of a market-oriented loan guarantee scheme to provide a sustainable platform for obtaining credit.

109.     The SME Export Marketing Fund under the Trade and Industry Department subsidises SME participation in export promotion activities. The SME Development Fund provides financial support for trade and industrial organisations, professional bodies, support organisations and research institutes to carry out projects to enhance the competitiveness of SMEs. As these two funds have been well received, we plan to inject an additional $1 billion into these funds next year.

Competition Bill

110.     The Competition Bill was introduced into this Council last July.  It aims to prohibit and deter anti-competitive conduct in various sectors and to maintain a level playing field.  The Government fully understands the concern of SMEs that a competition law may undermine their flexibility in doing business and increase their operating costs.  We have included in the bill exemptions and a mechanism to help enterprises comply with the law.  We will continue to explain to the business community the content of the bill, and listen carefully to their views.

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