In the past articles, we have found out some highlights of Policy Address 2020. During the speech of Chief Executive, Carrie Lam, there are some proposed policies to assist SMEs to overcome the current economic difficulties. In this article, WYND team will analysis what kind of SMEs can benefit from Policy Address 2020.
To All Entrepreneurs
Introduce a concessionary low-interest loan with 100% guarantee for enterprises, which will be open for application for six months. Maximum loan of $2 million with repayment period up to three years. Moratorium on principle repayment for first six months
Reduce profits tax for 2019-20 assessment year by 100% subject to a $20,000 ceiling
Waive business registration fees for 2020-21 & registration fees for company annual returns for two years
With the above policies, enterprises can alleviate their short term financial pressure and prepare for the future.
It is no doubt that Hong Kong has been facing economic hardship led by COVID-19. However, it doesn’t change the fact that Hong Kong is still the International Financial Centre in the world. To maintain or even further enhance the competitiveness of Hong Kong, there are some policies for this industry.
Fintech Proof-of-Concept Subsidy Scheme: This scheme is to encourage partnership between traditional financial institutions with startup to conduct the projects. As a result, SMEs can achieve more support from larger firms.
Establishment of a licensing regime: Public Consultation will start regarding monitor virtual asset service providers. With the public consultation, entrepreneurs can express their opinion to create a better business environment.
Innovation and Technology Industry
While IT industry a popular industry in modern society, the policymaker must have a plan for this industry.
International Innovation and Technology Hub: There would be a 5 year Global STEM Professorship Scheme with $2 billion budget to attract outstanding R&D talent from overseas. In addition, the Government will release the plan of Smart City Blueprint for Hong Kong 2.0 with more than 130 initiatives. Because of the support from Policy Address 2020, SMEs in IT industry is believed to have long term support to develop their business in Hong Kong.
Cultural and Creative Industry
Further sponsorship for Art Development Matching Grants Scheme: Additional $900 million to further promote sponsorship of culture and arts from all sectors
👉 Tips from WYND Team: Working in coworking space with a attractive view is also beneficial to brainstorm idea. For example, our space is with a nice heritage site view.
Additional funding for the Hong Kong Trade Development Council: To assist Hong Kong enterprises in exploring business opportunities, there would be additional funding of $150 million to assist Hong Kong enterprises.
To read the full highlights of Policy Address 2020, please visit the government website here.
It’s no doubt that we are experiencing a difficult time, we hope these measures can help you overcome the obstacles. Follow WYND’s blog page, keep checking out our latest blogs and we will offer various useful information and tips for Startups, SMEs.
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