Hong Kong Allocates $200 Million to Boost SME Competitiveness

Mar 04, 2026
Legal and Business News
~ 2 min read
Sergey Konon
  • Sergey Konon
  • Tax & Corporate Lawyer

The Government of the Hong Kong Special Administrative Region has announced a comprehensive support package aimed at enhancing the resilience and competitiveness of local small and medium-sized enterprises (SMEs), with total targeted funding amounting to USD 200 million.

Key Support Areas

Under this initiative, the subsidy cap for the BUD Fund (Special Fund on Branding, Upgrading and Domestic Sales) will be raised to USD 150,000 per application, encouraging companies to invest in brand development, digital transformation, and expansion into new sales markets.

Special emphasis is placed on technological modernization: enterprises adopting artificial intelligence-based solutions will receive priority, tailored assistance from regulators.

Insurance Protection and Guarantee Mechanisms

To mitigate export risks, the Hong Kong Export Credit Insurance Corporation (HKECIC) will launch a pilot insurance program this year covering transactions with counterparties in high-risk jurisdictions — exclusively for SMEs.

Concurrently, the SME Financing Guarantee Scheme is being expanded:

  • Application deadline for the 80% Guarantee Product extended to 31 March 2028;
  • Main scheme open for applications until mid-November 2026;
  • Total credit guarantee capacity increased by USD 20 billion, providing additional liquidity access for thousands of businesses.

Support for the Food Sector

The Centre for Food Safety has waived certification fees for food products for a two-year period to reduce operational costs for manufacturers and distributors.

By mid-2026, a new unified brand for local agricultural and fisheries products will be introduced, backed by an integrated quality control system featuring independent testing, certification, and end-to-end supply chain traceability.

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