On May 6, Hong Kong's Deputy Secretary for Commerce and Economic Development, Chan Pak-li, responded to a legislative council inquiry regarding support for small and medium enterprises (SMEs). The government has adopted a multi-pronged approach to promote diversified development among SMEs. Two key funding schemes—the SME Export Marketing Fund (EMF) and the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)—provide financial support to encourage businesses to expand into overseas markets through export promotion activities and upgrading initiatives.
As part of COVID-19 relief measures, the EMF has implemented special provisions from the end of April 2021 through the end of June 2026. These include covering local market-focused exhibitions and online exhibitions, as well as relaxing the requirement that only SMEs may apply.
Since 2018, the government has repeatedly enhanced the BUD Fund, injecting a total of HK$7.75 billion, expanding the geographical coverage of support, and progressively raising the cumulative funding ceiling per enterprise from HK$500,000 to HK$7 million. Additional initiatives such as "Easy Application" and "E-commerce Easy" have also been introduced.
In March 2025, the government implemented rationalization measures for the BUD Fund to ensure its financial sustainability and effective use. In 2025, the fund received approximately 5,350 applications—an increase of over 210% compared to 2019—while the amount of approved funding rose by more than 320%, reflecting strong ongoing industry demand.
Participating companies widely acknowledge that the BUD Fund provides multifaceted assistance, including enhancing corporate image, raising brand/product/service awareness, and improving overall competitiveness. As of the end of March 2026, around 98% of enterprises responding to project completion surveys agreed that the BUD Fund helped develop their business, and a similar percentage of respondents to annual review surveys believed it supported their long-term development.
In response to specific questions about processing times for the EMF, the government noted that under normal circumstances, the Trade and Industry Department aims to complete processing within 30 full working days after receiving a properly completed application with all required supporting documents. More complex cases may take longer. Over the past three years, approximately 30% of applications fell into the complex category, often involving discrepancies in declared expenses or incomplete information from event organizers. Despite this, over 99% of applications were processed within nine months after all documents were received.
To improve efficiency, the department has optimized staffing, streamlined approval procedures, enhanced online systems, and strengthened communication with applicants. Additional guidance has been provided to help businesses accurately report expenses and avoid misdeclaration.
Looking ahead, the government plans to further optimize the BUD Fund by expanding its geographical scope, increasing the maximum grant under the "Easy Application" scheme from HK$100,000 to HK$150,000, and offering targeted support for projects involving AI applications and green transformation. These measures are expected to be implemented in the second quarter of 2026. The government will continue to monitor the fund’s financial impact and adjust its operations as needed to ensure sustainable and broad-based support for SMEs.