Hong Kong Support for Small Businesses: 2025 Policy Highlights

In this article titled "Hong Kong Support for Small Businesses: 2025 Policy Highlights," aims to support Small and Medium Enterprises (SMEs) while driving economic growth and diversification. This plan is intended to empower small businesses to effectively address present challenges and strategically prepare for future opportunities.

Supporting SMEs in Expanding and Accessing New Market

The Government will allocate an additional HK$1.43 billion to the Branding, Upgrading, and Domestic Sales Fund (BUD Fund), enabling SMEs to utilize it in eight new markets, including Belt and Road countries. The newly introduced "Easy BUD" plan will streamline the process for SMEs to participate in trade fairs and promote their products on an international scale.

Furthermore, there will be enhanced support for online businesses, including complimentary buyer credit checks provided by the Hong Kong Export Credit Insurance Corporation.

To facilitate global expansion, a new platform named “Economic & Trade Express” will be launched by Invest Hong Kong, the Trade Development Council, and overseas offices. This initiative aims to assist SMEs and startups in identifying business opportunities and connecting with international investors.

Other new projects include:

• Improving Cyberport’s Digital Transformation Support Pilot Programme

• Launching a new initiative called “Creativity

• E-commerce – Beyond Limits”

• Offering one-stop business matching services

• A two-year pilot scheme to help tech SMEs with patent evaluations

Reducing Expenses and Streamlining Regulations

The Government has announced measures to help reduce operating costs for businesses by cutting water and sewage charges by 50% for commercial users, benefiting approximately 260,000 businesses. Additionally, the trade effluent surcharge, primarily affecting restaurants, will also be reduced by half, providing relief to around 35,000 enterprises in the food sector.

In a further effort to support businesses, Hong Kong will waive various licence and permit fees for sectors such as food services, hawkers, agriculture, fisheries, and liquor licences for one year, benefiting over 60,000 licensees.

Moreover, the licensing process for restaurants will be expedited, and the approval timeline for outdoor seating areas will be shortened through collaboration among various departments to implement these changes effectively.

Objective to Enhance Economic Diversity

The Government is also committed to bolstering local industries such as agriculture and fishing. Starting in mid-2026, a new branding initiative for local farm and seafood products will be launched to enhance their market value.

New fish culture zones will be established, along with the availability of deep-sea fish cages for rent, aiming to increase local fish production tenfold over the next 15 years.

Additionally, the livestock sector will receive support to develop Hong Kong’s first eco-friendly multi-storey pig farm in Lo Wu. The second phase of the Agricultural Park is set to commence soon, with a focus on promoting leisure farming and fishing activities.

Furthermore, a new regulation will permit dogs in select restaurants, creating opportunities in the pet-friendly dining market. These establishments will prominently display signage to inform customers that dogs are welcome.

Financial Support for Businesses

To facilitate access to loans for SMEs, the Government will extend the 80% Guarantee Product under the SME Financing Guarantee Scheme for an additional two years. Additionally, borrowers will be granted an extra year for delayed loan repayments.

These measures aim to assist small businesses in managing their cash flow, enabling them to concentrate on remaining operational and adapting to changing market conditions.

Implications for SMEs

The new support plan reflects the Government's dedication to helping SMEs by lowering costs, improving access to financing, promoting technology and exports, and generating new opportunities across multiple sectors.

A survey conducted by DBS Bank revealed that over 70% of SMEs cited financial support, market expansion, and digital technology as their primary needs. Fortunately, the new measures directly address all of these concerns.

While these initiatives represent significant progress, experts emphasize that the effectiveness of the plans will largely depend on the speed and efficiency of their implementation.

Are you exploring opportunities to establish or expand your business in the APAC region?

Hong Kong should be at the forefront of your considerations. Its unique blend of accessibility, favorable regulations, and economic stability makes it not only a leading choice but also a crucial destination for any serious business venture.

To ensure a successful business setup, it's essential to seek professional guidance and adhere to all regulatory requirements.

At BRASIA, we offer support and expert advice for businesses operating in Hong Kong.

For more information, please reach out to us at info@brasia.hk.