Banner:Database on Particular Policy Issues - Commerce and Industry

Small and Medium Enterprises



DateContextSummary of developmentAction
12.1.98 TI Government issued a LegCo Brief on Helping Business and Promoting Services.
22.6.98 PRESS The Chief Executive (CE) announced that a package of special relief measures would be implemented to ease Hong Kong's economic adjustment. One of the measures was to help small and medium enterprises (SMEs) to obtain loans from lending institutions. [Press release]
31.7.98 FC FC approved the creation of a new Head "Small and Medium Enterprises" under the Loan Fund and, under the new Head, a new Subhead "Special Finance Scheme for Small and Medium Enterprises" with a commitment of $2.5 billion for the establishment of the Special Finance Scheme for SMEs. [Paper]
23.4.99 FC FC approved the changes recommended in the Administration's review of the operation of the Special Finance Scheme for SMEs. [Paper]
12.11.99 FC FC approved to raise the commitment from $2.5 billion to $5 billion so as to increase the number of guarantee loans under the Special Finance Scheme for SMEs and to approve refinements to the terms and conditions of the Scheme. [Paper]
11.10.00 PA CE announced in the Policy Address 2000 that the Small and Medium Enterprises Committee (SMEC) had been tasked to put up practical recommendations on ways to support SMEs. [Policy Address "paragraphs 44 and 45"]
8.1.01 CI The Panel discussed with the Administration on problems encountered by SME operating in the Mainland. In response to members' request, the Government agreed to present a paper on problems encountered by SMEs operating in the Mainland for members' reference after the meeting. [Paper] [Follow-up paper]
17.1.01 CQ Dr Hon LUI Ming-wah raised a question on the definition of and statistics on SMEs. [Hansard "page 7"]
7.3.01 BS The Financial Secretary announced in the 2001-02 Budget Speech that the Administration would set aside $300 million for the establishment of a training fund to subsidize SMEs' staff training initiatives. [Budget Speech "paragraph 40"]
12.3.01 CI The Panel discussed with the Administration on the progress made by SMEC in exploring feasible and concrete support measures for SMEs. [Paper]
14.3.01 CM The Council passed a motion moved by Hon HUI Cheung-ching urging the Government to adopt measures to alleviate the difficulties of SMEs. [Hansard "page 189"]
27.6.01 CQ Hon Kenneth TING raised a question on matters relating to loan applications of SMEs. [Hansard "page 95"]
27.6.01 PRESS SMEC submitted its report to CE on recommendations to support and facilitate the long term development of SMEs in Hong Kong. [Press release]
9.7.01 CI The Panel discussed with the Administration on the SMEC's report. [Paper] [Follow-up paper (Chinese version only)]
22.10.01 CI The Panel discussed with the Administration on the proposals for setting up four SME funding schemes, namely the SME Business Installations and Equipment Loan Guarantee Scheme, the SME Export Marketing Fund, the SME Training Fund and the SME Development Fund. [Paper] [Follow-up paper]
31.10.01 CQ Dr Hon LUI Ming-wah raised a question on the bad debt ratio of loans under the Special Finance Scheme for SMEs. [Hansard "page 17"]
9.11.01 FC FC approved the following new commitments under Head 181 - Trade and Industry Department -
(a)$6.6 billion for the setting up of the SME Business Installations and Equipment Loan Guarantee Scheme;
(b)$400 million for the setting up of the SME Training Fund;
(c)$300 million for the setting up of the SME Export Marketing Fund; and
(d)$200 million for the setting up of the SME Development Fund.
[Paper]
14.11.01 CM A motion moved by Hon Kenneth TING as amended by Hon SIN Chung-kai and Hon LEE Cheuk-yan on improving the business environment was passed [Hansard "page 142" ]
3/02 FC Some members raised questions on the SME funding schemes in examining the Estimate of Expenditure 2002-03. [Question "Reply Serial Nos.: CIB028, 030]
17.4.02 CQ Hon Kenneth TING raised a question on matters relating to applications for assistance under the SME Business Installations and Equipment Loan Guarantee Scheme. [Hansard "page 38"]
13.5.02 CI The Panel discussed with the Administration on the progress report on the four funding schemes for SMEs. [Paper]

At members' request, the Administration provided the Panel with further information on approved cases of the SME Business Installations and Equipment Loan Guarantee Scheme which involved loan facilities over $2 million each. [Follow-up paper]
10.6.02 CI The Panel discussed the paper on improving the business environment with reference to the role of the Government as a proactive market enabler. [Paper]

At members' request, the Administration provided the Panel details of specific plans and measures implemented under the Helping Business Programme for improving the business environment in Hong Kong. [Paper]
10/02 AUD Director of Audit conducted a value-for-money audit on Special Finance Scheme for SMEs. [Report]
6.11.02 CQ Hon Kenneth TING raised a question on difficulties encountered by SMEs in securing bank loans to relieve their capital flow problems. [Hansard "page 6"]
16.12.02 CI The Panel discussed with the Administration on the recommendations of review by SMEC on the SME funding schemes [Paper]

At members' request, the Administration provided the Panel with statistics on the number of employees not being able to benefit from the SME Training Fund because employers did not subscribe to their training needs. [Follow-up paper]
24.1.03 FC FC approved the proposed changes to the SME Business Installations and Equipment Loan Guarantee Scheme, SME Training Fund and SME Export Marketing Fund as recommended by SMEC. [Paper]

At members' request, the Administration provided FC with further information on improvement measures to the SME Business Installations and Equipment Loan Guarantee Scheme, the SME Training Fund, and the SME Export Marketing Fund. [Follow-up paper]
2/03 PAC PAC considered in detail report of the Director of Audit on Special Finance Scheme for SMEs. [Report]
19.2.03 CQ Hon SIN Chung-kai raised a question on assisting SMEs in bidding for government information technology service contracts. [Hansard "page 91"]
20.3.03 CM The Council passed a motion moved by Hon HUI Cheung-ching as amended by Hon Ambrose LAU urging the Government, under the premise of ensuring that the SME funding schemes would not be abused, to extensively publicize the schemes and strengthen co-operation with various trades and industries and professional organizations and to adopt a more flexible vetting and approving approach, so as to enable SMEs in a wider range of trades and industries to obtain timely and effective support. [Hansard "page 33"]
9.6.03 CI The Panel discussed with the Administration on the proposed further improvement measures to the SME Export Marketing Fund and SME Training Fund, and to enhance the Administration's flexibility in managing the resources available for these two Funds as well as the SME Development Fund according to demand, with a view to further helping SMEs rise to the challenges brought about by the Severe Acute Respiratory Syndrome outbreak. [Paper]
20.6.03 FC FC approved the proposal to merge SME Training Fund, SME Export Marketing Fund and SME Development Fund into a new item "SME Training, Export Marketing and Development Funds" with a commitment of $900 million, and to increase the subsidy level per successful application and to raise the ceiling on the aggregate amount of grant. [Paper]
29.10.03 CQ Hon Mrs Selina CHOW raised a question on the number of applications received and the amount of grant involved under each of the four SME funding schemes, and the response of SMEs to the improvement measures for the schemes. [Hansard "page 45"]
3.3.04 CQ Hon Dr Hon David LI raised a question on claims for defaulted guaranteed loans made out under the Special Finance Scheme for SMEs [Hansard "page 18"]
3/04 FC FC Some members raised questions on the SME funding schemes in examining the Estimate of Expenditure 2004-05. [Question "Reply Serial Nos.: CITB(CI)058, 061]
13.4.04 CI The Panel discussed and supported the reorganization proposal arising from the establishment of the Economic Analysis and Business Faciliation (EABF) Unit under the Financial Secretary (FS)'s Office. One of the important functions of the unit was to advise the FS on the development and implementation of policies and initiatives for improving the business environment in Hong Kong. [Paper]
28.4.04 ESC ESC endorsed the proposed permanent redeployment of six permanent posts (including one Government Economist (D4) and four Principal Economist (D2) from the Financial Services and the Treasury Bureau; and one Assistant Director of Management Services (D2) from the Commerce, Industry and Technology Bureau) to the Offices of the Chief Secretary for Administration (CS) and the FS with effect from 1 June 2004 for the purpose of establishing the EABF Unit. [Paper]
14.5.04 FC FC approved the staffing proposal endorsed by ESC on 28 April 2004. [Paper]
19.5.04 CQ Hon James TIEN raised a question on the Government's initiatives implemented for helping business and their effectiveness. [Hansard "page 16" ]
14.6.04 CI The Panel discussed measures for improving the business environment and providing an "enabling environment" to facilitate business development in Hong Kong. [Paper]

Some members suggested that on top of the existing institutional arrangement, the Administration should consider setting up a separate forum to tap creative ideas and new perspectives which might not be channeled through the existing consultative mechanism.

At members' request, the Administration provided the Panel an updated list of the Government's initiatives for creating an enabling environment for business in Hong Kong. [Follow-up paper]
19.4.05 CI The Panel discussed with the Administration on the latest position of the SME funding schemes, and a number of recommendations put forward by the SME Committee and endorsed by the Administration [Paper] [Background brief]
27.4.05 CQ Hon LI Fung-ying raised a question on training funds for SMEs. [Hansard "page 15"]
6.5.05 FC FC approved the following changes to Head 181 Trade and Industry Department Subhead 700 General non-recurrent -
Item 520 SME Loan Guarantee Scheme -
(a)increase in loan guarantee commitment from $6.6 billion by $4 billion to $10.6 billion with an expected maximum expenditure of $800 million; and Item 524 SME Training, Export Marketing and Development Funds -
(b)increase in commitment from $900 million by $500 million to $1.4 billion for the SME Export Marketing Fund and the SME Development Fund. [Paper]

8.6.05 CM A motion moved by Hon Vincent FANG Kang on actively improving the business environment for small and medium enterprises was passed with amendment [Hansard "page 168"] [Progress Report]
17.4.07 CI The Panel discussed with the Administration on the progress of the Government's business facilitation work to improve Hong Kong's business environment, including measures to enhance the business licensing system. [Paper] [Information note prepared by the Research and Library Services Division]
12.6.07 CI The Administration updated the Panel on the operation of the SME funding schemes. [Paper] [Summary on Chapter 4 of Report No. 47 of the Director of Audit] [Chapter 4 of Part 7 of the Public Accounts Committee's Report No. 47] [Background brief]
31.10.07 CQ Dr Hon David LI Kwok-po raised a question on the work of Business Facilitation Advisory Committee. [Hansard "page 106"]
28.11.07 CQ Hon LUI Ming-wah raised a question on boosting local manufacturing industries. [Hansard "page 42"]
18.12.07 CI The Panel discussed with the Administration on the latest position and the future development of the SME funding schemes. [Paper] [Background brief]
11.1.08 FC FC approved the following changes to Head 181 Trade and Industry Department Subhead 700 General non-recurrent -

Item 520 SME Loan Guarantee Scheme -
(a)increase the loan guarantee commitment from $10.6 billion by $2 billion to $12.6 billion and the expected maximum expenditure from $800 million by $150 million to $950 million;
(b)increase the maximum amount of guarantee to $6 million for each SME, comprising $5 million for the Business Installations and Equipment Loans and $1 million for the new Working Capital Loans, or 50% of the approved loan, whichever is the less;
(c)increase the indicative ceiling of guarantee exposure for each participating lending institution to $1.25 billion;

Item 524 SME Training, Export Marketing and Development Funds -
(d)increase the commitment from $1.4 billion by $350 million to $1.75 billion and retitle this item as SME Export Marketing and Development Funds;
(e)increase the maximum amount of grant under the SME Export Marketing Fund to $100,000 per SME; and
(f)extend the scope of the SME Export Marketing Fund.
[Paper]
21.10.08 and 27.10.08 CI At the meeting on 27 October 2008, the Panel has met with the Administration and deputations on assistance to small and medium enterprises in coping with difficulties arising from the global financial turmoil. [Paper] [Press release] [Background brief] [Administration's response to issues raised at the Panel meeting on 21 October 2008] [Summary of local press reports on the rescue packages introduced by places outside Hong Kong to cope with the financial crisis from 3 August 2007 to 22 October 2008] (Chinese version only) [Summary of views received from the SME Summit held on 23 October 2008]
28.10.08 FC FC approved the following changes to Head 181 Trade and Industry Department Subhead 700 General non-recurrent -

Item 520 SME Loan Guarantee Scheme(SGS) -
(a)remove the sub-ceilings for the Business Installations and Equipment Loans and Working Capital Loans, while maintaining the overall maximum amount of guarantee for each SME at $6 million, or 50% of the approved loan, whichever is the less;
(b)increase the indicative ceiling of guarantee exposure for each participating lending institution from $1.25 billion to $1.5 billion;
(c)allow each SME to recycle the guarantee once after it has fully paid up the loan backed up by the guarantee;

Item 524 SME Export Marketing and Development Funds -
(d)increase the maximum amount of grant per SME from $100,000 to $150,000 under SME Export Marketing Fund, and the sub-ceiling for each successful application from $30,000 to $50,000, or 50% of the approved expenditure, whichever is the less; and
(e)extend the scope of reimbursable items under Export Marketing Fund.
[Paper]
29.10.08 CQ Hon Emily LAU Wai-hing raised a question on the assistance to small shop tenants. [Hansard "page 45"]
5.11.08 CQ Dr Hon LAM Tai-fai raised a question on the assistance provided to SMEs. [Hansard "page 82"]
5.11.08 CM A motion moved by Hon Albert HO Chun-yan on preventing the lower and middle classes from being trapped in hardship amid the financial tsunami was passed. [Hansard "page 204"] [Progress report]
12.11.08 CI The Administration briefed the Panel on the proposed Special Loan Guarantee Scheme (SpGS) and enhanced measures of the Hong Kong Export Credit Insurance Corporation for SMEs. [Paper] [Summary of views received from the SME Summit held on 23 October 2008] [Circular on lending to small and medium-sized enterprises issued by the Hong Kong Monetary Authority on 29 October 2008] [Summary of deputations' views received at the special meeting of the Panel on Commerce and Industry held on 27 October 2008]
12.11.08 CQ Hon Emily LAU Wai-hing raised a question on the assistance to small shop tenants. [Hansard "page 98"]
12.11.08 CM A motion moved by Hon Vincent FANG Kang on supporting small and medium enterprises to tide over the financial tsunami was passed. [Hansard "page 45 "] [Progress report]
14.11.08 FC FC approved a new loan guarantee commitment of $7 billion with an expected maximum expenditure of $700 million for the Government to provide guarantee under a SpGS for SMEs and to meet contingent liabilities arising from this guarantee. [Paper]
18.11.08 CI The Administration updated the Panel on the latest progress in providing additional support to SMEs arising from the global financial crisis. [Paper] [Summary of views received from the SME Summit held on 23 October 2008] [Summary of deputations' views received at the special meeting of the Panel on Commerce and Industry held on 27 October 2008]
19.11.08 CQ Dr Hon LI Kwok-po raised a question on SGS. [Hansard "page 73"]
26.11.08 CQ Hon Vincent FANG Kong raised a question on the assistance to small shop tenants and licensed hawkers. [Hansard "page 35"]
1.12.08 CI The Administration updated the Panel on the support measures for SMEs. The enhancement measures were implemented on 6 November 2008. [Paper] [Letter from the Hong Kong Association of Banks dated 27 November 2008 (English version only)] [List of follow-up actions arising from the meeting held on 18 November 2008 prepared by the Legislative Council Secretariat] [Administration's letter dated 17 November 2008] [Summary of views received from the SME Summit held on 23 October 2008] [Summary of deputations' views received at the special meeting of the Panel on Commerce and Industry held on 27 October 2008]
3.12.08 CQ Dr Hon LAM Tai-fai raised a question on ratings of emerging markets by Hong Kong Export Credit Insurance Corporation. [Hansard "page 81"]
5.12.08 CI The Panel discussed the proposal to move a motion for adjournment at the Council meeting on 17 December 2008 for the purpose of enabling Members to debate the issue on further support measures for small and medium enterprises.
10.12.08 CI The Administration briefed the Panel on the proposed enhancement to SpGS for SMEs, with a view to further strengthening support for business establishments in Hong Kong in obtaining immediate cashflow relief from the commercial lending market amid the current global financial crisis. [Paper] [Press release on economic stimulus package announced by the Chief Executive on 8 December 2008]
12.12.08 FC FC approved the following changes to Head 181 Trade and Industry Department Subhead 700 General non-recurrent -

Item 802 SpGS for Small and Medium Enterprises

(a)increase the total loan guarantee commitment from $7 billion by $93 billion to $100 billion, and to meet contingent liabilities arising from this guarantee;
(b)extend the scheme to all companies registered and with substantive businesses in Hong Kong, except listed companies;
(c)vincrease the maximum amount of loan that each enterprise may obtain from $1 million to $6 million. Within this ceiling, up to $3 million may be used for a revolving credit line;
(d)subject to the maximum loan guarantee ratio at 70%, increase the maximum amount of loan guarantee for each enterprise from $700,000 to $4.2 million. Within this ceiling, the maximum amount of loan guarantee in respect of the revolving credit line is $2.1 million, or an amount equivalent to 70% of the approved loan under the revolving credit line, whichever is lower; and
(e)extend the maximum guarantee period for each loan from 30 months to 36 months, or up to 30 June 2012, whichever is earlier.
[Paper]
16.12.08 CI The Administration updated the Panel on the support measures for SMEs. [Paper] [Paper on summary of deputations' views received at the special meetings on 27 October and 1 December 2008 prepared by the Legislative Council Secretariat] [Follow-up paper]
17.12.08 CQ Hon Jeffrey LAM Kin-fung raised a question on tax concessions for SMEs. [Hansard "page 78"]
17.12.08 CMA A motion on adjournment moved by Hon Vincent FANG Kang on predicament faced by the small and medium enterprises due to tightened credit facility from banks was passed. [Hansard "page 286"]
7.1.09 CQ Dr Hon LAM Tai-fai raised a question on making public list of credit risk ratings assigned to countries and markets by Hong Kong Export Credit Insurance Corporation. [Hansard "page 90"]
13.1.09 CI The Administration updated the Panel on the implementation progress of the SGS and SpGS. [Paper] [Supplementary note] [Programme flyer for the seminar on measures in support of SMEs held on 15 January 2009] [Follow-up paper]
4.2.09 CQ Dr Hon LAM Tai-fai raised a question on SpGS. [Hansard "page 87"]
17.2.09 CI The Administration briefed the Panel on the latest position of the enhanced SGS and the SpGS. [Paper]
4.3.09 CQ Dr Hon LAM Tai-fai raised a question on SpGS. [Hansard "page 67"]
17.3.09 CI The Administration briefed the Panel on the latest position of the enhanced SGS and the SpGS. [Paper] [Supplementary note]
21.4.09 CI The Administration briefed the Panel on the enhancement measures to boost the economy of Hong Kong and the progress of the SGS and the SpGS. [Paper] [Hon Vincent FANG's letter and study report on consumer vouchers issued in March 2009] (Chinese version only) [Supplementary note] [Follow-up paper]
19.5.09 CI The Administration briefed the Panel on the latest position of the SGS and the SpGS [Paper] [Supplementary note]
20.5.09 CQ Dr Hon LAM Tai-fai raised a question on measures to assist Hong Kong enterprises and ease unemployment problem. [Hansard "page 90"]
1.6.09 CI The Financial Secretary announced on 26 May 2009 a package of relief measures to assist different sectors of the community to ride over the storm brought by the global financial crisis. The Administration briefed the Panel on the proposed enhancement measures for the SpGS, the SGS, the SME Export Marketing Fund, the SME Development Fund and the Hong Kong Export Credit Insurance Corporation, as well as the tourism sector. [Paper]
5.6.09 FC FC approved the following changes to Head 181 Trade and Industry Department Subhead 700 General non-recurrent -

Item 520 SME Loan Guarantee Scheme -

(a)increase the loan guarantee commitment from $12.6 billion by $7.4 billion to $20 billion, and to meet contingent liabilities arising from this guarantee;

Item 524 SME Export Marketing and Development Funds -
(b)increase the approved commitment from $1.75 billion by $1 billion to $2.75 billion;
(c)expand the scope of the SME Export Marketing Fund;
Item 802 Special Loan Guarantee Scheme -
(d)increase the maximum loan guarantee ratio from 70% to 80% for new loans to be approved;
(e)increase the maximum amount of loan that each enterprise may obtain from $6 million to $12 million; and within this ceiling, increase the amount of loan that may be used for revolving credit facilities from $3 million to $6 million;
(f)subject to the maximum loan guarantee ratio at 80% for new loans, increase the maximum amount of loan guarantee for each enterprise from $4.2 million to $9.6 million. Within this ceiling, the maximum amount of loan guarantee in respect of the revolving credit facilities will be increased from $2.1 million to $4.8 million, or an amount equivalent to 80% of the approved loan under the revolving credit facilities, whichever is lower; and
(g)for new loans to be approved, extend the maximum guarantee period from 36 months to 60 months after loan drawdown, or up to 60 months after the application deadline, whichever is earlier.
[Paper] [Follow-up paper]
10.6.09 CQ Dr Hon LAM Tai-fai raised a question on impacts of the financial tsunami and Influenza A (H1N1) epidemic on various industries. [Hansard "page 103"]
16.6.09 CI The Administration briefed the Panel on the latest position of the SGS and the SpGS. [Paper] [Supplementary note]
21.7.09 CI The Administration briefed the Panel on the latest position of the SGS and the SpGS. [Paper] [Supplementary note]
16.10.09 CI The Administration issued an information paper on progress update on the support measures for SMEs arising from the global financial turmoil. [Paper]
17.11.09 CI The Administration briefed the Panel on the latest position of the SGS and the SpGS. [Paper] [Paper on SpGS] [Background brief]
21.4.10 CQ Dr Hon LAM Tai-fai raised a question on Special Loan Guarantee Scheme. [Hansard "page 49"]
22.4.10 CI The Administration issued an information paper on Government's decision to extend the application period for the SpGS, for the last time, for six months until 31 December 2010. [Paper]
9.6.10 CQ Dr Hon LAM Tai-fai raised a question on assistance for small and medium enterprises. [Hansard "page 122"]
25.6.10 CM A motion moved by Dr Hon LAM Tai-fai on assisting the sustainable development of small and medium enterprises was passed. [Hansard "page 196"]
16.7.10 CM A motion moved by Hon Miriam LAU Kin-yee on comprehensively upgrading the quality of talents in Hong Kong to complement the upgrading and transformation of small and medium enterprises was passed. [Hansard "page 464 "]


  		• Trade and Industry Department - Support to Small and Medium Enterprises:http://www.tid.gov.hk/english/smes_industry/smes_content.html


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