Hong Kong LegCo replies to written questions, Estimates 2025-26
Summary
A compilation of Controlling Officer replies to initial written questions raised by Legislative Council Members in examining the Estimates of Expenditure 2025-26, for the Commerce and Economic Development Bureau, Session No. 18. An opening index lists each reply serial number with its question serial number, the member who asked it, and the head and programme concerned, ending at CEDB161. The heads listed include Head 152 Government Secretariat: Commerce and Economic Development Bureau, and questions cover subvention to the Hong Kong Trade Development Council, commerce and industry, telecommunications, broadcasting, investment promotion and intellectual property. Reply CEDB001 states that the Hong Kong Trade Development Council plans at least 5 seminars under the E-Commerce Express and will support the Hong Kong Shopping Festival scheduled for August 2025.
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“Hong Kong LegCo replies to written questions, Estimates 2025-26.”
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Index Page
Replies to initial written questions raised by Legislative Council Members in examining the
Estimates of Expenditure 2025-26
Director of Bureau : Secretary for Commerce and Economic Development
Session No. : 18
Consolidated e-file name : CEDB-2-e1.docx
Reply Serial No. Question Name of Member Head Programme
Serial No.
CEDB001 3144 CHAN Chun-ying 152 (6) Subvention: Hong Kong
Trade Development Council
CEDB002 2872 CHAN Man-ki, 152 (6) Subvention: Hong Kong
Maggie Trade Development Council
CEDB003 2880 CHAN Man-ki, 152 (6) Subvention: Hong Kong
Maggie Trade Development Council
CEDB004 0149 CHAN Yuet-ming 152 (3) Telecommunications
CEDB005 0816 CHEN Chung-nin, 152 (2) Commerce and Industry
Rock
CEDB006 0590 CHIU Duncan 152 (2) Commerce and Industry
CEDB007 0842 CHIU Duncan 152 (2) Commerce and Industry
CEDB008 1867 CHIU Duncan 152 (2) Commerce and Industry
CEDB009 3254 CHOW Ho-ding, 152 (2) Commerce and Industry
Holden
CEDB010 3257 CHOW Ho-ding, 152 (2) Commerce and Industry
Holden
CEDB011 1549 CHOW Man-kong 152 (2) Commerce and Industry
CEDB012 1550 CHOW Man-kong 152 (2) Commerce and Industry
CEDB013 1551 CHOW Man-kong 152 (2) Commerce and Industry
CEDB014 1552 CHOW Man-kong 152 (2) Commerce and Industry
CEDB015 1895 FOK Kai-kong, 152 (4) Broadcasting
Kenneth
CEDB016 1447 HO King-hong, Adrian 152 (2) Commerce and Industry
Pedro
CEDB017 1448 HO King-hong, Adrian 152 (2) Commerce and Industry
Pedro
CEDB018 1463 HO King-hong, Adrian 152 (2) Commerce and Industry
Pedro
CEDB019 1582 HONG Wen, Wendy 152 (2) Commerce and Industry
CEDB020 1597 HONG Wen, Wendy 152 (2) Commerce and Industry
CEDB021 3259 KAN Wai-mun, 152 (-) -
Carmen
CEDB022 3260 KAN Wai-mun, 152 (2) Commerce and Industry
Carmen
CEDB023 3299 KAN Wai-mun, 152 (-) -
Carmen
CEDB024 1247 KONG Yuk-foon, 152 (2) Commerce and Industry
Doreen
CEDB025 1249 KONG Yuk-foon, 152 (5) Posts, Competition Policy
Doreen and Consumer Protection
CEDB026 1250 KONG Yuk-foon, 152 (7) Subvention: Consumer
Doreen Council
CEDB027 0611 LAI Tung-kwok 152 (3) Telecommunications
Session 18 CEDB - Page 1
Reply Serial No. Question Name of Member Head Programme
Serial No.
CEDB028 2969 LAM Chun-sing 152 (2) Commerce and Industry
(3) Telecommunications
(4) Broadcasting
CEDB029 3077 LAM Kin-fung, 152 (2) Commerce and Industry
Jeffrey
CEDB030 0423 LAM San-keung 152 (-) -
CEDB031 0287 LAM Shun-chiu, 152 (2) Commerce and Industry
Dennis
CEDB032 0295 LAM Shun-chiu, 152 (2) Commerce and Industry
Dennis
CEDB033 0297 LAM Shun-chiu, 152 (2) Commerce and Industry
Dennis
CEDB034 0501 LAM Siu-lo, Andrew 152 (2) Commerce and Industry
CEDB035 2403 LAM So-wai 152 (2) Commerce and Industry
CEDB036 1848 LAU Chi-pang 152 (2) Commerce and Industry
CEDB037 1400 LAU Ip-keung, 152 (2) Commerce and Industry
Kenneth
CEDB038 1401 LAU Ip-keung, 152 (2) Commerce and Industry
Kenneth
CEDB039 0846 LEE Tsz-king, 152 (2) Commerce and Industry
Dominic
CEDB040 0886 LEE Tsz-king, 152 (2) Commerce and Industry
Dominic
CEDB041 1830 LEE Wai-wang, 152 (2) Commerce and Industry
Robert
CEDB042 1831 LEE Wai-wang, 152 (2) Commerce and Industry
Robert
CEDB043 1422 LEUNG Man-kwong 152 (2) Commerce and Industry
CEDB044 3018 LEUNG Mei-fun, 152 (2) Commerce and Industry
Priscilla
CEDB045 3036 LEUNG Mei-fun, 152 (2) Commerce and Industry
Priscilla
CEDB046 3048 LEUNG Mei-fun, 152 (2) Commerce and Industry
Priscilla
CEDB047 2323 LEUNG Tsz-wing, 152 (3) Telecommunications
Dennis
CEDB048 2334 LEUNG Tsz-wing, 152 (2) Commerce and Industry
Dennis
CEDB049 3110 LI Sai-wing, Stanley 152 (3) Telecommunications
CEDB050 3111 LI Sai-wing, Stanley 152 (2) Commerce and Industry
CEDB051 1039 LIAO Cheung-kong, 152 (6) Subvention: Hong Kong
Martin Trade Development Council
CEDB052 1041 LIAO Cheung-kong, 152 (6) Subvention: Hong Kong
Martin Trade Development Council
CEDB053 1042 LIAO Cheung-kong, 152 (2) Commerce and Industry
Martin
CEDB054 0076 LO Wai-kwok 152 (2) Commerce and Industry
CEDB055 1171 MA Fung-kwok 152 (2) Commerce and Industry
CEDB056 2511 MA Fung-kwok 152 (7) Subvention: Consumer
Council
CEDB057 2512 MA Fung-kwok 152 (2) Commerce and Industry
CEDB058 0913 NG Kit-chong, Johnny 152 (2) Commerce and Industry
CEDB059 0915 NG Kit-chong, Johnny 152 (2) Commerce and Industry
CEDB060 0938 NG Kit-chong, Johnny 152 (2) Commerce and Industry
CEDB061 0253 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
Session 18 CEDB - Page 2
Reply Serial No. Question Name of Member Head Programme
Serial No.
CEDB062 0254 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB063 0255 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB064 0256 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB065 0262 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB066 0268 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB067 0269 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB068 0274 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB069 0275 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB070 0277 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB071 0321 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB072 0524 SHIU Ka-fai 152 (2) Commerce and Industry
CEDB073 0761 SHIU Ka-fai 152 (2) Commerce and Industry
CEDB074 1617 SO Cheung-wing 152 (2) Commerce and Industry
CEDB075 1618 SO Cheung-wing 152 (2) Commerce and Industry
CEDB076 1643 SO Cheung-wing 152 (2) Commerce and Industry
CEDB077 1066 TAN Sunny 152 (2) Commerce and Industry
CEDB078 1069 TAN Sunny 152 (2) Commerce and Industry
CEDB079 1071 TAN Sunny 152 (2) Commerce and Industry
CEDB080 1075 TAN Sunny 152 (2) Commerce and Industry
CEDB081 1079 TAN Sunny 152 (2) Commerce and Industry
CEDB082 2604 TAN Yueheng 152 (6) Subvention: Hong Kong
Trade Development Council
CEDB083 2605 TAN Yueheng 152 (2) Commerce and Industry
CEDB084 3113 TIEN Puk-sun, 152 (3) Telecommunications
Michael
CEDB085 0020 TSE Wai-chuen, Tony 152 (2) Commerce and Industry
(7) Subvention: Consumer
Council
CEDB086 1965 TSE Wai-chun, Paul 152 (2) Commerce and Industry
CEDB087 3247 WONG Chun-sek, 152 (2) Commerce and Industry
Edmund
CEDB088 0090 WONG Ying-ho, 152 (2) Commerce and Industry
Kennedy
CEDB089 0091 WONG Ying-ho, 152 (2) Commerce and Industry
Kennedy
CEDB090 0092 WONG Ying-ho, 152 (2) Commerce and Industry
Kennedy
CEDB091 0111 WONG Ying-ho, 152 (6) Subvention: Hong Kong
Kennedy Trade Development Council
CEDB092 0112 WONG Ying-ho, 152 (6) Subvention: Hong Kong
Kennedy Trade Development Council
CEDB093 0113 WONG Ying-ho, 152 (6) Subvention: Hong Kong
Kennedy Trade Development Council
CEDB094 0532 YIM Kong 152 (2) Commerce and Industry
CEDB095 1492 YUNG Hoi-yan 152 (2) Commerce and Industry
CEDB096 1504 YUNG Hoi-yan 152 (3) Telecommunications
CEDB097 2999 ZHANG Xinyu, Gary 152 (2) Commerce and Industry
CEDB098 3131 CHAN Chun-ying 96 (1) Commercial Relations
CEDB099 1309 IP LAU Suk-yee, 96 (3) Investment Promotion
Regina
CEDB100 2918 KAN Wai-mun, 96 (-) -
Carmen
CEDB101 0284 LAM Shun-chiu, 96 (1) Commercial Relations
Dennis
CEDB102 0681 LEE Wai-king, Starry 96 (-) -
Session 18 CEDB - Page 3
Reply Serial No. Question Name of Member Head Programme
Serial No.
CEDB103 0774 LIAO Cheung-kong, 96 (1) Commercial Relations
Martin
CEDB104 1179 MA Fung-kwok 96 (1) Commercial Relations
CEDB105 0905 NG Kit-chong, Johnny 96 (1) Commercial Relations
CEDB106 0930 NG Kit-chong, Johnny 96 (1) Commercial Relations
CEDB107 0931 NG Kit-chong, Johnny 96 (1) Commercial Relations
CEDB108 0932 NG Kit-chong, Johnny 96 (2) Public Relations
CEDB109 2674 WONG Chun-sek, 96 (1) Commercial Relations
Edmund (2) Public Relations
(3) Investment Promotion
CEDB110 0089 WONG Ying-ho, 96 (-) -
Kennedy
CEDB111 3006 ZHANG Xinyu, Gary 96 (1) Commercial Relations
(2) Public Relations
(3) Investment Promotion
CEDB112 2819 CHU Kwok-keung 31 (3) Intellectual Property Rights
and Consumer Protection
CEDB113 3109 SHIU Ka-fai 31 (3) Intellectual Property Rights
and Consumer Protection
CEDB114 0776 LIAO Cheung-kong, 78 (2) Protection of Intellectual
Martin Property
CEDB115 1901 FOK Kai-kong, 79 (-) Investment Promotion
Kenneth
CEDB116 1444 HO King-hong, Adrian 79 (-) Investment Promotion
Pedro
CEDB117 1308 IP LAU Suk-yee, 79 (-) Investment Promotion
Regina
CEDB118 1034 LAM Kin-fung, 79 (-) Investment Promotion
Jeffrey
CEDB119 1053 LAM Kin-fung, 79 (-) Investment Promotion
Jeffrey
CEDB120 1820 LEE Wai-wang, 79 (-) Investment Promotion
Robert
CEDB121 2333 LEUNG Tsz-wing, 79 (-) Investment Promotion
Dennis
CEDB122 0768 LIAO Cheung-kong, 79 (-) Investment Promotion
Martin
CEDB123 0770 LIAO Cheung-kong, 79 (-) Investment Promotion
Martin
CEDB124 1628 SO Cheung-wing 79 (-) Investment Promotion
CEDB125 1629 SO Cheung-wing 79 (-) Investment Promotion
CEDB126 1640 SO Cheung-wing 79 (-) Investment Promotion
CEDB127 2856 CHAN Man-ki, 160 (2) Public Affairs and General
Maggie Television Programme
CEDB128 0414 CHEUNG Yu-yan, 160 (1) Radio
Tommy (2) Public Affairs and General
Television Programme
CEDB129 1892 FOK Kai-kong, 160 (1) Radio
Kenneth (3) New Media
CEDB130 1465 HO King-hong, Adrian 160 (1) Radio
Pedro (2) Public Affairs and General
Television Programme
CEDB131 3161 HO Kwan-yiu, Junius 160 (1) Radio
CEDB132 3276 HO Kwan-yiu, Junius 160 (1) Radio
Session 18 CEDB - Page 4
Reply Serial No. Question Name of Member Head Programme
Serial No.
CEDB133 0750 LAM So-wai 160 (2) Public Affairs and General
Television Programme
CEDB134 1423 LEUNG Man-kwong 160 (1) Radio
(2) Public Affairs and General
Television Programme
(3) New Media
CEDB135 1117 LOONG Hon-biu, 160 (-) -
Louis
CEDB136 2013 LUK Hon-man, 160 (3) New Media
Benson
CEDB137 1276 MA Fung-kwok 160 (2) Public Affairs and General
Television Programme
CEDB138 1314 MA Fung-kwok 160 (-) -
CEDB139 2828 CHAN Man-ki, 180 (-) Film Classification, Control
Maggie of Obscene and Indecent
Articles and Newspaper
Registration
CEDB140 2864 CHAN Man-ki, 181 (3) Support for Small and
Maggie Medium Enterprises and
Industries
CEDB141 2906 CHAN Man-ki, 181 (3) Support for Small and
Maggie Medium Enterprises and
Industries
CEDB142 1449 HO King-hong, Adrian 181 (3) Support for Small and
Pedro Medium Enterprises and
Industries
CEDB143 0260 NG Wing-ka, Jimmy 181 (1) Commercial Relations
CEDB144 3367 CHOW Man-kong 152 (2) Commerce and Industry
CEDB145 3368 CHOW Man-kong 152 (6) Subvention: Hong Kong
Trade Development Council
CEDB146 3823 KAN Wai-mun, 152 (-) -
Carmen
CEDB147 3897 LAM Siu-lo, Andrew 152 (2) Commerce and Industry
CEDB148 3486 LEUNG Hei, Edward 152 (2) Commerce and Industry
CEDB149 3306 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB150 3308 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB151 3311 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB152 3331 NG Wing-ka, Jimmy 152 (2) Commerce and Industry
CEDB153 3900 KONG Yuk-foon, 96 (-) -
Doreen
CEDB154 3901 LAU Ip-keung, 96 (1) Commercial Relations
Kenneth
CEDB155 3922 YUNG Hoi-yan 96 (-) -
CEDB156 3320 CHAN Pui-leung 31 (3) Intellectual Property Rights
and Consumer Protection
CEDB157 3480 LEUNG Hei, Edward 31 (3) Intellectual Property Rights
and Consumer Protection
CEDB158 3999 TAN Sunny 79 (-) Investment Promotion
CEDB159 3923 YUNG Hoi-yan 79 (-) Investment Promotion
CEDB160 3339 HO Kwan-yiu, Junius 160 (2) Public Affairs and General
Television Programme
CEDB161 3454 LEUNG Hei, Edward 160 (2) Public Affairs and General
Television Programme
Session 18 CEDB - Page 5
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB001
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3144)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (000) Operational expenses
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Hong Kong Trade Development Council will launch the “E-commerce Express” to
provide Hong Kong enterprises with one-to-one consultation services and thematic seminars.
Please provide information on the number of seminars planned to be conducted and the
estimated expenditure involved.
Asked by: Hon CHAN Chun-ying (LegCo internal reference no.: 32)
Reply:
The 2025-26 Budget announced that the Hong Kong Trade Development Council (HKTDC)
will implement the “E-Commerce Express” (“電子商務快車”) to strengthen support for
small and medium enterprises (SMEs) to tap into the Mainland market and increase electronic
commerce (e-commerce) sales. HKTDC has renamed the Chinese name of the service as
“電子商務快綫”. To address the pain points encountered by Hong Kong enterprises when
developing cross-border e-commerce on the Mainland, HKTDC will, in collaboration with
large-scale e-commerce or social media platforms, conduct a series of thematic training
seminars and research sharing sessions, with a view to providing more comprehensive support
for SMEs interested in tapping into the e-commerce market.
HKTDC plans to organise at least 5 seminars under the “E-Commerce Express” in the 1st half
of 2025, featuring the following topics:
⚫ inviting specialists to provide practical guidance on legal compliance, requirements of
specific platforms and common pitfalls, and to introduce common payment tools on the
Mainland as well as taxation issues to which enterprises engaging in e-commerce on the
Mainland should pay particular attention;
Session 18 CEDB - Page 6
⚫ exploring development trends of traditional e-commerce and social platforms, and how
Hong Kong brands could choose suitable platforms to establish market influences;
⚫ exploring practical strategies for opening online stores on the Mainland e-commerce and
social platforms, understanding those platforms’ traffic patterns and consumer behaviour,
discussing how to promote brands on those platforms and reach out to new consumer
groups; and
⚫ exploring marketing strategies to promote Hong Kong brands and products on Mainland
e-commerce and social platforms, how to establish “organic communities” for natural
dissemination and create popular promotional contents, analysing the opportunities and
challenges of livestreaming promotion, understanding the ecosystem and hierarchical
structure of Mainland key opinion leaders (KOLs)/anchors and how to select and invite
appropriate KOLs/anchors for cooperation, etc.
Besides, one of the key activities to be supported by the “E-Commerce Express” will be the
2nd edition of the Hong Kong Shopping Festival (HKSF) scheduled for August 2025. The
event aims at providing SMEs with practical experience in utilising e-commerce platforms to
tap into the Mainland market. To deepen participating enterprises’ understanding of the
techniques in operating on Mainland e-commerce and online shopping platforms and assist
them in promoting brand awareness, HKTDC will, under the “E-Commerce Express”, provide
one-on-one consultation services for HKSF participants. Marketing specialists will advise
Hong Kong enterprises on appropriate e-commerce strategies based on their individual
business needs and product features.
The manpower and expenditure of the Commerce and Economic Development Bureau and
HKTDC for implementing the above measures have been subsumed under the respective
overall establishment and estimates, and cannot be quantified separately.
- End -
Session 18 CEDB - Page 7
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB002
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2872)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in Programme (6) that the Hong Kong Trade Development Council will
position Hong Kong as the ideal two-way business hub for the Greater Bay Area, the
Association of Southeast Asian Nations and the wider Regional Comprehensive Economic
Partnership with the rest of the world. In this connection, please inform this Committee of
the following:
1. What are the relevant estimated expenditure and staff establishment?
2. Are there any work plans, roadmaps and key performance indicators for the next 3
years? If yes, what are the details? If no, what are the reasons?
Asked by: Hon CHAN Man-ki, Maggie (LegCo internal reference no.: 32)
Reply:
The Hong Kong Trade Development Council (HKTDC) has been proactively promoting
Hong Kong’s competitive edges and opportunities to the Mainland and global business
communities through diversified outreach activities, information platforms, large-scale
exhibitions and conventions organised by its network of 51 offices worldwide.
To grasp the business opportunities in the Mainland and the Guangdong-Hong Kong-Macao
Greater Bay Area (GBA), HKTDC will continue to organise and participate in different
large-scale promotional events, as well as support Hong Kong companies to expand their
networks and provide them with information on the latest policies and developments of the
GBA market through the GoGBA one-stop platform. HKTDC is planning to set up another
GoGBA business support centre in Macao this year to further assist more enterprises in
grasping the opportunities brought by the GBA development.
Session 18 CEDB - Page 8
For the Association of Southeast Asian Nations (ASEAN) and Regional Comprehensive
Economic Partnership (RCEP) markets, HKTDC will strengthen its cooperation with business
and trade organisations of RCEP, invite more RCEP enterprises to participate in HKTDC’s
trade fairs, organise RCEP theme days as well as special networking activities to enhance
connections between Hong Kong, RCEP and global buyers and reinforce Hong Kong’s
position as a commercial hub for RCEP economies. To promote Hong Kong’s role as an
important bridge and two-way platform connecting the Mainland and the world, HKTDC will
continue to roll out a series of overseas missions, including leading missions to ASEAN and
visiting Saudi Arabia as well as the United Arab Emirates to learn about the infrastructure
development in the Middle East, while promoting Hong Kong’s advantages and exploring
business opportunities for Hong Kong businesses.
The above work has been subsumed under the overall estimate of HKTDC, and cannot be
quantified separately.
- End -
Session 18 CEDB - Page 9
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB003
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2880)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (6), the Hong Kong Trade Development Council will complement the
Government’s efforts in promoting the development of silver economy by incorporating
“silver economy” elements into more trade fairs and exhibitions to enhance the promotion of
relevant products and services. In this connection, please inform this Committee:
1. of the relevant estimated expenditures and staff establishment for the next 3 years; and
2. whether the Working Group on Promoting Silver Economy, led by the Deputy Chief
Secretary for Administration, has formulated any work plans, roadmaps and key
performance indicators for the next 3 years; if yes, of the details; if not, of the reasons.
Asked by: Hon CHAN Man-ki, Maggie (LegCo internal reference no.: 33)
Reply:
The requested information is set out below:
(1) Relevant work is conducted with the existing manpower. The expenditure required has
been subsumed under the overall estimated expenditure of the Commerce and Economic
Development Bureau and the Hong Kong Trade Development Council. It cannot be
quantified separately.
(2) The Working Group on Promoting Silver Economy (the Working Group) is proactively
formulating work plans and implementation details. The Working Group will report
work progress to the Chief Executive in early 2025-26, then brief the relevant Panel of
the Legislative Council in good time and coordinate respective bureaux’ implementation
of various measures as soon as possible.
- End -
Session 18 CEDB - Page 10
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB004
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0149)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (3) Telecommunications
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Encourage the Telecommunications Industry to Invest in Infrastructure
The Policy Address mentioned that a subsidy scheme would be implemented to extend 5G
coverage in rural and remote areas (subsidy scheme). In this connection, will the
Government inform this Committee of the following:
1. the progress of the subsidy scheme and the estimated cost of implementing Phase I in
the future;
2. whether the proposed radio base station (RBS) sites cover certain rural areas in New
Territories North, thereby resolving the problem of lack of mobile signal in those areas,
and whether signal blind spots near the boundary control points and the innovation and
technology sites in Sandy Ridge can be wiped out; and
3. in view of the current issue of poor signal reception in the Robin’s Nest Country Park,
whether the Government will consider installing RBSs there to meet the need for mobile
networks arising from the Hong Kong-Shenzhen ecological corridor and the future
development of the eastern part of the Northern Metropolis?
Asked by: Hon CHAN Yuet-ming (LegCo internal reference no.: 24)
Reply:
The Commerce and Economic Development Bureau and the Office of the Communications
Authority (OFCA) have formulated the details of the Subsidy Scheme to Extend 5G Coverage
in Rural and Remote Areas (Subsidy Scheme). After consulting relevant District Councils,
Rural Committees and local representatives, the Panel on Information Technology and
Broadcasting of the Legislative Council (LegCo) was consulted on 10 February 2025 and
expressed support for the Subsidy Scheme. The Subsidy Scheme will subsidise mobile
Session 18 CEDB - Page 11
network operators (MNOs) to install radio base stations (RBS) in around 50 sites across
Hong Kong. The subsidy amount for each RBS project will be capped at $2 million. An
additional subsidy of not more than $2 million (i.e. the cap for the entire project is $4 million)
will be provided for these RBS projects involving more complex works. The subsidy will
be granted on a reimbursement basis. The total estimated amount involved in the entire
Subsidy Scheme is about $154 million. The Government will seek funding approval from
the LegCo in accordance with the established mechanism. OFCA will launch the Subsidy
Scheme as soon as possible within 2025-26 fiscal year upon relevant funding approval.
Regarding the site selection for the Subsidy Scheme, the relevant factors of consideration
include mobile network coverage in various areas such as country parks, outlying islands and
other remote and rural areas, as well as technical issues related to the installation of RBS (such
as geographical environment, technical feasibility, sufficient space and supporting
infrastructure like power supply and optical fibre, etc.). The Subsidy Scheme will be
implemented in 2 phases. Around 30 sites with more mature infrastructure or imminent need
for improved mobile network coverage will be included in Phase I of the Subsidy Scheme.
The remaining 20 sites that require additional time or further technical feasibility studies to
enable RBS installation will be included in Phase II. Among the selected sites under the
Subsidy Scheme, there will be 15 RBS to be installed in rural and remote locations in the
North District to further enhance the network coverage in different rural areas in the northern
part of the New Territories, benefitting hikers and village residents in the vicinity of the newly
established RBS. We anticipate that upon the commissioning of all relevant RBS, the
mobile network coverage of country parks will be enhanced to at least 90%, while coverage
along major government hiking trails will exceed 98%.
Regarding the mobile network coverage in the Robin’s Nest Country Park, there is currently
one RBS located within the area of the Robin’s Nest Country Park. Owing to geographical
factors, signal reception in certain parts of the Robin’s Nest Country Park may still have room
for improvement. In light of this, the Subsidy Scheme has included a RBS site at Lin Ma
Hang public toilet which is close to the Robin’s Nest Country Park. In addition, OFCA is
coordinating with MNOs and relevant departments to explore other feasible measures to
strengthen the mobile network coverage within the Robin’s Nest Country Park.
Apart from the Subsidy Scheme, the Government has amended the Telecommunications
Ordinance (Cap. 106) to enable MNOs to access reserved spaces in specified buildings with
building plans approved on or after 1 April 2025 for the installation and maintenance of
mobile communications facilitates. For the mobile network coverage near border control
points and in the Sandy Ridge Innovation and Technology Centre, MNOs will be able to
utilise the reserved spaces in relevant buildings to install RBS with the completion of new
development projects or newly constructed and redeveloped buildings in the North District
under the abovementioned arrangement, thereby improving mobile network coverage in the
North District.
- End -
Session 18 CEDB - Page 12
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB005
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0816)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
1. In the past 4 years, what were the direct expenditures incurred by the Government for
providing loan guarantees under the SME Financing Guarantee Scheme (SFGS)?
What were the expenditures incurred by the Government under the principal moratorium
arrangement? Please set out the figures by financial year.
2. The current relaunched principal moratorium arrangement will last for 1 year. As
regards the administrative cost to be borne by the Government, what major aspects are
covered (such as the manpower for vetting applications and system maintenance)?
What is the estimated expenditure for each aspect? Under the Government’s target,
what proportion of eligible enterprises will be approved as successful applicants and
benefitted under the principal moratorium arrangement?
3. As regards enterprises participating in the SFGS and adopting the principal moratorium,
has the Government assessed the potential losses arising from their failure to repay
loans, including defaults and being unable to repay due to closure of business? If so,
what were the respective estimated amounts of such losses in the past 4 years? What
is the estimated amount of losses for the current relaunched principal moratorium
arrangement? What measures (e.g. recovery actions and provisions for bad debts) has
the Government adopted to address these potential losses? What is the expenditure
involved for these measures? If the Government has not so assessed, what are the
reasons for that?
4. In the estimates for the SFGS in 2025-26, has the Government set aside an additional
risks provision to address potential situations where the enterprises fail to repay,
including defaults and being unable to repay due to closure of business? If so, what is
the specific amount of the provision set aside? How will the provision be allocated
and utilised to cope with relevant risks?
Session 18 CEDB - Page 13
Asked by: Hon CHEN Chung-nin, Rock (LegCo internal reference no.: 6)
Reply:
The SME Financing Guarantee Scheme (SFGS) is administered and managed by HKMC
Insurance Limited (HKMCI). In the past 4 years, the Government’s revised estimates for
implementing the SFGS are as follows:
Year Revised Estimates ($)
2021-22 5.8871 billion
2022-23 0 Note
2023-24 3.14 billion
2024-25 12.5 billion
Note: The guarantee fees and accrued interest income received under the SFGS in 2022-23 were sufficient to cover the
relevant expenses incurred in that year.
The above estimates were deployed to cater for the relevant expenses of the various guarantee
products, including payments of originating fee in respect of the Special 100% Guarantee
Product to the participating lending institutions, payments to HKMCI to cover the
administrative costs and the necessary out-of-pocket expenses as well as the default claim
payments.
Since the launch of the SFGS in 2012, the Government has kept on introducing enhancement
measures having regard to the economic situation of Hong Kong and the needs of small and
medium enterprises, including extending the application period of the SFGS, increasing the
maximum loan amount, extending the maximum guarantee period, increasing the total
government loan guarantee commitment, etc. The Chief Executive announced in the 2024
Policy Address that the borrowing enterprises under the SFGS be allowed to apply for the
principal moratorium arrangement for up to 12 months, for both existing and new loans (the
application period has started from 18 November 2024 and will end on 17 November 2025);
the maximum loan guarantee periods of the 80% and 90% Guarantee Products be extended to
10 years and 8 years respectively; and the partial principal repayment options be offered to
new loans under the 2 guarantee products.
The implementation of the principal moratorium arrangement is meant to provide more
repayment flexibility to borrowing enterprises, so as to give them more room to juggle the
cash flow, thereby reducing the risk of default and the loss of the Government. The
administrative costs of processing these applications are already included in the
administrative fees paid by the Government to the lending institutions and HKMCI, hence the
implementation of the principal moratorium arrangement is not expected to increase the
estimated expenditure of implementing the SFGS.
HKMCI has been working closely with lending institutions on properly handling default
cases. In the event that a borrowing enterprise defaults on repayments, the lending
institution will first discuss a feasible repayment plan with the borrowing enterprise, e.g.
repaying only the interest or part of the principal during a transition period, so that the
borrowing enterprise can continue its operation while making a debt restructuring
arrangement as soon as possible, with a view to gradually resuming normal repayments.
Session 18 CEDB - Page 14
If the lending institution and the borrowing enterprise could not reach agreement on the
repayment or the latter refuses to cooperate, the lending institution will consider taking
appropriate recovery or legal actions in accordance with its policy and prevailing commercial
practice, including requesting the enterprise and guarantor to repay the loan, filing a petition
for winding-up and/or bankruptcy with the court, etc. with a view to reducing the loss of the
Government.
As at end February 2025, the cumulative default rates of the 80%, 90% and Special 100%
Guarantee Products under the SFGS were about 5.1%, 3.8% and 14% respectively, lower than
the assumed overall default rates (12%, 16% and 25% respectively). The default rates are
subject to change having regard to the overall economic environment and the operational
situation of individual borrowing enterprises, etc. The Government and HKMCI will
continue to monitor the situation closely, and duly adjust the annual estimates for
implementing the SFGS so as to cater for the relevant expenses of the various guarantee
products.
- End -
Session 18 CEDB - Page 15
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB006
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0590)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As mentioned in the Budget, intellectual property (IP) is an important foundation for the
development of emerging industries. In addition to obtaining IP rights through local
research and development, enterprises will also purchase related rights to use IP. In this
connection:
1. In each of the past 3 years, with a breakdown by category:
(i) what are the respective numbers of IP applications and registrations in relation to
local IP rights owners?
(ii) what are the respective numbers of IP rights enterprises obtained through local
research and development, and related rights to use IP enterprises purchased each year?
What are the main industries involved? What are the expenses incurred by enterprises
for purchasing rights to use IP?
2. Regarding the Government’s plan to review various IP-related expenses and tax
reduction arrangements, what are the details, including the target, scope, manpower and
expenditure involved and implementation timetable?
Asked by: Hon CHIU Duncan (LegCo internal reference no.: 5)
Reply:
Having consulted the Financial Services and the Treasury Bureau, our consolidated reply is
as follows:
The Patents Registry, the Trade Marks Registry and the Designs Registry under the
Intellectual Property Department (IPD) are responsible for matters relating to registrations of
Session 18 CEDB - Page 16
patents, trade marks and designs respectively in the Hong Kong Special Administrative
Region in accordance with the relevant legislation. The numbers of applications for and
registrations of patents, trade marks and designs in Hong Kong by local applicants over the
past 3 years are as follows:
Number of applications
(Number of registrations Note 1)
Year 2022 2023 2024
Local Total Local Total Local Total
Standard patents 343 20 031 357 17 614 396 15 758
by re-registration (196) (11 573) (224) (10 815) (211) (10 037)
Standard patents 83 133 108 170 99 182
by original grant (1) (29) (10) (51) (9) (86)
Short-term 424 579 435 624 555 813
patents (371) (535) (352) (516) (434) (659)
Trade marks 12 050 29 432 12 242 29 835 13 376 33 149
(12 098) (30 630) (10 144) (25 332) (11 225) (28 835)
Designs Note 2 408 1 672 423 1 684 710 2 228
(703) (3 319) (703) (3 390) (916) (3 852)
Note 1: As the actual examination time of an application will vary depending on the circumstances of each case,
the number of registrations for a particular category of intellectual property (IP) right in a given year will
not all come from applications submitted in the same year.
Note 2: As far as designs are concerned, considering that each design application may contain 1 or more designs,
the number of registrations is expressed in terms of the number of registered designs.
The Inland Revenue Department and the IPD do not keep information on the IP rights
obtained by local enterprises through research and development or the purchase of related
rights to use IP.
In order to accelerate the development of IP-intensive industries and promote the development
of IP trading in Hong Kong, the 2025-26 Budget announced that the Government will review
the IP-related tax deduction arrangements, including the lump sum licensing fees for
acquiring the rights to use IP, and related expenses incurred on purchase of IP or the rights to
use IP from associates. The Government will conduct the review with existing manpower
and will follow up on the legislative amendment work after the review is completed.
- End -
Session 18 CEDB - Page 17
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB007
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0842)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
With regard to expanding Hong Kong’s trade network:
1. In view of the changing global development landscape, has the Government conducted
a comprehensive review on whether the current overall planning, deployment and
targets need to be suitably adjusted? If yes, what are the results of the review and how
will adjustments be made?
2. What is the latest progress of the HKSAR Government’s discussions with the
governments of Malaysia and Saudi Arabia on the establishment of Economic and Trade
Offices (ETOs) in these 2 countries? When is the earliest expected date for the official
opening of these ETOs?
3. Invest Hong Kong (InvestHK) has established consultant offices in Cairo, Egypt and
Izmir, Türkiye. In 2025-26, what are the estimated annual expenditures for these 2
consultant offices respectively, including the manpower arrangements, the specific work
to be implemented and the performance targets?
4. What are the specific work and the estimated annual expenditure for the consultant
office set up by the Hong Kong Trade Development Council (HKTDC) in Cambodia
for 2025-26? Will the HKSAR Government consider establishing an ETO in
Cambodia in the future?
5. Whether InvestHK and HKTDC have plans to establish consultant offices in any
countries or regions in the future; if yes, what are the details and timetable?
Asked by: Hon CHIU Duncan (LegCo internal reference no.: 31)
Session 18 CEDB - Page 18
Reply:
The international trade landscape is in a constant state of flux. In addition to maintaining
ties with traditional markets, the Hong Kong Special Administrative Region (HKSAR)
Government has been expanding Hong Kong’s economic and trade network, strengthening
ties with economies with potential especially emerging markets, thereby assisting Hong Kong
enterprises in exploring new business opportunities.
As mentioned in the 2025-26 Budget, we are following up actively with the governments of
Malaysia and Saudi Arabia respectively on our plans to establish Economic and Trade Offices
(ETOs) in these 2 countries. The establishment of consultant offices in Cairo, Egypt and
Izmir, Türkiye by Invest Hong Kong (InvestHK) and consultant office in Cambodia by the
Hong Kong Trade Department Council (HKTDC) form part of the HKSAR Government’s
initiative to expand Hong Kong’s economic and trade network, with particular emphasis on
investment and trade promotion work in emerging markets, covering such activities as
meetings, conferences, roadshows, seminars, exhibitions, etc. We will continue to explore
the feasibility of setting up new ETOs in different locations, especially emerging markets and
those with potential.
While ETOs, InvestHK (including the Dedicated Teams for Attracting Businesses and Talents
and consultant offices) and HKTDC perform their respective duties, they work in synergy to
jointly promote bilateral economic and trade relations between Hong Kong and overseas
economies. The Government will continue to consider the needs and benefits of establishing
ETOs and consultant offices taking into account the actual circumstances in deciding on the
type(s) of office to be established.
The relevant expenditures of the offices of InvestHK and HKTDC have been subsumed into
their respective overall estimates and cannot be quantified separately.
- End -
Session 18 CEDB - Page 19
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB008
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1867)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Commerce and Economic Development Bureau (CEDB) will launch the Incentive
Scheme for Recurrent Exhibitions (ISRE) 2.0 in 2025-26 targeting new and international
large-scale exhibitions, with a view to further promoting the mega event economy and the
development of the convention and exhibition industry. In this connection:
1. Given that one of the CEDB’s main responsibilities under this Programme is to continue
implementing the ISRE as stated in the estimates of the CEDB (page 316), will the ISRE
and the ISRE 2.0 be merged in the future? What are the specific arrangements?
2. Since the launch of the ISRE, how many exhibitions have been granted funding to date?
What is the total amount of funding involved? How many exhibitions have been
granted the maximum funding of $20 million? What is the average amount of funding
approved per exhibition under the ISRE?
3. Regarding the downward adjustment of the funding cap from originally $20 million to
$10 million under the ISRE 2.0, what are the main reasons for the adjustment? Are
there any concerns that the reduced funding amount will dampen interest in holding
large-scale international trade exhibitions or affect the scale of exhibitions to be held?
How many exhibitions are estimated to receive funding in 2025-26, and how much
funding will be involved?
4. The exhibition industry questions that the requirement of ISRE 2.0 for funded
exhibitions to each attract at least 1 500 non-local exhibitors and visitors takes only the
number of people as a measurement, which may not effectively reflect whether an
exhibition is international and its impact on the international market, thus causing them
to worry about misallocation of government resources. What is the Government’s
response to this? What measures will be taken to ensure that the funding scheme is
Session 18 CEDB - Page 20
more precise and pragmatic, and optimal in resource utilization, to support the
development of Hong Kong’s exhibition industry?
Asked by: Hon CHIU Duncan (LegCo internal reference no.: 37)
Reply:
The Government launched the Incentive Scheme for Recurrent Exhibitions (ISRE) on
1 July 2023. As at end February 2025, ISRE supported 174 exhibitions of different scales
and organised by private organisers at the Hong Kong Convention and Exhibition Centre
(HKCEC) or the AsiaWorld-Expo (AWE) (examples include the annually held JMA Hong
Kong International Jewelry Show and Cosmoprof Asia). The total incentive involved was
$896 million, with an average incentive of about $5.15 million approved for each exhibition.
The maximum incentive for each eligible exhibition is capped at $20 million. The
exhibitions supported by ISRE have attracted numerous participants, including exhibitors and
buyers, benefitting the convention and exhibition (C&E) industry, while bringing in
high-spending business travellers that drive economic activities in such related sectors as
accommodation, catering, retail and entertainment, thereby benefitting various industries.
With the success of the existing ISRE in facilitating the full recovery of the C&E industry
after the pandemic, to further consolidate Hong Kong’s position as an international trade
centre, the 2024 Policy Address announced that the Government would allocate an additional
provision of $500 million for implementing the ISRE 2.0, focusing on attracting new and
recurrent international exhibitions of a large scale, so as to further promote the development
of the C&E industry and the mega event economy, thereby generating overall economic
benefits for Hong Kong. To this end, we have engaged the major stakeholders of the C&E
industry, and worked out the arrangements for the ISRE 2.0 taking into account the views
received and the operational experience of the existing ISRE.
Same as the existing scheme, the ISRE 2.0 will only subsidise venue rentals of eligible
exhibitions organised by private organisers at the specified venues. The ISRE 2.0 aims at
attracting more new and recurrent international exhibitions of a large scale, boosting the
vibrancy of the C&E industry in Hong Kong. Some new features will be introduced under
the new scheme, including:
⚫ only international exhibitions attracting at least 1 500 non-local participants (including
exhibitors and buyers) will be covered;
⚫ the maximum incentive for each eligible exhibition will be capped at $10 million; and
⚫ the Central Harbourfront Event Space and relevant parts of the West Kowloon Cultural
District will be designated as specified venues, alongside the HKCEC and AWE.
All of the above will enable the ISRE 2.0 to focus on international events, benefit more
eligible exhibitions and offer more venue options to the organisers. A press release was
issued to announce the above arrangements on 24 January. We will work out the
Application Guide on the eligibility criteria for the ISRE 2.0 and will announce the details
after engaging the major stakeholders.
Session 18 CEDB - Page 21
The ISRE 2.0 will be launched on 1 July this year subject to the Legislative Council’s funding
approval, while the existing ISRE will terminate on the same day. We will continue to keep
in touch and collaborate with the C&E industry so as to encourage more organisers to stage
exhibitions in Hong Kong.
- End -
Session 18 CEDB - Page 22
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB009
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3254)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Bureau, in collaboration with the HKMC Insurance Limited, the administrator of the
Small and Medium Enterprises Financing Guarantee Scheme (SFGS), has introduced
enhancements to the SFGS, including relaunching the principal moratorium arrangement,
extending the application periods and maximum loan guarantee periods of the 80% and 90%
guarantee products as well as offering partial principal repayment options, so as to alleviate
the repayment burden on small and medium enterprises. Please advise the following in table
form:
(1) as at the end of February 2025, of the respective default rates of the abovementioned
80% and 90% guarantee products as well as the Special 100% Loan Guarantee; the
respective numbers of cases involved; the distribution (in terms of number and
percentage) of the trades and industries in which the borrowing enterprises or
individuals were engaged; and the number of borrowing enterprises or individuals
applied for the principal moratorium arrangement;
(2) with regard to the 80%, 90% and Special 100% Guarantee Products granted so far, of
the total amount of loans granted, the distribution of loan amounts for cases approved,
the total number of applications, the distribution of the trades and industries in which
the borrowers were engaged and the distribution of repayment periods in percentage; of
the highest and lowest annual loan interest rates and their respective percentages; and of
the average annual loan interest rate; and
(3) of the respective numbers and percentages of cases in which applicants of the related
guarantee products chose the principal moratorium arrangement, as well as the specific
details of the latest applications for partial principal repayment, including the total
number of cases and its percentage share in overall loan cases, the number and
percentage of cases of each of the partial repayment options and the specific details of
applications for extension of guarantee period.
Session 18 CEDB - Page 23
Asked by: Hon CHOW Ho-ding, Holden (LegCo internal reference no.: 15)
Reply:
Since the launch of the SME Financing Guarantee Scheme (SFGS) in 2012, the Government
has kept on introducing enhancement measures having regard to the economic situation of
Hong Kong and the needs of small and medium enterprises, including extending the
application period of the SFGS, increasing the maximum loan amount, extending the
maximum guarantee period, increasing the total government loan guarantee commitment, etc.
The Chief Executive announced in the 2024 Policy Address that the borrowing enterprises
under the SFGS be allowed to apply for the principal moratorium arrangement for up to 12
months, for both existing and new loans (the application period has started from 18 November
2024 and will end on 17 November 2025); the maximum loan guarantee periods of the 80%
and 90% Guarantee Products be extended to 10 years and 8 years respectively; and the partial
principal repayment options be offered to new loans under the 2 guarantee products. The
cumulative application and default figures of the various guarantee products of the SFGS as
at end February 2025 are as follows:
80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
(launched in (launched in Product Note 1
2012) 2019) (launched in
2020 and the
application
period ended in
end March
2024)
Number of Applications 31 225 16 965 72 824
Received
Number of Applications 27 802 15 447 67 182
Approved
Total Loan Amount of 119.6 billion 27.5 billion 143.8 billion
Approved Applications ($)
Average Approved Loan 8.4 million 2.5 million 3.6 million
Amount Per Enterprise ($) Note 2
Number of Approved
Applications by Beneficiary
Sectors
⚫ Trading, Wholesale and 15 019 (54%) 7 639 (49%) 23 819 (35%)
Retail
⚫ Engineering and 2 202 (8%) 1 515 (10%) 5 684 (9%)
Construction
⚫ Manufacturing 4 161 (15%) 594 (4%) 3 795 (6%)
⚫ Others (e.g. Catering, 6 420 (23%) 5 699 (37%) 33 884 (50%)
Transportation)
Number of Default Cases 2 105 903 9 360
Session 18 CEDB - Page 24
80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
(launched in (launched in Product Note 1
2012) 2019) (launched in
2020 and the
application
period ended in
end March
2024)
Loan Guarantee Amount of 4.9 billion 1 billion 20.1 billion
Default Cases ($)
Default Rates 5.1% 3.8% 14%
Number of Default Cases with 303 286 8 243
Approved Applications for the
Principal Moratorium
Arrangement
Note 1: Some applications submitted before the end of the application period were approved in April 2024 or later.
Note 2: More than 1 application may be approved for 1 enterprise.
HKMC Insurance Limited, which is responsible for administering and managing the SFGS,
does not collate the statistics in respect of the default cases separately by sectors.
As at end February 2025, the number of loans not yet matured and percentage distribution by
repayment period are as follows:
Repayment Period 80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
Number of Number of Product
Applications Applications Number of
Applications
Less than 1 year 0 (0%) 4 (<1%) 0 (0%)
Not less than 1 year but less 60 (1%) 136 (1%) 7 (<1%)
than 2 years
Not less than 2 years but 231 (2%) 649 (6%) 42 (<1%)
less than 3 years
Not less than 3 years but 1 161 (13%) 2 979 (27%) 739 (1%)
less than 4 years
Not less than 4 years but 598 (7%) 795 (7%) 496 (1%)
less than 5 years
Not less than 5 years but 3 014 (34%) 6 448 (58%) 9 178 (17%)
less than 6 years
Not less than 6 years but 114 (1%) 4 (<1%) 674 (1%)
less than 7 years
Not less than 7 years but 3 730 (42%) 0 (0%) 726 (1%)
less than 8 years
Not less than 8 years but 2 (2%) 51 (1%) 18 130 (33%)
less than 9 years
Session 18 CEDB - Page 25
Repayment Period 80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
Number of Number of Product
Applications Applications Number of
Applications
Not less than 9 years but 16 (<1%) 0 (0%) 25 581 (46%)
less than 10 years
(including the
corresponding extension of
the repayment period due
to the principal moratorium
arrangement and the partial
principal repayment
options)
As at end February 2025, the loan amounts and percentage distribution for cases approved
but not yet matured under the 80% and 90% Guarantee Products by the effective loan interest
rate are as follows:
Effective Loan Interest Rate Loan Amount ($)
Not higher than 3% 0.6 billion (1%)
Higher than 3% but not higher than 5% 13.6 billion (22%)
Higher than 5% but not higher than 8% 40.4 billion (65%)
Higher than 8% but not higher than 10% 7.8 billion (12%)
Higher than 10% 0.1 billion (<1%)
The annual loan interest rate for the Special 100% Guarantee Product is the Hong Kong Prime
Rate, as specified by The Hong Kong Mortgage Corporation Limited from time to time, minus
2.5% (or equivalent), i.e. the effective interest rate is currently 3% per annum.
Among the loans approved for the principal moratorium and the partial principal repayment
arrangements under the SFGS, most borrowing enterprises have also applied for extension of
the guarantee period at the same time. As at end February 2025, among the more than
110 000 approved loan applications, more than 33 000 applications, involving a loan amount
of around $95 billion, had been repaid in full as scheduled; cumulatively 50 093 and 1 943
applications have been approved for the old and new principal moratorium arrangements,
involving a loan amount of around $110.1 billion and $4.5 billion respectively; and
cumulatively 11 367 applications have been approved for the partial principal repayment
options, involving a loan amount of around $27.3 billion. The relevant statistics are as
follows:
Session 18 CEDB - Page 26
80% 90% Special 100%
Guarantee Guarantee Guarantee
Product Product Product
(launched (launched in (launched in
in 2012) 2019) 2020 and the
application
period ended
in end March
2024)
Cumulative Number of Approved 1 601 1 557 46 935
Applications for the Old Principal
Moratorium Arrangement Note 3
(Percentage of the relevant number of (11%) (15%) (72%)
applications approved)
Cumulative Number of Approved 96 167 1 680
Applications for the New Principal
Moratorium Arrangement Note 4 (<1%) (1%) (3%)
(Percentage of the total number of
applications approved)
Cumulative Number of Approved 308 665 10 394
Applications for the Partial Principal
Repayment Arrangements
(Percentage of the relevant number of (2%) (6%) (16%)
applications approved)
Partial Principal Repayment Options
(Percentage of the total number of approved applications for the Partial Principal
Repayment Arrangements)
⚫ Repaying only 10% of the original 109 279 4 577
principal repayment amount per (35%) (42%) (44%)
instalment for a period of 12 months
⚫ Repaying only 20% of the original 54 178 4 314
principal repayment amount per (18%) (27%) (41%)
instalment for a period of 18 months
⚫ Repaying only 50% of the original 0 0 916
principal repayment amount per (0%) (0%) (9%)
instalment for a period of 30 months
⚫ Negotiated with the lending 145 208 587
institutions for an alternative partial (47%) (31%) (6%)
principal repayment arrangement
⚫ Number of New Loans with 18 53 Not Applicable
Extended Guarantee Period under the
New Enhancement Measure Note 5
⚫ Number of Existing Loans with 0 2 Not Applicable
Extended Guarantee Period under the
New Enhancement Measure Note 5
Note 3: The application period of the old principal moratorium arrangement ended on 1 October 2023, hence it is not
applicable to the loans approved thereafter.
Session 18 CEDB - Page 27
Note 4: The new principal moratorium arrangement was announced in the 2024 Policy Address, and applications are
accepted from 18 November 2024 onwards.
Note 5: The new enhancement measures announced under the 2024 Policy Address have come into effect from
18 November 2024. The relevant figures were the figures as at end February 2025.
- End -
Session 18 CEDB - Page 28
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB010
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3257)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the Special 100% Loan Guarantee under the SME Financing Guarantee
Scheme(SFGS), the latest loan default rate has risen from about 10% to 13.5%, showing an
upward trend. Will the Government inform this Committee of the following:
1. in tabular form, i) the total number of applications received; ii) the number of
applications approved and the total amount; and iii) the latest number of default cases
and the total amount for the Special 100% Loan Guarantee since its launch;
2. the total amount of the “in malicious default” cases and its percentage share in the total
default amount; and
3. the measures that the Government has adopted to reduce the occurrence of “in malicious
default” cases and the actual effectiveness in details.
Asked by: Hon CHOW Ho-ding, Holden (LegCo internal reference no.: 43)
Reply:
The Special 100% Guarantee Product of the SME Financing Guarantee Scheme (SFGS) was
launched in 2020 and its application period ended in end March 2024. Its cumulative
application and default figures as at end February 2025 are as follows:
Special 100% Guarantee Product Note
Number of Applications Received 72 824
Number of Applications Approved 67 182
Total Loan Amount of Approved Applications ($) 143.8 billion
Number of Default Cases 9 360
Loan Guarantee Amount of Default Cases ($) 20.1 billion
Session 18 CEDB - Page 29
Special 100% Guarantee Product Note
Default Rate 14%
Note: Some applications submitted before the end of the application period were approved in April 2024 or later.
In processing loan applications, the lending institutions will conduct customer due diligence
to confirm that the borrowing enterprises could fulfil the eligibility requirements, and submit
the verified applications complete with the documents required to HKMC Insurance Limited
(HKMCI) (which is responsible for administering and managing the SFGS) for final
guarantee approval. HKMCI will also conduct appropriate checks in vetting the applications
submitted by the lending institutions, and step up the vetting of suspicious cases, to ensure
the prudent use of public money.
As at end February 2025, 3 373 applications of the Special 100% Guarantee Product,
involving around $10.1 billion of loans, are found to have involved illegal activities, including
using false instruments, providing false information or declarations, etc. Among them,
1 466 cases (involving around $4.9 billion of loans) were already rejected by HKMCI and/or
the lending institutions during application assessment, while the other 1 907 cases (involving
around $5.2 billion of loans) were found after loan drawdown. HKMCI has taken
appropriate actions, including reporting the cases that may have involved illegal activities and
providing assistance to the law enforcement agencies, issuing clear guidelines to the
participating lending institutions of the SFGS, taking legal actions through the lending
institutions, etc.
HKMCI has been working closely with lending institutions on properly handling default
cases. In the event that a borrowing enterprise defaults on repayments, the lending
institution will first discuss a feasible repayment plan with the borrowing enterprise, e.g.
repaying only the interest or part of the principal during a transition period, so that the
borrowing enterprise can continue its operation while making a debt restructuring
arrangement as soon as possible, with a view to gradually resuming normal repayments.
If the lending institution and the borrowing enterprise could not reach agreement on the
repayment or the latter refuses to cooperate, the lending institution will consider taking
appropriate recovery/legal actions in accordance with its policy and prevailing commercial
practice, including requesting the enterprise and guarantor to repay the loan, filing a petition
for winding-up and/or bankruptcy with the court, etc. with a view to reducing the loss of the
Government.
As at end February 2025, the cumulative default rate of the Special 100% Guarantee Product
under the SFGS was about 14%, lower than the assumed overall default rate (25%). The
default rates are subject to change having regard to the overall economic environment and the
operational situation of individual borrowing enterprises, etc. The Government and HKMCI
will continue to monitor the situation closely.
- End -
Session 18 CEDB - Page 30
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB011
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1549)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund),
will the Government inform this Committee:
1. of the following information on the BUD Fund for the 2024-25 financial year: (i) the
number of applications received (including green transformation projects and their
percentages); (ii) the number of applications approved (including “E-commerce Easy”
applications and their percentages), and (iii) the respective funding amounts approved;
2. of the number of beneficiary enterprises of the BUD Fund so far, by cumulative funding
amount approved;
3. of the specific details regarding the injection of $1.5 billion in total into the BUD Fund
and the Export Marketing and Trade and Industrial Organisation Support Fund, and the
streamlining of application arrangements as announced in the Budget;
4. whether the Government will consider raising the funding ceiling of enterprises under
the BUD Fund and extending the funding coverage to all Belt and Road countries and
even all economies in the world, as well as raising the funding ceiling per enterprise
under “E-commerce Easy” and extending the funding scope to cover digital marketing
and e-commerce training courses attended by their employees, so as to facilitate
upgrading and restructuring of the operations of Hong Kong enterprises. If yes, what
are the details? If no, what are the reasons?
Asked by: Hon CHOW Man-kong (LegCo internal reference no.: 33)
Session 18 CEDB - Page 31
Reply:
The implementation of the Dedicated Fund on Branding, Upgrading and Domestic Sales
(BUD Fund) in 2024 is as follows:
Number of applications received 7 262
Note 1 Note 2
Number of applications approved 2 671
(including “E-commerce Easy”
applications)
Amount of funding 1.682 billion
Approved ($)
Note 1: Applications received may not be processed in the same year. The figures include applications that could not
be processed owing to incomplete information and those withdrawn voluntarily by enterprises afterwards.
Note 2: We do not have the statistical breakdown related to the green transformation projects involved in the applications
received.
As at end February 2025, a total of 329 “E-commerce Easy” applications were received.
Excluding applications that could not be processed owing to incomplete information and those
withdrawn voluntarily by enterprises afterwards, a total of 43 “E-commerce Easy”
applications were approved or approved with conditions.
From the BUD Fund’s inception in 2012 to end February 2025, the distribution of beneficiary
enterprises’ cumulative funding amounts approved is as follows:
Cumulative funding amounts approved Number of beneficiary
enterprises
Below $1 million 4 979
$1 million or above to below $3 million 1 692
$3 million or above to below $5 million 132
$5 million or above to below $7 million 37
$7 million 1
Total 6 841
To continue to support the development of local enterprises and help them go global, the
2025-26 Budget announced the injection of $1.5 billion into the BUD Fund and the Export
Marketing and Trade and Industrial Organisation Support Fund (EMTSF) (which covers
expenditures of the SME Export Marketing Fund (EMF) and the Trade and Industrial
Organisation Support Fund). This injection will be shared equally between the 2 funds.
Together with the injection of $1 billion into the BUD Fund announced in the 2024 Policy
Address, the Government will inject in total $1.75 billion and $0.75 billion respectively into
the BUD Fund and the EMTSF. This is a testament to the Government’s unwavering
commitment to supporting SMEs continuously despite the current fiscal conditions.
The Government has instituted several enhancement measures with respect to the BUD Fund
on 14 March 2025. Firstly, each applicant enterprise can submit 1 “Easy BUD” application
every 3 months, instead of 6 months. This will enable enterprises to obtain more timely
Session 18 CEDB - Page 32
funding support given the streamlined application and vetting arrangements under “Easy
BUD”. Besides, the funding scope of “Easy BUD” has been expanded to include
establishment of online sales platform. Furthermore, to assist enterprises in coping with
trade protectionism and geopolitical tensions, the BUD Fund expressly provides funding
support for professional fees associated with the establishment of new business entities. We
have also expanded the geographical coverage of “E-commerce Easy” to the 10 countries of
the Association of Southeast Asian Nations, and stated in the Guide to Application that the
scope of the BUD Fund covers implementation of green transformation projects that assist
enterprises in business development. Specific measures include conducting carbon audits
for newly developed products to enter target markets, upgrading production lines or applying
new technologies to meet the environmental standards or legal requirements of target
markets, etc.
To focus our limited resources to equip enterprises for upgrading and transformation, the
Government will consolidate the EMF into the BUD Fund upon expiry of the former’s special
measure on 30 June 2026. This would attain synergy as the BUD Fund could also fund
promotional activities in the context of upgrading and transformation. At the same time, to
ensure financial sustainability of the 2 funding schemes, the Government has instituted
measures on 14 March 2025 such that the BUD Fund and the EMF will be utilised in the most
productive manner. Relevant measures include adjustments to the funding ceiling, matching
ratio, and rationalisation of other parameters of the BUD Fund and the EMF, as detailed at
the Annex.
The Government has launched several rounds of enhancements to the BUD Fund since
August 2018, including increasing the cumulative funding ceiling per enterprise and
expanding its geographical coverage, to strengthen the support for Hong Kong enterprises to
develop more diversified markets and enhance their competitiveness. In the past 4 years,
the Government raised the cumulative funding ceiling per enterprise under the BUD Fund
twice, from $4 million to $6 million in July 2021, and further to $7 million in November 2022.
As only an extremely small percentage (about 0.01%) of the beneficiaries has used up the
$7 million cumulative funding ceiling, we believe that the current cumulative funding ceiling
can meet the future needs of most enterprises.
Following the Government’s signing of a free trade agreement (FTA) with Peru in November
2024, the current geographical coverage of the BUD Fund has been expanded to 40 economies
with which Hong Kong has signed FTAs and/or investment promotion and protection
agreements (IPPAs), including 21 Belt and Road countries. The geographical coverage of
the BUD Fund will be further expanded as Hong Kong signs more FTAs or IPPAs in the
future.
As at end February 2025, the average funding amount of the approved “E-commerce Easy”
applications is about $576,000. We believe that the $1 million cumulative funding ceiling
of “E-commerce Easy” can meet the needs of most enterprises. If necessary, an applicant
enterprise which has used up the $1 million cumulative funding ceiling of “E-commerce
Easy” may apply for the BUD Fund through the general application track for implementing
other projects related to e-commerce, though some project measures are subject to budget
ratio cap.
Session 18 CEDB - Page 33
“E-commerce Easy” has a broad funding scope, covering a number of e-commerce related
measures, including setting up online stores and placing advertisements on third-party online
sales platforms, developing and optimising mobile applications and websites, etc. When
vetting and approving “E-commerce Easy” funding applications, the Government will
holistically take into account factors such as whether the expenditure item falls within the
fundable items covered by “E-commerce Easy”, and whether the objectives of the fund and
other funding conditions are met. Employees of enterprises taking training courses in digital
marketing or e-commerce is a routine measure taken by enterprises to improve staff
productivity or skills, and therefore does not fall within the funding scope under “E-commerce
Easy”.
- End -
Session 18 CEDB - Page 34
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management fees
for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the EMF
with a view to controlling the maximum amount of funding, including the funding
ceiling, validity period of activities, restrictions on the number of repeated applications
of a similar nature on certain activities, etc.
Session 18 CEDB - Page 35
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB012
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1550)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the implementation of the 3 year-long Support Scheme for Pursuing Development
in the Mainland (the Scheme) starting from 2022-23 with a total of $135 million allocated to
the Hong Kong Trade Development Council (HKTDC), will the Government inform this
Committee:
1. of the total number of events organised by the HKTDC in 2024-25, and the specific
details of each event (including the respective Mainland cities, the event format, the
related sectors, the number of beneficiary Hong Kong entrepreneurs, and the specific
results);
2. of the expenditure involved in the Scheme for each year (including administration and
event organisation ) and the unspent balance as at present; and.
3. that as the Scheme came to its final year in the 2024-25 financial year, whether the
Government will consider, for the 2025-26 financial year and onwards, deploying
existing resources or adopting other alternatives (such as providing regular or project-
based subsidies to the business chambers and associations comprised of Hong Kong
residents in the Mainland), so as to provide continued support for Hong Kong people
and entrepreneurs to develop the Mainland market? If so, what are the details? If
not, what are the reasons for that?
Asked by: Hon CHOW Man-kong (LegCo internal reference no.: 34)
Reply:
Under the Support Scheme for Pursuing Development in the Mainland (the Scheme), the
Hong Kong Trade Development Council (HKTDC), in collaboration with relevant Mainland
organisations (including government departments, business associations, and youth and
Session 18 CEDB - Page 36
start-up organisations, etc.), organised different types of activities to help Hong Kong
enterprises on the Mainland understand the latest Mainland policies and measures, and grasp
the market opportunities in different regions and industries for developing the Mainland
market.
The Government had allocated an additional funding of $45 million per annum from 2022-23
to 2024-25 to HKTDC for implementing the Scheme. More than 460 activities of different
types were organised under the Scheme, with the participation of nearly 35 000 enterprise
representatives and professionals. In 2024-25, the activities organised under the Scheme
included enterprise visits, seminars, missions and experience sharing activities, etc., across
more than 30 Mainland cities including Shenzhen, Guangzhou, Beijing, Tianjin, Shenyang,
Fuzhou, Jinan, Wuhan, Nanjing, Ningbo, Chengdu, Xian and Urumqi. Themes of the
activities covered high-quality development driven by new productive forces, new
opportunities from consumption, cooperation in the healthcare industry, design thinking and
industrial innovation, and future industries, etc., to assist Hong Kong enterprises in finance,
real estate, catering and retail, healthcare, design and innovation and technology sectors in
exploring opportunities in the Mainland market.
The Scheme was concluded in 2024-25 as scheduled. HKTDC will consolidate the
experiences gained from implementing the Scheme to continue to enhance existing support
measures to ensure that its support could meet the trade’s development needs, and continue
to support Hong Kong people and enterprises in exploring the Mainland market through
different support programmes and promotional activities, including:
⚫ to continue to organise a series of activities and provide support services through the
“GoGBA one-stop platform” (the Platform) to assist Hong Kong enterprises in building
network and promoting business opportunities in the Guangdong-Hong Kong-Macao
Greater Bay Area (GBA), and to provide them with the latest policy updates and
economic and trade information about the GBA market. Since the launch of the
Platform in 2021 until end-February 2025, over 120 activities including online and
physical sharing sessions, consultation meetings and business missions, etc. had been
organised, serving nearly 9 000 people to help them explore opportunities in the GBA.
The Platform’s GoGBA website and mobile app providing business policy and practical
information online about the GBA are very popular among users, having recorded over
5 million views so far. In addition, the network of “GoGBA Business Support Centres”
has already covered all 9 Mainland cities in the GBA since 2023-24, with centres set up
in Qianhai and Futian (Shenzhen), Nansha (Guangzhou), Zhuhai, Dongguan, Zhongshan,
Foshan, Jiangmen, Zhaoqing and Huizhou, to provide more comprehensive support
services for Hong Kong enterprises;
⚫ to organise and participate in various large-scale promotion events in the GBA and other
regions to continue to help Hong Kong enterprises grasp opportunities in the Mainland
market. For example, the Resolve2Win campaign was held in Shenzhen and Foshan
from 6 to 8 August 2024 to analyse and present the advantages of Hong Kong’s
international legal and dispute resolution services; and SmartHK, a flagship promotion
activity, was held in Nanjing on 28 August 2024 to promote cooperation of Hong Kong
start-ups and technology companies with Jiangsu Province in research, development and
manufacturing through business matching and pitching, etc.;
Session 18 CEDB - Page 37
⚫ to set up Hong Kong pavilions and organise Hong Kong enterprises to participate in
major Mainland exhibitions to promote Hong Kong products and professional services.
Past examples included the China International Consumer Products Expo in Haikou
(Hainan Province) in April 2024, the China International Import Expo in Shanghai and
the China Hi-Tech Fair in Shenzhen in November 2024; and
⚫ HKTDC’s Design Gallery has established 70 physical points of sale in 22 Mainland cities
and set up online shops on Mainland electronic commerce (e-commerce) platforms to
assist Hong Kong enterprises in promoting their creative designs and high-quality
innovative products to Mainland consumers.
Apart from the above services, in 2025-26, HKTDC will:
⚫ set up a new “GoGBA Business Support Centre” in Macao;
⚫ organise a GoGBA mission to Dongguan to help small and medium enterprises (SMEs)
in the manufacturing sector to understand the latest situation of how Mainland enterprises
maintain their competitiveness through the use of innovative technologies;
⚫ launch “GoGBA Coffee & Chat” to provide a series of interactive small group
consultation sessions targeting specific practical issues and invite experts to provide
SMEs with in-depth analyses on and practical guidance in doing business in the GBA;
⚫ organise a “Fashion Go Places” mission to Guangzhou and Dongguan to assist the
fashion industry in expanding business network; and
⚫ implement “E-Commerce Express” to strengthen support for SMEs to tap into the
Mainland market through e-commerce.
- End -
Session 18 CEDB - Page 38
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB013
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1551)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Policy Address in October 2024 announced a reduction of liquor duty. Regarding the
initiative to “continue to support the further development of wine and liquor-related
businesses in Hong Kong”, will the Government inform this Committee:
1. of the changes in the import and export volumes of liquors before and after the
announcement of the reduction of liquor duty since 2024; and
2. given that the Secretary for Commerce and Economic Development mentioned earlier
in an interview that hopefully Hong Kong would, following the reduction of duty on
high-end liquors, develop into a trading hub for high-end liquors, thereby boosting
various sectors from catering and hotel to logistics and warehousing, of any concrete
plans for the Government to take forward the relevant work in the coming year and the
manpower and administrative expenses to be involved?
Asked by: Hon CHOW Man-kong (LegCo internal reference no.: 35)
Reply:
Since the reduction of duty rate on high-end liquor until late February this year (i.e. a
4.5-month period), we note that the volume of duty-paid liquor imported (in litre) rose by
more than 40% as compared with the 4.5-month period before the reduction of duty rate,
while its value went up significantly by 1.3 times, reflecting that the two tier system
introduced by the Government is effective in boosting high-end liquor trading. Moreover,
the trade grasped the opportunity brought about by the reduction of liquor duty and organised
various kinds of wine and spirits fairs, in which the proportion of liquor on sale has evidently
risen. Some liquor traders have also lowered the prices of liquors. The response of the
market has been positive.
Session 18 CEDB - Page 39
As a “super-connector” and “super value-adder”, Hong Kong not only provides an important
trading platform for Mainland liquor traders, assists Mainland liquor brands to “go global”,
but also assists foreign liquor brands to enter the Mainland market. For example, the
Hong Kong Tourism Board and the Hong Kong Trade Development Council (HKTDC)
organised the Hong Kong Wine and Dine Festival and the Hong Kong International Wine and
Spirits Fair (Wine and Spirits Fair) respectively in late 2024, attracting wine traders from
different regions. Taking the Wine and Spirits Fair organised by the HKTDC as an example,
it attracted over 600 exhibitors from 20 countries and regions. About 20% of the exhibitors
came from the Mainland and about 70% of the exhibitors came from overseas. The Irish
Whiskey Association even made its first appearance at the Wine and Spirits Fair in
Hong Kong. As for the participants, the Wine and Spirits Fair also attracted over 8 200
buyers from 61 countries and regions to visit and source different alcoholic beverages,
including liquors, showing that Hong Kong plays a positive role in connecting the Mainland
and international liquor markets and fostering trading of liquor.
In addition, the Government will, through the overseas Hong Kong Economic and Trade
Offices (ETOs) and the Mainland Offices, continue to actively disseminate information about
Hong Kong’s liquor market and introduce the liquor duty reduction initiative to liquor traders
in different regions with a view to attracting more Mainland and international liquor traders
to use Hong Kong as a sales platform and logistics hub in the region. For example, the
London ETO helped organise a seminar in January this year to explore the opportunities
brought about by liquor duty reduction. Furthermore, the Beijing Office also promoted the
advantages in developing liquor business in Hong Kong to local liquor enterprises. The
ETOs and Mainland Offices will continue to introduce the Hong Kong liquor market through
meetings with representatives from different business sectors or participating in different
events.
Promoting and facilitating the liquor trade is part of the work of the Commerce and Economic
Development Bureau. The expenditure has been subsumed under the overall establishment
and estimate and cannot be quantified separately.
- End -
Session 18 CEDB - Page 40
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB014
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1552)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title) : (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic
Development (Ms Maggie Wong)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the work of the Belt and Road Office (BRO), will the Government inform this
Committee of the following:
1. What are the current establishment and strength of the BRO by rank?
2. What are the details of the work of the BRO in 2024-25 (such as collaboration with
partners including the Hong Kong Trade Development Council, organisation of
outbound missions, as well as various events to further the Belt and Road (B&R)
Initiative) and their effectiveness?
3. What is the preliminary work plan of the BRO for 2025-26?
4. During the Asia-Pacific Economic Co-operation Economic Leaders’ Meeting held in
last November, representatives of the HKSAR Government, participating in the name
of Hong Kong, China, signed a Free Trade Agreement (FTA) with the Peruvian
counterparts. This is the ninth FTA signed by Hong Kong, and the second FTA forged
with Latin American economies. Are there any plans to enhance the relevant policies
and resource orientation, with a view to strengthening the ties of Hong Kong enterprises
with the markets in Peru and other Latin American economies, and facilitating business
expansion by Peruvian enterprises in the markets of Hong Kong and the entire Greater
Bay Area (GBA), thereby fostering interactions between the two places and
consolidating Hong Kong’s role as an international trade centre? If yes, what are the
details?
5. The political systems, demographic and economic structures, cultures and customs,
languages, business environments, etc. of emerging markets including Latin America
are different in nature from those of the traditional trading partners (such as European
countries and the US) with which Hong Kong enterprises have been in contact. In view
of the above, how will the BRO strengthen its role as a “facilitator”, by organising more
Session 18 CEDB - Page 41
online or physical exhibitions to introduce the market development trends and customs
of the B&R economies including the related Latin American countries, as well as
promoting cross-bureau collaboration on nurturing talents proficient in foreign
languages including Spanish, in a bid to better prepare Hong Kong enterprises for market
promotion? If yes, what are the details? If no, what are the reasons?
Asked by: Hon CHOW Man-kong (LegCo internal reference no.: 36)
Reply:
The Government is committed to consolidating Hong Kong’s role as the functional platform
for the Belt and Road (B&R) Initiative and deepening the co-operation with B&R countries
through various measures. We, together with businesses and professional services sectors,
will further cultivate the Association of Southeast Asian Nations (ASEAN) and Middle East
markets, as well as exploring opportunities in Central Asia, South Asia, and North Africa, to
help drive all-round, multi-field collaboration for mutual benefit to Hong Kong and B&R
countries and regions, thereby laying a solid foundation for long-term exchange and
co-operation.
The Belt and Road Office (BRO) of the Commerce and Economic Development Bureau has
liaised closely with Consul Generals from B&R countries in Hong Kong, representatives of
professional bodies and enterprises and other relevant stakeholders to keep abreast of the
potential for co-operation in the B&R region, with a view to better assisting businesses to
explore B&R business opportunities.
In 2024-25, the Government had deepened the co-operation with B&R countries through a
range of measures, including:
⚫ Expanding economic and trade networks – The Government continued to expand our
economic and trade networks, with a view to facilitating Hong Kong enterprises and
investors in expanding into the B&R markets and promoting the long-term economic
development of Hong Kong. Currently, the Government has 16 offices/liaison units in
the Mainland and 14 overseas Hong Kong Economic and Trade Offices (ETOs).
Together with the offices of Invest Hong Kong (InvestHK) and the Hong Kong Trade
Development Council (HKTDC) worldwide, Hong Kong has set up offices in 68 cities
around the world, covering 129 countries. The Government is following up actively on
the establishment of ETOs in Kuala Lumpur, Malaysia and Riyadh, Saudi Arabia. In
addition, since the current-term Government took office, InvestHK set up consultant
offices in Nairobi, Kenya and Almaty, Kazakhstan in 2022, Cairo, Egypt in 2024, and
Izmir, Türkiye in January this year to explore emerging markets in the regions. HKTDC
has also set up a consultant office in Phnom Penh, Cambodia.
⚫ Negotiating and signing bilateral agreements – Hong Kong has signed agreement on
9 Free Trade Agreements (FTAs) with 21 economies (including B&R economies) so far,
and will continue to seek to enter into FTAs with other economies. Hong Kong has also
signed 24 Investment Promotion and Protection Agreements (IPPAs) with 33 overseas
economies (including B&R economies), and is negotiating IPPAs with Bangladesh and
Saudi Arabia with a view to concluding the negotiations as soon as possible.
Session 18 CEDB - Page 42
⚫ Organising outbound missions – BRO and the Ministry of Commerce co-led a Mainland
cum Hong Kong business mission to visit Hungary and Kazakhstan and returned via
Xinjiang on 16-25 May 2024 to encourage Hong Kong and Mainland enterprises as well
as Hong Kong’s professional services in jointly exploring the B&R markets and seeking
collaboration with the relevant B&R countries.
The Chief Executive led a delegation (including Secretary for Commerce and Economic
Development (SCED) and Commissioner for Belt and Road (CBR)) to visit Laos,
Cambodia and Vietnam on 28 July to 2 August 2024, during which a total of
55 memoranda of understanding and agreements were signed and 5 results were
achieved, including strengthening government-to-government relations and
communications; reaching consensus on areas of development and co-operation;
consolidating and expanding business networks, injecting new impetus to open up new
horizons and opportunities; enhancing a shared strong will to jointly promote the B&R
Initiative; and reaffirming the 3 countries’ continuous support for Hong Kong’s accession
to the Regional Comprehensive Economic Partnership.
The Financial Secretary (FS) led a delegation (including CBR) to visit Saudi Arabia on
28 to 31 October 2024 and participated in the 8th Future Investment Initiative Conference
to strengthen and deepen connections between Hong Kong and the Middle East in trade,
finance, and innovation and technology. FS delivered a speech in the themed session
titled “Where is the New Silk Road?” and CBR also spoke on the panel during the
session.
SCED led a business delegation (including CBR) to visit Urumqi on 4-6 December 2024
to promote Hong Kong’s business opportunities, and met with government officials of
the Xinjiang Uyghur Autonomous Region and Kazakhstan to exchange views on
promoting economic and trade co-operation among the 3 places, with a view to jointly
exploring the full range of opportunities arising from the B&R Initiative. The
delegation attended a co-operation and exchange forum between China (Xinjiang, Hong
Kong) and Kazakhstan to promote Hong Kong’s advantages and participated in sharing
sessions focusing on various areas including cultural exchanges, energy industries,
digital economy, commerce and logistics and finance, with a view to promoting
economic and trade co-operation and people-to-people exchanges among the 3 places.
The delegation also visited local enterprises to gain an understanding of the development
of the related industries.
Organising major events – BRO has organised 10 exchange sessions since November
2023, inviting Consul Generals from B&R countries in Hong Kong, as well as
representatives of professional bodies and enterprises, to share the opportunities and
relevant experiences in B&R countries.
In April 2024, BRO partnered with NEOM of Saudi Arabia to organise the “Discover
NEOM Hong Kong” roadshow, which attracted around 1 100 participants, including
enterprises, investors and professional representatives from the Mainland (including the
Greater Bay Area (GBA)) and Hong Kong. During the roadshow, BRO organised 2
business matching sessions, facilitating potential collaborations of around 40 Hong Kong
and Mainland enterprises with NEOM.
Session 18 CEDB - Page 43
The B&R Summit (the Summit) is the flagship platform for Hong Kong to participate in
and contribute to the B&R Initiative. The 9th Summit, held on 11-12 September 2024,
attracted around 6 000 government officials, business leaders and representatives from
enterprises from over 70 B&R countries and regions.
BRO organised the B&R Cross-professional Forum on 14 February 2025 to promote
Hong Kong’s professional services to deepen the sectors’ collaboration with business
communities of B&R countries and the Mainland. It also provided a platform for
enterprises from the 3 sides to exchange views on collaboration projects in various areas
such as multinational supply chain management and construction, with a view to jointly
seizing new opportunities brought by the B&R. It attracted over 250 business
participants from Hong Kong, the Mainland and B&R countries.
Furthermore, since the signing of the FTA between Hong Kong and Peru in November 2024,
we have actively promoted the agreement through a series of promotional activities. These
include organising and participating in seminars, receptions, and exhibitions, launching a
dedicated website, issuing trade circulars, and distributing promotional materials. These
efforts aim to introduce the content, benefits and implementation arrangements of the
agreement. We encourage the business sector to seize the opportunities presented by the
agreement to expand their operations in Peru and, through Peru (as well as Chile and Mexico,
our FTA/IPPA partners), into the broader Latin American market. Meanwhile, we are using
these promotional activities to inform Latin American enterprises about the benefits of the
agreement for the business community, thereby fostering trade and investment co-operation.
The “Dedicated Fund on Branding, Upgrading and Domestic Sales” (BUD Fund) supports
enterprises in developing their business in economies that have signed FTAs and/or IPPAs
with Hong Kong. Following the signing of the FTA between Hong Kong and Peru in
November 2024, the geographical scope of the BUD Fund has extended to include 40
economies (including Chile, Mexico, and Peru), further supporting enterprises in exploring
more diverse markets.
InvestHK will continue to actively provide the latest information about Hong Kong’s business
environment to overseas enterprises, including those from Latin America. It will promote
Hong Kong’s unique advantages under the “One Country, Two Systems” principle, such as
“backed by the Motherland, connected to the world”, along with other core advantages.
InvestHK will also highlight the vast opportunities brought by key national strategies like the
development of the GBA and the B&R Initiative, aiming to attract these enterprises to
establish or expand their businesses in Hong Kong. For example, InvestHK plans to visit
Medellín, Colombia; Lima, Peru; and Buenos Aires, Argentina in 2025, and co-organise
investment promotion activities with local chambers of commerce to strengthen investment
promotion efforts in Latin America.
As at 28 February 2025, the staff establishment of BRO was 19 and the strength was 17. The
establishment of the 19 posts included the CBR, 1 Administrative Officer Staff Grade B,
2 Senior Administrative Officers, 5 Trade Officers/Senior Executive Officer/Senior
Information Officer, 3 Executive Officer I/Assistant Trade Officers II and 7 officers of
Clerical and Secretarial Grades/Motor Driver.
Session 18 CEDB - Page 44
In 2025-26, BRO will continue to organise outbound missions, project matching events,
exchange and interface on B&R capacity building, and exchange sessions and seminars, etc.,
to capitalise on our role as a B&R functional platform and showcase the strengths of our
professional services, thereby helping Hong Kong enterprises and professional services
explore B&R business opportunities. We will partner with businesses and professional
services sectors to further cultivate the ASEAN and Middle East markets, as well as exploring
opportunities in Central Asia, South Asia, and North Africa. BRO will organise the 10th
Summit in September 2025 and encourage different sectors to hold events around the Summit
period for enhancing synergies. In addition, BRO will also explore the feasibility to
establish a B&R capacity building centre to link up with a series of other B&R platforms
created by Hong Kong, with a view to forging ties with B&R countries and regions using our
soft power in a range of professional services, thereby paving early the way for pursuing
opportunities in economic development and co-operation in future.
- End -
Session 18 CEDB - Page 45
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB015
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1895)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (4) Broadcasting
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As shown under Programme (4), the revised estimate for 2024-25 is 151.8% higher than the
original estimate. Please inform this Committee of the following:
1. What is the reason for the increase in operating expenses? What are the results of the
projects involved and the amount of manpower involved?
2. The Government announced in 2024 the purchase of the broadcasting rights for the Paris
Olympic Games, which were broadcast by Radio Television Hong Kong (RTHK) and 3
licensed television (TV) stations, so as to let the whole Hong Kong community enjoy
the Olympic events. To this end, RTHK launched a new TV channel, RTHK TV 36,
to relay the events to the public for free. Has the Government compiled statistics on
the expenditure and manpower involved in upgrading the common antenna broadcast
distribution (CABD) systems and acquiring suitable digital terrestrial television
(DTT)receivers for reception of signals from RTHK TV 36?
3. What results have been achieved through the installation of the receivers? What was
the penetration rate of RTHK TV 36’s broadcast service?
4. Will the Government consider establishing procedures to provide support, including
various forms of subsidies, for stakeholders such as free digital TV broadcasters, TV
programme service providers, contractors and property management companies to raise
the penetration rate of RTHK TV 36, with a view to reserving a dedicated channel and
programme hours for relaying the 15th National Games, including the competition
events to be held in Guangdong, Macao and Hong Kong?
Asked by: Hon FOK Kai-kong, Kenneth (LegCo internal reference no.: 20)
Session 18 CEDB - Page 46
Reply:
The revised estimate of Commerce and Economic Development Bureau under Programme
(4) for 2024-25 is about $13 million (151.8%) higher than the original estimate for 2024-25,
mainly due to provision of resources to Radio Television Hong Kong (RTHK) for the
following projects: (i) producing, promoting and publicising the live broadcast and
pre-recorded programmes on inter-school games to promote sports culture; (ii) deploying
artificial intelligence (AI) technologies and systems, including simultaneous provision of
textual summaries for major announcement of the Government, developing AI sign language
system, etc. so as to enhance the production efficiency in broadcasting through technology;
and (iii) organising training class of “I Am DJ” to nurture new generation of broadcast talents.
The above projects have been rolled out smoothly as scheduled. The relevant provisions do
not involve creation of new posts.
Last year, RTHK set up designated TV 36 to enable Hong Kong citizens to watch the
Olympics Games round the clock. Prior to the launch of TV 36, RTHK had proactively
approached the relevant building management associations and organisations to encourage
building management companies to upgrade the communal aerial broadcast distribution
systems (CABD systems) in the buildings under their management, and provide information
on the CABD system contractors and channel rescanning, so as to assist the public in receiving
RTHK TV 36 channel signal. RTHK does not have information on the cost of installing
relevant reception facilities. RTHK TV 36 currently covers 99% of the Hong Kong
population.
RTHK will promote, produce programmes and live broadcast the 15th National Games (NG)
and the 12th National Games for Persons with Disabilities and the 9th National Special
Olympic Games to be held in November and December 2025. RTHK plans to broadcast the
competitions and programmes on RTHK TV 36. Before the NG, RTHK will step up
publicity to encourage building management companies to conduct system upgrading works
for those buildings that are yet to upgrade the CABD Systems, so as to assist the public in
reception of RTHK TV 36 channel signal, enabling more people to watch the competitions
broadcast on the concerned channel. RTHK will review the long-term development of
RTHK TV 36 in a timely manner having regard to relevant factors such as actual needs,
operation and resources, etc.
- End -
Session 18 CEDB - Page 47
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB016
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1447)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
In paragraph 113 of the Budget Speech, it is mentioned that the Government will inject
$1.5 billion in total into the Dedicated Fund on Branding, Upgrading and Domestic Sales and
the Export Marketing and Trade and Industrial Organisation Support Fund, and streamline
application arrangements. In this connection, will the Government inform this Committee
of the following:
1. What are the numbers of applications of the 2 funds in each of the last 3 years?
2. Further to the above, what are the numbers of successful applications of the 2 funds and
the funding amount involved for each of the approved projects during the same period?
Please set out the figures in tabular form and by industry.
3. The Government has launched “Easy BUD” to simplify the arrangements for application
and approval process. What are the changes in the numbers of applications received
and approved since its launch until March 2025? How will its effectiveness be
measured?
4. The provision of funding under “E-commerce Easy” is for small and medium enterprises
to leverage e-commerce to promote their products to the Mainland. How many
enterprises have been benefited?
Asked by: Hon HO King-hong, Adrian Pedro (LegCo internal reference no.: 6)
Reply:
The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
The implementation of the BUD Fund in the past 3 years is as follows:
Session 18 CEDB - Page 48
2022 2023 2024
Number of 2 637 4 739 7 262
applications received
Note 1
Number of 1 335 1 690 2 671
applications approved
Average funding 716,000 679,000 630,000
amount per approved
application ($)
Major beneficiary 1. Wholesale and 1. Wholesale and 1. Wholesale and
sectors (in descending Retail Retail Retail
order of the number 2. Import and Export 2. Import and 2. Import and
of applications Trade Export Trade Export Trade
approved) 3. Electronics 3. Information 3. Information
4. Information Technology Technology
Technology 4. Textiles and 4. Electronics
5. Textiles and Clothing 5. Textiles and
Clothing 5. Electronics Clothing
Note 1: Applications received may not be processed in the same year. The figures include applications that could not
be processed owing to incomplete information and those withdrawn voluntarily by enterprises afterwards.
From the launch of “Easy BUD” under the BUD Fund in June 2023 to end February 2025, a
total of 1 855 applications were received (including applications that could not be processed
owing to incomplete information and those withdrawn voluntarily by enterprises afterwards)
and a total of 592 applications were approved. The funding scope of “Easy BUD” mainly
includes online and offline advertising and promotion, testing/certification services,
patent/trademark registration application, etc., aiming at providing timely funding support for
enterprises to upgrade and promote their products. The effectiveness of these projects varies
according to factors such as an enterprise’s promotional strategy and product nature.
Besides, from the launch of “E-commerce Easy” in July 2024 to end February 2025,
applications have been approved for a total of 30 beneficiary enterprises.
The Export Marketing and Trade and Industrial Organisation Support Fund (EMTSF)
The EMTSF covers the expenditure of the SME Export Marketing Fund (EMF) and the Trade
and Industrial Organisation Support Fund (TSF).
The implementation of the EMF in the past 3 years is as follows:
Session 18 CEDB - Page 49
2022 2023 2024
Number of 21 496 29 863 30 918
applications received
Note 2
Number of 15 888 21 105 24 875
applications approved
Average funding 20,869 27,855 32,517
amount per approved
application ($)
Major beneficiary 1. Wholesale and 1. Wholesale and 1. Wholesale and
sectors (in descending Retail Retail Retail
order of the number 2. Import and 2. Import and 2. Import and
of applications Export Trade Export Trade Export Trade
approved) 3. Jewellery 3. Jewellery 3. Jewellery
4. Printing and 4. Electronics 4. Electronics
Publishing 5. Printing and 5. Printing and
5. Electronics Publishing Publishing
Note 2: Applications received may not be processed in the same year. The figures include applications that could not
be processed owing to incomplete information and those withdrawn voluntarily by enterprises afterwards.
The implementation of the TSF in the past 3 years is as follows:
2022 2023 2024
Number of 33 43 34
applications received
Note 3
Number of 18 20 18
applications approved
Average funding 1.78 million 1.98 million 1.69 million
amount per approved
application ($)
Major beneficiary 1. Information 1. Textiles and 1. Cross-industry
sectors (in descending Technology Clothing 2. Industrial
order of the number 2. Fabricated metal 2. Tooling and machinery
of applications products casting 3. Fabricated metal
approved) 3. Transport and 3. Footwear products
logistics 4. Toys 4. Gifts
4. Cross-industry 5. Auto parts 5. 3D Printing
5. Industrial
machinery
Note 3: Applications received may not be processed in the same year. The figures include applications that could not be
processed owing to incomplete information and those withdrawn voluntarily by enterprises afterwards.
- End -
Session 18 CEDB - Page 50
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB017
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1448)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the 80% and 90% Guarantee Products and the Special 100% Loan Guarantee for
Enterprises under the SME Financing Guarantee Scheme (SFGS), will the Government
inform this Committee of:
1. the number of loan applications submitted by enterprises under the SFGS in each of the
past 12 months; the average and median loan amounts approved for applicant
enterprises; and the industry distribution of applicant enterprises and the respective
numbers of employees involved;
2. the total loan amount approved under the SFGS and the related interest rate in each of
the past 5 financial years;
3. the latest default rates, amounts and numbers of enterprises involved for the 80% and
90% Guarantee Products and the Special 100% Loan Guarantee for Enterprises
respectively; and
4. noting the default on repayments by some enterprises, the measures the Government put
in place to recover the money or assist enterprises in loan restructuring and repayment
arrangements, as well as the effectiveness of the Taskforce on SME Lending established
by the Hong Kong Monetary Authority and the Hong Kong Association of Banks in
helping the cash flow situation of small and medium enterprises?
Asked by: Hon HO King-hong, Adrian Pedro (LegCo internal reference no.: 7)
Reply:
Having consulted the Hong Kong Monetary Authority (HKMA), our consolidated reply is as
follows.
Session 18 CEDB - Page 51
In the past 12 months, (i) the number of applications approved per month; (ii) the average
approved loan amount per enterprise; (iii) the number of approved applications by beneficiary
sectors; and (iv) the number of benefitted employees of the various guarantee products of the
SME Financing Guarantee Scheme (SFGS) re as follows:
80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
(launched in (launched in Product Note
2012) 2019) (launched in
2020 and the
application
period ended in
end March
2024)
March 2024
- Number of Applications 179 297 280
Approved
- Average Approved Loan 3.35 million 1.68 million 3.47 million
Amount Per Enterprise ($)
April 2024
- Number of Applications 133 261 331
Approved
- Average Approved Loan 3.15 million 1.78 million 3.13 million
Amount Per Enterprise ($)
May 2024
- Number of Applications 189 368 183
Approved
- Average Approved Loan 3.26 million 1.49 million 2.36 million
Amount Per Enterprise ($)
June 2024
- Number of Applications 188 387 30
Approved
- Average Approved Loan 3.49 million 1.54 million 2.87 million
Amount Per Enterprise ($)
July 2024
- Number of Applications 162 397 5
Approved
- Average Approved Loan 3.94 million 1.45 million 0.2 million
Amount Per Enterprise ($)
August 2024
- Number of Applications 179 386 45
Approved
- Average Approved Loan 4.04 million 1.48 million 4.31 million
Amount Per Enterprise ($)
Session 18 CEDB - Page 52
80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
(launched in (launched in Product Note
2012) 2019) (launched in
2020 and the
application
period ended in
end March
2024)
September 2024
- Number of Applications 198 311 25
Approved
- Average Approved Loan 3.74 million 1.54 million 4.36 million
Amount Per Enterprise ($)
October 2024
- Number of Applications 156 298 26
Approved
- Average Approved Loan 3.69 million 1.46 million 2.62 million
Amount Per Enterprise ($)
November 2024
- Number of Applications 159 338 24
Approved
- Average Approved Loan 3.58 million 1.5 million 1.21 million
Amount Per Enterprise ($)
December 2024
- Number of Applications 211 396 17
Approved
- Average Approved Loan 3.43 million 1.47 million 0.59 million
Amount Per Enterprise ($)
January 2025
- Number of Applications 154 353 31
Approved
- Average Approved Loan 3.42 million 1.38 million 2.61 million
Amount Per Enterprise ($)
February 2025
- Number of Applications 180 298 34
Approved
- Average Approved Loan 3.91 million 1.59 million 2.32 million
Amount Per Enterprise ($)
Number of Approved
Applications by Beneficiary
Sectors
⚫ Trading, Wholesale and 910 (44%) 1 786 (44%) 318 (31%)
Retail
⚫ Engineering and 137 (6%) 385 (9%) 71 (7%)
Construction
⚫ Manufacturing 85 (4%) 94 (2%) 48 (5%)
Session 18 CEDB - Page 53
80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
(launched in (launched in Product Note
2012) 2019) (launched in
2020 and the
application
period ended in
end March
2024)
⚫ Others (e.g. Catering, 956 (46%) 1 825 (45%) 594 (57%)
Transportation)
Number of Benefitted 11 572 19 303 5 789
Employees
Note: Some applications submitted before the end of the application period were approved in April 2024 or later.
From April 2020 to end February 2025, the loan amounts of the approved applications of the
80%, 90% and Special 100% Guarantee Products of the SFGS were about $44.8 billion, $26.4
billion and $143.8 billion respectively; the average interest rates of the 80% and 90%
guarantee products were 6.3% and 6.5%; and the annual loan interest rate for the Special
100% Guarantee Product is the Hong Kong Prime Rate, as specified by The Hong Kong
Mortgage Corporation Limited from time to time, minus 2.5% (or equivalent), i.e. the
effective interest rate is currently 3% per annum.
As at end February 2025, the cumulative loan guarantee amounts of default cases of the 80%,
90% and Special 100% Guarantee Products under the SFGS were about $4.9 billion, $1 billion
and $20.1 billion respectively, and the cumulative default rates were about 5.1%, 3.8% and
14% respectively, lower than the assumed overall default rates (12%, 16% and 25%
respectively). The default rates are subject to change having regard to the overall economic
environment and the operational situation of individual borrowing enterprises, etc. The
Government and HKMC Insurance Limited (HKMCI), which is responsible for administering
and managing the SFGS, will continue to monitor the situation closely. HKMCI does not
collate the statistics in respect of the default cases separately by sectors.
HKMCI has been working closely with lending institutions on properly handling default
cases. In the event that a borrowing enterprise defaults on repayments, the lending
institution will first discuss a feasible repayment plan with the borrowing enterprise, e.g.
repaying only the interest or part of the principal during a transition period, so that the
borrowing enterprise can continue its operation while making a debt restructuring
arrangement as soon as possible, with a view to gradually resuming normal repayments.
If the lending institution and the borrowing enterprise could not reach agreement on the
repayment or the latter refuses to cooperate, the lending institution will consider taking
appropriate recovery or legal actions in accordance with its policy and prevailing commercial
practice, including requesting the enterprise and guarantor to repay the loan, filing a petition
for winding-up and/or bankruptcy with the court, etc. with a view to reducing the loss of the
Government.
Session 18 CEDB - Page 54
The participating banks in the Taskforce on SME Lending, which is established by the HKMA
and the Hong Kong Association of Banks in August 2024, have been actively implementing
all 14 measures to support small and medium enterprises (SMEs) as introduced last year. As
at end January 2025, more than 35 000 SMEs have benefitted from various support measures,
involving an aggregate credit limit of over $84 billion. Among others, banks:
⚫ provided credit reliefs (including principal moratorium and partial principal repayment)
to over 8 600 SMEs, involving an aggregate amount of over $34.8 billion;
⚫ approved over 11 700 credit applications from SMEs, providing over $49.2 billion of
funds for their cash flow and business expansion; and
⚫ continued to provide fee waivers and concessions to over 14 700 SMEs to ease their
expenditure, including concessions on credit application fees, commitment fees and
interest.
- End -
Session 18 CEDB - Page 55
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB018
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1463)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
To promote the development of the local convention and exhibition industry and the mega
event economy, the Government provides venue rental subsidies to organisers of eligible
recurrent exhibitions under the Incentive Scheme for Recurrent Exhibitions (the Scheme).
In this connection, will the Government inform this Committee of:
1. with respect to the exhibitions subsidised by the Scheme, the respective names of the
organisers, numbers of exhibitions held, venues and dates of the events, types of industry
concerned, numbers of local and overseas exhibitors, numbers of buyers, and amounts
of subsidy granted in each of the past 3 financial years;
2. the total numbers of applications received, approved and rejected under the Scheme in
the past 3 financial years and the main reasons for rejecting applications;
3. whether the Government has assessed the contribution made by the subsidised
exhibitions to the local economy (e.g. the economic benefits generated for industries
such as tourism, hotel and retail) in the past 3 financial years; if yes, of the details; if
not, of the reasons;
4. the measures currently in place to promote the Scheme to local and international
exhibition organisers, and the expenditures and results of the relevant measures; and
5. the future specific plans of the Government to attract exhibitions that have never been
held in Hong Kong to come here, so as to explore new markets and bring in more capital?
Asked by: Hon HO King-hong, Adrian Pedro (LegCo internal reference no.: 22)
Session 18 CEDB - Page 56
Reply:
The Government launched the Incentive Scheme for Recurrent Exhibitions (ISRE) on 1 July
2023. As at end February 2025, ISRE supported 174 exhibitions of different scales and
organised by private organisers at the Hong Kong Convention and Exhibition Centre
(HKCEC) or the AsiaWorld-Expo (AWE) (examples include the annually held JMA Hong
Kong International Jewelry Show and Cosmoprof Asia). The total incentive involved was
$896 million, with an average incentive of about $5.15 million approved for each exhibition.
The maximum incentive for each eligible exhibition is capped at $20 million. We have
promulgated the Application Guide setting out clearly the requirements of eligible exhibitions
under ISRE. All applications received so far have met the eligibility criteria. The
exhibitions supported by ISRE have attracted numerous participants, including exhibitors and
buyers, benefitting the convention and exhibition (C&E) industry, while bringing in
high-spending business travellers that drive economic activities in such related sectors as
accommodation, catering, retail and entertainment, thereby benefitting various industries.
With the success of the existing ISRE in facilitating the full recovery of the C&E industry
after the pandemic, to further consolidate Hong Kong’s position as an international trade
centre, the 2024 Policy Address announced that the Government would allocate an additional
provision of $500 million for implementing the ISRE 2.0, focusing on attracting new and
recurrent international exhibitions of a large scale, so as to further promote the development
of the C&E industry and the mega event economy, thereby generating overall economic
benefits for Hong Kong. To this end, we have engaged the major stakeholders of the C&E
industry, and worked out the arrangements for the ISRE 2.0 taking into account the views
received and the operational experience of the existing ISRE.
Same as the existing scheme, the ISRE 2.0 will only subsidise venue rentals of eligible
exhibitions organised by private organisers at the specified venues. The ISRE 2.0 aims at
attracting more new and recurrent international exhibitions of a large scale, boosting the
vibrancy of the C&E industry in Hong Kong. Some new features will be introduced under
the new scheme, including:
⚫ only international exhibitions attracting at least 1 500 non-local participants (including
exhibitors and buyers) will be covered;
⚫ the maximum incentive for each eligible exhibition will be capped at $10 million; and
⚫ the Central Harbourfront Event Space and relevant parts of the West Kowloon Cultural
District will be designated as specified venues, alongside the HKCEC and AWE.
All of the above will enable the ISRE 2.0 to focus on international events, benefit more
eligible exhibitions and offer more venue options to the organisers. A press release was
issued to announce the above arrangements on 24 January. We will work out the
Application Guide on the eligibility criteria for the ISRE 2.0 and will announce the details
after engaging the major stakeholders.
The ISRE 2.0 will be launched on 1 July this year subject to the Legislative Council’s funding
approval, while the existing ISRE will terminate on the same day. We will continue to keep
Session 18 CEDB - Page 57
in touch and collaborate with the C&E industry so as to encourage more organisers to stage
exhibitions in Hong Kong.
- End -
Session 18 CEDB - Page 58
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB019
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1582)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the “Incentive Scheme for Recurrent Exhibitions (ISRE)” under Programme (2),
will the Government inform this Committee of the following:
1. The amount of incentives approved and the number of exhibitions subsidised under the
ISRE in the past 3 years;
2. Please set out the details of all exhibitions subsidised by the ISRE in the past 3 years,
such as the scale of the exhibitions (e.g. footfall/number of exhibitors), the amount of
incentives granted, the location and duration of the exhibitions;
3. The Government is planning to launch the ISRE 2.0. What are the expected annual
expenditure (with a breakdown by the amount of incentives and administrative
expenses) and the number of exhibitions eligible for the incentives?
4. Whether the Government will introduce new requirements to the ISRE 2.0, such as
requiring the origins of overseas exhibitors and visitors to meet certain thresholds, e.g.
from at least 5 to 10 different regions/countries from overseas, in order to encourage the
staging of more large-scale international exhibitions in Hong Kong.
Asked by: Hon HONG Wen, Wendy (LegCo internal reference no.:7)
Reply:
The Government launched the Incentive Scheme for Recurrent Exhibitions (ISRE) on 1 July
2023. As at end February 2025, ISRE supported 174 exhibitions of different scales and
organised by private organisers at the Hong Kong Convention and Exhibition Centre
(HKCEC) or the AsiaWorld-Expo (AWE) (examples include the annually held JMA Hong
Kong International Jewelry Show and Cosmoprof Asia). The total incentive involved was
Session 18 CEDB - Page 59
$896 million, with an average incentive of about $5.15 million approved for each exhibition.
The maximum incentive for each eligible exhibition is capped at $20 million. The
exhibitions supported by ISRE have attracted numerous participants, including exhibitors and
buyers, benefitting the convention and exhibition (C&E) industry, while bringing in
high-spending business travellers that drive economic activities in such related sectors as
accommodation, catering, retail and entertainment, thereby benefitting various industries.
With the success of the existing ISRE in facilitating the full recovery of the C&E industry
after the pandemic, to further consolidate Hong Kong’s position as an international trade
centre, the 2024 Policy Address announced that the Government would allocate an additional
provision of $500 million for implementing the ISRE 2.0, focusing on attracting new and
recurrent international exhibitions of a large scale, so as to further promote the development
of the C&E industry and the mega event economy, thereby generating overall economic
benefits for Hong Kong. To this end, we have engaged the major stakeholders of the C&E
industry, and worked out the arrangements for the ISRE 2.0 taking into account the views
received and the operational experience of the existing ISRE.
Same as the existing scheme, the ISRE 2.0 will only subsidise venue rentals of eligible
exhibitions organised by private organisers at the specified venues. The ISRE 2.0 aims at
attracting more new and recurrent international exhibitions of a large scale, boosting the
vibrancy of the C&E industry in Hong Kong. Some new features will be introduced under
the new scheme, including:
⚫ only international exhibitions attracting at least 1 500 non-local participants (including
exhibitors and buyers) will be covered;
⚫ the maximum incentive for each eligible exhibition will be capped at $10 million; and
⚫ the Central Harbourfront Event Space and relevant parts of the West Kowloon Cultural
District will be designated as specified venues, alongside the HKCEC and AWE.
All of the above will enable the ISRE 2.0 to focus on international events, benefit more
eligible exhibitions and offer more venue options to the organisers. A press release was
issued to announce the above arrangements on 24 January. We will work out the
Application Guide on the eligibility criteria for the ISRE 2.0 and will announce the details
after engaging the major stakeholders.
The ISRE 2.0 will be launched on 1 July this year subject to the Legislative Council’s funding
approval, while the existing ISRE will terminate on the same day. We will continue to keep
in touch and collaborate with the C&E industry so as to encourage more organisers to stage
exhibitions in Hong Kong.
- End -
Session 18 CEDB - Page 60
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB020
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1597)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Government launched the Special 100% Loan Guarantee (Special Loan) to support small
and medium enterprises (SMEs) during the pandemic, but the default rate continues to rise.
Please set out the number of Special Loan applications approved, the loan amount, the default
rate and the amount of default claims involved each year.
Asked by: Hon HONG Wen, Wendy (LegCo internal reference no.: 30)
Reply:
The Special 100% Guarantee Product of the SME Financing Guarantee Scheme (SFGS) was
launched in 2020 and its application period ended in end March 2024. Its application and
default figures by year are as follows:
2020 2021 2022 2023 2024 Note 2025 (as at
end
February)Note
Number of
Applications 25 328 21 679 11 579 7 100 1 431 65
Approved
Total Loan Amount
39.7 41.9 33.6 23.9 4.6
of Approved 0.2 billion
billion billion billion billion billion
Applications ($)
Cumulative Loan
0.014 0.43 2.886 8.516 19.372 20.144
Guarantee Amount
billion billion billion billion billion billion
of Default Cases ($)
Note: Some applications submitted before the end of the application period were approved in April 2024 or later.
Session 18 CEDB - Page 61
As at end February 2025, the cumulative default rate of the Special 100% Guarantee Product
under the SFGS was about 14%, lower than the assumed overall default rate (25%). The
actual default rates of the SFGS are subject to change having regard to the overall economic
environment and the operational situation of individual borrowing enterprises, etc. The
Government and the HKMC Insurance Limited, which is responsible for administering and
managing the SFGS, will continue to monitor the situation closely.
- End -
Session 18 CEDB - Page 62
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB021
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3259)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (-) -
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the implementation of the Protection of Critical Infrastructures (Computer
Systems) Bill (the Bill), please advise this Committee of the following:
The Communications Authority is one of the designated authorities under the Bill and
required to discuss the Code of Practice with the telecommunications and broadcasting
sectors. Has the Government set aside resources to take forward the implementation of the
Bill? If so, what are the relevant staff establishment and estimated expenditure? If not,
what are the reasons?
Asked by: Hon KAN Wai-mun, Carmen (LegCo internal reference no.: 38)
Reply:
The Protection of Critical Infrastructures (Computer Systems) Bill was introduced into the
Legislative Council (LegCo) by the Security Bureau on 11 December 2024 and was passed
by the LegCo on 19 March 2025.
Section 5 and Part 2 of Schedule 2 to the Protection of Critical Infrastructures (Computer
Systems) Ordinance (the Ordinance) specify the Communications Authority (CA) as the
“designated authority” which will issue, amend and maintain Codes of Practice (CoPs) in
respect of Category 1 obligations (i.e. organisational obligations) and Category 2 obligations
(i.e. preventive obligations) of the critical infrastructures operators in the telecommunications
and broadcasting services sector under the regulation of CA, as well as to monitor and
supervise the compliance of the relevant obligations. The Ordinance also provides that the
Commissioner of Critical Infrastructure (Computer-system Security) will issue, amend and
maintain CoPs in respect of Category 3 obligations (i.e. obligations relating to incident
reporting and response) and monitor and supervise the compliance of the relevant obligations
by all operators (including those in the telecommunications and broadcasting services sector).
Session 18 CEDB - Page 63
The implementation of CA’s duties as the “designated authority” under the Ordinance will be
met through existing resources and manpower of the Office of the Communications
Authority.
- End -
Session 18 CEDB - Page 64
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB022
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3260)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As mentioned in paragraph 113 of the Budget Speech, the Government will inject $1.5 billion
in total into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
and the Export Marketing and Trade and Industrial Organisation Support Fund (EMTSF), and
streamline application arrangements, so as to support the development of local enterprises
and help them go global, with details to be announced by the Commerce and Economic
Development Bureau later. In this connection, please provide this Committee with the
following:
1) the numbers of applications received and approved under the BUD Fund, as well as the
amounts of funding approved and the processing time in the past 5 years (from 2020-21
to 2024-25);
2) the number of benefitted enterprises and the distribution of cumulative amount of
funding approved (in tabular form by sector) as to date;
3) the number of applications received and approved under “Easy BUD” (which was
launched in June 2023), as well as the amount of funding approved and the processing
time as to date;
4) the respective amount to be injected into the BUD Fund and the EMTSF; and
5) the Government’s directions in streamlining application arrangements for the BUD Fund
and the EMTSF.
Asked by: Hon KAN Wai-mun, Carmen (LegCo internal reference no.: 39)
Session 18 CEDB - Page 65
Reply:
The implementation of the Dedicated Fund on Branding, Upgrading and Domestic Sales
(BUD Fund) in the past 5 years is as follows:
2020 to 2024
Number of applications received Note 20 739
Number of applications approved 7 471
Amount of funding approved ($) 5 billion
Note: Applications received may not be processed in the same period. The figures include applications that could
not be processed owing to incomplete information and those withdrawn voluntarily by enterprises afterwards.
As at end February 2025, 10 417 applications has been approved under the BUD Fund. The
cumulative funding amount approved is $6.441 billion, with a total of 6 841 beneficiary
enterprises. The major 5 beneficiary sectors are as follows:
Major beneficiary sectors 1. Wholesale and Retail
[in descending order of the amount of (20.3%)
cumulative approved funding] 2. Import and Export Trade
(11.5%)
(percentage of approved funding amount 3. Textiles and Clothing
to the total amount of approved funding) (5.6%)
4. Information Technology
(5.2%)
5. Electronics
(5.2%)
“Easy BUD” under the BUD Fund
In June 2023, the Government launched “Easy BUD” to expedite the vetting of applications
involving designated measures with a funding amount of $100,000 or below. As at end
February 2025, a total of 592 “Easy BUD” applications were approved, and the cumulative
funding amount approved is $43 million.
To date, the BUD Fund Programme Secretariat (the Hong Kong Productivity Council) could
meet the performance pledge of processing all “Easy BUD” applications within 30 working
days upon receipt of all required documents and clarification materials.
The BUD Fund and the Export Marketing and Trade and Industrial Organisation Support
Fund (EMTSF)
To continue to support the development of local enterprises and help them go global, the
2025-26 Budget announced the injection of $1.5 billion into the BUD Fund and the EMTSF
(which covers expenditures of the SME Export Marketing Fund (EMF) and the Trade and
Industrial Organisation Support Fund). This injection will be shared equally between the 2
funds. Together with the injection of $1 billion into the BUD Fund announced in the 2024
Policy Address, the Government will inject in total $1.75 billion and $0.75 billion respectively
Session 18 CEDB - Page 66
into the BUD Fund and the EMTSF. This is a testament to the Government’s unwavering
commitment to supporting SMEs continuously despite the current fiscal conditions.
On 14 March 2025, the Government has instituted several enhancement measures with respect
to the BUD Fund. Firstly, each applicant enterprise can submit 1 “Easy BUD” application
every 3 months, instead of 6 months. This will enable enterprises to obtain more timely
funding support given the streamlined application and vetting arrangements under “Easy
BUD”. Besides, the funding scope of “Easy BUD” has been expanded to include
establishment of online sales platform. Furthermore, to assist enterprises in coping with
trade protectionism and geopolitical tensions, the BUD Fund expressly provides funding
support for professional fees associated with the establishment of new business entities. We
have also expanded the geographical coverage of “E-commerce Easy” to the 10 countries of
the Association of Southeast Asian Nations, and stated in the Guide to Application that the
scope of the BUD Fund covers implementation of green transformation projects that assist
enterprises in business development. Specific measures include conducting carbon audits
for newly developed products to enter target markets, upgrading production lines or applying
new technologies to meet the environmental standards or legal requirements of target markets,
etc.
To focus our limited resources to equip enterprises for upgrading and transformation, the
Government will consolidate the EMF into the BUD Fund upon expiry of the former’s special
measure on 30 June 2026. This would attain synergy as the BUD Fund could also fund
promotional activities in the context of upgrading and transformation. At the same time, to
ensure financial sustainability of the 2 funding schemes, the Government has instituted
measures on 14 March 2025 such that the BUD Fund and the EMF will be utilised in the most
productive manner. Relevant measures include adjustments to the funding ceiling, matching
ratio, and rationalisation of other parameters of the BUD Fund and the EMF, as detailed at
the Annex.
- End -
Session 18 CEDB - Page 67
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management fees
for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the EMF
with a view to controlling the maximum amount of funding, including the funding
ceiling, validity period of activities, restrictions on the number of repeated applications
of a similar nature on certain activities, etc.
Session 18 CEDB - Page 68
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB023
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3299)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (-) -
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is stated in paragraph 48 of the Budget Speech that the Commerce and Economic
Development Bureau (CEDB) and the Office of the Communications Authority are exploring
a set of streamlined procedures for vetting licence applications for operating Low Earth Orbit
(LEO) satellites, and will complete the relevant work this year. In this connection, will the
Government inform this Committee of:
1) the current procedures and vetting time for licence application for operating LEO
satellites;
2) the numbers of applications received, licences granted and applications pending vetting
so far;
3) the direction and timetable for streamlining the vetting procedures;
4) the estimated time for vetting and the percentage of time reduced after the procedures are
streamlined; and
5) the purpose of developing LEO satellites and the expected economic benefits.
Asked by: Hon KAN Wai-mun, Carmen (LegCo internal reference no.: 40)
Reply:
Low Earth Orbit (LEO) satellites are the new trend in satellite development globally.
Compared with traditional satellites (i.e. geostationary orbit satellites), LEO satellites are less
costly and have the characteristics of low latency and high transmission rates. They are
widely applicable in domains such as telecommunications, remote monitoring, navigation,
tracking, satellite Internet access, etc., providing services in the areas of transport and
Session 18 CEDB - Page 69
logistics, and smart city. According to the existing statutory requirements in Hong Kong,
satellite operators need to obtain the Outer Space Licence issued by the Chief Executive (CE)
under the Outer Space Ordinance (Cap. 523) and the Space Station Carrier Licence issued by
the Communications Authority (CA) under the Telecommunications Ordinance (Cap. 106)
for each satellite operated in Hong Kong (regardless of whether the satellite is launched in
Hong Kong).
Since LEO satellites are operated in a constellation that may include tens or hundreds of LEO
satellites, operators are required to apply for the corresponding number of Outer Space
Licences and Space Station Carrier Licences in accordance with the number of satellites under
the current licensing regime. To enhance Hong Kong’s attractiveness and competitiveness
in the development of LEO satellites, the CE announced in the 2024 Policy Address and the
Financial Secretary announced in the 2025-26 Budget that the Government will conduct a
study on streamlining the vetting procedures of licence applications for operating LEO
satellites, with an aim to completing the relevant study within 2025.
Under the current satellite licensing regime, there are 3 licensed satellite operators in Hong
Kong operating a total of 10 geostationary orbit satellites. CA has not received any licence
application for LEO satellites for the time being. The Government expects that the
streamlined satellite licensing regime will attract satellite operators to operate LEO satellites
in Hong Kong, which will in turn attract investment from relevant enterprises and promote
innovative technology and high-quality industry development. At the same time, it will also
provide relevant training and employment opportunities to attract more talents in satellite
network operation to develop in Hong Kong, thereby consolidating Hong Kong’s position as
a regional telecommunications hub.
- End -
Session 18 CEDB - Page 70
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB024
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1247)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The 2024-25 revised estimate for this Programme is $13.4 billion, which is 130% higher than
the original estimate for the same year. In this connection, please advise on the following:
(1) the reasons for the significant increase in the revised estimate for this Programme as
compared to the original estimate for last year; and
(2) the staff establishment and expenditure of the Secretariat of the Working Group on
Promoting Silver Economy in the past year.
Asked by: Hon KONG Yuk-foon, Doreen (LegCo internal reference no.: 10)
Reply:
The 2024-25 revised estimate under Programme (2) Commerce and Industry is $7.6348
billion (130.9%) higher than the original estimate, with the increased provisions (about 98%
and 2% respectively) allocated to the SME Financing Guarantee Scheme (SFGS) – Guarantee
Products and the Incentive Scheme for Recurrent Exhibitions (ISRE) due to the expected
increase in the cash flow requirement of these 2 schemes in 2024-25.
HKMC Insurance Limited (HKMCI) is responsible for administering and managing the
SFGS. The Government needs to increase the estimated cash flow in 2024-25 to cater for
the relevant expenses of the various guarantee products. These include payments of
originating fee in respect of the Special 100% Guarantee Product to the participating lending
institutions, payments to HKMCI to cover the administrative costs and the necessary
out-of-pocket expenses arising from the existing and new applications as well as the default
claim payments. The Government and HKMCI will continue to monitor the situation
closely.
Session 18 CEDB - Page 71
The actual cash flow of ISRE depends on such factors as the number of applications and
incentive amount in the respective financial year. With the exhibition industry continuing
to improve in 2024-25, the number of eligible applications received and the incentive amount
involved under ISRE are higher than expected, thereby increasing its cash flow requirement.
According to the 2024 Policy Address, the Working Group on Promoting Silver Economy
(the Working Group) led by the Deputy Chief Secretary for Administration was established
in November 2024 and the Commerce and Economic Development Bureau (CEDB) serves
as the Secretariat of the Working Group. As the work of the Secretariat is conducted with
the existing manpower of the CEDB, the expenditure has been subsumed under the overall
estimate and cannot be quantified separately.
- End -
Session 18 CEDB - Page 72
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB025
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1249)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-)-
Programme: (5) Posts, Competition Policy and Consumer Protection
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The actual estimate for 2024-25 under the Programme is $10.2 million, representing a
reduction of nearly 50% over the original estimate for the previous year. In this connection,
will the Government provide the following information:
(i) the progress of the project to redevelop the Air Mail Centre and a breakdown of
expenditure; and
(ii) the study progress and specific timetable on the regulation of prepaid consumption.
Asked by: Hon KONG Yuk-foon, Doreen (LegCo internal reference no.: 11)
Reply:
The Government obtained funding approval of $4,611.3 million from the Finance Committee
of the Legislative Council in May 2021 for redevelopment of the Air Mail Centre (AMC),
which involves the following 3 major items:
Items Estimated cost
(in money-of-the-day price)
($ million)
(i) Construction of the new AMC 2,598.5
Building
(ii) Acquisition of new equipment, 1,232.4
technology and machinery
(iii) Decanting Building and associated 780.4
decantation
Session 18 CEDB - Page 73
Hongkong Post is pushing ahead with the AMC redevelopment project in full steam, including
the tendering exercises for the construction of the new AMC and the Material Handling
System, as well as the construction of a Decanting Building at the existing AMC site to ensure
that the handling and services of air mail will not be affected during the construction period.
The Decanting Building is expected to commence operation in mid-2025, while the new AMC
is expected for commissioning by the end of 2027. At present, all expenditures incurred are
within the approved funding.
In respect of offering better protection to consumers who make prepayments, we are aware
that different sectors of the community have put forward various suggestions. These include
imposing a cap on the length of prepayment contracts, the prepayment amounts and
stipulating a statutory cooling-off period, etc. The Commerce and Economic Development
Bureau is conducting an in-depth study into different suggestions, considering their pros and
cons and feasibility, with reference to the practices in other jurisdictions and taking into
account relevant factors (including the economic environment, operating situation of relevant
industries, relevant complaint figures and experience of law enforcement agencies, etc.), with
a view to formulating appropriate strategies to strengthen the protection of consumers’ rights
and interests.
- End -
Session 18 CEDB - Page 74
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB026
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1250)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (7) Subvention: Consumer Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
1. What are the measures currently adopted by the Consumer Council (the Council) in
protecting the rights and interests of elderly consumers? What is the relevant resource
allocation plan for this year?
2. The Council will launch the revamped Complaint Case Management System (the
System) this year, which is expected to improve the efficiency of handling and analysing
complaint cases and related statistics. It is learnt that the relevant work has been
delayed by 1 year. Will the Administration please provide information on the official
launch date for the System? What are the details of the online dispute resolution
platform involved, and how can it improve the efficiency of handling complaint cases?
Which types of cases to be handled will be benefited most from this platform?
3. In 2024, the number of consumer complaint cases was almost 6 000 more than 2023,
while the number of which in 2023 was also almost 3 000 more than 2022. Have any
analyses and studies been conducted on this upward trend, and what measures have been
taken to protect the rights and interests of consumers?
Asked by: Hon KONG Yuk-foon, Doreen (LegCo internal reference no.: 12)
Reply:
The Consumer Council (the Council) endeavours to study and promote the protection of
consumers’ rights and interests, and carries out its statutory functions in accordance with the
Consumer Council Ordinance (Cap. 216), including the handling of complaints relating to
goods and services of and the provision of advice to consumers, conducting surveys and
studies on issues of consumers’ interest, as well as disseminating consumer information
through its published “CHOICE” magazine, etc.
Session 18 CEDB - Page 75
In terms of protecting the rights and interests of elderly consumers, the Council has been
conducting publicity and education work for the elderly through various channels, including:
⚫ collaborating with various social service organisations and elder academies to conduct
talks to provide the elderly with relevant consumption alerts and advice, with a view to
enhancing the elderly’s understanding of consumers’ rights and interests and unfair trade
practices;
⚫ launching the Educator Scheme for Senior Citizens since March 2021 to provide
consumer education training to soon-to-be retirees and retirees mainly aged between 50
and 64 in order to enhance their knowledge in consumers’ rights and interests. Suitable
participants who have completed the training will host consumer educational talks for
the elderly to share the latest consumer information, and refer the elderly who have
encountered consumer issues to the Council’s complaint and enquiry hotline for
assistance; and
⚫ publishing articles on product tests and service surveys relating to the elderly in the
Council’s CHOICE magazine, providing them with practical consumer information.
In 2025-26, the Council will support the Government in promoting the development of silver
economy, including having set up an Advisory Group on Silver Economy to steer the work
on protecting the interests of elderly consumers, disseminating information relating to “silver
consumption” through its “CHOICE” magazine to help the elderly make informed choices in
consumption and consolidating existing articles and resources related to “silver consumption”
through a dedicated section, “Smart Seniors”, on its website for the elderly to browse
information more conveniently. The Council will continue to explore implementing more
measures relating to “silver consumption”, with a view to protecting the rights and interests
of the elderly. The manpower and expenditure entailed for the above work have been
subsumed into the Council’s overall staff establishment and estimates. It is difficult to
quantify such manpower and expenditure separately.
On the other hand, the Council plans to launch the revamped Complaint Case Management
System (CCMS) in end-2025. The major functions and mode of operation of the new system
are set out below:
⚫ providing a new online dispute resolution platform, which will enable complainants,
traders and the Council’s staff to communicate and exchange documents directly,
thereby enhancing the efficiency of handling complaints;
⚫ adopting innovative technologies (such as artificial intelligence) to streamline the
registration process of complaint cases and issue reports and alerts automatically, etc.,
so as to facilitate the three parties aforementioned to follow up; and
⚫ analysing and classifying complaint cases through artificial intelligence to reduce the
time required of the relevant procedures, so that the Council’s staff can focus on
handling the more complex cases and, at the same time, strengthening the Council’s
capability to analyse complaint statistics and monitor the trends of complaints.
Session 18 CEDB - Page 76
The Council estimates that the time required for resolving a complaint case can be shortened
from around 3 to 4 months at present to 2 to 3 months with the assistance of the new system.
The new system will enable the Council to cope with the increasing number and complexity
of complaint cases more effectively.
The Council has been closely monitoring the number and trend of consumer complaints. If
the Council identifies increasing number of complaints relating to certain traders, it will
request relevant traders to take necessary measures, including enhancing the quality of their
services or goods or improving their trade practices, with a view to reducing the number of
complaints at source. If the cases are suspected of contravening the laws, the Council will
also refer the cases to the relevant law enforcement agencies for further follow-up.
In addition, the Customs and Excise Department (C&ED) is the principal enforcement agency
of the Trade Descriptions Ordinance, and has been keeping a close watch of the complaint
and enforcement statistics. C&ED has been actively combating unfair trade practices at
source through enforcement actions, compliance promotion and publicity and public
education, with a view to protecting the rights and interests of consumers.
- End -
Session 18 CEDB - Page 77
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB027
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0611)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (3) Telecommunications
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
To help members of the public distinguish legitimate calls, the Office of the Communications
Authority (OFCA) has been visiting various districts and working with Legislative Council
(LegCo) Members as well as District Councillors since end-2023 to appeal to members of the
public to beware of phone scams and assist them to download relevant call-filtering apps. In
this connection, will the Government inform this Committee of:
(1) the number of visits conducted by OFCA as well as the number of LegCo Members and
District Councillors participated in the past 2 years, with a breakdown by the 18 districts;
(2) whether the Government has kept the statistics on the number of OFCA staff responsible
for conducting the visits and the expenditure incurred? If yes, what are the details?
If no, what are the reasons?
(3) the Government’s plan, apart from the District Anti-Phone Deception Ambassador
Scheme launched in January this year, to promote anti-phone scam messages at
community level; and whether the Government will consider seeking assistance from
the Care Teams for this purpose?
Asked by: Hon LAI Tung-kwok (LegCo internal reference no.: 20)
Reply:
The Office of the Communications Authority (OFCA) has been actively conducting publicity
activities to promote anti-phone scam messages across 18 districts in Hong Kong. Since
2023, OFCA, together with Legislative Council (LegCo) Members and District Council (DC)
members, have conducted a total of 21 roadshows. Nearly 50 LegCo Members and DC
members have taken part in the roadshows. In addition, OFCA, through a mobile promotion
truck which toured all 18 districts, distributed promotional leaflets and souvenirs as well as
Session 18 CEDB - Page 78
hosted interactive games to raise the anti-deception awareness of local residents. Over the
past 2 years, OFCA has also organised 150 public education and publicity activities, including
30 roving exhibitions, 70 community talks and 50 school drama performances, to promote
anti-phone scam messages to local residents and students. More than 30 OFCA staff took
part in the above activities, with the relevant manpower and expenses covered by the OFCA
Trading Fund.
To enhance public education and publicity, OFCA launched the “District Anti-Phone
Deception Ambassador Scheme” (the Ambassador Scheme) in mid-January 2025 and invited
the participation of DC members and staff members of their ward offices from all 18 districts
in Hong Kong. Over 150 DC members’ ward offices supported the initiative, with more
than 300 DC members and their staff members joined the Ambassador Scheme as District
Anti-Phone Deception Ambassadors (Ambassadors). OFCA organised anti-deception
information seminar and provided information packs to all Ambassadors to introduce them
measures to combat phone scam and related anti-fraud messages. OFCA has also provided
participating DC members’ ward offices with anti-phone scam promotional leaflets and
souvenirs for distribution during their community activities and daily contacts with residents
to promote the anti-fraud messages and raise anti-phone scam awareness. OFCA will
continue to visit different districts in 2025 and collaborate with the Ambassadors for
roadshows and other promotional activities to strengthen the promotion of relevant
information.
In addition to the above publicity activities, OFCA will, from time to time, issue press
releases, broadcast TV and radio announcements, publish social media posts, and produce
and distribute promotional leaflets and posters to spread anti-phone scam messages. OFCA
will continue its effort in utilising various channels for public education and publicity to
deliver anti-phone scam messages to the public more comprehensively.
- End -
Session 18 CEDB - Page 79
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB028
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2969)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry, (3) Telecommunications, (4)
Broadcasting
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the estimated expenditures under Programmes (2), (3) and (4) for 2025-26, will
the Government inform this Committee of the following:
(1) Under Programme (2), the revised estimate for 2024-25 is around $13.4689 billion,
representing a significant increase of about 130.9% over the original estimate. What
are the reason(s) and details for the significant increase in the estimated expenditure?
(2) It is mentioned under Programme (3) that the revised estimate for 2024-25 is about
60.1% less than the amount for 2025-26. What are the reason(s) and details for the
significant decrease in the estimate? And
(3) It is mentioned under Programme (4) that the significant increase in the revised estimate
for 2024-25 is due to the Government’s one-off provision to RTHK for enhancement of
its mission as the public service broadcaster of Hong Kong. With the lapse of the said
one-off provision, the estimated amount for 2025-26 should be comparable to the
original estimate for 2024-25. What are the reason(s) for the estimate for 2025-26 still
being about 50% higher than the original estimate for 2024-25?
Asked by: Hon LAM Chun-sing (LegCo internal reference no.: 37)
Reply:
The 2024-25 revised estimate under Programme (2) Commerce and Industry is $7.6348
billion (130.9%) higher than the original estimate, with the increased provisions (about 98%
and 2% respectively) allocated to the SME Financing Guarantee Scheme (SFGS) – Guarantee
Products and the Incentive Scheme for Recurrent Exhibitions (ISRE) due to the expected
increase in the cash flow requirement of these 2 schemes in 2024-25.
Session 18 CEDB - Page 80
HKMC Insurance Limited (HKMCI) is responsible for administering and managing the
SFGS. The Government needs to increase the estimated cash flow in 2024-25 to cater for
the relevant expenses of the various guarantee products. These include payments of
originating fee in respect of the Special 100% Guarantee Product to the participating lending
institutions, payments to HKMCI to cover the administrative costs and the necessary
out-of-pocket expenses arising from the existing and new applications as well as the default
claim payments. The Government and HKMCI will continue to monitor the situation
closely.
The actual cash flow of ISRE depends on such factors as the number of applications and
incentive amount in the respective financial year. With the exhibition industry continuing
to improve in 2024-25, the number of eligible applications received and the incentive amount
involved under ISRE are higher than expected, thereby increasing its cash flow requirement.
The 2024-25 revised estimate under Programme (3) Telecommunications is $184.4 million
(60.1%) lower than the original estimate. This is mainly due to the payment for projects
under “Subsidy Scheme to Extend Fibre-based Networks to Villages in Remote Areas” has
been deferred having regard to the progress of works, resulting in a lower cash flow
requirement for 2024-25. The cash flow requirement has been reflected in the 2025-26
estimate correspondingly. The overall progress of the projects under the subsidy scheme
remains unchanged.
The 2025-26 estimate under Programme (4) Broadcasting is $4.3 million (50.6%) higher than
the 2024-25 original estimate. This is mainly due to the reallocation of resources on
monitoring television and sound broadcasting services frequencies under Programme (3)
Telecommunications of the 2024-25 original estimate to Programme (4) Broadcasting on
financial analysis considerations so as to reflect the use of resources under the 2 programmes
more accurately. This resource reallocation does not involve additional provision.
- End -
Session 18 CEDB - Page 81
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB029
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3077)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
A) Regarding “continue to oversee the implementation of a series of initiatives to develop
Hong Kong into a regional intellectual property (IP) trading centre”, what specific
measures and key performance indicators does the Government have in place to define
the status of an IP trading centre?
B) What are the actual expenditures other than remuneration of last year and this year for
developing Hong Kong into a regional IP trading centre, and their uses?
C) What is Hong Kong’s position in the race against other areas in the region? Are there
any indices or data to reflect this? What makes Hong Kong more attractive than other
places?
Asked by: Hon LAM Kin-fung, Jeffrey (LegCo internal reference no.: 9)
Reply:
Under the steer of the Commerce and Economic Development Bureau, the Intellectual
Property Department (IPD) has been working closely with different stakeholders, including
other government departments, public organisations (such as the Hong Kong Trade
Development Council (HKTDC)) and professional bodies (such as the Law Society of Hong
Kong), to implement a series of measures in accordance with the Chief Executive’s Policy
Addresses to strengthen protection for the products of innovation and creativity yielded by
research and development (R&D) efforts, promote intellectual property (IP)
commercialisation and IP trading, and strengthen Hong Kong’s role as a regional IP trading
centre. Major initiatives for 2025 are set out below:
Session 18 CEDB - Page 82
⚫ Enhance the legal framework for IP protection. The Government already consulted
the Legislative Council (LegCo) Panel on Commerce, Industry, Innovation and
Technology in February 2025 on the proposal to amend the Copyright Ordinance (CO)
to, on the premise of allowing the copyright owners to reserve their rights, foster a
favourable environment for the development of artificial intelligence (AI). The goal is
to submit the relevant amendment bill to the LegCo in the first half of 2025. The
Government will also table subsidiary legislation under the CO in the LegCo within 2025
to specify libraries, museums and archives eligible for certain permitted acts and
prescribe the conditions, and designate non-government-owned libraries, museums or
archives that can be exempted from certain criminal liabilities. Moreover, the
Government will launch a consultation in 2025 on the registered designs regime currently
under review. On trade mark, the Government will continue to forge ahead with the
preparatory work for implementing the Protocol Relating to the Madrid Agreement
Concerning the International Registration of Marks in Hong Kong, and strive for the
implementation of the international trade mark registration system as soon as possible.
The Trade Mark Registry under the IPD will launch a new AI-assisted image search
service in 2025 to facilitate the public’s search of the trade mark database. The
Government is also proposing legislative amendments to streamline IP litigation
processes for the High Court to manage and hear these cases more effectively. In
addition, with the Central Government’s support, Hong Kong will participate in the
World Intellectual Property Organization (WIPO) Lex-Judgments Database in 2025,
sharing important IP case precedents of local courts, to showcase to the international
community the quality of our IP-related judicial judgements.
⚫ Support the innovation and technology sector by means of the patent system. In
addition to the ongoing efforts to strengthen the substantive examination capability of
the patent examination team under the original grant patent system with a view to
acquiring institutional autonomy in conducting substantive patent examination in 2030,
the Government will continue to discuss with the patent agent sector and stakeholders to
plan for the introduction of regulatory arrangements for local patent agent services,
covering qualification, registration, and other areas, aiming to nurture professional
talents and enhance service quality. The IPD will also continue to press ahead with the
establishment of a WIPO Technology and Innovation Support Centre (TISC) in Hong
Kong, targeting for official commissioning in end 2025 the earliest. Upon its
commissioning, the TISC is expected to provide local small and medium enterprises,
start-ups and entrepreneurs with high-quality IP (especially patents) information and
services, and assist them in exploring their innovation potential, as well as creating,
protecting, managing and commercialising their IP.
⚫ Strengthen the grooming of IP talents. The IPD will continue to enhance its
manpower training programmes, with a target to provide IP training for 5 000 personnel
across different industries within the current term of the Government, and to collaborate
with the Department of Justice to promote IP mediation and arbitration services. It will
also collaborate with the Qualifications Framework Secretariat to develop practical
teaching materials for deployment by training providers, benefitting personnel across 23
different industries, and complete a survey on Hong Kong’s IP-related professional and
business services within 2025 to facilitate future manpower planning. Besides, the IPD
will promote IP to 200 000 students within the current term of the Government, doubling
the original target, to reinforce awareness of respecting and protecting IP rights, and
Session 18 CEDB - Page 83
encourage students to actively explore and innovate.
⚫ Enhance external promotion. The IPD will continue its liaison with the Mainland,
regional and international organisations to promote Hong Kong’s role as the regional IP
trading centre, and work with the HKTDC and relevant stakeholders to promote IP
trading and professional services through trade missions, seminars and publicity
programmes, including continuously co-organising with the HKTDC the annual
Business of IP Asia Forum, which is expected to attract over 10 000 local, Mainland and
overseas participants within the current term of the Government. The HKTDC will
continue to enrich the Hong Kong International Film and TV Market, the Hong Kong
International Licensing Show, the Hong Kong Book Fair, and the Asia IP Exchange
portal with more trading elements, such as including more business-matching activities
and providing additional market information on IP trading and professional support
services, so as to strengthen support for local original works to exploit the Mainland and
international markets.
Hong Kong has a robust IP rights protection system, a simple and low tax regime, as well as
a pool of bi-literate and tri-lingual professionals with Mainland China and international
perspectives. In addition, given Hong Kong’s experience in areas such as R&D, design,
trading and business services in support of industrial production, Hong Kong has many
competitive advantages to develop into a regional IP trading centre. With reference to the
2024 World Competitiveness Yearbook published by the International Institute for
Management Development in Lausanne, Switzerland, Hong Kong’s ranking in IP jumped 4
positions to the 8th globally, a ranking surpassing some advanced economies. Besides,
according to the Global Innovation Index 2024 published by WIPO, the Shenzhen-Hong
Kong-Guangzhou science and technology cluster continued to rank the second globally for
the 5th consecutive year. Hong Kong can make full use of our competitive edges to play the
role as a regional IP trading centre, helping enterprises to turn IP contents they created into
economic benefits.
The HKTDC held the 14th “Business IP Asia Forum” in December 2024, during which a
survey was conducted among the forum participants. The survey showed that over 90% of
the respondents, up 7% as compared with 2023, would consider/continue to choose Hong
Kong as a place to conduct IP trading in the coming 2 years, affirming Hong Kong’s position
as a prime IP trading centre in Asia. Respondents considered that the excellent geographical
location, sound legal system, and a low and simple tax regime (including the patent box tax
incentive) were the key competitive edges of Hong Kong as an IP trading centre in Asia.
Promotion of IP trading is part and parcel of the overall work of the IPD. It is therefore
difficult to quantify the resources involved separately.
- End -
Session 18 CEDB - Page 84
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB030
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0423)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (-) -
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
In the past 3 years, did the Commerce and Economic Development Bureau engage external
lawyers for consultancy services in accordance with the Stores and Procurement Regulations
of the Government without first seeking assistance from the Department of Justice? If so,
what were the nature of such services and the expenditures incurred?
Asked by: Hon LAM San-keung (LegCo internal reference no.: 2)
Reply:
The Commerce and Economic Development Bureau had not engaged any external lawyers
for consultancy services in the past 3 years.
- End -
Session 18 CEDB - Page 85
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB031
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0287)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (000) Operational expenses
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Paragraph 116 of the Budget Speech mentions that the Government will further assist local
SMEs in tapping into the Mainland market and increasing sales from e-commerce markets,
such as launching the E-Commerce Express, enhancing the mentorship scheme and
organising the second edition of the Hong Kong Shopping Festival. In this connection,
please inform this Committee of:
1. the details, estimated expenditures and expected economic benefits of each of the above
projects; and
2. the total trade volume of e-commerce projects by Hong Kong enterprises over the past
three years.
Asked by: Hon LAM Shun-chiu, Dennis (LegCo internal reference no.: 4)
Reply:
The 2025-26 Budget announced that the Hong Kong Trade Development Council (HKTDC)
will implement the “E-Commerce Express” (“電子商務快車”) to strengthen support for
small and medium enterprises (SMEs) to tap into the Mainland market and increase electronic
commerce (e-commerce) sales. HKTDC has renamed the Chinese name of the service as
“電子商務快綫”. To address the pain points encountered by Hong Kong enterprises when
developing cross-border e-commerce on the Mainland, HKTDC will, in collaboration with
large-scale e-commerce or social media platforms, conduct a series of thematic training
seminars and research sharing sessions to cover practical topics including the Mainland and
overseas e-commerce market landscapes, legal compliance, operational strategies and
features of both traditional and emerging online shopping platforms, how to establish fanbase,
livestreaming production techniques, etc., with a view to providing more comprehensive
support for SMEs interested in tapping into the e-commerce market.
Session 18 CEDB - Page 86
One of the key activities to be supported by the “E-Commerce Express” will be the 2nd edition
of the Hong Kong Shopping Festival (HKSF) scheduled for August 2025. The event aims
at providing SMEs with practical experience in utilising e-commerce platforms to tap into the
Mainland market. To deepen participating enterprises’ understanding of the techniques in
operating on Mainland e-commerce and online shopping platforms and assist them in
promoting brand awareness, HKTDC will, under the “E-Commerce Express”, provide
one-on-one consultation services for HKSF participants. Marketing specialists will advise
Hong Kong enterprises on appropriate e-commerce strategies based on their individual
business needs and product features.
The 2nd edition of the HKSF will continue to bring together Hong Kong enterprises to offer
discounts in Mainland online stores and arrange enterprises to conduct livestreaming
promotion on Mainland e-commerce platforms. It is anticipated that the scale of the 2nd
edition of the HKSF will be larger than that of the inaugural HKSF, including showcasing
more brands and covering major consumer products, in particular food and health
supplements which are popular among Mainland consumers, while at the same time featuring
more promotional channels to help Hong Kong enterprises raise brand exposure and grasp the
opportunities in the Mainland e-commerce market.
On the other hand, the Trade and Industry Department (TID) plans to launch a mentorship
programme this year to enhance support for SMEs to develop brands and expand the
e-commerce sales networks through counselling and workshops, etc. for developing the
markets of the Mainland and/or the Association of Southeast Asian Nations. TID will
announce the details later.
The above measures will help promote Hong Kong brands and strengthen support for SMEs
to develop markets and increase e-commerce sales while their anticipated economic benefits
cannot be quantified.
The Government does not compile statistics on the total trade volume of e-commerce projects
by Hong Kong enterprises. Besides, the manpower and expenditure of the Commerce and
Economic Development Bureau, TID and HKTDC for implementing the above measures
have been subsumed under the respective overall establishment and estimates, and cannot be
quantified separately.
- End -
Session 18 CEDB - Page 87
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB032
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0295)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in paragraph 114 of the Budget Speech that a total of over $288 billion of
loans has been approved under the SME Financing Guarantee Scheme as at the end of last
year, benefitting nearly 65 000 small and medium enterprises. In this connection, will the
Government inform this Committee of:
1. the total amount of default claims to date under the SME Financing Guarantee Scheme;
2. the measures taken by the Government to recover the default amount?
Asked by: Hon LAM Shun-chiu, Dennis (LegCo internal reference no.: 12)
Reply:
As at end February 2025, the cumulative loan guarantee amounts of default cases of the 80%,
90% and Special 100% Guarantee Products under the SME Financing Guarantee Scheme
(SFGS) were about $4.9 billion, $1 billion and $20.1 billion respectively, and the cumulative
default rates were about 5.1%, 3.8% and 14% respectively, lower than the assumed overall
default rates (12%, 16% and 25% respectively). The default rates are subject to change
having regard to the overall economic environment and the operational situation of individual
borrowing enterprises, etc. The Government and HKMC Insurance Limited (HKMCI),
which is responsible for administering and managing the SFGS, will continue to monitor the
situation closely.
HKMCI has been working closely with lending institutions on properly handling default
cases. In the event that a borrowing enterprise defaults on repayments, the lending
institution will first discuss a feasible repayment plan with the borrowing enterprise, e.g.
repaying only the interest or part of the principal during a transition period, so that the
Session 18 CEDB - Page 88
borrowing enterprise can continue its operation while making a debt restructuring
arrangement as soon as possible, with a view to gradually resuming normal repayments.
If the lending institution and the borrowing enterprise could not reach agreement on the
repayment or the latter refuses to cooperate, the lending institution will consider taking
appropriate recovery/legal actions in accordance with its policy and prevailing commercial
practice, including requesting the enterprise and guarantor to repay the loan, filing a petition
for winding-up and/or bankruptcy with the court, etc. with a view to reducing the loss of the
Government.
- End -
Session 18 CEDB - Page 89
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB033
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0297)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in paragraph 114 of the Budget Speech that as at the end of last year, a total
of over $288 billion of loans has been approved under the SME Financing Guarantee Scheme,
benefitting nearly 65 000 small and medium enterprises (SMEs). The principal moratorium
arrangement has also been relaunched in November last year for 1 year. In this connection,
please inform this Committee:
1. of the numbers of applicant enterprises from different industries, as well as the
proportions and the amounts of money involved in the past 3 years;
2. of the numbers of applications for principal moratorium, the numbers and percentages
of approved applications, as well as the default rates in the past 3 years; and
3. whether there are any policy initiatives in place to deter enterprises from defaulting and
lower the default rate alongside the support for the development of SMEs.
Asked by: Hon LAM Shun-chiu, Dennis (LegCo internal reference no.: 14)
Reply:
The cumulative application and default figures of the various guarantee products of the SME
Financing Guarantee Scheme (SFGS) as at end February 2025 are as follows:
Session 18 CEDB - Page 90
80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
(launched in (launched in Product Note 1
2012) 2019) (launched in
2020 and the
application
period ended in
end March
2024)
Number of Applications 31 225 16 965 72 824
Received
Number of Applications 27 802 15 447 67 182
Approved
Total Loan Amount of 119.6 billion 27.5 billion 143.8 billion
Approved Applications ($)
Number of Approved
Applications by Beneficiary
Sectors
⚫ Trading, Wholesale and 15 019 (54%) 7 639 (49%) 23 819 (35%)
Retail
⚫ Engineering and 2 202 (8%) 1 515 (10%) 5 684 (9%)
Construction
⚫ Manufacturing 4 161 (15%) 594 (4%) 3 795 (6%)
⚫ Others (e.g. Catering, 6 420 (23%) 5 699 (37%) 33 884 (50%)
Transportation)
Number of Default Cases 2 105 903 9 360
Loan Guarantee Amount of 4.9 billion 1 billion 20.1 billion
Default Cases ($)
Default Rates 5.1% 3.8% 14%
Note 1: Some applications submitted before the end of the application period were approved in April 2024 or later.
As at end February 2025, among the more than 110 000 approved loan applications,
cumulatively 50 093 and 1 943 applications have been approved for the old and new principal
moratorium arrangements, involving a loan amount of around $110.1 billion and $4.5 billion
respectively. The relevant statistics are as follows:
Session 18 CEDB - Page 91
80% 90% Special 100%
Guarantee Guarantee Guarantee
Product Product Product
(launched (launched in (launched in
in 2012) 2019) 2020 and the
application
period ended
in end March
2024)
Cumulative Number of Approved 1 601 1 557 46 935
Applications for the Old Principal
Moratorium Arrangement Note 2
(percentage of the relevant number of (11%) (15%) (72%)
applications approved)
Cumulative Number of Approved 96 167 1 680
Applications for the New Principal
Moratorium Arrangement Note 3 (<1%) (1%) (3%)
(percentage of the total number of
applications approved)
Cumulative Number of Default Cases 303 286 8 243
with Approved Applications for the
Principal Moratorium Arrangement
Note 2: The application period of the old principal moratorium arrangement ended on 1 October 2023, hence it is not
applicable to the loans approved thereafter.
Note 3: The new principal moratorium arrangement was announced under the 2024 Policy Address, and applications are
accepted from 18 November 2024 onwards.
In processing loan applications, the lending institutions will conduct customer due diligence
to confirm that the borrowing enterprises could fulfil the eligibility requirements, and submit
the verified applications complete with the documents required to HKMC Insurance Limited
(HKMCI) (which is responsible for administering and managing the SFGS) for final
guarantee approval. HKMCI will also conduct appropriate checks in vetting the applications
submitted by the lending institutions, and step up the vetting of suspicious cases, to ensure
the prudent use of public money.
As at end February 2025, 3 373 applications of the Special 100% Guarantee Product,
involving around $10.1 billion of loans, are found to have involved illegal activities, including
using false instruments, providing false information or declarations, etc. Among them,
1 466 cases (involving around $4.9 billion of loans) were already rejected by HKMCI and/or
the lending institutions during application assessment, while the other 1 907 cases (involving
around $5.2 billion of loans) were found after loan drawdown. HKMCI has taken
appropriate actions, including reporting the cases that may have involved illegal activities and
providing assistance to the law enforcement agencies, issuing clear guidelines to the
participating lending institutions of the SFGS, taking legal actions through the lending
institutions, etc.
HKMCI has been working closely with lending institutions on properly handling default
cases. In the event that a borrowing enterprise defaults on repayments, the lending
Session 18 CEDB - Page 92
institution will first discuss a feasible repayment plan with the borrowing enterprise, e.g.
repaying only the interest or part of the principal during a transition period, so that the
borrowing enterprise can continue its operation while making a debt restructuring
arrangement as soon as possible, with a view to gradually resuming normal repayments.
If the lending institution and the borrowing enterprise could not reach agreement on the
repayment or the latter refuses to cooperate, the lending institution will consider taking
appropriate recovery/legal actions in accordance with its policy and prevailing commercial
practice, including requesting the enterprise and guarantor to repay the loan, filing a petition
for winding-up and/or bankruptcy with the court, etc. with a view to reducing the loss of the
Government.
As at end February 2025, the cumulative default rates of the 80%, 90% and Special 100%
Guarantee Products under the SFGS were about 5.1%, 3.8% and 14% respectively, lower than
the assumed overall default rates (12%, 16% and 25% respectively). The default rates are
subject to change having regard to the overall economic environment and the operational
situation of individual borrowing enterprises, etc. The Government and HKMCI will
continue to monitor the situation closely.
- End -
Session 18 CEDB - Page 93
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB034
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0501)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in “Matters Requiring Special Attention in 2025-26” that the Commerce and
Economic Development Bureau (CEDB) will continue to work with the Trade and Industry
Department and the Hong Kong Productivity Council to implement the BUD Fund to support
Hong Kong enterprises in developing their brands, upgrading and restructuring their
operations and promoting sales on the Mainland and other free trade agreement and/or
investment promotion and protection agreement markets, expand the geographical coverage
of “E-commerce Easy” to the 10 ASEAN countries, and provide targeted funding support for
enterprises to implement green transformation projects. Will the Government inform this
Committee:
1. given that the geographical scope of the BUD Fund has been extended to cover 40
economies and the “E-commerce Easy” has been newly launched to support the
development of electronic commerce, how the CEDB will examine the applicants’
business operations and the use of funding outside Hong Kong when the geographical
scope of the fund has been expanded beyond Hong Kong; and
2. regarding the provision of targeted funding support for enterprises to implement green
transformation projects, whether the CEDB has set any specific indicators to assess the
actual impact of the funding on the sustainable development of enterprises? If so,
please list the relevant indicators; if not, please explain the reasons.
Asked by: Hon LAM Siu-lo, Andrew (LegCo internal reference no.: 18)
Reply:
The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) provides
funding support for enterprises to develop business in 40 economies with which Hong Kong
has signed free trade agreements and/or investment promotion and protection agreements.
Session 18 CEDB - Page 94
To assist Hong Kong enterprises in developing the Mainland market through electronic
commerce (e-commerce), the Government launched “E-commerce Easy” under the BUD
Fund on 15 July 2024 to allow each enterprise to make use of $1 million funding flexibly
within the cumulative funding ceiling of $7 million per enterprise for implementing
e-commerce projects on the Mainland.
We have expanded the geographical coverage of “E-commerce Easy” to the 10 countries of
the Association of Southeast Asian Nations and stated in the Guide to Application that the
scope of the BUD Fund covers implementation of green transformation projects that assist
enterprises in business development. Specific measures include conducting carbon audits
for newly developed products to enter target markets, upgrading production lines or applying
new technologies to meet the environmental standards or legal requirements of target markets,
etc. The actual impact of implementing green transformation projects on an individual
enterprise’s sustainable development will be affected by various factors such as the
enterprise’s business nature, scale and development strategies, as well as its target markets’
environmental protection regulations and standards and market situation, etc. As such, we
have no plan to set specific indicators in this regard.
The Government has established stringent monitoring procedures for the approved projects
of the BUD Fund. The BUD Fund Secretariat (i.e. the Hong Kong Productivity Council)
will first review the project reports submitted by the enterprises upon completion of the
projects and the audited accounts, and will conduct on-site inspections based on actual
circumstances and needs. The final payments of projects will only be disbursed upon
acceptance of the project reports by the Programme Management Committee (with members
from the business sector and small and medium enterprise associations), which is responsible
for overseeing the implementation of the BUD Fund.
- End -
Session 18 CEDB - Page 95
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB035
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2403)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in paragraph 198 of the Budget Speech that the Working Group on Promoting
Silver Economy will implement measures in 5 areas, namely boosting “silver consumption”,
developing “silver industry”, promoting “quality assurance of silver products”, enhancing
“silver financial and security arrangements”, and unleashing “silver productivity”. In this
connection, would the Government inform this Committee of the following:
(a) What is the timetable for the implementation of the specific measures in the 5 areas by
the Working Group on Promoting Silver Economy?
(b) Regarding the development of the “silver industry”, what specific support measures will
the Government provide to assist small and medium enterprises in developing products
or services catering to the elderly?
Asked by: Hon LAM So-wai (LegCo internal reference no.: 32)
Reply:
For the five areas of silver economy (i.e. boosting “silver consumption”, developing the
“silver industry”, promoting “quality assurance of silver products”, enhancing “silver
financial and security arrangements” and unleashing “silver productivity”), the Working
Group on Promoting Silver Economy (the Working Group) is proactively formulating work
plans and implementation details. The Working Group will report work progress to the
Chief Executive in early 2025-26, then brief the relevant Panel of the Legislative Council in
good time and coordinate respective bureaux’ implementation of various measures as soon as
possible.
In the area of developing the “silver industry”, Innovation, Technology and lndustry Bureau
will promote marketisation and industrialisation of products catering to the elderly and
Session 18 CEDB - Page 96
support product provision and market expansion by the business sector. Directions of
relevant measures include facilitating industries and small and medium enterprises to explore
business opportunities and supporting the development of the gerontechnology start-up
ecosystem.
- End -
Session 18 CEDB - Page 97
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB036
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1848)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
1. A total of $1.5 billion will be injected into the Dedicated Fund on Branding, Upgrading
and Domestic Sales (BUD Fund) and the Export Marketing and Trade and Industrial
Organisation Support Fund in 2025-26. How much will each of the 2 Funds
specifically receive? How many new enterprises are expected to receive support from
the Funds, and what is the anticipated impact of the funding on enhancing enterprises’
competitiveness?
2. The BUD Fund has successfully provided funding for over 2 600 enterprises, with
cumulative injections exceeding $3 billion. What is the proportion of the projects
approved under the simplified application tracks, namely Easy BUD and E-commerce
Easy? Does the Government have any plans to effectively support the development of
local enterprises by increasing the budget for project monitoring, effectiveness
evaluation, or market exploration support?
Asked by: Hon LAU Chi-pang (LegCo internal reference no.: 8)
Reply:
To continue to support the development of local enterprises and help them go global, the
2025-26 Budget announced the injection of $1.5 billion into the Dedicated Fund on Branding,
Upgrading and Domestic Sales (BUD Fund) and the Export Marketing and Trade and
Industrial Organisation Support Fund (EMTSF) (which covers expenditures of the SME
Export Marketing Fund (EMF) and the Trade and Industrial Organisation Support Fund).
This injection will be shared equally between the two funds. Together with the injection of
$1 billion into the BUD Fund announced in the 2024 Policy Address, the Government will
inject in total $1.75 billion and $0.75 billion respectively into the BUD Fund and the EMTSF.
This is a testament to the Government’s unwavering commitment to supporting small and
medium enterprises (SMEs) continuously despite the current fiscal conditions.
Session 18 CEDB - Page 98
The BUD Fund is expected to receive 3 600 applications in 2025 with an approved funding
amount of about $1.1 billion; while the EMF is expected to receive 30 920 applications in
2025 with an approved funding amount of about $600 million. Both funding schemes assist
SMEs in developing more diversified markets, and their actual effectiveness varies depending
on the beneficiary enterprises’ business nature, scale, target markets and contents of the
funded projects, and therefore could not be quantified.
Between 2018 and 2024, the Government made several injections, totalling $6 billion, to the
BUD Fund and launched several rounds of enhancements, including the launch of “Easy
BUD” in June 2023 and “E-commerce Easy” in July 2024. As at end February 2025, the
number of beneficiary enterprises of the BUD Fund reached 6 841. Among them, the
respective numbers of beneficiary enterprises of “Easy BUD” and “E-commerce Easy”
are 540 and 30, accounting for 7.9% and 0.4% of the total number respectively.
On 14 March 2025, the Government has instituted enhancement measures and other measures
under the BUD Fund and the EMF to rationalise the operation and ensure financial
sustainability of the 2 funding schemes (see the Annex). The Government will keep on
reviewing the operational arrangements and actual experience of the BUD Fund and, having
regard to actual circumstances, make timely adjustments accordingly. The estimated
expenditure of the BUD Fund in 2025-26 is $1.292 billion, including the manpower and other
fees provided to the Hong Kong Productivity Council as the Programme Secretariat for
implementing the BUD Fund, as well as disbursements to grantees.
- End -
Session 18 CEDB - Page 99
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management fees
for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the EMF
with a view to controlling the maximum amount of funding, including the funding
ceiling, validity period of activities, restrictions on the number of repeated applications
of a similar nature on certain activities, etc.
Session 18 CEDB - Page 100
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB037
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1400)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in paragraph 109 of the Budget Speech that the Government is actively
following up with the governments of Malaysia and Saudi Arabia on the establishment of
Economic and Trade Offices (ETOs) in their two countries. In this connection, please advise
this Committee of the following:
(1) What progress has been made in the investment agreement negotiations with Saudi
Arabia, Bangladesh, Egypt, and Peru?
(2) Have statistics been complied regarding the amount of Middle Eastern capital invested
in Hong Kong in the past year?
(3) How will more Middle Eastern enterprises be attracted to invest in Hong Kong? What
assistance will be given to Hong Kong enterprises in exploring business opportunities
in the Middle East?
Asked by: Hon LAU Ip-keung, Kenneth (LegCo internal reference no.: 36)
Reply:
The Hong Kong Special Administrative Region Government is committed to strengthening
bilateral relations with emerging markets, including the Middle East and the Association of
Southeast Asian Nations (ASEAN).
On economic and trade network, as stated in the 2025-26 Budget, we are following up actively
with the governments of Malaysia and Saudi Arabia on the establishment of Economic and
Trade Offices (ETOs) there. As part of the efforts to expand Hong Kong’s economic and
trade network, we will continue to explore the possibilities of expanding the global network
of our ETOs, especially in emerging markets with good potential. At the same time, in view
of the huge economic potential of the countries along the Belt and Road (B&R), Invest Hong
Session 18 CEDB - Page 101
Kong (InvestHK) set up consultant offices in Cairo, the capital of Egypt, and Izmir, the 3rd
largest city in Türkiye within 2024-25 according to the 2023 Policy Address and 2024-25
Budget, for attracting capital and enterprises from high-potential emerging countries in the
Middle East and North Africa. These are the 3rd and the 4th consultant offices set up by the
current-term Government since it took office, after the ones established in Nairobi, Kenya
and Almaty, Kazakhstan.
Also, we are proactively seeking to forge investment promotion and protection agreements
(IPPAs) with more trading partners with a view to expanding Hong Kong’s economic and
trade network and injecting new impetus into our trade and investment. With the IPPAs
signed with Türkiye and Bahrain by the current-term Government, Hong Kong has signed 24
IPPAs Note with 33 foreign economies. We are exploring the signing of IPPAs with Saudi
Arabia, Bangladesh, Egypt and Peru, and announcements will be made at an appropriate
juncture.
On investment promotion, through its teams based in Hong Kong, the 17 Dedicated Teams
for Attracting Businesses and Talents (Dedicated Teams) based in the Mainland Offices and
overseas Hong Kong ETOs, as well as consultant offices in other locations, InvestHK has all
along been reaching out to a wide spectrum of companies in different sectors and industries
around the world to attract and assist them to set up or expand their businesses in Hong Kong,
and offering one-stop customised support services, from the planning to implementation
stages.
In 2024, InvestHK assisted 539 Mainland or overseas enterprises in establishing and
expanding their businesses in Hong Kong. Among these enterprises, 10 of them were from
the Middle East and they are expected to bring in direct investment of nearly HK$50 million.
Looking ahead, InvestHK will, through its Dedicated Teams and consultant offices in the
Middle East, continue to leverage Hong Kong’s roles as a “super connector” and a “super
value-adder”, as well as to collaborate with relevant organisations, chambers of commerce,
and professional bodies, etc., to organise investment promotion activities, including meetings,
conferences, roadshows, seminars, exhibitions, etc. so as to proactively provide potential
investors and enterprises in the Middle East with the latest information on Hong Kong’s
business environment and promote Hong Kong’s distinctive advantages of enjoying strong
support of the Motherland and being closely connected to the world and other core strengths
under “one country, two systems”, as well as the immense opportunities brought by key
national strategies including the Guangdong-Hong Kong-Macao Greater Bay Area
development and the B&R Initiative, with a view to attracting Middle East enterprises to set
up or expand their businesses in Hong Kong.
For supporting Hong Kong enterprises to develop businesses in the Middle East, the
Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) provides funding
support to encourage non-listed Hong Kong enterprises to develop business on the Mainland
and in other economies with which Hong Kong has signed Free Trade Agreements (FTAs)
and/or IPPAs through branding, upgrading and restructuring, and promoting sales. The
geographical coverage of the BUD Fund includes 3 countries in the Middle East, namely, the
United Arab Emirates (UAE), Kuwait and Bahrain, and will be further expanded as Hong
Kong signs more FTAs or IPPAs in the future.
Session 18 CEDB - Page 102
At the same time, the Government is committed to consolidating Hong Kong’s role as the
functional platform for the B&R Initiative and deepening the co-operation with B&R
countries through various measures. These include working with businesses and
professional services sectors to further cultivate the Middle East market. The Government
will continue to organise outbound missions for business sector and professional services to
B&R countries (including the Middle East region), so as to assist enterprises to further expand
business opportunities and build up collaborative relationships with relevant local enterprises
and organisations in the long run. In 2025-26, the Hong Kong Trade Development Council
(HKTDC) will continue to organise missions to the Middle East, including visits to Saudi
Arabia and the UAE to grasp the opportunities brought by the Middle East’s infrastructure
development. HKTDC will also continue to leverage the network of its office and consultant
offices in the Middle East to explore business opportunities there for Hong Kong enterprises.
Also, we will present Hong Kong enterprises with more relevant information should there be
suitable major events. For example, we partnered with NEOM of Saudi Arabia to organise
the “Discover NEOM Hong Kong” roadshow in April 2024, facilitating potential
collaborations between enterprises and NEOM.
In addition, the B&R Summit (the Summit) is the flagship platform for Hong Kong to
participate in and contribute to the B&R Initiative. The 9th Summit, held on
11-12 September 2024, attracted around 6 000 government officials, business leaders and
enterprise representatives from over 70 B&R countries and regions (including the Middle
East). The 10th Summit will be held in September 2025. We will continue to actively
invite government and business representatives from the Middle East to participate in the
Summit, so as to assist Hong Kong enterprises and professional services in connecting with
representatives from the Middle East.
Note: The 33 foreign economies include the 10 ASEAN Member States, Australia, Austria, Bahrain, Belgium, Canada,
Chile, Denmark, Finland, France, Germany, Italy, Japan, Korea, Kuwait, Luxembourg, Mexico, the Netherlands,
New Zealand, Sweden, Switzerland, Türkiye, the UAE and the United Kingdom.
- End -
Session 18 CEDB - Page 103
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB038
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1401)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in paragraph 198 of the Budget Speech that the Working Group on Promoting
Silver Economy will implement measures in 5 areas, namely boosting “silver consumption”,
developing “silver industry”, promoting “quality assurance of silver products”, enhancing
“silver financial and security arrangements”, and unleashing “silver productivity”. In this
connection, will the Government inform this Committee of the following:
(1) the estimated expenditure and manpower arrangements involved in promoting the
“silver economy” in 2025-26;
(2) whether the Government has drawn up a timetable and an action plan for promoting the
“silver economy”; if so, the details; if not, the reasons for that; and
(3) how the Government will collaborate with other cities in the Guangdong-Hong
Kong-Macao Greater Bay Area to develop the “silver economy”?
Asked by: Hon LAU Ip-keung, Kenneth (LegCo internal reference no.: 37)
Reply:
The requested information is set out below:
(1) Relevant work is conducted with the existing manpower. The expenditure required for
relevant bureaux’ implementation of measures under their purview has been subsumed
under their respective overall estimated expenditure. It cannot be quantified
separately.
(2) The Working Group on Promoting Silver Economy (the Working Group) is proactively
formulating work plans and implementation details. The Working Group will report
Session 18 CEDB - Page 104
work progress to the Chief Executive in early 2025-26, then brief the relevant Panel of
the Legislative Council in good time and coordinate respective bureaux’ implementation
of various measures as soon as possible.
(3) The Governments of Guangdong, Hong Kong and Macao have been dedicated to
formulating Greater Bay Area (GBA) Standards for different products and services, with
a view to promoting the interconnectivity and integrated development of the three
places. The Commerce and Economic Development Bureau will promote “quality
assurance of silver products” by driving the development of GBA Standards, with a
view to assisting the trade to enhance relevant product quality and expand sales network
to Guangdong, Hong Kong and Macao for the benefit of silver consumers at large.
- End -
Session 18 CEDB - Page 105
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB039
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0846)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Government launched “E-commerce Easy” under BUD Fund in July 2024, with a view
to assisting enterprises to develop electronic commerce (e-commerce) business. In this
connection, will the Government inform the Committee of the following:
1. the numbers of applications received and approved by the Government under “E-commerce
Easy”, the average amount of funding granted and the total amount of funding granted so
far;
2. among the approved applications, the respective numbers of cases involving the
establishment of online sales platforms, the placement of advertisements, the development
or enhancement of company websites or mobile applications, and other e-commerce related
measures;
3. when the geographical coverage of “E-commerce Easy” is expected to be expanded to the
10 ASEAN countries; whether consideration will be given to further expand its coverage
to other regions, such as the Middle East region; if so, what are the details; if not, what are
the reasons?
Asked by: Hon LEE Tsz-king, Dominic (LegCo internal reference no.: 23)
Reply:
To assist Hong Kong enterprises in developing the Mainland market through electronic
commerce (e-commerce), the Government launched “E-commerce Easy” under the Dedicated
Fund on Branding, Upgrading and Domestic Sales (the BUD Fund) on 15 July 2024 to allow
each enterprise to make use of $1 million funding flexibly within the cumulative funding
ceiling of $7 million per enterprise for implementing e-commerce projects on the Mainland.
Session 18 CEDB - Page 106
As at February 2025, a total of 329 “E-commerce Easy” applications were received.
Excluding applications that could not be processed owing to incomplete information and those
withdrawn voluntarily by enterprises afterwards, a total of 43 applications have been
approved or approved with conditions, and the total approved funding amount is around
$17.292 million. The processing progress is as follows:
Number of applications processed 67
Number of applications approved 30 ($576,000)
(average funding amount)
Number of applications approved with conditions 13 Note 1
Number of applications rejected 24
Number of applications under processing 183 Note 2
Note 1: The final approval of the applications and the respective funding amounts to be granted are subject to the
submission of further information by the applicant enterprises.
Note 2: Of the 183 applications under processing, 123 were received between December 2024 and February 2025.
Most of the applications under processing require the applicant enterprises to provide further clarification of
the project details or supplementary documents. The Programme Secretariat will process these applications
as soon as possible upon clarification of the project details or provision of supplementary documents by the
enterprises.
The measures involved in the applications approved under “E-Commerce Easy” are as
follows:
Measure No. of approved applications Note 3
Advertisement 27
Online Sales Platform 15
Mobile Application 6
Company Website 4
Other e-commerce project measures 8
Note 3: As some of the approved applications involve more than 1 measure, the total number of the measures involved
in the approved applications exceeds the total number of approved applications.
On 14 March 2025, the Government has expanded the geographical coverage of
“E-commerce Easy” to the 10 countries of the Association of Southeast Asian Nations. We
will keep on reviewing the operational arrangements of “E-commerce Easy” and, having
regard to actual circumstances, duly consider making appropriate adjustments including its
applicable geographical coverage.
- End -
Session 18 CEDB - Page 107
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB040
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0886)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the work on seeking early accession to the Regional Comprehensive Economic
Partnership (RCEP), will the Government inform this Committee of:
1. the number of activities held or participated by the Government relating to liaising with
RCEP members and stakeholders in the past year, with details of these activities, the
countries or organisations involved and the expenditure incurred;
2. the number of activities expected to be held or participated by the Government relating
to liaising with RCEP members and stakeholders this year, with details of these
activities, the countries or organisations to be involved and the estimated expenditure to
be incurred;
3. the obstacles expected to be encountered by Hong Kong in its accession to RCEP as
assessed by the Government, and the strategies or measures to be taken this year to
facilitate the early accession to RCEP; and
4. the possibility of Hong Kong joining RCEP within this year according to the
Government’s estimation?
Asked by: Hon LEE Tsz-king, Dominic (LegCo internal reference no.: 24)
Reply:
Upon the entry into force of the Regional Comprehensive Economic Partnership (RCEP) Note
on 1 January 2022, the Hong Kong Special Administrative Region (HKSAR) Government
has immediately submitted Hong Kong’s formal accession request, and actively expressed to
its members at different levels and on different occasions Hong Kong’s keen interest in
joining RCEP early. Seeking accession to RCEP is one of the key priorities of the HKSAR
Session 18 CEDB - Page 108
Government. Besides receiving full support from the Central People’s Government, the
HKSAR Government has also received positive responses from other RCEP members in
particular ASEAN member states. For example, since assuming office in 2022, the Chief
Executive (CE) has led delegations on 3 occasions to visit 7 ASEAN countries (including
Thailand, Singapore, Indonesia, Malaysia, Laos, Cambodia and Vietnam), and received
support from leaders of the economies, relevant government officials and local business
leaders on Hong Kong’s accession to RCEP. Thereafter, the Secretary for Commerce and
Economic Development visited Laos in September 2024 and received appreciation from
ASEAN Economic Ministers on Hong Kong’s readiness and keen interest for early accession
to RCEP, as well as the value and important contribution that Hong Kong will add to RCEP.
In November 2024, the CE had bilateral meetings with leaders from various ASEAN member
states during the Asia-Pacific Economic Cooperation Economic Leaders’ Meeting in Peru,
and they again indicated their support towards Hong Kong’s accession to RCEP.
The Procedures for Accession to the RCEP Agreement was adopted by the RCEP Joint
Committee (RJC) in September 2024, which is a concrete and critical step to welcoming new
members. The HKSAR Government will continue to proactively follow up with RJC and
maintain close liaison with the trade and economic departments of RCEP members to promote
relevant discussions and foster favourable conditions for the early accession of Hong Kong
to RCEP, with the view to contributing to the promotion of regional economic integration.
Since the 2022 Policy Address, the CE has set an annual key performance indicator (KPI) of
holding or participating in related events/meetings/dialogues with RCEP members and
stakeholders. In this regard, the KPIs of holding or participating in 60 and 70 such
events/meetings/dialogues were completed in 2023 and 2024 respectively. In 2025, the KPI
of holding or participating in related events/meetings/dialogues with RCEP members and
stakeholders remains as 70.
The HKSAR Government has formulated a comprehensive, specific and proactive work plan
to strive for Hong Kong’s accession to RCEP. However, as it involves the engagement with
other governments, the HKSAR Government has no plan to disclose to the public the internal
work plan as well as the relevant discussion with other economies.
The above work is led by the Commerce and Economic Development Bureau, and supported
by the Trade and Industry Department and relevant overseas Hong Kong Economic and Trade
Offices. It is conducted with the existing manpower and is part of the regular duties. The
expenditure has been subsumed under the overall estimate and cannot be quantified
separately.
Note: RCEP member economies include Mainland China, the 10 member states of the Association of Southeast Asian
Nations (ASEAN) (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand and Viet Nam), Australia, Japan, Korea, and New Zealand.
- End -
Session 18 CEDB - Page 109
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB041
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1830)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in paragraph 113 of the Budget Speech that a total of $1.5 billion will be
injected into the Dedicated Fund on Branding, Upgrading and Domestic Sales and the Export
Marketing and Trade and Industrial Organisation Support Fund. In this connection, will the
Government inform this Committee of the following:
What are the amount and the number of projects approved each year under the 2 Funds since
their launch? What are the current balance of the 2 Funds?
How many applications were found to contain false information or to have exaggerated the
required expenditure for the purpose of securing higher funding in the past?
How will the government scrutinise the applications for the Funds to prevent abuse?
Asked by: Hon LEE Wai-wang, Robert (LegCo internal reference no.: 28)
Reply:
The number of applications and amount of funding approved under the Dedicated Fund on
Branding, Upgrading and Domestic Sales (BUD Fund) in the past 5 years are as follows:
2020 2021 2022 2023 2024
Number of 881 894 1 335 1 690 2 671
applications
approved
Amount of 585 million 631 million 956 million 1.147 billion 1.682 billion
funding
approved ($)
Session 18 CEDB - Page 110
The current approved commitment of the BUD Fund is $7 billion. As at end February 2025,
the remaining balance was about $1.7 billion.
The Export Marketing and Trade and Industrial Organisation Support Fund (EMTSF) covers
the expenditure of the SME Export Marketing Fund (EMF) and the Trade and Industrial
Organisation Support Fund (TSF).
The number of applications and amount of funding approved under the EMF in the past
5 years are as follows:
2020 2021 2022 2023 2024
Number of
applications 10 764 13 998 15 888 21 105 24 875
approved
Amount of
funding 240 million 232 million 332 million 588 million 809 million
approved ($)
The number of applications and amount of funding approved under the TSF in the past 5 years
are as follows:
2020 2021 2022 2023 2024
Number of 28 12 18 20 18
applications
approved
Amount of
funding 54.7 million 20 million 32.1 million 39.5 million 30 million
approved ($)
The current approved commitment of the EMTSF is $7.25 billion. As at end February 2025,
the remaining balance was about $385 million.
To ensure proper use of public money, stringent vetting procedures have been established for
every funding scheme to guard against any abuse of funds or fraudulent claims. For the
BUD Fund, the Hong Kong Productivity Council, the Programme Secretariat, will conduct
initial vetting of applications and relevant supporting documents submitted by enterprises in
accordance with the established procedures and the eligibility and funding criteria specified
in the Guide to Application. All applications will be submitted to the Inter-departmental
Committee of the Government (comprising representatives from relevant Government
departments) for vetting, and then to the Programme Management Committee (PMC)
(comprising members from the business sector and small and medium enterprise associations)
for consideration and approval. The final payment will only be disbursed after the grantees
have submitted project reports and audited accounts to PMC for consideration and approval,
and the Programme Secretariat will conduct on-site inspections of selected funded projects
depending on the actual circumstances and needs.
As the TSF Secretariat, the Trade and Industry Department (TID) will conduct preliminary
assessment for all TSF applications, and then submit the applications to the Vetting
Session 18 CEDB - Page 111
Committee (comprising representatives from various sectors) for consideration and approval.
The grantees must submit project reports and audited accounts to the Vetting Committee for
consideration and approval, and the funded projects may also be selected for on-site
inspections.
For the EMF, all funding applications, together with the documents submitted, must be vetted
by vetting officers of TID in accordance with the procedures and the relevant vetting criteria.
Applications that cannot meet the application criteria, funding conditions and requirements
or those failing to provide the required documents of proof will be rejected. If it is found
during the vetting process that an application fails to meet the funding conditions (including
suspected furnishing of false information or overstating of expenses), relevant expenses will
be deducted or the application will be rejected.
If any application or approved project is suspected of obtaining funding illegally, the case will
be referred to the law enforcement agencies for action. To date, there have been no
prosecution cases for the BUD Fund, the EMF and the TSF.
- End -
Session 18 CEDB - Page 112
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB042
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1831)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As mentioned in paragraph 116 of the Budget Speech, to further assist local small and medium
enterprises in tapping into the Mainland market and increasing sales from electronic
commerce (e-commerce) markets, the Hong Kong Trade Development Council will launch
the “E-Commerce Express” in collaboration with large-scale e-commerce platforms to
provide Hong Kong enterprises with one-to-one consultation services and thematic seminars.
In this connection, will the Government inform this Committee of the following:
What are the specific measures to be taken by the Government in implementing the
“E-Commerce Express”? How many Hong Kong enterprises are expected to participate?
How will the Government promote collaboration between e-commerce and financial
institutions to enhance support for trade finance related to e-commerce?
Will the Government set key performance indicators for the “E-Commerce Express”? What
are the estimated manpower and expenditure to be involved?
Asked by: Hon LEE Wai-wang, Robert (LegCo internal reference no.: 29)
Reply:
The 2025-26 Budget announced that the Hong Kong Trade Development Council (HKTDC)
will implement the “E-Commerce Express” (“電子商務快車”). HKTDC has renamed the
Chinese name of the service as “電子商務快綫”. To address the pain points encountered
by Hong Kong enterprises when developing cross-border e-commerce on the Mainland,
HKTDC will, in collaboration with large-scale e-commerce or social media platforms,
conduct a series of thematic training seminars and research sharing sessions to cover practical
topics including the Mainland and overseas e-commerce market landscapes, legal
compliance, operational strategies and features of both traditional and emerging online
Session 18 CEDB - Page 113
shopping platforms, how to establish fanbase, livestreaming production techniques, etc., with
a view to providing more comprehensive support for SMEs interested in tapping into the
e-commerce market.
One of the key activities to be supported by the “E-Commerce Express” will be the 2nd edition
of the Hong Kong Shopping Festival (HKSF) scheduled for August 2025. The event aims
at providing SMEs with practical experience in utilising e-commerce platforms to tap into the
Mainland market. Drawing on the experience in organising the inaugural HKSF, HKTDC
will continue to bring together Hong Kong enterprises to offer discounts in Mainland online
stores and arrange enterprises to conduct livestreaming promotion on Mainland e-commerce
platforms. It is anticipated that the scale of the 2nd edition of the HKSF will be larger than
that of the inaugural HKSF, including showcasing more brands and covering major consumer
products, in particular food and health supplements which are popular among Mainland
consumers, while at the same time featuring more promotional channels to help Hong Kong
enterprises raise brand exposure and grasp the opportunities in the Mainland e-commerce
market.
The “E-Commerce Express” helps strengthen support for SMEs to tap into the Mainland
market and increase e-commerce sales. The number of enterprises participating in various
activities under the “E-Commerce Express” varies according to different factors (including
the activity nature, enterprises’ product type, target consumer groups of different e-commerce
and social platforms, etc.). As such, it is difficult to estimate the number of participating
enterprises of each activity and set specific performance indicators.
The manpower and expenditure of the Commerce and Economic Development Bureau and
HKTDC for implementing the “E-Commerce Express” have been subsumed under the
respective overall establishment and estimates, and cannot be quantified separately.
As regards trade financing, the Hong Kong Export Credit Insurance Corporation (ECIC) has
collaborated with financial institutions to offer protection for trade loans for e-commerce
merchants in Hong Kong. ECIC will continue to proactively seek to cooperate with more
financial institutions to enhance its support for exporters in acquiring trade financing relevant
to e-commerce.
- End -
Session 18 CEDB - Page 114
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB043
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1422)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Budget that Government supports local enterprises by, among others,
continuing the Dedicated Fund on Branding, Upgrading and Domestic Sales and the SME
Financing Guarantee Scheme (SFGS). In this connection, will the Government inform this
Committee of the following:
(1) the latest default rate and the loan guarantee amount involved under the Special 100%
Loan Guarantee of the SFGS; and
(2) whether the Hong Kong Monetary Authority has ever proactively initiated recovery
actions in the past, and the number of cases and the amounts involved?
Asked by: Hon LEUNG Man-kwong (LegCo internal reference no.: 18)
Reply:
The Special 100% Guarantee Product of the SME Financing Guarantee Scheme (SFGS) was
launched in 2020 and its application period ended in end March 2024. Its cumulative default
figures as at end February 2025 are as follows:
Special 100% Guarantee Product Note
Number of Default Cases 9 360
Loan Guarantee Amount of Default Cases ($) 20.1 billion
Default Rate 14%
Note: Some applications submitted before the end of the application period were approved in April 2024 or later.
The SFGS is administered and managed by HKMC Insurance Limited (HKMCI). The
Hong Kong Monetary Authority is not involved in the implementation of the SFGS.
HKMCI has been working closely with lending institutions on properly handling default
Session 18 CEDB - Page 115
cases. In the event that a borrowing enterprise defaults on repayments, the lending
institution will first discuss a feasible repayment plan with the borrowing enterprise, e.g.
repaying only the interest or part of the principal during a transition period, so that the
borrowing enterprise can continue its operation while making a debt restructuring
arrangement as soon as possible, with a view to gradually resuming normal repayments.
If the lending institution and the borrowing enterprise could not reach agreement on the
repayment or the latter refuses to cooperate, the lending institution will consider taking
appropriate recovery/legal actions in accordance with its policy and prevailing commercial
practice, including requesting the enterprise and guarantor to repay the loan, filing a petition
for winding-up and/or bankruptcy with the court, etc. with a view to reducing the loss of the
Government.
As at end February 2025, lending institutions have been taking recovery actions against
around 5 000 default cases, and have already taken/are taking legal actions against 3 440 cases
(including cases where the relevant creditors have applied for liquidation/bankruptcy against
the borrowing enterprises due to the latter’s default on debts other than the Special 100%
Guarantee Product).
As at end February 2025, the cumulative default rate of the Special 100% Guarantee Product
under the SFGS was about 14%, lower than the assumed overall default rate (25%). The
actual default rates of the SFGS are subject to change having regard to the overall economic
environment and the operational situation of individual borrowing enterprises, etc. The
Government and HKMCI will continue to monitor the situation closely.
- End -
Session 18 CEDB - Page 116
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB044
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3018)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Government will make efforts to promote education on the ethical use of artificial
intelligence (AI) and raise the public awareness of copyright. In this connection, please
inform this Committee of the following:
(a) How many education activities relating to AI and copyright does the Government plan
to organise in the coming year and what is the estimated expenditure involved?
(b) Will a dedicated fund be established to support the work of schools or institutions to
promote education relating to AI and copyright? If yes, what is the size of the fund?
Asked by: Hon LEUNG Mei-fun, Priscilla (LegCo internal reference no.: 33)
Reply:
Having consulted the Innovation, Technology and Industry Bureau and the Constitutional and
Mainland Affairs Bureau, a consolidated reply is as follows:
Artificial intelligence (AI) is a key driver of global technological innovation and economic
development, with applications spanning multiple fields and having a profound impact on
societal and industrial development. However, the widespread application of AI also comes
with challenges related to ethics, privacy, copyright, etc. Therefore, the Government places
great importance on the ethical use of AI and copyright protection, and is committed to raising
public awareness and application capabilities through education and promotional efforts.
The Digital Policy Office (DPO) formulated the “Ethical Artificial Intelligence Framework”
(Framework) in 2021 to provide guidance for bureaux and departments when implementing
projects that involve the use of AI technologies, and to identify and manage potential risks of
the projects and other issues (such as personal privacy, data security and management, etc.).
Session 18 CEDB - Page 117
The DPO updated the Framework in August 2023, supplementing it with the challenges and
suggested practices regarding generative AI so as to assist bureaux and departments in
planning, designing and using AI in information technology projects and services. Since
September 2022, the Framework has been uploaded to the DPO’s website for public
reference.
Additionally, the Government has commissioned the Hong Kong Generative AI Research and
Development Center of InnoHK to study and suggest appropriate guidelines, through practice
and application, on areas such as the accuracy, responsibility and information security of
generative AI technology and application. It is expected that these guidelines would be
released in 2025 for reference by the Government and the industry.
The Office of the Privacy Commissioner for Personal Data published the “Guidance on
Ethical Development and Use of Artificial Intelligence” in 2021 and the “Artificial
Intelligence: Model Personal Data Protection Framework” in 2024. Based on
internationally-recognised principles and best practices, the 2 sets of guidance provide
recommendations on AI governance and the protection of personal data privacy, with a view
to assisting organisations in understanding and complying with the relevant requirements of
the Personal Data (Privacy) Ordinance when they develop, procure, implement and use AI
systems, including generative AI systems.
Regarding intellectual property (IP), the Intellectual Property Department (IPD) attaches great
importance to enhancing the awareness of and respect for IP rights, including copyright. The
IPD collaborates with various organisations from time to time in conducting talks, creative
competitions, large-scale promotional events, etc. and supports a diversified range of publicity
and education activities. The IPD also produces government publicity videos from time to
time, and launches activities targeting students, such as interactive drama programmes, visits
to primary and secondary schools as well as seminars in tertiary institutions, to put across the
messages of respecting creativity, protecting IP rights, stopping online IP infringement, etc.
The IPD will continue these efforts to enhance public awareness of IP.
Furthermore, the IPD launched the IP Manager Scheme PLUS (the Scheme) in October 2020
to meet the development needs of enterprises, providing more comprehensive and in-depth IP
training courses and practical workshops. Topics such as copyright protection and AI have
already been incorporated into several training courses and workshops. The IPD will
continue to enhance the Scheme and training courses for provision of IP training to different
sectors. It is expected that the training courses and practical workshops will attract more
than 1 000 participants in the 2025-26 financial year.
Promoting awareness of and respect for IP is part of the IPD’s ongoing publicity, education
and marketing efforts. It is therefore difficult to quantify the resources involved separately.
- End -
Session 18 CEDB - Page 118
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB045
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3036)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Paragraph 43 of the Budget Speech states that intellectual property (IP) is an important
foundation for the development of emerging industries, and the Government will review the
relevant tax deduction arrangements to accelerate the development of IP-intensive industries
and promote the development of IP trading in Hong Kong. In this connection, please advise
this Committee on the following:
In addition to tax deduction, will the Government introduce new support measures to promote
IP trading? If yes, what are the details? If no, why not?
Asked by: Hon LEUNG Mei-fun, Priscilla (LegCo internal reference no.: 10)
Reply:
Under the steer of the Commerce and Economic Development Bureau, the Intellectual
Property Department (IPD) has been working closely with different stakeholders, including
other government departments, public organisations (such as the Hong Kong Trade
Development Council (HKTDC)) and professional bodies (such as the Law Society of Hong
Kong), to implement a series of measures in accordance with the Chief Executive’s Policy
Addresses to strengthen protection for the products of innovation and creativity yielded by
research and development efforts, promote intellectual property (IP) commercialisation and
IP trading, and strengthen Hong Kong’s role as a regional IP trading centre. Major
initiatives for 2025 are set out below:
⚫ Enhance the legal framework for IP protection. The Government already consulted
the Legislative Council (LegCo) Panel on Commerce, Industry, Innovation and
Technology in February 2025 on the proposal to amend the Copyright Ordinance (CO)
to, on the premise of allowing the copyright owners to reserve their rights, foster a
favourable environment for the development of artificial intelligence (AI). The goal is
Session 18 CEDB - Page 119
to submit the relevant amendment bill to the LegCo in the first half of 2025. The
Government will also table subsidiary legislation under the CO in the LegCo within 2025
to specify libraries, museums and archives eligible for certain permitted acts and
prescribe the conditions, and designate non-government-owned libraries, museums or
archives that can be exempted from certain criminal liabilities. Moreover, the
Government will launch a consultation in 2025 on the registered designs regime currently
under review. On trade mark, the Government will continue to forge ahead with the
preparatory work for implementing the Protocol Relating to the Madrid Agreement
Concerning the International Registration of Marks in Hong Kong, and strive for the
implementation of the international trade mark registration system as soon as possible.
The Trade Mark Registry under the IPD will launch a new AI-assisted image search
service in 2025 to facilitate the public’s search of the trade mark database. The
Government is also proposing legislative amendments to streamline IP litigation
processes for the High Court to manage and hear these cases more effectively. In
addition, with the Central Government’s support, Hong Kong will participate in the
World Intellectual Property Organization (WIPO) Lex-Judgments Database in 2025,
sharing important IP case precedents of local courts, to showcase to the international
community the quality of our IP-related judicial judgements.
⚫ Support the innovation and technology sector by means of the patent system. In
addition to the ongoing efforts to strengthen the substantive examination capability of
the patent examination team under the original grant patent system with a view to
acquiring institutional autonomy in conducting substantive patent examination in 2030,
the Government will continue to discuss with the patent agent sector and stakeholders to
plan for the introduction of regulatory arrangements for local patent agent services,
covering qualification, registration, and other areas, aiming to nurture professional
talents and enhance service quality. The IPD will also continue to press ahead with the
establishment of a WIPO Technology and Innovation Support Centre (TISC) in Hong
Kong, targeting for official commissioning in end 2025 the earliest. Upon its
commissioning, the TISC is expected to provide local small and medium enterprises,
start-ups and entrepreneurs with high-quality IP (especially patents) information and
services, and assist them in exploring their innovation potential, as well as creating,
protecting, managing and commercialising their IP.
⚫ Strengthen the grooming of IP talents. The IPD will continue to enhance its
manpower training programmes, with a target to provide IP training for 5 000 personnel
across different industries within the current term of the Government, and to collaborate
with the Department of Justice to promote IP mediation and arbitration services. It will
also collaborate with the Qualifications Framework Secretariat to develop practical
teaching materials for deployment by training providers, benefitting personnel across 23
different industries, and complete a survey on Hong Kong’s IP-related professional and
business services within 2025 to facilitate future manpower planning. Besides, the IPD
will promote IP to 200 000 students within the current term of the Government, doubling
the original target, to reinforce awareness of respecting and protecting IP rights, and
encourage students to actively explore and innovate.
⚫ Enhance external promotion. The IPD will continue its liaison with the Mainland,
regional and international organisations to promote Hong Kong’s role as the regional IP
trading centre, and work with the HKTDC and relevant stakeholders to promote IP
Session 18 CEDB - Page 120
trading and professional services through trade missions, seminars and publicity
programmes, including continuously co-organising with the HKTDC the annual
Business of IP Asia Forum, which is expected to attract over 10 000 local, Mainland and
overseas participants within the current term of the Government. The HKTDC will
continue to enrich the Hong Kong International Film and TV Market, the Hong Kong
International Licensing Show, the Hong Kong Book Fair, and the Asia IP Exchange
portal with more trading elements, such as including more business-matching activities
and providing additional market information on IP trading and professional support
services, so as to strengthen support for local original works to exploit the Mainland and
international markets.
- End -
Session 18 CEDB - Page 121
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB046
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3048)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in paragraph 109 of the Budget Speech that to attract more inward investment
and enterprises from the Global South markets to Hong Kong, the Government is following
up actively with the governments of Malaysia and Saudi Arabia on the establishment of
Economic and Trade Offices (ETOs) in these 2 countries. In addition, InvestHK has
established consultant offices in Cairo, Egypt and Izmir, Türkiye. The Hong Kong Trade
Development Council (HKTDC) has also set up a consultant office in Cambodia. In this
connection, please advise this Committee of the following:
1. With respect to departments and organisations such as ETOs, InvestHK and HKTDC,
are they each currently responsible for exploring resources in different countries and
regions? If yes, what are the details? If no, what are the reasons?
2. Will the Government consider consolidating the results achieved by departments and
organisations such as ETOs, InvestHK and HKTDC in attracting enterprises and
investment, so that special attention can be focused on high-quality projects and
investment that can better unleash Hong Kong’s strengths and better suit the long-term
development of the Hong Kong Special Administrative Region? If yes, what are the
details? If no, what are the reasons?
Asked by: Hon LEUNG Mei-fun, Priscilla (LegCo internal reference no.: 6)
Reply:
The Economic and Trade Offices (ETOs) are the official representatives of the Hong Kong
Special Administrative Region (HKSAR) Government in countries under their purview,
performing a wide range of functions. With the exception of the Geneva ETO Note 1, the other
ETOs handle bilateral affairs (including those on economic and trade, as well as cultural
exchanges) between Hong Kong and countries under their purview. Every year, ETOs
Session 18 CEDB - Page 122
organise and participate in various activities on areas of external commercial relations, public
relations and investment promotion Note 2.
ETOs are committed to maintaining close communication and exchanges with the
international community and overseas stakeholders in different sectors (including government
officials, think tanks, media organisations, academics, cultural and business groups and other
key opinion leaders in countries under their purview), promoting and explaining the HKSAR
Government’s important policies and Hong Kong’s unique advantages under “one country,
two systems”, with a view to telling the good stories of Hong Kong and promoting economic
and trade development between Hong Kong and overseas. In addition to regularly providing
local stakeholders with the latest information on Hong Kong through newsletters and social
media, ETOs have direct dialogues with various local stakeholders, and meet with the media
and take the initiative to publish articles to rebut biased reports and to set the record straight.
Also, ETOs have been proactively supporting and participating in various conferences and
fora organised by the local governments, business organisations and groups, and assisting in
arranging overseas visits by the Chief Executive and other HKSAR Government officials to
establish and deepen networks with local sectors. They also, in collaboration with policy
bureaux and departments, relevant organisations, chambers of commerce and professional
bodies, organise and participate in various events in different cities, including conferences,
seminars, cultural and arts performances, exhibitions, film festivals and sports events, so as
to enhance publicity and promotion work.
Invest Hong Kong (InvestHK) and the Hong Kong Trade Development Council (HKTDC)
mainly serve the business community. InvestHK is responsible for promoting inward direct
investment to Hong Kong. Through its teams based in Hong Kong, the Dedicated Teams
for Attracting Businesses and Talents based in ETOs, as well as consultant offices in other
locations, the Department has all along been reaching out to a wide spectrum of companies in
different sectors and industries around the world to attract and assist them to set up or expand
their businesses in Hong Kong, and offering one-stop customised support services, from the
planning to implementation stages. As for HKTDC, it is responsible for trade promotion as
well as facilitating, assisting and developing trade in Hong Kong. Through organising
international exhibitions, conferences and business missions, HKTDC creates business
opportunities in the Mainland and international markets for Hong Kong enterprises.
Although the 2 agencies’ functions differ, they have been working closely together and are
dedicated to promoting Hong Kong as a two-way global investment and business hub, thereby
fully leveraging Hong Kong’s advantages as a two-way springboard for the Mainland and rest
of the world.
While ETOs, InvestHK and HKTDC are responsible for different aspects of work, they also
collaborate from time to time to generate synergy, thereby jointly promoting bilateral
economic and trade relations between Hong Kong and overseas economies.
Note 1: The Geneva ETO represents Hong Kong, China in the World Trade Organization and the Trade Committee of
the Organisation for Economic Co-operation and Development, and is mainly responsible for handling issues
relating to these organisations. The work on bilateral economic and trade relations with Switzerland is handled
by the Berlin ETO.
Note 2: The Washington ETO is mainly responsible for liaising with the political circle in the United States (US), and
the New York ETO is responsible for attracting businesses and talents in the eastern states of the US.
- End -
Session 18 CEDB - Page 123
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB047
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2323)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (3) Telecommunications
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Budget that the Bureau will oversee the implementation of the Real-
name Registration Programme for Subscriber Identification Module Cards and implement
relevant enhancements. In this connection, will the Government advise this Committee of
the following:
(a) What are the specific enhancements? What is the expected timetable for
implementation? What are the estimated expenditure and staffing involved?
(b) As mentioned in the Budget, the Bureau will work with the Office of the
Communications Authority to encourage organisations in more trades/industries to join
the SMS Sender Registration Scheme in order to assist the public in ascertaining the
authenticity of SMS sender addresses. How will the Bureau encourage the support of
the organisations?
(c) In the face of the recent reappearance of using illegal radio jammers (commonly known
as fraudulent mobile base stations) to send phishing SMS messages, how will the Bureau
deal with the issue? Will it consider providing additional manpower to step up efforts
in publicity and promotion?
Asked by: Hon LEUNG Tsz-wing, Dennis (LegCo internal reference no.: 18)
Reply:
The Real-name Registration Programme for SIM Cards (RNR Programme) has been fully
implemented since 24 February 2023, requiring that all SIM cards issued and used locally
(including SIM service plans and pre-paid SIM cards (PPS cards)) must complete real-name
registration before service activation. To assist the Police in combating fraudsters using
false information for registration, the Office of the Communications Authority (OFCA) has
Session 18 CEDB - Page 124
been maintaining close liasion with telecommunications service providers (TSPs) and the
Police, and has requested TSPs to enhance their registration platforms taking into account the
operational experiences since the implementation. Starting from 1 October 2024,
Hong Kong identity (HKID) card holders completing real-name registration for PPS cards via
TSPs’ online registration platforms will by default register and verify their identities through
the mobile application “iAM Smart”. OFCA has also required TSPs to conduct full manual
verification of the registration information for PPS cards submitted on the online registration
platforms by all non-HKID holders (e.g. those using valid travel documents or passports).
Besides, OFCA has all along required TSPs to conduct regular sampling checks on the
registration information of registered PPS card users and perform manual checks on suspected
cases. If users subject to sample checks are unable to verify the registration information
following the instructions of the respective TSPs, the relevant PPS cards may be deregistered
and cannot be used further. Upon detection of suspicious cases (including PPS cards
registered using another person’s identity card), TSPs will refer the cases to the Police for
follow-up action as soon as possible. Since the implementation of the RNR Programme, as
at end February 2025, around 4.3 million PPS cards were rejected as a result of failure of
clients in providing information in compliance with the registration requirements. In
addition, TSPs cancelled the registration records of about 3.2 million non-compliant PPS
cards.
To further ensure the effective implementation of the RNR Programme, we are reviewing the
overall implementation of the RNR Programme, including reviewing the limit on the number
of PPS cards as well as prohibiting the sale of registered SIM cards. The Government is
formulating details of relevant legislative amendments with a view to introducing them into
the Legislative Council within 2025.
As regards the SMS Sender Registration Scheme (the Scheme), it has been implemented since
28 December 2023, and was fully opened to all industries in February 2024, with a view to
helping members of the public identify SMS senders and enhance anti-fraud awareness. As
of 7 March 2025, over 480 public and private organisations have joined the Scheme, including
TSPs, banks, government departments and statutory bodies, as well as companies from
various sectors. OFCA will continue to actively engage more organisations that frequently
communicate with the public/customers via SMS messages to participate in the Scheme.
In response to recent incidents of criminals using illegal radiocommunications apparatus to
transmit SMS messages, OFCA has instructed all TSPs to enhance monitoring of abnormal
network signals, and establish a reporting mechanism. If similar cases are detected in future,
OFCA will promptly coordinate with the Police to take follow-up actions.
To enhance public education and publicity, OFCA launched the “District Anti-Phone
Deception Ambassador Scheme” (the Ambassador Scheme) in mid-January 2025 and invited
the participation of District Council (DC) members and staff members of their ward offices
from all 18 districts in Hong Kong. Over 150 DC members’ ward offices supported the
initiative, with more than 300 DC members and their staff members joined the Ambassador
Scheme as District Anti-Phone Deception Ambassadors (Ambassadors). OFCA organised
anti-deception information seminar and provided information packs to all Ambassadors to
introduce them measures to combat phone scam and related anti-fraud messages. OFCA has
also provided participating DC members’ ward offices with anti-phone scam promotional
Session 18 CEDB - Page 125
leaflets and souvenirs for distribution during their community activities and daily contacts
with residents to promote the anti-fraud messages and raise anti-phone scam awareness.
OFCA will continue to visit different districts in 2025 and collaborate with the Ambassadors
for roadshows and other promotional activities to strengthen the promotion of relevant
messages. In addition, OFCA will, from time to time, issue press releases, broadcast TV
and radio announcements, publish social media posts, produce and distribute promotional
leaflets and posters, and organise different activities such as roving exhibitions, community
talks and school drama performances, etc. to spread anti-phone scam messages. OFCA will
continue its efforts in utilising various channels for public education and publicity to deliver
anti-phone scam messages to the public more comprehensively.
The above work will be absorbed within OFCA’s existing resources.
- End -
Session 18 CEDB - Page 126
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB048
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2334)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The BUD Fund (Dedicated Fund on Branding, Upgrading and Domestic Sales) is a funding
scheme for supporting Hong Kong enterprises to develop brands, upgrade and restructure
their operations and promote sales in the Mainland and other markets with which Hong Kong
has signed Free Trade Agreements (FTAs) and Investment Promotion and Protection
Agreements (IPPAs). In July 2024, the Government announced the launch of “E-commerce
Easy” under the BUD Fund to provide funding support for enterprises in developing
electronic commerce (e-commerce) business. The Government is now planning to expand
the coverage of “E-commerce Easy” to the 10 ASEAN countries and increase the funding
support for green transformation projects. In this connection, will the Government inform
this Committee of the following:
(a) the proportion of the estimated expenditure for expansion in the ASEAN markets in the
overall size of the BUD Fund, and whether differentiated budgets will be formulated for
different markets (e.g. the Mainland and ASEAN markets) when considering the
estimated funding allocation;
(b) the dedicated budgetary size and funding ceiling for green transformation projects;
(c) for the past 3 years, the business situation of grantees in the Mainland and FTA markets
and the number of enterprises managed to continue expansion in the targeted markets
beyond the funding period (e.g. survival rate or market share), and whether efforts have
been made to track the proportion of and reasons for “unsuccessful cases” (e.g. business
downsizing or market exit upon ending of funding support).
Asked by: Hon LEUNG Tsz-wing, Dennis (LegCo internal reference no.: 29)
Session 18 CEDB - Page 127
Reply:
To assist Hong Kong enterprises in developing the Mainland market through electronic
commerce (e-commerce), the Government launched “E-commerce Easy” under the Dedicated
Fund on Branding, Upgrading and Domestic Sales (the BUD Fund) on 15 July 2024 to allow
enterprises to make use of the funding more flexibly to implement e-commerce projects on
the Mainland. Since 14 March 2025, we have expanded the geographical coverage of
“E-commerce Easy” to the 10 countries of the Association of Southeast Asian Nations
(ASEAN), and stated in the Guide to Application that the scope of the BUD Fund covers
implementation of green transformation projects that assist enterprises in business
development. Specific measures include conducting carbon audits for newly developed
products to enter target markets, upgrading production lines or applying new technologies to
meet the environmental standards or legal requirements of target markets, etc. Enterprises
can apply for funding support to implement green transformation projects through the general
application track of the BUD Fund. The funding ceiling for each approved application is
$800,000.
The estimated expenditure of the BUD Fund in 2025-26 is $1.292 billion, including the
manpower and other fees provided to the Hong Kong Productivity Council as the Programme
Secretariat for implementing the BUD Fund, as well as disbursements to grantees. Whether
an applicant enterprise will develop e-commerce business in the ASEAN market or implement
green transformation projects will be affected by factors such as its business nature and scale,
development strategies, target markets, etc. As such, the Government has not budgeted
separate provisions according to the market or project nature.
On the other hand, the Government, through the Programme Secretariat, has been conducting
project completion surveys and annual tracking surveys to assess the effectiveness of the BUD
Fund. As at end February 2025, around 99% of the enterprises that responded to the project
completion surveys considered the BUD Fund useful in supporting their business
development. The enterprises also generally considered that the funded projects had helped
them in various areas, including enhancing corporate image, awareness of their
brands/products/services and their overall competitiveness, etc. Moreover, around 99% of
the enterprises that responded to the annual tracking surveys considered the BUD Fund useful
to their long term development.
Around 70% of the funded enterprises that responded to the annual tracking surveys indicated
that within 1 year after completion of their projects, they had further developed business on
the Mainland or in other markets with which Hong Kong has signed free trade
agreements/investment promotion and protection agreements, such as increasing the number
of local dealers and establishing additional online shops. For the funded enterprises that did
not further develop business in target markets, most of them indicated that it stemmed from
changes in the market generally or in the economic environment.
- End -
Session 18 CEDB - Page 128
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB049
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3110)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (3) Telecommunications
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
1. Regarding the implementation of a subsidy scheme to extend 5G coverage in rural and
remote areas, how is the estimated amount arrived at and what are the specific cost
considerations?
2. How will the funding of the subsidy scheme be allocated to the participating mobile
network operators? Will the allocation be based on the size of the coverage area
undertaken by the operators, the number of base stations to be built, or other quantitative
indicators? What is the weight given to each quantitative indicator in the allocation of
funds?
3. Are there any performance indicators set for the use of funds under the subsidy scheme?
If yes, how will the effectiveness of the scheme, as well as whether the enhancement of
mobile network coverage in rural and remote areas has met the expectation be assessed
based on the indictors?
Asked by: Hon LI Sai-wing, Stanley (LegCo internal reference no.: 38)
Reply:
The Commerce and Economic Development Bureau and the Office of the Communications
Authority (OFCA) have formulated details of the Subsidy Scheme to Extend 5G Coverage in
Rural and Remote Areas (Subsidy Scheme). After consulting relevant District Councils,
Rural Committees and local representatives, the Panel on Information Technology and
Broadcasting of the Legislative Council was consulted on 10 February 2025 and expressed
support on the Subsidy Scheme. The Subsidy Scheme will subsidise mobile network
operators (MNOs) to install radio base stations (RBS) in around 50 sites across Hong Kong.
The subsidy amount for each RBS project will be capped at $2 million. An additional
subsidy of not more than $2 million (i.e. the cap for the entire project is $4 million) will be
Session 18 CEDB - Page 129
provided for these RBS projects involving more complex works. The subsidy will be
granted on a reimbursement basis.
All licensed MNOs in Hong Kong are eligible to participate in the Subsidy Scheme and
submit to OFCA specific and detailed technical proposals (including RBS design, the works
to be carried out, etc.) for installing RBS at suitable sites. OFCA will carefully scrutinise
the technical proposals and assess the complexity of the works to determine whether
applications should be approved and whether the RBS should be qualified as a project
involving more complex works so as to decide the subsidy cap for the relevant projects. The
amount of subsidy granted to each MNO will depend on the number of RBS projects that they
eventually participate in and the actual expenses involved. Upon completion of RBS
installation and commencement of services, MNOs need to submit necessary documentation
to demonstrate that the RBS have been providing quality mobile communications services.
They will receive the subsidy after vetting of relevant expenses by OFCA.
The Subsidy Scheme will be implemented in 2 phases. Around 30 sites with more mature
infrastructure or imminent need for improved mobile network coverage will be included in
Phase I of the Subsidy Scheme. The remaining 20 sites that require additional time or further
technical feasibility studies to enable RBS installation will be included in Phase II. The total
estimated amount involved in setting up about 50 RBS under the entire Subsidy Scheme is
about $154 million.
Regarding the specifications of RBS, RBS installed under the Subsidy Scheme must provide
5G (or more advanced communications technologies) services with a minimum average
download speed of no less than 100Mbps. The Government will seek funding approval from
the Legislative Council in accordance with the established mechanism. OFCA will launch
the Subsidy Scheme as soon as possible within this fiscal year upon relevant funding approval.
MNOs must complete relevant RBS installation works and commence services within the
next 12 months from the date that the application is approved. We anticipate that upon the
commissioning of all relevant RBS, the mobile network coverage of country parks will be
enhanced to at least 90%, while coverage along major government hiking trails will exceed
98%.
- End -
Session 18 CEDB - Page 130
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB050
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3111)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
1. The original estimate under “Commerce and Industry” for 2024-25 was
$5,834.1 million, but the revised estimate increased to $13,468.9 million. Which are
the areas that contributed to the difference in the two estimates? What are the reasons
for the difference?
2. The approved commitment for the Incentive Scheme for Recurrent Exhibitions was
$1.4 billion. The revised estimated expenditure for 2024-25 stood at only
$623 million, leaving a balance of about $948 million. Why was an increase in
commitment of $500 million proposed in the 2024 Policy Address?
3. Please provide detailed data on the cost-effectiveness and analysis of the revised
estimated expenditure of $623 million on the Incentive Scheme for Recurrent
Exhibitions for 2024-25. What are the objectives, estimated expenditure and expected
outcomes of the Incentive Scheme for Recurrent Exhibitions 2.0 to be launched?
Asked by: Hon LI Sai-wing, Stanley (LegCo internal reference no.: 39)
Reply:
The 2024-25 revised estimate under Programme (2) Commerce and Industry is $7.6348
billion (130.9%) higher than the original estimate, with the increased provision (about 98%
and 2% respectively) allocated to the SME Financing Guarantee Scheme – Guarantee
Products and the Incentive Scheme for Recurrent Exhibitions (ISRE) due to the expected
increase in the cash flow requirement of these 2 schemes in 2024-25. With the exhibition
industry continuing to improve in 2024-25, the number of eligible applications received under
ISRE and the incentive amount involved are higher than expected.
Session 18 CEDB - Page 131
The Government launched the ISRE on 1 July 2023. As at end February 2025, ISRE
supported 174 eligible exhibitions of different scales which were organised by private
organisers, involving a total incentive of $896 million. The exhibitions supported by ISRE
have attracted numerous participants, including exhibitors and buyers, benefitting the
convention and exhibition (C&E) industry, while bringing in high-spending business
travellers that drive economic activities in such related sectors as accommodation, catering,
retail and entertainment, thereby benefitting various industries.
With the success of the existing ISRE in facilitating the full recovery of the C&E industry
after the pandemic, to further consolidate Hong Kong’s position as an international trade
centre, the 2024 Policy Address announced that the Government would allocate an additional
provision of $500 million for implementing the ISRE 2.0, focusing on attracting new and
recurrent international exhibitions of a large scale, so as to further promote the development
of the C&E industry and the mega event economy, thereby generating overall economic
benefits for Hong Kong. To this end, we have engaged the major stakeholders of the C&E
industry, and worked out the arrangements for the ISRE 2.0 taking into account the views
received and the operational experience of the existing ISRE.
Same as the existing scheme, the ISRE 2.0 will only subsidise venue rentals of eligible
exhibitions organised by private organisers at the specified venues. The ISRE 2.0 aims at
attracting more new and recurrent international exhibitions of a large scale, boosting the
vibrancy of the C&E industry in Hong Kong. Some new features will be introduced under
the new scheme, including:
⚫ only international exhibitions attracting at least 1 500 non-local participants (including
exhibitors and buyers) will be covered;
⚫ the maximum incentive for each eligible exhibition will be capped at $10 million; and
⚫ the Central Harbourfront Event Space and relevant parts of the West Kowloon Cultural
District will be designated as specified venues, alongside the Hong Kong Convention
and Exhibition Centre and AsiaWorld-Expo.
All of the above will enable the ISRE 2.0 to focus on international events, benefit more
eligible exhibitions and offer more venue options to the organisers. While we initially
estimate that the cash flow requirement for 2025-26 will increase, the actual cash flow will
depend on such factors as the number of applications and the incentive amount.
- End -
Session 18 CEDB - Page 132
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB051
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1039)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned under Matters Requiring Special Attention in 2025-26 that support services
will be provided for enterprises having established international or regional headquarters in
Hong Kong for managing offshore trading and supply chain through the overseas offices
under the Hong Kong Trade Development Council. In this connection, please inform this
Committee of the following:
(1) What are the future work plans of the Economic and Trade Offices to promote the role
of Hong Kong as a supply chain management centre?
(2) What plans does the Government have to provide training, certification, consultation and
other services on areas such as environmental, social and governance for Mainland
enterprises seeking to go global, so as to establish a high value-added supply chain
management services mechanism?
(3) Are there any plans to attract small and medium enterprises of emerging industries to
establish headquarters in Hong Kong for managing supply chains?
(4) To facilitate the building of a multinational supply chain management centre, are there
any plans for the coming year to conduct comprehensive and in-depth research on
emerging markets, such as those in the Middle East, Central Asia and Latin America?
If so, what are the details and estimated expenditure to be involved?
Asked by: Hon LIAO Cheung-kong, Martin (LegCo internal reference no.: 25)
Reply:
The global trade landscape and geopolitics are rapidly changing, with parts of the supply
chains shifting to the Global South and Belt and Road countries, while Mainland enterprises
Session 18 CEDB - Page 133
are also proactively establishing their presence abroad. To cope with this trend, it was
announced in the 2024-25 Budget that the Government’s goal was to develop Hong Kong
into a multinational supply chain management centre. In his 2024 Policy Address, the Chief
Executive further requested Invest Hong Kong (InvestHK) and the Hong Kong Trade
Development Council (HKTDC) to set up a high value-added supply chain services
mechanism for attracting Mainland enterprises to establish international or regional
headquarters in Hong Kong for managing offshore trading and supply chain, and providing
one-stop professional advisory services for enterprises in Hong Kong looking to go global.
In December 2024, InvestHK and HKTDC established the above mechanism to jointly
encourage Mainland enterprises (including small and medium enterprises of emerging
industries) to establish presence in Hong Kong.
Through its Dedicated Teams for Attracting Businesses and Talents based in the Mainland
Offices, InvestHK is proactively organising activities under the theme of multinational supply
chains, so as to actively reach out to more Mainland enterprises for investment promotion
work. As at end-February 2025, InvestHK had organised and co-organised around 20
relevant investment promotion activities in various Mainland cities, including Hangzhou,
Nanjing and Xiamen, etc. within around 1 year’s time.
Meanwhile, HKTDC is providing one-stop professional advisory services for enterprises in
Hong Kong and, through its overseas offices, rendering on-site support services. These
services include assisting enterprises in establishing connections with overseas markets and
understanding overseas laws and regulations; providing market research covering various
emerging markets such as the Middle East, Central Asia and Latin America; as well as
providing information on various areas including environmental, social and governance
(ESG), testing and certification and export credit risk management. Furthermore, in view
that Hong Kong’s business sector possesses rich knowledge and profound experience in
handling compliance, labour protection, environmental protection and other requirements of
overseas markets, HKTDC facilitates collaboration between enterprises and different
organisations and industry stakeholders to provide ESG training, etc. for Mainland enterprises
seeking to expand their reach to overseas markets. This will help them build goodwill with
business partners and expand their markets.
- End -
Session 18 CEDB - Page 134
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB052
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1041)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Matters Requiring Special Attention in 2025-26, the Commerce and Economic
Development Bureau will, among others, support small and medium enterprises (SMEs) and
start-ups to grow and transform amid the world’s new digital and sustainability agenda, and
promote awareness of Hong Kong brands to develop the national domestic sales market. In
this connection, will the Government inform this Committee:
(1) of the plans and measures for supporting SMEs in environmental, social and governance
development as well as digital transformation in the coming year, and the estimated
expenditure to be involved;
(2) of the number of Hong Kong enterprises provided with support under the
“Transformation Sandbox” business support programme in the past year, and the details
of expenditure and manpower involved;
(3) of the total number of “GoGBA missions” organised in the past year, the number of
participating enterprises, as well as the details of government manpower and
expenditure involved;
(4) given that the Government has announced that Hong Kong Image Pavilions will be set
up at key Mainland expos and a Hong Kong Day networking event will be organised at
the China International Import Expo in the coming year, of the details of the expenditure
to be involved and the expected number of participating Hong Kong enterprises?
Asked by: Hon LIAO Cheung-kong, Martin (LegCo internal reference no.: 26)
Reply:
Session 18 CEDB - Page 135
Implementation of Environmental, Social and Governance (ESG) and Digital Transformation
in Small and Medium Enterprises (SMEs)
The Commerce and Economic Development Bureau (CEDB) implements various support
measures or provides funding, through the Hong Kong Trade Development Council
(HKTDC) and the Trade and Industry Department (TID), to drive SMEs to accelerate the
ESG and digital transformation.
HKTDC incorporates ESG-related discussion elements or seminars into their conferences and
fairs as appropriate, and collaborates with start-up organisations across Asia to showcase
innovative products and green solutions at fairs to provide SMEs with support and services.
It also introduces various activities and training to help SMEs develop the electronic
commerce (e-commerce) market and enhance their digital competitiveness by making good
use of social media platforms, artificial intelligence (AI) and other applications. The work
of HKTDC during 2025-26 will include:
• inviting environmentally conscious fashion brands to promote circular fashion at
CENTRESTAGE to be held in September 2025 and drive the industry towards a greener
future;
• working with ESG-related multipliers to offer sustainability workshops and ESG
certification courses for Transformation Sandbox (T-box) members;
• launching the “HKTDC ESG Index”, including one overall rating and three sub-indices
on ESG, to analyse how international businesses perceive Hong Kong’s strengths across
the three ESG criteria and help businesses gauge the efficacy of Hong Kong as a platform
for sourcing ESG-related products and services;
• implementing the “E-Commerce Express” to address the pain points encountered by Hong
Kong enterprises when developing cross-border e-commerce on the Mainland and, in
collaboration with large scale e-commerce or social media platforms, conducting a series
of thematic training seminars and research sharing sessions to cover practical topics
including the Mainland and overseas e-commerce market landscapes, legal compliance,
operational strategies and features of both traditional and emerging online shopping
platforms, how to establish fanbase, livestreaming production techniques, etc., with a view
to providing more comprehensive support for SMEs interested in tapping into the
e-commerce market;
• organising the 2nd edition of the Hong Kong Shopping Festival scheduled for August
2025, bringing together Hong Kong enterprises to offer discounts in Mainland online
stores and arranging enterprises to conduct livestreaming promotion on Mainland
e-commerce platforms, with a view to assisting Hong Kong enterprises in developing
e-commerce businesses on the Mainland;
• introducing new theme days at InnoEX to be held in April 2025, covering areas such as
AI, robotics, cybersecurity and SME solutions, etc.; and
• collaborating with leading AI service providers to provide T-box members with practical
AI applications.
Session 18 CEDB - Page 136
Besides, the Trade and Industrial Organisation Support Fund under TID provides funding
support for various projects that assist SMEs in assessing and disclosing their carbon
footprints, as well as enhancing their awareness of decarbonisation, in order to help them cope
with the challenge of climate change. Enhancement measures under the Dedicated Fund on
Branding, Upgrading and Domestic Sales have also been implemented since 14 March 2025,
including expanding the geographical scope of “E-commerce Easy” to the 10 countries of the
Association of Southeast Asian Nations (ASEAN), as well as providing targeted funding
support for enterprises to implement green transformation projects.
As regards provision of information, TID will set up a one-stop thematic webpage under its
“SME Link” web portal within 2025 to provide information about decarbonisation and carbon
audit, etc. The 4 SME centres (namely the Support and Consultation Centre for SMEs under
TID, the “SME Centre” under HKTDC, the “SME One” under the Hong Kong Productivity
Council and the “TecOne” under the Hong Kong Science and Technology Parks Corporation)
and “SME ReachOut” also plan to organise physical seminars or webinars related to ESG and
e-commerce in the first half of 2025. Besides, TID plans to launch a mentorship programme
this year to enhance support for SMEs to develop brands and expand the e-commerce sales
networks through counselling and workshops, etc. for developing the Mainland and/or
ASEAN markets. TID will announce the details later.
T-box
T-box offers professional advice to SMEs on brand-building, market expansion, digital
transformation, production and supply chain solutions as well as sustainable development.
Since the launch in April 2020 until now, over 4 700 local SMEs representatives have
participated in the programme.
Missions to the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)
In 2024-25, the Hong Kong and Mainland offices of HKTDC held 110 GBA-related activities,
including organising online and physical seminars, small-group advisory sessions and
business missions, as well as joining major Mainland exhibitions. Among these activities,
there were 37 GBA missions. Altogether, these activities had served over 5 600 participants
and over 1 600 enterprises, helping them explore opportunities in the GBA.
Hong Kong Image Pavilions
In 2025-26, HKTDC plans to set up Hong Kong Image Pavilions in major exhibitions such
as the China International Fair for Trade in Services (Beijing), the China International Fair
for Investment and Trade (Xiamen) and the China-ASEAN Expo (Nanning) to promote the
advantages of Hong Kong’s services and innovation and technology as well as opportunities
along the Belt and Road. In addition, HKTDC will organise a “Hong Kong Day”
networking event at the China International Import Expo (Shanghai) to facilitate business
cooperation between Hong Kong enterprises and key buyers, and enrich the product range for
showcasing in the Style Hong Kong Pavilion at the China International Consumer Products
Expo (Haikou) to create more collaboration opportunities, as well as strengthen business
matching arrangements therein and comprehensively promote Hong Kong’s services and
brands through various media and channels.
Session 18 CEDB - Page 137
The manpower and expenditure for the above work have been subsumed under the overall
establishment and estimate of CEDB, TID and HKTDC, and cannot be quantified separately.
- End -
Session 18 CEDB - Page 138
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB053
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1042)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is stated in paragraph 111 of the 2025-26 Budget Speech that the Government will continue
to further cultivate the Association of Southeast Asian Nations (ASEAN) and Middle East
markets, and explore opportunities in Central Asia, South Asia and North Africa. In this
connection, please inform this Committee of the following:
(1) As mentioned under Matters Requiring Special Attention in 2025-26, the geographical
coverage of “E-commerce Easy” will be expanded to cover the 10 ASEAN countries.
What are the expected number of enterprises to benefit from and the expenditure to be
involved in the new round of “E-commerce Easy”?
(2) Given that the e-commerce markets in the Middle East and North Africa continue to
grow while many e-commerce giants are expanding their presence therein, will the
Government devise plans to progressively extend the funding under “E-commerce
Easy” to cover Belt and Road countries, including those in the Middle East and North
Africa? If so, what are the details? If not, what are the reasons for that?
Asked by: Hon LIAO Cheung-kong, Martin (LegCo internal reference no.: 27)
Reply:
To assist Hong Kong enterprises in developing the Mainland market through electronic
commerce (e-commerce), the Government launched “E-commerce Easy” under the Dedicated
Fund on Branding, Upgrading and Domestic Sales (BUD Fund) on 15 July 2024 to allow each
enterprise to make use of $1 million funding flexibly within the cumulative funding ceiling
of $7 million per enterprise for implementing e-commerce projects on the Mainland.
The Government has implemented the enhancement measures for “E-commerce Easy”
announced in the 2024 Policy Address. Since 14 March 2025, the geographical coverage of
Session 18 CEDB - Page 139
“E-commerce Easy” has been expanded to the 10 countries of the Association of Southeast
Asian Nations (ASEAN) to further support Hong Kong enterprises to develop the ASEAN
market through e-commerce business.
The Government anticipates that 3 600 applications will be received under the BUD Fund in
2025 with an approved funding amount of about $1.1 billion, including among others the
projects approved under “E-commerce Easy”. The Government will keep on reviewing the
operational arrangements of “E-commerce Easy” and, having regard to actual circumstances,
duly consider making appropriate adjustments including its applicable geographical coverage.
- End -
Session 18 CEDB - Page 140
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB054
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0076)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As mentioned in paragraph 113 of the Budget Speech, to support the development of local
enterprises and help them go global, the Government will inject $1.5 billion in total into the
Dedicated Fund on Branding, Upgrading and Domestic Sales and the Export Marketing and
Trade and Industrial Organisation Support Fund, and streamline application arrangements.
In this connection, will the Government advise:
1. on the respective numbers of applications received, actual numbers of applications
approved and amounts involved under the 2 funds in the past 2 years; and
2. whether the Government has assessed in detail the main reasons for the rejection of
applications under the 2 funds and the respective amounts involved each year upon
implementation of the streamlined application arrangements; if so, on the details; if not,
the reasons for that?
Asked by: Hon LO Wai-kwok (LegCo internal reference no.: 35)
Reply:
To continue to support the development of local enterprises and help them go global, the
2025-26 Budget announced the injection of $1.5 billion into the Dedicated Fund on Branding,
Upgrading and Domestic Sales (BUD Fund) and the Export Marketing and Trade and
Industrial Organisation Support Fund (EMTSF). This injection will be shared equally
between the 2 funds. Together with the injection of $1 billion into the BUD Fund announced
in the 2024 Policy Address, the Government will inject in total $1.75 billion and $0.75 billion
respectively into the BUD Fund and the EMTSF. This is a testament to the Government’s
unwavering commitment to supporting SMEs continuously despite the current fiscal
conditions.
Session 18 CEDB - Page 141
The implementation of the BUD Fund in the past 2 years is as follows:
2023 2024
Number of applications 4 739 7 262
received Note 1
Number of applications 1 690 2 671
approved
Amount of funding $1.147 billion $1.682 billion
approved
Note 1: Applications received may not be processed in the same year. The figures include applications that could not
be processed owing to incomplete information and those withdrawn voluntarily by enterprises afterwards.
The EMTSF covers expenditures of the SME Export Marketing Fund (EMF) and the Trade
and Industrial Organisation Support Fund (TSF).
The implementation of the EMF in the past 2 years is as follows:
2023 2024
Number of applications 29 863 30 918
received Note 2
Number of applications 21 105 24 875
approved
Amount of funding $588 million $809 million
approved
Note 2: Applications received may not be processed in the same year. The figures include applications that could not
be processed owing to incomplete information and those withdrawn voluntarily by enterprises afterwards.
The implementation of the TSF in the past 2 years is as follows:
2023 2024
Number of applications 43 34
received Note 3
Number of applications 20 18
approved
Amount of funding $39.5 million $30.5 million
approved
Note 3: Applications received may not be processed in the same year. The figures include applications that could not
be processed owing to incomplete information and those withdrawn voluntarily by organisations afterwards.
Certain applications are not approved under the various funding schemes mainly because the
applicant enterprises/organisations or the concerned activities are not eligible for funding
support, the applicant enterprises/organisations cannot provide sufficient information for
approval or proof to show that the projects can enhance enterprises’ competitiveness, the
proposals are unclear or lack details, and the applicant enterprises/organisations cannot
demonstrate their capability of implementing the projects, etc.
Session 18 CEDB - Page 142
On 14 March 2025, the Government has instituted enhancement measures and other measures
under the BUD Fund and the EMF to rationalise the operation and ensure financial
sustainability of the 2 funding schemes (see the Annex). It is anticipated that in 2025 a total
funding amount of around $1.1 billion and $600 million will be approved under the 2 funding
schemes respectively. The amount of funding involved for the TSF will be around $30
million.
- End -
Session 18 CEDB - Page 143
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management
fees for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the
EMF with a view to controlling the maximum amount of funding, including the
funding ceiling, validity period of activities, restrictions on the number of repeated
applications of a similar nature on certain activities, etc.
Session 18 CEDB - Page 144
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB055
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1171)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
(1) Has the Government maintained statistics comparing the quantity of imported liquor
before and after the reduction of duty rate for liquor with an import price of over $200?
Are there any figures showing the respective quantity or proportion of imported liquor
produced in China and those produced in other countries?
(2) What is the estimated increase in the quantity of liquor imports as compared with
2024-25? What are the expected market share of liquor and that of other alcoholic
products?
Asked by: Hon MA Fung-kwok (LegCo internal reference no.: 9)
Reply:
Since the reduction of duty rate on high-end liquor until late February this year (i.e. a
4.5-month period), we note that the volume of duty-paid liquor imported (in litre) rose by
more than 40% as compared with the 4.5-month period before the reduction of duty rate,
while its value went up significantly by 1.3 times, reflecting that the two tier system
introduced by the Government is effective in boosting high-end liquor trading. Moreover,
the trade grasped the opportunity brought about by the reduction of liquor duty and organised
various kinds of wine and spirits fairs, in which the proportion of liquor on sale has evidently
risen. Some liquor traders have also lowered the prices of liquors. The response of the
market has been positive. According to the import statistics from the Census and Statistics
Department (C&SD), the current ratio of liquor imported from the Mainland and other regions
is about 4:6.
We expect that the volume of duty-paid liquor imported (in litre) in 2025-26 will decrease by
about 4% as compared with that in 2024-25. According to the import statistics from the
C&SD, the ratio of liquor imported in 2023-24 and the first 10 months of 2024-25 to that of
Session 18 CEDB - Page 145
other alcoholic products is about 1:9 by volume. The purpose of lowering liquor duty is to
encourage the trade and auctions of high-end liquor in Hong Kong, thereby giving impetus
to the development of other high value-added sectors such as logistics and storage, tourism
as well as high-end food and beverage consumption. At the same time, the volume of
high-end liquor only accounts for 15% of the total import volume. We expect that the
adjustment to duty rate would not lead to a significant increase in the volume of imported
liquor. Therefore, we expect that the ratio of the volume of imported liquor to other
alcoholic products will be similar in 2025-26.
- End -
Session 18 CEDB - Page 146
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB056
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2511)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (000) Operational expenses
Programme: (7) Subvention: Consumer Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
(1) Regarding the work effectiveness of the Consumer Council (the Council), the targets and
indicators on pages 323-324 specified, amongst others, the complaints and enquiries
received in the year, yet no information was given on the number of substantiated
complaints, any compensation offered by traders, and the penalty imposed on the traders
concerned. Please explain.
(2) As regards the complaints received by the Council over the past 3 years, what are the
details and the industries involved, and what are the nationalities of the complainants?
(3) Provision for the Council for 2025-26 is $8.5 million or 5.6% higher than the past
financial year. According to the Analysis of Financial and Staffing Provision, this is
due to the increased cash flow for the Council’s enhanced consumer protection efforts
targeting the elderly and implementation of IT projects. Please provide details of such
projects.
(4) What is the total number of staff in the Council? Under the Government’s policy to
optimise resources, will the Council downsize itself in the year?
Asked by: Hon MA Fung-kwok (LegCo internal reference no.: 31)
Reply:
The Consumer Council (the Council) endeavours to study and promote the protection of
consumers’ rights and interests, and carries out its statutory functions in accordance with the
Consumer Council Ordinance (Cap. 216), including the handling of complaints relating to
goods and services of and the provision of advice to consumers, as well as conciliating
disputes between consumers and traders, etc. It is not the Council’s statutory function to
Session 18 CEDB - Page 147
impose penalties on traders. If the cases are suspected of contravening the laws, the Council
will refer the cases to the relevant law enforcement authorities for further follow-up.
Between 2022 and 2024, the Council received a total of 105 758 complaints, of which 63 519
cases were pursuable Note 1, 53 699 cases have been closed Note 2 and the remaining 9 820 cases
are still under conciliation. The complainants were mainly local residents, accounting for
94% of the total number of complaints, while the other complainants, including Mainland
tourists and other tourists, accounted for 5% and 1% of the total number of complaints
respectively. The complaints received by the Council are mainly related to delayed/lost
deliveries, price/fee disputes, variation/termination of contracts and quality of services or
goods, etc. The industries involved mainly include food and entertainment, travel services,
telecommunication services, electrical appliances and fitness clubs, etc.
In the 2025-26 Estimates, the subvention set aside for the Council has increased as compared
with the 2024-25 revised estimate. In 2025-26, the Council will support the Government in
promoting the development of silver economy, including having set up an Advisory Group on
Silver Economy to steer the work on protecting the interests of elderly consumers,
disseminating information relating to “silver consumption” through its “CHOICE” magazine
to help the elderly make informed choices in consumption and consolidating existing articles
and resources related to “silver consumption” through a dedicated section, “Smart Seniors”,
on its website for the elderly to browse information more conveniently. The Council will
continue to explore implementing more measures relating to “silver consumption”, with a
view to protecting the rights and interests of the elderly. On the other hand, the Council will
launch a revamped Complaint Case Management System in end 2025 to provide an online
dispute resolution platform in order to enhance its efficiency in handling complaint cases and
strengthen its capability in analysing complaint statistics and monitoring the trends of
complaints. The Council will also continue to enhance its network infrastructure and
cybersecurity systems to ensure the safe operation of its information systems and networks.
As at 31 March 2024, the Council has a total of 157 staff members, and will continue to review
its workflows, redeploy resources and leverage technology to ensure the proper use of human
resources.
Note 1: Some of the complaints received could not be pursued because the required information or documents were
not provided by the complainants. Among the cases pursuable by the Council, some did not involve any
claim for compensation, for example, the complainant requested a written apology from the trader.
Note 2: 34 638 complaint cases were resolved through conciliation by the Council, 1 373 cases were referred to the
Customs and Excise Department, other government departments or organisations for follow-up, and the
remaining 17 688 cases were unsuccessful conciliation cases after follow-up for reasons including the failure
of the parties to reach a consensus after conciliation, request made by the complainant to withdraw the
complaint, failure to contact the trader or a non-cooperative attitude adopted by the trader, etc.
- End -
Session 18 CEDB - Page 148
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB057
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2512)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is stated under Matters Requiring Special Attention in 2025-26 that the Commerce and
Economic Development Bureau (CEDB) will table subsidiary legislation under the Copyright
Ordinance in the Legislative Council (LegCo) within 2025 to specify libraries, museums and
archives eligible for certain permitted acts and prescribe the conditions, and to designate
non-government-owned libraries, museums or archives that can be exempted from certain
criminal liabilities. Please advise on the following:
(1) What is the timetable for tabling the subsidiary legislation?
(2) Will non-profit-making organisations in Hong Kong, in particular those relating to
literature and arts (such as the Museum of Hong Kong Literature, the China Federation
of Literary and Art Circles Hong Kong Member Association and other cultural groups),
be exempted as well?
(3) Earlier on, the CEDB briefed a LegCo Panel on a legislative proposal to be submitted
within 2025 for the “introduction of a text and data mining exception”. Will it be
submitted in conjunction with the above subsidiary legislation or will it be handled
separately?
(4) Following the introduction of the European Union Artificial Intelligence Act, many
countries (including China) are exploring the development of legislation on artificial
intelligence (AI). However, the CEDB stated earlier at a LegCo meeting that “having
regard to the coverage of the existing Copyright Ordinance, the fast-changing landscape
of AI technology development and the market practices, we consider that there is
currently no sufficient justification to propose any legislative amendments concerning
the copyright protection and infringement issues relating to AI-generated works”. Will
the Secretary for Commerce and Economic Development inform this Committee
whether further consultations in this regard will be conducted within 2025-26?
Session 18 CEDB - Page 149
Asked by: Hon MA Fung-kwok (LegCo internal reference no.: 32)
Reply:
According to the Chief Executive’s 2024 Policy Address, we will, under the existing
empowering provisions of the Copyright Ordinance (CO), specify libraries, museums and
archives eligible for certain permitted acts and prescribe the conditions, as well as designate
non-Government-owned libraries, museums or archives that can be exempted from certain
criminal liabilities. We plan to submit the relevant subsidiary legislation to the Legislative
Council (LegCo) within 2025 for negative vetting.
For the specification of libraries, museums and archives eligible for certain permitted acts
under section 46(1) of the CO, as proposed in the consultation paper we issued in February
2024 Note 1, the specification generally covers local libraries, museums and archives which are
not conducted for profit. In some circumstances, libraries, museums and archives that are
not conducted for profit need to meet one of the following conditions for doing such acts:
⚫ they are conducted for the purpose of facilitating or encouraging the research or private
study of any discipline; or
⚫ they are administered by an entity that is established wholly or mainly for the above
purpose.
The consultation results indicate that respondents generally welcome the Government’s
proposals to facilitate the reasonable use of copyright works by eligible libraries, museums
and archives in their day-to-day operations. We will report the detailed proposals of the
subsidiary legislation to the LegCo Panel on Commerce, Industry, Innovation and Technology
(CIIT Panel) in April 2025 and seek Members’ views.
Regarding the other set of subsidiary legislation, under section 118(2FB) of the CO,
designated non-Government-owned libraries, museums or archives may be exempted from
the criminal liability of the business end-user possession offence, subject to compliance with
certain statutory conditions provided in section 118(2E) or 118(2F) of the CO Note 2. The
designated libraries, museums or archives must be owned by:
⚫ a charitable institution or trust of a public character that is exempt from tax under section
88 of the Inland Revenue Ordinance (IRO) (Cap. 112); or
⚫ a statutory body that is exempt from tax under an Ordinance other than the IRO, or a
subsidiary of such a statutory body.
From May to July 2024, the Government accepted applications from eligible institutions to
the Secretary for Commerce and Economic Development (SCED). The SCED has, in
accordance with the law, carefully considered the applications received and, after consulting
the Director of Leisure and Cultural Services, proposed the designation of 25 eligible libraries,
museums and archives for exemption. Details are provided in the LegCo CIIT Panel's
information paper (CB(2)440/2025(01)).
Session 18 CEDB - Page 150
Unlike the aforementioned subsidiary legislation, the legislative proposal to introduce a text
and data mining exception involves amendments to the principal Ordinance. We plan to
introduce an amendment bill to the LegCo in the first half of 2025, and this will be handled
separately from the subsidiary legislation mentioned above.
We note that legislation or research in other jurisdictions to regulate the development and use
of artificial intelligence (AI) systems is generally very broad in scope, far exceeding the realm
of intellectual property (including copyright) protection. Regarding copyright, after
considering the views collected from the public consultation and the overall circumstances,
we consider that there is currently no cogent justification to propose substantive legislative
amendments concerning the issues of copyright protection and infringement of AI-generated
works. To assist developers and users of AI systems in addressing the relevant issues, we
plan to draft a set of guidelines with practical suggestions and specific examples to elaborate
on the application of the existing applicable legal principles in different scenarios for
reference by the industry. We will also closely monitor relevant technological developments
and the discussions on relevant copyright issues in the international community (e.g. research
conducted by the World Intellectual Property Organization and exchanges among its member
states), as well as developments in other jurisdictions, to ensure that Hong Kong’s copyright
regime keeps pace with the times.
Note 1: https://www.ipd.gov.hk/filemanager/ipd/en/share/consultation-papers/20240215-consultation-paper-e.pdf
Note 2: Section 118(2E) and (2F) of the Copyright Ordinance provides that, for the purposes of heritage
conservation or other purposes and subject to compliance with prescribed conditions, the business end-user
possession offence does not apply to the possession of infringing copies of four categories of copyright
works (namely a movie, a television drama, a musical sound recording or a musical visual recording) by
designated libraries, museums and archives.
- End -
Session 18 CEDB - Page 151
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB058
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0913)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Financial Secretary proposed in paragraph 113 of the Budget Speech that to support the
development of local enterprises and help them go global, the Government will inject
$1.5 billion in total into the Dedicated Fund on Branding, Upgrading and Domestic Sales
(BUD Fund) and the Export Marketing and Trade and Industrial Organisation Support Fund
(EMTSF), and streamline application arrangements. Please inform this Committee of the
expenditure involved in and the application situations of the BUD Fund and the EMTSF in
the past year. Which industries have been benefitted? How will the new injection of
$1.5 billion for 2025-26 support Hong Kong enterprises in developing brands and promoting
sales in the Mainland and the Association of Southeast Asian Nations (ASEAN) regions?
Will the funding support be targeted at specific industries or projects?
Asked by: Hon NG Kit-chong, Johnny (LegCo internal reference no.: 11)
Reply:
The Government strives to assist Hong Kong enterprises in developing more diversified
markets and enhancing their competitiveness through various funding schemes and support
measures. Among others, the Dedicated Fund on Branding, Upgrading and Domestic Sales
(BUD Fund) provides funding support for enterprises to develop business in 40 economies
with which Hong Kong has signed free trade agreements and/or investment promotion and
protection agreements, including the Mainland and the Association of Southeast Asian
Nations (ASEAN). Meanwhile, the SME Export Marketing Fund (EMF) provides funding
support for small and medium enterprises to participate in export promotion activities for
developing markets outside Hong Kong (including the Mainland and ASEAN markets).
The implementation of the BUD Fund and the EMF in 2024 is as follows:
Session 18 CEDB - Page 152
BUD Fund EMF
Note
Number of applications received 7 262 30 918
Number of applications approved 2 671 24 875
Amount of funding approved ($) 1.682 billion 809 million
Number of beneficiary enterprises 2 244 10 829
Major beneficiary sectors 1. Wholesale and Retail 1. Wholesale and
(in descending order of the number 2. Import and Export Retail
of applications approved) Trade 2. Import and Export
3. Information Trade
Technology 3. Jewellery
4. Electronics 4. Electronics
5. Textiles and 5. Printing and
Clothing Publishing
Note: Applications received may not be processed in the same year. The figures include applications that could not be
processed owing to incomplete information and those withdrawn voluntarily by enterprises afterwards.
In 2025-26, the Government will continue to assist enterprises in developing markets outside
Hong Kong through the above funding schemes. We have expanded the geographical
coverage of “E-commerce Easy” to the 10 ASEAN countries and stated in the Guide to
Application that the scope of the BUD Fund covers implementation of green transformation
projects that assist enterprises in business development. Specific measures include
conducting carbon audits for newly developed products to enter target markets, upgrading
production lines or applying new technologies to meet the environmental standards or legal
requirements of target markets, etc.
The Government has also enhanced the arrangements of “Easy BUD”, allowing each
enterprise to submit 1 “Easy BUD” application in every 3 months, instead of 6 months in the
past. Online sales platform has also been added as a project measure that can be funded.
The above measures enable enterprises to obtain more timely funding support, thereby duly
addressing market changes. Besides, to assist enterprises in developing new markets to cope
with trade protectionism and geopolitical tensions, we have stated in the Guide to Application
for the general applications of the BUD Fund that professional fees associated with the
establishment of new business entities in eligible markets (including the Mainland and
ASEAN markets) can be funded.
- End -
Session 18 CEDB - Page 153
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB059
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0915)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Financial Secretary expressed support for local enterprises, noting in paragraph 114 of
the Budget Speech that the Government has been providing loan guarantees to businesses
through the SME Financing Guarantee Scheme (SFGS). As at the end of last year, a total
of over $288 billion of loans has been approved under the SFGS, benefitting nearly 65 000
small and medium enterprises (SMEs). It is stated in Programme (2) of the Commerce and
Economic Development Bureau that one of the Matters Requiring Special Attention in
2025-26 is to continue to work with the Hong Kong Mortgage Corporation Limited to
implement the SFGS to help ease the cash flow problems of SMEs. The financial and
staffing provision for Programme (2) for 2025-26 is $559.8 million (4.2%) lower than the
revised estimate for 2024-25, which is primarily due to the decreased cash flow requirement
for the SFGS - Guarantee Products. Please inform this Committee of the amount of
repayment received under the SFGS and the percentage of such repayment. Besides, what
are the details of the expenditure under the SFGS over the past year, including the number of
cases and the loan amount? What industries are involved? How many default cases?
What is the default amount involved?
The Hong Kong Special Administrative Region Government launched the SFGS with the aim
of helping SMEs alleviate their funding problems. Have there been any cases of fraud
committed through the abuse of the SFGS, such as defaulting after taking out a loan? Please
provide a breakdown of the details. Has an assessment been made on the abuse of the SFGS
and has an estimate been made on the number of approved cases with defaults? Will the
Government take rigorous action to crack down on such fraudulent activities to ensure the
proper use of public money?
Asked by: Hon NG Kit-chong, Johnny (LegCo internal reference no.: 13)
Session 18 CEDB - Page 154
Reply:
The SME Financing Guarantee Scheme (SFGS) is administered and managed by HKMC
Insurance Limited (HKMCI). As at end February 2025, among the more than 110 000 loan
applications approved, around 33 000 applications, involving a loan amount of around $95
billion, had been repaid in full as scheduled, accounting for around 33% of the total loan
amount.
The revised estimate of the SFGS in 2024-25 is $12.5 billion, which is deployed to cater for
the relevant expenses of the various guarantee products, including payments of originating
fee in respect of the Special 100% Guarantee Product to the participating lending institutions,
payments to HKMCI to cover the administrative costs and the necessary out-of-pocket
expenses as well as the default claim payments. The cumulative application and default
figures of the various guarantee products of the SFGS as at end February 2025 are as follows:
80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
(launched in (launched in Product Note
2012) 2019) (launched in
2020 and the
application
period ended in
end March
2024)
Number of Applications 31 225 16 965 72 824
Received
Number of Applications 27 802 15 447 67 182
Approved
Total Loan Amount of 119.6 billion 27.5 billion 143.8 billion
Approved Applications ($)
Number of Approved
Applications by Beneficiary
Sectors
⚫ Trading, Wholesale and 15 019 (54%) 7 639 (49%) 23 819 (35%)
Retail
⚫ Engineering and 2 202 (8%) 1 515 (10%) 5 684 (9%)
Construction
⚫ Manufacturing 4 161 (15%) 594 (4%) 3 795 (6%)
⚫ Others (e.g. Catering, 6 420 (23%) 5 699 (37%) 33 884 (50%)
Transportation)
Number of Default Cases 2 105 903 9 360
Loan Guarantee Amount of 4.9 billion 1 billion 20.1 billion
Default Cases ($)
Default Rates 5.1% 3.8% 14%
Note: Some applications submitted before the end of the application period were approved in April 2024 or later.
Session 18 CEDB - Page 155
In processing loan applications, the lending institutions will conduct customer due diligence
to confirm that the borrowing enterprises could fulfil the eligibility requirements, and submit
the verified applications complete with the documents required to HKMCI (which is
responsible for administering and managing the SFGS) for final guarantee approval.
HKMCI will also conduct appropriate checks in vetting the applications submitted by the
lending institutions, and step up the vetting of suspicious cases, to ensure the prudent use of
public money.
As at end February 2025, 3 373 applications of the Special 100% Guarantee Product,
involving around $10.1 billion of loans, are found to have involved illegal activities, including
using false instruments, providing false information or declarations, etc. Among them,
1 466 cases (involving around $4.9 billion of loans) were already rejected by HKMCI and/or
the lending institutions during application assessment, while the other 1 907 cases (involving
around $5.2 billion of loans) were found after loan drawdown. HKMCI has taken
appropriate actions, including reporting the cases that may have involved illegal activities and
providing assistance to the law enforcement agencies, issuing clear guidelines to the
participating lending institutions of the SFGS, taking legal actions through the lending
institutions, etc.
HKMCI has been working closely with lending institutions on properly handling default
cases. In the event that a borrowing enterprise defaults on repayments, the lending
institution will first discuss a feasible repayment plan with the borrowing enterprise, e.g.
repaying only the interest or part of the principal during a transition period, so that the
borrowing enterprise can continue its operation while making a debt restructuring
arrangement as soon as possible, with a view to gradually resuming normal repayments.
If the lending institution and the borrowing enterprise could not reach agreement on the
repayment or the latter refuses to cooperate, the lending institution will consider taking
appropriate recovery/legal actions in accordance with its policy and prevailing commercial
practice, including requesting the enterprise and guarantor to repay the loan, filing a petition
for winding-up and/or bankruptcy with the court, etc. with a view to reducing the loss of the
Government.
As at end February 2025, the cumulative default rates of the 80%, 90% and Special 100%
Guarantee Products under the SFGS were about 5.1%, 3.8% and 14% respectively, lower than
the assumed overall default rates (12%, 16% and 25% respectively). The default rates are
subject to change having regard to the overall economic environment and the operational
situation of individual borrowing enterprises, etc. The Government and HKMCI will
continue to monitor the situation closely.
- End -
Session 18 CEDB - Page 156
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB060
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0938)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under this Programme, one of the Matters Requiring Special Attention in 2025-26 of the
Commerce and Economic Development Bureau is to “continue to collaborate with the
Mainland authorities and the Hong Kong Trade Development Council to help Hong Kong
enterprises promote their products and services to the Mainland market”. Please inform this
Committee of the expenditure on such work in the past year. What initiatives were
implemented? How effective were they? Regarding the expansion of the “GoGBA
Business Support Centre” network to cover Mainland cities of the Greater Bay Area, how was
the progress and how effective was it? Please provide a breakdown of the details. In
2025-26, what new plans does the Government have to promote the products and services of
Hong Kong to the Mainland market? What are the expenditure and implementation
timetable involved?
Asked by: Hon NG Kit-chong, Johnny (LegCo internal reference no.: 36)
Reply:
In 2024-25, the Hong Kong Trade Development Council (HKTDC) continued to organise a
series of activities and provide support services through the “GoGBA one-stop platform” (the
Platform) to assist Hong Kong enterprises in building network and promoting business
opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), and to provide
them with the latest policy updates and economic and trade information about the GBA
market. Since the launch of the Platform in 2021 until end-February 2025, over 120
activities including online and physical sharing sessions, consultation meetings and business
missions, etc. had been organised, serving nearly 9 000 people to help them explore
opportunities in the GBA. The Platform’s GoGBA website and mobile app providing
business policy and practical information online about the GBA are very popular among users,
having recorded over 5 million views so far.
Session 18 CEDB - Page 157
In addition, the network of “GoGBA Business Support Centres” has already covered all 9
Mainland cities in the GBA since 2023-24, with centres set up in Qianhai and Futian
(Shenzhen), Nansha (Guangzhou), Zhuhai, Dongguan, Zhongshan, Foshan, Jiangmen,
Zhaoqing and Huizhou, to provide more comprehensive support services for Hong Kong
enterprises.
Meanwhile, HKTDC had organised and participated in various large-scale promotion events
in the GBA and other regions to continue to help Hong Kong enterprises grasp opportunities
in the Mainland market. For example, the Resolve2Win campaign was held in Shenzhen
and Foshan from 6 to 8 August 2024 to analyse and present the advantages of Hong Kong’s
international legal and dispute resolution services; and SmartHK, a flagship promotion
activity, was held in Nanjing on 28 August 2024 to promote cooperation of Hong Kong
start-ups and technology companies with Jiangsu Province in research, development and
manufacturing through business matching and pitching, etc.
HKTDC has also set up Hong Kong pavilions and organised Hong Kong enterprises to
participate in major Mainland exhibitions to promote Hong Kong products and professional
services, such as the China International Consumer Products Expo in Haikou (Hainan
Province) in April 2024, the China International Import Expo in Shanghai and the China
Hi-Tech Fair in Shenzhen in November 2024.
Furthermore, HKTDC’s Design Gallery has established 70 physical points of sale in 22
Mainland cities and set up online shops on Mainland electronic commerce (e-commerce)
platforms to assist Hong Kong enterprises in promoting their creative designs and high-quality
innovative products to Mainland consumers.
Under the 3 year-long Support Scheme for Pursuing Development in the Mainland starting
from 2022-23, HKTDC had also organised more than 460 events of different types having
regard to the situation and needs of Hong Kong enterprises on the Mainland, including
introduction and briefing of policies, online and offline seminars, business missions, business
forums, etc., with the participation of nearly 35 000 enterprise representatives and
professionals. These activities had helped deepen participants’ understanding of the
Mainland’s policies and market developments, as well as broaden their Mainland network so
as to extend their business from major cities to neighbouring provinces or cities.
Apart from continuing the above services and actively participating in key Mainland
exhibitions, in 2025-26, HKTDC will:
⚫ set up a new “GoGBA Business Support Centre” in Macao;
⚫ organise a GoGBA mission to Dongguan to help small and medium enterprises (SMEs)
in the manufacturing sector to understand the latest situation of how Mainland enterprises
maintain their competitiveness through the use of innovative technologies;
⚫ launch “GoGBA Coffee & Chat” to provide a series of interactive small group
consultation sessions targeting specific practical issues, and invite experts to provide
SMEs with in-depth analyses on and practical guidance in doing business in the GBA;
Session 18 CEDB - Page 158
⚫ organise a “Fashion Go Places” mission to Guangzhou and Dongguan to assist the
fashion industry in expanding business network; and
⚫ implement “E-Commerce Express” to strengthen support for SMEs to tap into the
Mainland market through e-commerce.
The expenditure for the above work has been subsumed under the overall estimate of
HKTDC, and cannot be quantified separately.
- End -
Session 18 CEDB - Page 159
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB061
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0253)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
According to Programme (2), the Commerce and Economic Development Bureau has
co-ordinated through the Hong Kong Trade Development Council the participation of Hong
Kong enterprises in the seventh China International Import Expo (“CIIE”) in Shanghai this
year to promote Hong Kong products and services to the Mainland market, and to introduce
Hong Kong’s role as a gateway under the national “dual circulation” strategy. What are the
manpower and expenditure involved? Will the Government secure the Central
Government’s authorisation for Hong Kong to host the country’s third national-level trade
fair on high-end consumer products and imports to the Mainland market, following the CIIE
in Shanghai and the China International Consumer Products Expo in Hainan, to attract
importers from various provinces and cities across the country, especially the Greater Bay
Area, to come and make purchases here? If yes, what are the details; if not, what are the
reasons?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 208)
Reply:
As an international business as well as a convention and exhibition hub, Hong Kong hosts
large-scale international exhibitions of different products every year to connect exhibitors and
buyers from Hong Kong, the Mainland and other places around the world, as well as promote
and publicise local, Mainland and overseas brands. Some of the exhibitions are the largest
sourcing platforms in Asia or even in the world for the trades concerned, including electronics,
jewellery, gifts, watches and clocks, lighting, etc. Taking the exhibitions of the Hong Kong
Trade Development Council (HKTDC) as an example, in 2024, HKTDC hosted 28
international trade fairs in Hong Kong that attracted over 28 000 exhibitors and over 550 000
buyers from around the world, including over 220 000 buyers from the Mainland. This can
fully demonstrate that the international exhibitions held in Hong Kong have already become
Session 18 CEDB - Page 160
one of the major sourcing platforms for Mainland enterprises, and can help Hong Kong and
overseas enterprises tap into the enormous domestic sales market of the Mainland.
The Government will continue to consolidate and enhance the pre-eminent position of Hong
Kong as a hub for the international conference and exhibition industry, and at the same time
actively participate in major exhibitions held on the Mainland, including the annual China
International Import Expo (CIIE) in Shanghai, and organise Hong Kong enterprises’
participation for promoting quality Hong Kong products and services to Mainland buyers and
consumers.
The manpower and expenditure for co-ordinating Hong Kong enterprises’ participation in the
CIIE as well as promoting Hong Kong products and services on the Mainland have been
subsumed under the overall establishment and estimate of the Commerce and Economic
Development Bureau and HKTDC, and cannot be quantified separately.
- End -
Session 18 CEDB - Page 161
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB062
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0254)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (2), the Commerce and Economic Development Bureau (CEDB) will
launch the “Incentive Scheme for Recurrent Exhibitions (ISRE) 2.0” next year, targeting new
and international exhibitions of large scale. The scope of specified venues of the ISRE will
be expanded to cover the Central Harbourfront Event Space and the West Kowloon Cultural
District. Will the Administration explore designating more convention and exhibition
facilities as specified venues? If yes, what are the details? If no, what are the reasons?
Besides, a number of new features will be introduced under the new ISRE, such as the
maximum incentive for each eligible exhibition capped at $10 million, which represents a
significant reduction compared to the maximum incentive of $20 million under the existing
ISRE. What are the reasons for that?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 205)
Reply:
As announced in the 2024 Policy Address, the Government will allocate an additional
provision of $500 million for implementing the Incentive Scheme for Recurrent Exhibitions
(ISRE) 2.0, focusing on attracting new and recurrent international exhibitions of a large scale,
to further promote the development of the convention and exhibition (C&E) industry and the
mega event economy, thereby generating overall economic benefits for Hong Kong. Subject
to the Legislative Council’s funding approval, ISRE 2.0 will be launched on 1 July this year.
Taking into account the views received from the C&E industry and the operational experience
of the existing ISRE, the Government announced the major arrangements for ISRE 2.0 on
24 January 2025. In line with the policy objectives above, some new features will be
introduced under the new scheme, including that the maximum incentive for each eligible
exhibition will be adjusted to $10 million, and the Central Harbourfront Event Space as well
as the relevant parts of the West Kowloon Cultural District will be designated as specified
Session 18 CEDB - Page 162
venues, alongside the Hong Kong Convention and Exhibition Centre and AsiaWorld-Expo.
We believe that the relevant arrangements will encourage more international exhibitions of a
large scale to be staged in Hong Kong, benefit more eligible exhibitions and offer more venue
options to the organisers.
- End -
Session 18 CEDB - Page 163
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB063
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0255)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
According to Programme (2), the Commerce and Economic Development Bureau worked
with the Trade and Industry Department to enhance the Dedicated Fund on Branding,
Upgrading and Domestic Sales (BUD Fund), including launching “E-commerce Easy”, this
year. The Hong Kong Productivity Council introduced “E-commerce Easy” under the BUD
Fund this year. Enterprises may make use of $1 million within the cumulative funding
ceiling of $7 million under the Fund to implement e-commerce projects on the Mainland.
With a breakdown by trade, how many applications have been received since the launch of
the initiative? Among which, what are the respective numbers of applications that are
approved, unsuccessful and being processed? What is the average funding amount for each
approved e-commerce project? Will the funding ceiling of “E-commerce Easy” be raised,
and its funding be calculated separately from the cumulative funding ceiling of $7 million
under the BUD Fund? If yes, what are the details? If not, what are the reasons? As
announced in the 2024 Policy Address, the geographical coverage of “E-commerce Easy”
will be expanded to the 10 ASEAN countries, and targeted funding support will be provided
for enterprises to implement green transformation projects. Are there any specific
implementation dates?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 203)
Reply:
To assist Hong Kong enterprises in developing the Mainland market through electronic
commerce (e-commerce), the Government launched “E-commerce Easy” under the Dedicated
Fund on Branding, Upgrading and Domestic Sales (the BUD Fund) on 15 July 2024 to allow
each enterprise to make use of $1 million funding flexibly within the cumulative funding
ceiling of $7 million per enterprise for implementing e-commerce projects on the Mainland.
Session 18 CEDB - Page 164
As at end February 2025, a total of 329 “E-commerce Easy” applications were received, and
the applications mainly came from the following 5 sectors:
Sector of the Applicant Enterprise Number of applications
(in descending order of the number of applications received
received)
1. Wholesale and Retail 156
2. Import and Export Trade 41
3. Restaurants and Hotels 14
4. Information Technology 11
Personal Care Services 11
Excluding applications that could not be processed owing to incomplete information and those
withdrawn voluntarily by enterprises afterwards, as at end February 2025, the processing
progress of “E-commerce Easy” applications is as follows:
Number of applications processed 67
Number of applications approved 30 ($576,000)
(average funding amount)
Number of applications approved with conditions 13 Note 1
Number of applications rejected 24
Number of applications under processing 183 Note 2
Note 1: The final approval of the applications and the respective funding amounts to be granted are subject to the
submission of further information by the applicant enterprises.
Note 2: Of the 183 applications under processing, 123 were received between December 2024 and February 2025.
Most of the applications under processing require the applicant enterprises to provide further clarification of
the project details or supplementary documents. The Programme Secretariat will process these applications
as soon as possible upon clarification of the project details or provision of supplementary documents by the
enterprises.
As at end February 2025, the average funding amount of the approved “E-commerce Easy”
applications is about $576,000. We believe that the $1 million cumulative funding ceiling
of “E-commerce Easy” at present can meet the needs of most enterprises, and have no plan to
separate it from the BUD Fund’s cumulative funding ceiling of $7 million per enterprise. If
necessary, an applicant enterprise which has used up the $1 million cumulative funding
ceiling of “E-commerce Easy” may apply for the BUD Fund through the general application
track for implementing other projects related to e-commerce, though some project measures
are subject to budget ratio cap.
Since 14 March 2025, the Government has expanded the geographical coverage of
“E-commerce Easy” to the 10 countries of the Association of Southeast Asian Nations, and
stated in the Guide to Application that the scope of the BUD Fund covers implementation of
green transformation projects that assist enterprises in business development. Specific
measures include conducting carbon audits for newly developed products to enter target
markets, upgrading production lines or applying new technologies to meet the environmental
standards or legal requirements of target markets, etc.
Besides, on 14 March 2025, the Government has instituted enhancement measures and other
measures under the BUD Fund and the SME Export Marketing Fund to rationalise the
Session 18 CEDB - Page 165
operation and ensure financial sustainability of the 2 funding schemes (see the Annex).
Among others, the funding ceiling for each approved General and “E-commerce Easy” project
has been adjusted from $1 million to $800,000.
- End –
Session 18 CEDB - Page 166
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management fees
for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the EMF
with a view to controlling the maximum amount of funding, including the funding
ceiling, validity period of activities, restrictions on the number of repeated
applications of a similar nature on certain activities, etc.
Session 18 CEDB - Page 167
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB064
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0256)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (2), the Commerce and Economic Development Bureau (CEDB) will
continue to work with the Trade and Industry Department and the Hong Kong Productivity
Council in the coming year to implement the BUD Fund to support Hong Kong enterprises in
undertaking projects to develop brands, upgrade and restructure their business operations and
promote sales in the Mainland and other markets with which Hong Kong has signed Free
Trade Agreements or Investment Promotion and Protection Agreements. How many
applications has the CEDB received in the past 3 years, broken down by industry? What
were the numbers of applications approved, unsuccessful and being processed? What was
the average amount of funding granted to each successful application? Will the Government
raise the cumulative funding ceiling per enterprise under the BUD Fund and extend the
geographical coverage to all Belt and Road countries’ markets, including but not limited to
more Middle Eastern countries? If yes, what are the details; if not, what are the reasons?
What are the manpower and expenditure involved in vetting and approving the applications
under the Scheme this year? Will the manpower for vetting and approving be increased in
the coming year so as to expedite the processing of applications?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 202)
Reply:
The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) provides
funding support for enterprises to develop business in 40 economies with which Hong Kong
has signed free trade agreements (FTAs) and/or investment promotion and protection
agreements (IPPAs). In the past 3 years (i.e. from 2022 to 2024), a total of
14 638 applications were received under the BUD Fund, and the applications mainly came
from the following 5 sectors:
Session 18 CEDB - Page 168
Sector of the Applicant Enterprise Number of applications
(in descending order of the number of applications received
received)
⚫ Wholesale and Retail 3 268
⚫ Import and Export Trade 1 546
⚫ Information Technology 858
⚫ Restaurants and Hotels 569
⚫ Electronics 490
Of the applications received under the BUD Fund from 2022 to 2024, excluding those that
could not be processed owing to incomplete information and withdrawn voluntarily by
enterprises afterwards, the processing progress of other applications is as follows:
2022 to 2024 Note 1
Number of applications received 14 638
(A) Number of applications processed 7 642
Number of applications approved 5 533
(average funding amount) (about $655,000)
Number of applications approved 547
with conditions Note 2
Number of applications rejected 1 562
(B) Number of applications under processing 2 225
Note 1: Applications received between 2022 and 2024 may not be processed in the same period.
Note 2: The final approval of the applications and the respective funding amounts to be granted are subject to the
submission of further information by the applicant enterprises.
The Government has launched several rounds of enhancements to the BUD Fund since
August 2018, including increasing the cumulative funding ceiling per enterprise and
expanding its geographical coverage, to strengthen the support for Hong Kong enterprises to
develop more diversified markets and enhance their competitiveness. In the past 4 years,
the Government raised the cumulative funding ceiling per enterprise under the BUD Fund
twice, from $4 million to $6 million in July 2021, and further to $7 million in November 2022.
As only an extremely small percentage (about 0.01%) of the beneficiaries has used up the
$7 million cumulative funding ceiling, we believe that the current cumulative funding ceiling
can meet the future needs of most enterprises.
Following the Government’s signing of an FTA with Peru in November 2024, the current
geographical coverage of the BUD Fund has been expanded to 40 economies with which
Hong Kong has signed FTAs and/or IPPAs, including 21 Belt and Road and Middle Eastern
countries. The geographical coverage of the BUD Fund will be further expanded as
Hong Kong signs more FTAs or IPPAs in the future. The Government will continue to
review the operation and implementation of the BUD Fund and make adjustments where
appropriate, having regard to feedback from the trade and market situation.
The manpower and expenditure of the Commerce and Economic Development Bureau and
the Trade and Industry Department for implementing the BUD Fund have been subsumed
under the respective overall establishment and estimates, and cannot be quantified separately.
The estimated expenditure of the BUD Fund in 2025-26 is $1.292 billion, including the
Session 18 CEDB - Page 169
manpower and other fees provided to the Hong Kong Productivity Council as the Programme
Secretariat for implementing the BUD Fund, as well as disbursements to grantees.
- End -
Session 18 CEDB - Page 170
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB065
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0262)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
According to Programme 2, the Bureau will continue to co-ordinate bureaux and departments
in formulating policies and measures on the development of cross-border e-commerce,
including setting up more Hong Kong Pavilions or brand showcases in Mainland and overseas
exhibitions to promote Hong Kong brands and assist SMEs in developing non-local
e-commerce markets. What are the details of the relevant projects for the coming year?
What are the manpower and expenditure involved in project implementation? Will more
new measures be formulated in the future to promote Hong Kong brands? If so, what are
the details?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 210)
Reply:
In 2025-26, the interdepartmental E-commerce Development Task Force established by the
Commerce and Economic Development Bureau (CEDB) in January 2024 will continue to
coordinate and formulate policies, with a view to encouraging enterprises to grasp the
enormous opportunities brought about by cross-border electronic commerce (e-commerce)
and develop more diversified markets. Among others, measures to promote Hong Kong
brands and assist small and medium enterprises (SMEs) in developing non-local e-commerce
markets will include the following:
⚫ to strengthen support to promote Hong Kong brands, the Hong Kong Trade Development
Council (HKTDC) will set up more Hong Kong Pavilions in the Mainland and overseas
exhibitions (including those held in the Association of Southeast Asian Nations
(ASEAN)). Currently, HKTDC has set up Hong Kong Pavilions in many Mainland and
overseas exhibitions, including the China International Fair for Trade in Services, the
China International Import Expo, the China International Consumer Products Expo, CES
in Las Vegas, the United States, MWC Barcelona in Spain, electronica in Munich,
Session 18 CEDB - Page 171
Germany, Spielwarenmesse in Nuremberg, Germany, the Tokyo International Gift Show,
etc. In 2025-26, HKTDC will implement the ASEAN Lifestyle Pioneer Series to
increase the exposure of SMEs in the ASEAN market and help them explore business
opportunities through participation in exhibitions including the Malaysia Gifts Fair, the
Indonesia International Gift & Houseware Expo and the Vietnam International
Maternity - Baby & Kids Fair;
⚫ HKTDC will organise pop-up promotional campaigns to showcase Hong Kong
lifestyle/fashion design brands and products, enhance business matching arrangements
during the campaigns and utilise different media and channels to promote Hong Kong
brands;
⚫ HKTDC will expand the geographical scope of HKTDC Design Gallery online store to
the ASEAN region. The 1st phase of the expansion will cover Singapore and Malaysia
and, in due course, also cover Thailand. By then, participating enterprises of HKTDC
Design Gallery could sell their products to the ASEAN region through e-commerce.
HKTDC will also organise online and offline promotions, with a view to enhancing
ASEAN consumers’ awareness of Hong Kong products and brands;
⚫ the Government will, through HKTDC, continue to organise the Hong Kong Shopping
Festival (HKSF) in 2025 and 2026, and will launch the HKSF for the ASEAN market in
due course. Scheduled for August 2025, the 2nd edition of the HKSF aims at providing
SMEs with practical experience in utilising e-commerce platforms to tap into the
Mainland market. Drawing on the experience in organising the inaugural HKSF,
HKTDC will continue to bring together Hong Kong enterprises to offer discounts in
Mainland online stores and arrange enterprises to conduct livestreaming promotion on
Mainland e-commerce platforms. It is anticipated that the scale of the 2nd edition of
the HKSF will be larger than that of the inaugural HKSF, including showcasing more
brands and covering major consumer products, in particular food and health supplements
which are popular among Mainland consumers, while at the same time featuring more
promotional channels to help Hong Kong enterprises raise brand exposure and grasp the
opportunities in the Mainland e-commerce market;
⚫ HKTDC will implement the “E-Commerce Express” to strengthen support for SMEs to
tap into the Mainland market and increase e-commerce sales. To address the pain points
encountered by Hong Kong enterprises when developing cross-border e-commerce on
the Mainland, HKTDC will, in collaboration with large-scale e-commerce or social
media platforms, conduct a series of thematic training seminars and research sharing
sessions to cover practical topics including the Mainland and overseas e-commerce
market landscapes, legal compliance, operational strategies and features of both
traditional and emerging online shopping platforms, how to establish fanbase,
livestreaming production techniques, etc., with a view to providing more comprehensive
support for SMEs interested in tapping into the e-commerce market; and
⚫ the Trade and Industry Department (TID) plans to launch a mentorship programme this
year to enhance support for SMEs to develop brands and expand the e-commerce sales
networks through counselling and workshops, etc. for developing the Mainland and/or
ASEAN markets. TID will announce the details later.
Session 18 CEDB - Page 172
Having regard to the latest development of the e-commerce market, the Government will
continue to review and enhance various measures. The manpower and expenditure of
CEDB, TID and HKTDC for implementing the above measures have been subsumed under
the respective overall establishment and estimates, and cannot be quantified separately.
- End -
Session 18 CEDB - Page 173
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB066
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0268)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
According to Programme (2), the Commerce and Economic Development Bureau will, in the
next financial year, continue to closely monitor the bilateral trade relations between Mainland
China and other economies such as the United States and the European Union as well as their
trade actions or other measures related to Hong Kong, and assess their impact on Hong Kong;
and maintain close communication with the trade. What are the estimated manpower and
expenditure to be involved for the work? To help the business sector cope with the
fast-changing geopolitical situation and enhance adaptability, will the Government establish
a speedy communication mechanism that allows direct contact with business associations for
the business sector to provide more information to the Government, so that it can have a more
comprehensive understanding of the sector’s needs when formulating policies? If yes, what
are the details? Will the communication mechanism support cross-departmental
co-ordination? What are the manpower and expenditure to be involved?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 213)
Reply:
In response to geopolitics and state of flux of the international trade landscape, we have been
providing assistance to the business sector, including helping them grasp the latest
developments, enhance competitiveness and expand into emerging, diverse markets. The
Trade and Industry Department (TID) has been disseminating relevant information to the
industry through different channels and issuing trade circulars to update major chambers of
commerce as well as small and medium enterprises chambers of commerce on major
developments.
From time to time, the Commerce and Economic Development Bureau (CEDB) meets with
major chambers of commerce on specific business issues and gauges their views. For
example, regarding the unreasonable tariffs on products of Hong Kong and other trade
Session 18 CEDB - Page 174
protectionist measures imposed by the United States recently, the Secretary for Commerce
and Economic Development (SCED) immediately met with major local chambers of
commerce on the day of the Hong Kong Special Administrative Region (HKSAR)
Government’s announcement on its decision to file a complaint to the World Trade
Organization so as to explain the Government’s position, and received unanimous support
from them. Also, SCED convenes regular meetings of the Trade and Industry Advisory
Board to explain to members, who are mainly from the business sector, the various policy
initiatives of the HKSAR Government that benefit the business sector. We will continue
with our engagement work in this regard.
The above work is conducted with the existing manpower and is a part of the regular duties
of CEDB and TID, the expenditure has been subsumed under the overall estimate and cannot
be quantified separately.
- End -
Session 18 CEDB - Page 175
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB067
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0269)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (2), the Commerce and Economic Development Bureau will continue to
work with the Trade and Industry Department and the Hong Kong Productivity Council to
implement the BUD Fund in 2025-26. To enable more Hong Kong enterprises to make use
of the funding to develop their business, the Government has launched “Easy BUD” to
expedite the vetting of applications involving designated measures with a funding amount of
$100,000 or below. Will the Government enhance the “Easy BUD” arrangement to cover
applications with a funding amount of over $100,000? Will it also explore to apply such
model to other funding schemes of the Government? If yes, what are the details? If no,
what are the reasons?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 212)
Reply:
In June 2023, the Government launched “Easy BUD” under the Dedicated Fund on Branding,
Upgrading and Domestic Sales (BUD Fund) to expedite the vetting of applications involving
designated measures with a funding amount of $100,000 or below. Under “Easy BUD”, the
application form, the requirements for supporting documents and the vetting arrangements
have been simplified. The processing time of an application has also been significantly
reduced by half to completion within 30 working days as compared with the 60-working-day
performance pledge for general applications of the BUD Fund.
As at end February 2025, the average funding amount of the approved applications under
“Easy BUD” is around $73,000. We believe that maintaining the funding ceiling of
$100,000 per “Easy BUD” application can meet the needs of most enterprises. Besides, the
Government has enhanced the arrangement of “Easy BUD”, allowing each enterprise to
submit 1 “Easy BUD” application every 3 months, instead of 6 months in the past. At the
same time, online sales platform has been added as a project measure that can be funded.
Session 18 CEDB - Page 176
The above measures enable enterprises to obtain more timely funding support, thereby duly
addressing market changes.
The application arrangements of other government funding schemes are to be determined by
different bureaux and departments, having regard to various factors such as the nature of the
relevant funding schemes and the state of their applications, etc.
- End -
Session 18 CEDB - Page 177
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB068
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0274)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (2), the Commerce and Economic Development Bureau conducted a public
consultation in 2024-25 to explore further enhancement to the Copyright Ordinance (Cap.
528) regarding the protection for artificial intelligence (AI) technology development. What
were the manpower and expenditure involved in the consultation exercise? In the proposed
legislative amendments, the Government will introduce a specific text and data mining
exemption (TDM exemption) to allow reasonable use of copyright works for computational
data analysis and processing, such as the training of AI models. In addition, the Government
will provide an “opt-out” option for copyright owners, so that they may reserve the rights to
prohibit their works from being used in the training of AI models. The Consumer Council
has raised the concern that the training of AI models is “irreversible”, i.e. the data that have
been used for the training of AI models may become inerasable. Will AI developers be
charged with copyright infringement by doing so when the Ordinance is enhanced? How
can the Government ensure that the interests of all parties are balanced with the introduction
of the specific TDM exemption and the “opt-out” option?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 216)
Reply:
Enhancing the Copyright Ordinance (Cap. 528) is part of the regular work of the Commerce
and Economic Development Bureau (CEDB) and the Intellectual Property Department (IPD).
The relevant expenditure has been subsumed under the overall estimate of CEDB and IPD,
and the work will continue to be carried out by existing manpower. It is therefore difficult
to quantify the resources involved separately.
The Government conducted a public consultation to explore further enhancement to the
Copyright Ordinance regarding protection for artificial intelligence (AI) technology
development from July to September 2024. After thorough consideration of the views
Session 18 CEDB - Page 178
collected, the Government consulted the Legislative Council Panel on Commerce, Industry,
Innovation and Technology in February 2025 on the proposal to amend the Copyright
Ordinance to, on the premise of allowing copyright owners to reserve their rights, foster a
favourable environment for the development of AI.
On the premise of fully protecting the legitimate interests of copyright owners, we suggest
introducing a new specific exception to allow text and data mining for promoting AI
technology development.
First, we will stipulate clearly that this exception is not applicable where copyright owners
exercise the following rights:
⚫ Copyright owners have reserved their copyright (as is the common practice adopted by
many copyright owners currently).
⚫ Copyright owners have in place applicable licensing schemes for text and data mining
conducted by others.
It is worth noting that among the 60-plus existing exceptions under the Copyright Ordinance,
in most circumstances, copyright owners are not allowed to reserve their rights so long as the
conditions of the exceptions are satisfied. The proposed exception is a special case.
Even if copyright owners decide not to exercise the 2 kinds of rights mentioned above and
make their copyright works open for the purpose of text and data mining, users who rely on
this exception must proactively comply with the other 3 statutory conditions, namely:
⚫ Having lawful access to the copyright works (e.g. no circumvention of paywalls).
⚫ Infringing copies must not be used (e.g. must not make use of infringing websites).
⚫ Must keep and make available records of the source of the copyright works.
Apart from enacting clear legal provisions, we will continue to maintain dialogue with
stakeholders and the industry on relevant issues such as the means to reserve rights, and will
develop flexible practical guidelines for the reference of copyright owners and users, in order
to ensure smooth implementation of the amendment ordinance.
The proposed specific exception provides legal certainty as the rights of copyright owners
and the responsibilities of users are set out clearly, which facilitates AI developers and
copyright owners to negotiate licensing agreements. This will not only bring economic
returns to copyright owners but also foster the regulated development of AI technology,
achieving complementarity and mutual benefits.
Users who fail to comply with the above conditions when conducting text and data mining
may incur legal liability for infringement. As to how to deal with infringing contents that
AI systems have already learned, we understand that technology offers different practical
solutions, such as training AI models to unlearn the relevant contents or filtering the generated
contents, etc.and the relevant technology is also developing rapidly.
- End -
Session 18 CEDB - Page 179
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB069
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0275)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme 2, the Commerce and Economic Development Bureau will continue to
support the further development of liquor-related businesses in Hong Kong in the coming
year. Has the Government estimated the economic benefits brought by a reduction in liquor
duty after the introduction of the two-tier duty system for liquor this year? Will the
Government consider a further reduction in liquor duty, so as to strengthen the efforts to boost
the development of high value-added industries including the auction, trading, distribution
and storage of liquor in Hong Kong? If so, what are the details? If not, what are the reasons
for that?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 209)
Reply:
Since the reduction of duty rate on high-end liquor until late February this year (i.e. a
4.5-month period), we note that the volume of duty-paid liquor imported (in litre) rose by
more than 40% as compared with the 4.5-month period before the reduction of duty rate,
while its value went up significantly by 1.3 times, reflecting that the two tier system
introduced by the Government is effective in boosting high-end liquor trading. Moreover,
the trade grasped the opportunity brought about by the reduction of liquor duty and organised
various kinds of wine and spirits fairs, in which the proportion of liquor on sale has evidently
risen. Some liquor traders have also lowered the prices of liquors. The response of the
market has been positive.
We understand that the trade welcomes the measure and considers it conducive to increasing
business opportunities. Regarding the suggestion from some members of the trade that the
Government should further reduce the duty rate for liquor with import price of $200 or below,
we would like to reiterate that the purpose of lowering liquor duty is to encourage the trade
and auctions of high-end liquor in Hong Kong, thereby giving impetus to the development of
Session 18 CEDB - Page 180
other high value-added sectors such as logistics and storage, tourism as well as high-end food
and beverage consumption. At the same time, we are also mindful of the need to avoid
increasing liquor consumption among the public as a result of reducing liquor duty, thereby
leading to other problems.
When introducing the relevant measures, the Government has fully balanced different policy
considerations such as promoting economic development, maintaining stable public finances
and protecting public health. Any further adjustments will require careful consideration of
the impact on different aspects with prudent planning.
- End -
Session 18 CEDB - Page 181
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB070
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0277)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (2), the Commerce and Economic Development Bureau worked with the
Hong Kong Trade Development Council to launch the inaugural Hong Kong Shopping
Festival (HKSF) in 2024-25 to promote the awareness of Hong Kong brands. It is stated in
the 2024 Policy Address that the HKSF is to be relaunched in the next 2 years to help small
and medium enterprises (SMEs) tap into the Mainland e-commerce sales market. Given the
inaugural HKSF held in 2024-25 was well received by SMEs, will the Government make the
HKSF a regular event? If so, what are the details? If not, what are the reasons for that?
Can the latest details about the HKSF held in the Association of South East Asian Nations
market be announced?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 204)
Reply:
In view of the prosperous development of global electronic commerce (e-commerce), the
2024 Policy Address announced that the Government will, through the Hong Kong Trade
Development Council (HKTDC), continue to organise the Hong Kong Shopping Festival
(HKSF) in 2025 and 2026, and will launch the HKSF for the market of the Association of
Southeast Asian Nations (ASEAN) in due course.
The 2nd edition of the HKSF, scheduled for August 2025, aims at providing enterprises with
practical experience in utilising e-commerce platforms to tap into the Mainland market.
Drawing on the experience of organising the inaugural HKSF, HKTDC will continue to bring
together Hong Kong enterprises to offer discounts in Mainland online stores and arrange
enterprises to conduct livestreaming promotion on Mainland e-commerce platforms. It is
anticipated that the scale of the 2nd edition of the HKSF will be larger than that of the
inaugural HKSF, including showcasing more brands and covering major consumer products,
in particular food and health supplements which are popular among Mainland consumers,
Session 18 CEDB - Page 182
while at the same time featuring more promotional channels to help Hong Kong enterprises
raise brand exposure and grasp the opportunities in the Mainland e-commerce market.
Besides, the 2025-26 Budget announced that HKTDC will implement the “E-Commerce
Express” (“電子商務快車”) to strengthen support for small and medium enterprises (SMEs)
to tap into the Mainland market and increase e-commerce sales. HKTDC has renamed the
Chinese name of the service as “電子商務快綫”. To address the pain points encountered
by Hong Kong enterprises when developing cross-border e-commerce on the Mainland,
HKTDC will, in collaboration with large-scale e-commerce or social media platforms,
conduct a series of thematic training seminars and research sharing sessions to cover practical
topics including the Mainland and overseas e-commerce market landscapes, legal
compliance, operational strategies and features of both traditional and emerging online
shopping platforms, how to establish fanbase, livestreaming production techniques, etc., with
a view to providing more comprehensive support for SMEs interested in tapping into the
e-commerce market.
E-commerce is a global trend. Drawing on the experience in organising the HKSF and views
from participating enterprises, the Government and HKTDC will review and enhance various
measures having regard to the needs of the trade and latest situation of the e-commerce market
to support enterprises to develop brands and expand e-commerce sales. The ASEAN market
is the next target in which the Government will encourage enterprises to develop cross-border
e-commerce businesses. We will announce the details of launching the HKSF for the
ASEAN market in due course.
- End -
Session 18 CEDB - Page 183
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB071
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0321)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
According to Programme (2), in 2025-26, the Commerce and Economic Development Bureau
(CEDB) will seek early accession of Hong Kong to the Regional Comprehensive Economic
Partnership (RCEP). What is the latest progress of the relevant work? Have any plans
been developed to lobby RCEP members in 2025-26 for Hong Kong’s early accession? If
yes, what are the details? What are the manpower and expenditure involved? If no, what
are the reasons? When does the CEDB expect Hong Kong to join RCEP?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 211)
Reply:
Upon the entry into force of the Regional Comprehensive Economic Partnership (RCEP) Note
on 1 January 2022, the Hong Kong Special Administrative Region (HKSAR) Government
has immediately submitted Hong Kong’s formal accession request, and actively expressed to
its members at different levels and on different occasions Hong Kong’s keen interest in
joining RCEP early. Seeking accession to RCEP is one of the key priorities of the HKSAR
Government. Besides receiving full support from the Central People’s Government, the
HKSAR Government has also received positive responses from other RCEP members in
particular ASEAN member states. For example, since assuming office in 2022, the Chief
Executive (CE) has led delegations on 3 occasions to visit 7 ASEAN countries (including
Thailand, Singapore, Indonesia, Malaysia, Laos, Cambodia and Vietnam), and received
support from leaders of the economies, relevant government officials and local business
leaders on Hong Kong’s accession to RCEP. Thereafter, the Secretary for Commerce and
Economic Development visited Laos in September 2024 and received appreciation from
ASEAN Economic Ministers on Hong Kong’s readiness and keen interest for early accession
to RCEP, as well as the value and important contribution that Hong Kong will add to RCEP.
In November 2024, the CE had bilateral meetings with leaders from various ASEAN member
Session 18 CEDB - Page 184
states during the Asia-Pacific Economic Cooperation Economic Leaders’ Meeting in Peru,
and they again indicated their support towards Hong Kong’s accession to RCEP.
The Procedures for Accession to the RCEP Agreement was adopted by the RCEP Joint
Committee (RJC) in September 2024, which is a concrete and critical step to welcoming new
members. The HKSAR Government will continue to proactively follow up with RJC and
maintain close liaison with the trade and economic departments of RCEP members to promote
relevant discussions and foster favourable conditions for the early accession of Hong Kong
to RCEP, with the view to contributing to the promotion of regional economic integration.
The HKSAR Government has formulated a comprehensive, specific and proactive work plan
to strive for Hong Kong’s accession to RCEP. However, as it involves the engagement with
other governments, the HKSAR Government has no plan to disclose to the public the internal
work plan as well as the relevant discussion with other economies.
The above work is led by the Commerce and Economic Development Bureau, and supported
by the Trade and Industry Department and relevant overseas Hong Kong Economic and Trade
Offices. It is conducted with the existing manpower and is part of the regular duties. The
expenditure has been subsumed under the overall estimate and cannot be quantified
separately.
Note: RCEP member economies include Mainland China, the 10 member states of the Association of Southeast Asian
Nations (ASEAN) (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand and Viet Nam), Australia, Japan, Korea, and New Zealand.
- End -
Session 18 CEDB - Page 185
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB072
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0524)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Commerce and Economic Development Bureau worked with HKMC Insurance Limited,
the administrator of the SME Financing Guarantee Scheme (SFGS), to enhance the SFGS,
including relaunching the principal moratorium arrangement, extending the application and
maximum loan guarantee periods as well as introducing partial principal repayment options
for the 80% and 90% guarantee products, so as to alleviate the repayment burden on SMEs.
Will the Government inform this Committee:
1. of the respective numbers of applications received and approved in respect of the above
enhancement measures, as well as the number of SMEs that have benefitted from such
measures; and
2. given that Hong Kong is now in a critical period of economic restructuring, whether the
Government will consider further extending the aforesaid enhancement measures; if so,
of the details; if not, the reasons for that?
Asked by: Hon SHIU Ka-fai (LegCo internal reference no.: 21)
Reply:
Since the launch of the SME Financing Guarantee Scheme (SFGS) in 2012, the Government
has kept on introducing enhancement measures having regard to the economic situation of
Hong Kong and the needs of small and medium enterprises, including extending the
application period of the SFGS, increasing the maximum loan amount, extending the
maximum guarantee period, increasing the total government loan guarantee commitment, etc.
The Chief Executive announced in the 2024 Policy Address that the borrowing enterprises
under the SFGS be allowed to apply for the principal moratorium arrangement for up to 12
months, for both existing and new loans (the application period has started from 18 November
2024 and will end on 17 November 2025); the maximum loan guarantee periods of the 80%
Session 18 CEDB - Page 186
and 90% Guarantee Products be extended to 10 years and 8 years respectively; and the partial
principal repayment options be offered to new loans under the 2 guarantee products. The
application figures of the above enhancement measures as at end February 2025 are as
follows:
80% Guarantee 90% Guarantee Special 100%
Product Product Guarantee
(launched in (launched in Product
2012) 2019) (launched in
2020 and the
application
period ended in
end March
2024)
Principal Moratorium Arrangement
Number of Applications 96 167 1 680
Approved Note
Number of Benefitted 84 156 954
Enterprises
Extension of the Maximum Guarantee Period
Number of Applications Received
- New Loans 26 80
- Existing Loans 0 2
Number of Applications Approved
- New Loans 18 53 Not Applicable
- Existing Loans 0 2
Number of Benefitted Enterprises
- New Loans 18 53
- Existing Loans 0 2
Partial Principal Repayment Options
Number of Applications 0 0 Not Applicable
Approved
Note: The lending institutions will process the applications for the principal moratorium arrangement announced in the
2024 Policy Address in accordance with the relevant terms of the SFGS. Except for special circumstances (e.g.
a borrowing enterprise is in serious arrears or even facing liquidation), relevant applications will all be approved.
The Government and HKMC Insurance Limited, which is responsible for administering and
managing the SFGS, will continue to monitor the situation closely, and make necessary
adjustments to the SFGS having regard to the circumstances so as to meet the financing needs
of SMEs during the economic downturn.
- End -
Session 18 CEDB - Page 187
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB073
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0761)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
To support the development of local enterprises and help them go global, the Government
will inject $1.5 billion in total into the Dedicated Fund on Branding, Upgrading and Domestic
Sales (BUD Fund) and the Export Marketing and Trade and Industrial Organisation Support
Fund, and streamline application arrangements. Will the Government inform this
Committee of the following:
1. the estimated number of Hong Kong enterprises to be benefitted after the injection of
$1.5 billion into the two above-mentioned funds;
2. the specific measures to streamline application arrangements; and
3. given that the funding under “E-Commerce Easy” of the BUD Fund is currently provided
on a 1 (government): 1 (enterprise) matching basis, whether consideration will be given to
adjusting the funding ratio to further alleviate the burden on local enterprises?
Asked by: Hon SHIU Ka-fai (LegCo internal reference no.: 26)
Reply:
To continue to support the development of local enterprises and help them go global, the
2025-26 Budget announced the injection of $1.5 billion into the Dedicated Fund on Branding,
Upgrading and Domestic Sales (BUD Fund) and the Export Marketing and Trade and
Industrial Organisation Support Fund (EMTSF) (which covers expenditures of the SME
Export Marketing Fund (EMF) and the Trade and Industrial Organisation Support Fund).
This injection will be shared equally between the 2 funds. Together with the injection of
$1 billion into the BUD Fund announced in the 2024 Policy Address, the Government will
inject in total $1.75 billion and $0.75 billion respectively into the BUD Fund and the EMTSF.
Session 18 CEDB - Page 188
This is a testament to the Government’s unwavering commitment to supporting small and
medium enterprises (SMEs) continuously despite the current fiscal conditions.
The BUD Fund is expected to receive 3 600 applications in 2025 with an approved funding
amount of about $1.1 billion; while the EMF is expected to receive 30 920 applications in
2025 with an approved funding amount of about $573 million.
Supporting SMEs remains one of the Government’s important policies, but we are also
mindful of the fact that all support measures should be subject to constant review to ensure
that they remain effective in the ever-changing economic environment. On the one hand,
necessary support should be provided to SMEs in a timely, focussed and financially
sustainable manner. On the other hand, we need to carefully utilise public funds to ensure
that the Government could, within the limited resources available, effectively assist SMEs in
enhancing competitiveness to tackle the uncertainties of the global economy and developing
markets outside Hong Kong.
To this end, the Government has instituted several enhancement measures with respect to the
BUD Fund on 14 March 2025. Firstly, each applicant enterprise can submit 1 “Easy BUD”
application every 3 months, instead of 6 months. This will enable enterprises to obtain more
timely funding support given the streamlined application and vetting arrangements under
“Easy BUD”. Besides, the funding scope of “Easy BUD” has been expanded to include
establishment of online sales platform. Furthermore, to assist enterprises in coping with
trade protectionism and geopolitical tensions, the BUD Fund expressly provides funding
support for professional fees associated with the establishment of new business entities. We
have also expanded the geographical coverage of “E-commerce Easy” to the 10 countries of
the Association of Southeast Asian Nations, and stated in the Guide to Application that the
scope of the BUD Fund covers implementation of green transformation projects that assist
enterprises in business development. Specific measures include conducting carbon audits
for newly developed products to enter target markets, upgrading production lines or applying
new technologies to meet the environmental standards or legal requirements of target
markets, etc.
To focus our limited resources to equip enterprises for upgrading and transformation, the
Government will consolidate the EMF into the BUD Fund upon expiry of the former’s special
measure on 30 June 2026. This would attain synergy as the BUD Fund could also fund
promotional activities in the context of upgrading and transformation. At the same time, to
ensure financial sustainability of the two funding schemes, the Government has instituted
measures on 14 March 2025 such that the BUD Fund and the EMF will be utilised in the most
productive manner. Relevant measures include adjustments to the funding ceiling, matching
ratio, and rationalisation of other parameters of the BUD Fund and the EMF, as detailed at
the Annex. Among others, the matching ratio of the 2 funding schemes has been adjusted
from 1 (Government):1 (Enterprise) to 1:3 of the total approved expenditure, with a view to
encouraging enterprises to choose appropriate and cost-effective projects more prudently and
be more ready to put in resources. The Government would continue to keep in close touch
with the trade and review the funding schemes’ implementation, with a view to duly refining
our support to SMEs.
- End -
Session 18 CEDB - Page 189
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management
fees for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the
EMF with a view to controlling the maximum amount of funding, including the
funding ceiling, validity period of activities, restrictions on the number of repeated
applications of a similar nature on certain activities, etc.
Session 18 CEDB - Page 190
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB074
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1617)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Paragraph 116 of the Budget Speech mentions enhancing the mentorship scheme with the
Trade and Industry Department to enable Hong Kong businesses to better leverage
e-commerce and online shopping platforms in the Mainland to boost sales. Given Hong
Kong’s unique strengths in merchandise trade, are there any plans to formulate strategies to
encourage local on-line shopping platforms to go further by tapping into the Mainland and
overseas markets? For example, by referencing the current measure of the Mainland online
shopping platforms to provide free delivery to Hong Kong for single purchases of RMB99,
will there be encouragement provided to Hong Kong’s online shopping platforms to also set
corresponding spending thresholds for free direct delivery to the Mainland, thereby promoting
the development of e-commerce?
Asked by: Hon SO Cheung-wing (LegCo internal reference no.: 18)
Reply:
In view of the prosperous development of global electronic commerce (e-commerce), the
Commerce and Economic Development Bureau established the interdepartmental
E-commerce Development Task Force in January 2024 with a view to coordinating and
formulating policies and measures to encourage enterprises to grasp the enormous
opportunities brought about by cross-border e-commerce and develop more diversified
markets, including:
⚫ launching “E-commerce Easy” under the Dedicated Fund on Branding, Upgrading and
Domestic Sales in July 2024 to encourage small and medium enterprises (SMEs) to
implement e-commerce projects on the Mainland. Starting from 14 March 2025, the
geographical coverage of “E-commerce Easy” has been expanded to the 10 countries of
the Association of Southeast Asian Nations (ASEAN);
Session 18 CEDB - Page 191
⚫ organising, through the Hong Kong Trade Development Council (HKTDC), the
inaugural Hong Kong Shopping Festival on Mainland e-commerce platforms in August
2024. The 2nd edition of the Hong Kong Shopping Festival (HKSF) is scheduled for
August 2025, and will continue to bring together Hong Kong enterprises to offer
discounts in Mainland online stores and arrange enterprises to conduct livestreaming
promotion on Mainland e-commerce platforms. We will also launch the HKSF for the
ASEAN market in due course;
⚫ implementing the “E-Commerce Express” by HKTDC to strengthen support for SMEs
to tap into the Mainland market and increase e-commerce sales;
⚫ setting up more Hong Kong Pavilions by HKTDC in more Mainland and overseas
(including ASEAN) exhibitions and organising pop-up promotional campaigns to
showcase Hong Kong lifestyle/fashion design brands and products, with a view to
enhancing the exposure and competitiveness of Hong Kong brands in non-local markets,
helping Hong Kong brands connect with international buyers, thereby paving the way
for Hong Kong brands to develop cross-border e-commerce businesses. HKTDC will
also expand the geographical coverage of its Hong Kong Design Gallery online store to
the ASEAN region and organise online and offline promotion, with a view to enhancing
ASEAN consumers’ awareness of Hong Kong products and brands. These measures
will be gradually rolled out in 2025-26;
⚫ continuing the work of the Support and Consultation Centre for SMEs under the Trade
and Industry Department (TID) to take lead and cooperate with the other three SME
centres (including the “SME Centre” under HKTDC, the “SME One” under the Hong
Kong Productivity Council and the “TecOne” under the Hong Kong Science and
Technology Parks Corporation) to strengthen the provision of information to SMEs of
conducting e-commerce in the Mainland and ASEAN markets; and
⚫ enhancing support for SMEs to develop brands and expand the e-commerce sales
networks through organising a mentorship programme by TID.
The policy objective of the Government is, through the above measures, to provide
appropriate support to encourage and help local enterprises to develop cross-border
e-commerce business, thereby enhancing their competitiveness and developing more
diversified markets. Individual enterprises and online shopping platforms will, having
regard to the actual market situation, make corresponding commercial decisions in
formulating e-commerce marketing and sales strategies.
- End -
Session 18 CEDB - Page 192
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB075
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1618)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Paragraph 116 of the Budget Speech mentions giving further assistance to local small and
medium enterprises in tapping into the Mainland market and increasing electronic commerce
(e-commerce) sales through more sales channels. Paragraph 196 thereof also mentions
measures to encourage youth entrepreneurship in the real economy. In this connection, does
the Government have any plans to extent the support programme model for youth
entrepreneurship in the real economy to including the approach of adding sales channels,
thereby providing more e-commerce sales channels to encourage industries with no
significant time constraints to set up e-commerce outlets and to sell on multiple online
platforms, further enabling more profits and reinvesting in the programme?
Asked by: Hon SO Cheung-wing (LegCo internal reference no.: 19)
Reply:
The 2025-26 Budget announced that the Hong Kong Trade Development Council (HKTDC)
will implement the “E-Commerce Express” (“電子商務快車”) to strengthen support for
small and medium enterprises (SMEs) to tap into the Mainland market and increase electronic
commerce (e-commerce) sales. HKTDC has renamed the Chinese name of its service as
“電子商務快綫”. To address the pain points encountered by Hong Kong enterprises when
developing cross-border e-commerce on the Mainland, HKTDC will, in collaboration with
large-scale e-commerce or social media platforms, conduct a series of thematic training
seminars and research sharing sessions to cover practical topics including the Mainland and
overseas e-commerce market landscapes, legal compliance, operational strategies and
features of both traditional and emerging online shopping platforms, how to establish fanbase,
livestreaming production techniques, etc.
One of the key activities to be supported by the “E-Commerce Express” will be the 2nd edition
of the Hong Kong Shopping Festival (HKSF) scheduled for August 2025. The event aims
Session 18 CEDB - Page 193
at providing SMEs with practical experience in utilising e-commerce platforms to tap into the
Mainland market. To deepen participating enterprises’ understanding of the techniques in
operating on Mainland e-commerce and online shopping platforms and assist them in
promoting brand awareness, HKTDC will, under the “E-Commerce Express”, provide
one-on-one consultation services for HKSF participants. Marketing specialists will advise
Hong Kong enterprises on appropriate e-commerce strategies based on their individual
business needs and product features. The Trade and Industry Department will also enhance
support for SMEs to develop brands and expand the e-commerce sales networks through the
mentorship programme. These measures will provide more comprehensive support for
SMEs (including start-ups established by the youth) interested in tapping into the e-commerce
market.
- End -
Session 18 CEDB - Page 194
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB076
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1643)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned under Programme (2) that the Commerce and Economic Development Bureau
will continue to support the further development of wine and liquor-related businesses in
Hong Kong. The Secretary for Commerce and Economic Development recently indicated
that both the volume and total value of liquor sales had seen significant increases following
the reduction of liquor duty, which was aimed at developing Hong Kong into a trading hub
for high-end liquors, thereby boosting various sectors from catering and hotel to logistics and
warehousing, while hopefully facilitating Chinese baijiu going global through Hong Kong.
Will the Government inform this Committee of the latest figures on liquor sales, and the
concrete strategies and measures to promote the development of Hong Kong into a trading
hub for liquors in the coming year? In addition, will the Government proactively approach
Mainland baijiu manufacturers and facilitate the entering of Chinese baijiu into the
international market? In parallel, will the Government approach overseas liquor
manufacturers and help with the development of their businesses in China?
Asked by: Hon SO Cheung-wing (LegCo internal reference no.: 34)
Reply:
Since the reduction of duty rate on high-end liquor until late February this year (i.e. a
4.5-month period), we note that the volume of duty-paid liquor imported (in litre) rose by
more than 40% as compared with the 4.5-month period before the reduction of duty rate,
while its value went up significantly by 1.3 times, reflecting that the two tier system
introduced by the Government is effective in boosting high-end liquor trading. Moreover,
the trade grasped the opportunity brought about by the reduction of liquor duty and organised
various kinds of wine and spirits fairs, in which the proportion of liquor on sale has evidently
risen. Some liquor traders have also lowered the prices of liquors. The response of the
market has been positive.
Session 18 CEDB - Page 195
As a “super-connector” and “super value-adder”, Hong Kong not only provides an important
trading platform for Mainland liquor traders, assists Mainland liquor brands to “go global”,
but also assists foreign liquor brands to enter the Mainland market. For example, the Hong
Kong Tourism Board and the Hong Kong Trade Development Council (HKTDC) organised
the Hong Kong Wine and Dine Festival and the Hong Kong International Wine and Spirits
Fair (Wine and Spirits Fair) respectively in late 2024, attracting wine traders from different
regions. Taking the Wine and Spirits Fair organised by the HKTDC as an example, it
attracted over 600 exhibitors from 20 countries and regions. About 20% of the exhibitors
came from the Mainland and about 70% of the exhibitors came from overseas. The Irish
Whiskey Association even made its first appearance at the Wine and Spirits Fair in
Hong Kong. As for the participants, the Wine and Spirits Fair also attracted over 8 200
buyers from 61 countries and regions to visit and source different alcoholic beverages,
including liquors, showing that Hong Kong plays a positive role in connecting the Mainland
and international liquor markets and fostering trading of liquor.
In addition, the Government will, through the overseas Hong Kong Economic and Trade
Offices (ETOs) and the Mainland Offices, continue to actively disseminate information about
Hong Kong’s liquor market and introduce the liquor duty reduction initiative to liquor traders
in different regions with a view to attracting more Mainland and international liquor traders
to use Hong Kong as a sales platform and logistics hub in the region. For example, the
London ETO helped organise a seminar in January this year to explore the opportunities
brought about by liquor duty reduction. Furthermore, the Beijing Office also promoted the
advantages in developing liquor business in Hong Kong to local liquor enterprises. The
ETOs and Mainland Offices will continue to introduce the Hong Kong liquor market through
meetings with representatives from different business sectors or participating in different
events.
- End -
Session 18 CEDB - Page 196
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB077
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1066)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in paragraph 113 of the 2025-26 Budget Speech that the Government will
inject $1.5 billion in total into the Dedicated Fund on Branding, Upgrading and Domestic
Sales (BUD Fund) and the Export Marketing and Trade and Industrial Organisation Support
Fund (EMTSF). In this connection, will the Government inform this Committee of the
following:
⚫ Of the total injection of $1.5 billion as proposed in the Budget Speech, what are the
respective amounts of provision for the BUD Fund and the EMTSF?
⚫ What are the total number of projects approved under the EMTSF in the past 3 years
and the average processing time?
⚫ What are the total number of projects approved since the launch of “Easy BUD” in June
2023 and the average processing time?
⚫ Please set out in the following table the funding amounts for the approved projects under
the BUD Fund in the past 3 years:
Year Maximum funding amount approved Number of approved projects
2022-2023 $100,001-$300,000
$300,001-$500,000
$500,001-$1,000,000
2023-2024 $100,001-$300,000
$300,001-$500,000
$500,001-$1,000,000
2024-2025 $100,001-$300,000
$300,001-$500,000
$500,001-$1,000,000
Session 18 CEDB - Page 197
⚫ It is mentioned in the Budget Speech that the application arrangements for the BUD
Fund will be streamlined. What are the specific details and the related expenditures
and staff establishment?
⚫ It has been some 13 years since the launch of the BUD Fund in June 2012. In view of
the growing demand from enterprises for market expansion and the extension of the
geographical scope of the BUD Fund, will the Government consider relaxing the cap on
approved projects for applications from enterprises?
⚫ Many members of the commercial and industrial sectors have reflected that it will be
desirable to enhance the speed and efficiency in processing applications for the BUD
Fund and simplify the related procurement requirements. Does the Government have
any plans to simplify the application procedures and requirements of the BUD Fund?
Asked by: Hon TAN Sunny (LegCo internal reference no.: 17)
Reply:
To continue to support the development of local enterprises and help them go global, the
2025-26 Budget announced the injection of $1.5 billion into the Dedicated Fund on Branding,
Upgrading and Domestic Sales (BUD Fund) and the Export Marketing and Trade and
Industrial Organisation Support Fund (EMTSF) (which covers expenditures of the SME
Export Marketing Fund (EMF) and the Trade and Industrial Organisation Support Fund
(TSF)). This injection will be shared equally between the 2 funds. Together with the
injection of $1 billion into the BUD Fund announced in the 2024 Policy Address, the
Government will inject in total $1.75 billion and $0.75 billion respectively into the BUD Fund
and the EMTSF. This is a testament to the Government’s unwavering commitment to
supporting SMEs continuously despite the current fiscal conditions.
EMTSF
The number of applications approved and application processing time for the EMF and the
TSF in the past 3 years are as follows:
EMF TSF
Number of applications 61 868 56
approved
Application processing Within 30 working days Note 1 Within 60 working days Note 2
time
Note 1: Apart from a small portion of the applications for which the extension of processing time is needed in 2022 owing
to the special work arrangement during the pandemic, all applications could be processed within 30 working days
by the Trade and Industry Department (TID) upon receiving all required documents and information.
Note 2: The processing time refers to the time taken by the Secretariat to conduct preliminary assessment on an application
and submit recommendations to the Vetting Committee for decision. In the past 3 years, TID could complete
preliminary assessments and submission of recommendations of all applications to the Vetting Committee for
decision within 60 working days.
Session 18 CEDB - Page 198
The BUD Fund
Funding amounts of the applications approved under the BUD Fund in the past 3 years are as
follows:
Year Funding amounts approved Number of applications approved
2022 $100,000 or below 59
Over $100,000 to $300,000 108
Over $300,000 to $500,000 165
Over $500,000 to $1,000,000 1 003
2023 $100,000 or below 190
Over $100,000 to $300,000 148
Over $300,000 to $500,000 183
Over $500,000 to $1,000,000 1 169
2024 $100,000 or below 511
Over $100,000 to $300,000 192
Over $300,000 to $500,000 231
Over $500,000 to $1,000,000 1 737
The Government launched “Easy BUD” in June 2023 to expedite the vetting of applications
involving designated measures with a funding amount of $100,000 or below. As at end
February 2025, a total of 592 applications were approved. To date, all “Easy BUD”
applications could be processed within the performance pledge of 30 working days by the
Hong Kong Productivity Council (HKPC), the Programme Secretariat, upon receiving all
required documents and information.
The Government has instituted several enhancement measures with respect to the BUD Fund
on 14 March 2025. Firstly, each applicant enterprise can submit 1 “Easy BUD” application
every 3 months, instead of 6 months. This will enable enterprises to obtain more timely
funding support given the streamlined application and vetting arrangements under “Easy
BUD”. Besides, the funding scope of “Easy BUD” has been expanded to include
establishment of online sales platform. To assist enterprises in coping with trade
protectionism and geopolitical tensions, the BUD Fund also expressly provides funding
support for professional fees associated with the establishment of new business entities. We
have also expanded the geographical coverage of “E-commerce Easy” to the 10 countries of
the Association of Southeast Asian Nations, and stated in the Guide to Application that the
scope of the BUD Fund covers implementation of green transformation projects that assist
enterprises in business development. Specific measures include conducting carbon audits
for newly developed products to enter target markets, upgrading production lines or applying
new technologies to meet the environmental standards or legal requirements of target
markets, etc.
To focus our limited resources to equip enterprises for upgrading and transformation, the
Government will consolidate the EMF into the BUD Fund upon expiry of the former’s special
measure on 30 June 2026. This would attain synergy as the BUD Fund could also fund
promotional activities in the context of upgrading and transformation. At the same time, to
ensure financial sustainability of the two funding schemes, the Government has instituted
measures on 14 March 2025 such that the BUD Fund and the EMF will be utilised in the most
productive manner. Relevant measures include adjustments to the funding ceiling, matching
Session 18 CEDB - Page 199
ratio, and rationalisation of other parameters of the BUD Fund and the EMF, as detailed at
the Annex.
The Government has launched several rounds of enhancements to the BUD Fund since
August 2018, including increasing by phases considerably the quota of approved projects per
enterprise from 3 when BUD Fund was established to 70 now. As at end February 2025, no
enterprise has used up the project quota of 70, and the number of enterprises with 10 or more
approved projects accumulatively only accounts for 0.3% of the total. We believe that the
project quota of 70 can meet the needs of enterprises.
The manpower and expenditure of the Commerce and Economic Development Bureau and
TID for implementing the BUD Fund have been subsumed under the respective overall
establishment and estimates, and cannot be quantified separately. The estimated
expenditure of the BUD Fund in 2025-26 is $1.292 billion, including the manpower and other
fees provided to HKPC as the Programme Secretariat for implementing the BUD Fund, as
well as disbursements to grantees.
- End -
Session 18 CEDB - Page 200
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management
fees for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the
EMF with a view to controlling the maximum amount of funding, including the
funding ceiling, validity period of activities, restrictions on the number of repeated
applications of a similar nature on certain activities, etc.
Session 18 CEDB - Page 201
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB078
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1069)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Paragraphs 106 to 108 of the Budget mention the development of Hong Kong into a
multinational supply chain management centre. The Hong Kong Trade Development
Council (HKTDC) and InvestHK jointly encourage Mainland enterprises to establish a
foothold in Hong Kong and set up international or regional headquarters for managing
offshore trading and supply chain. In addition, export credit insurance measures have all
along been the key support to Hong Kong exporters in expanding into global markets. In
this connection, will the Government inform this Committee of the following:
⚫ Paragraph 106 mentions that the HKTDC will provide one-stop professional consulting
services to help Mainland enterprises having a presence in Hong Kong establish market
connections and understand laws and regulations in overseas markets. In this regard,
which areas will be covered according to the specific terms and specifications of these
services? Are the services free of charge?
⚫ Paragraph 107 mentions that the Hong Kong Export Credit Insurance Corporation
(HKECIC) will provide credit insurance for export services relating to multinational
supply chain. What are the specific support measures and requirements?
⚫ I propose that we should draw on the successful “risk sharing arrangement on domestic
sales in the Mainland” introduced by the HKECIC to help Hong Kong improve and
develop sound industry and supply chains. How will the authorities review and
improve the arrangement, and enhance co-operation with insurance and financial
institutions so as to remove barriers to entry into domestic sales markets by enterprises,
better seizing the opportunities arising from the development pattern featuring dual
circulation?
⚫ The Budget mentions that we need to attract more investment and enterprises from the
Global South markets, and that we will further cultivate the ASEAN and Middle East
Session 18 CEDB - Page 202
markets, explore opportunities in Central Asia, South Asia and North Africa. In this
regard, will the authorities consider, taking the “risk sharing arrangement on domestic
sales in the Mainland” as a model, extending the practice to the above emerging market
economies like the ten ASEAN countries, Central Asia and the Middle East?
Asked by: Hon TAN Sunny (LegCo internal reference no.: 18)
Reply:
The global trade landscape and geopolitics are rapidly changing, with parts of the supply
chains shifting to the Global South and Belt and Road countries, while Mainland enterprises
are also proactively establishing their presence abroad. To cope with this trend, it was
announced in the 2024-25 Budget that the Government’s goal was to develop Hong Kong
into a multinational supply chain management centre. In his 2024 Policy Address, the Chief
Executive further requested Invest Hong Kong (InvestHK) and the Hong Kong Trade
Development Council (HKTDC) to set up a high value-added supply chain services
mechanism for attracting Mainland enterprises to establish international or regional
headquarters in Hong Kong for managing offshore trading and supply chain, and providing
one-stop professional advisory services for enterprises in Hong Kong looking to go global.
In December 2024, InvestHK and HKTDC established the above mechanism to jointly
encourage Mainland enterprises to establish presence in Hong Kong.
Through its Dedicated Teams for Attracting Businesses and Talents based in the Mainland
Offices, InvestHK is proactively organising activities under the theme of multinational supply
chains, so as to actively reach out to more Mainland enterprises for investment promotion
work. As at end February 2025, InvestHK had organised and co-organised around 20
relevant investment promotion activities in various Mainland cities, including Hangzhou,
Nanjing and Xiamen, etc. within around 1 year’s time.
Meanwhile, HKTDC is providing one-stop professional advisory services for enterprises in
Hong Kong and, through its overseas offices, rendering on-site support services. These
services include assisting enterprises in establishing connections with overseas markets and
understanding overseas laws and regulations; providing market research covering various
emerging markets such as the Middle East, Central Asia and Latin America; as well as
providing information on various areas including environmental, social and governance
(ESG), testing and certification and export credit risk management. Furthermore, in view
that Hong Kong’s business sector possesses rich knowledge and profound experience in
handling compliance, labour protection, environmental protection and other requirements of
overseas markets, HKTDC facilitates collaboration between enterprises and different
organisations and industry stakeholders to provide ESG training, etc. for Mainland enterprises
seeking to expand their reach to overseas markets. This will help them build goodwill with
business partners and expand their markets.
Besides, the Hong Kong Export Credit Insurance Corporation (ECIC) will provide credit
insurance for export services relating to multinational supply chain. ECIC’s policies cover
not only export products shipped and re-exported from Hong Kong, but also those shipped
directly from suppliers' countries (such as the Mainland China, Macau and other Southeast
Asian countries, etc.) to their destinations without passing through Hong Kong. ECIC also
assists Hong Kong exporters in securing trade financing from banks or financial institutions
Session 18 CEDB - Page 203
by providing different types of insurance policies and supports Hong Kong freight service
providers to provide services to overseas customers (such as multinational retailers). The
above measures can render more comprehensive support for enterprises seeking to go global.
To facilitate Hong Kong exporters in expanding into Mainland and emerging markets, ECIC
has increased the number of free buyer credit checks from 12 to 20.
A total of 6 banks have participated in the “Risk-sharing arrangement on domestic sales in
the Mainland” launched by ECIC on a pilot basis in June 2023. Participating banks will
conduct assessment on buyers’ profiles and approve credit limits, and share the non-payment
risks with ECIC. The credit limit for each buyer group is up to HK$100 million. ECIC
will closely monitor the latest market trends, review existing measures and make necessary
adjustments based on actual circumstances to provide appropriate support for exporters.
ECIC is also proactively stepping up cooperation with insurance and financial institutions
(including the China Export & Credit Insurance Corporation) to better understand the credit
information of buyers in the Mainland and emerging markets, enabling Hong Kong
enterprises to seize the opportunities arising from dual circulation and emerging markets.
- End -
Session 18 CEDB - Page 204
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB079
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1071)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic
Development (Ms Maggie Wong)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is proposed in paragraphs 111 to 112 of the Budget Speech that co-operation with Belt and
Road (B&R) countries be strengthened, and the Government, together with business and
professional services sectors, will continue to further cultivate the ASEAN and Middle East
markets, and explore opportunities in Central Asia, South Asia, and North Africa. Will the
Government inform this Committee of the following:
⚫ What are the Government’s specific development strategies and action plans for the 5
emerging markets, namely the ASEAN, Middle East, Central Asia, South Asia, and
North Africa? How does the Government determine the priorities of each market in the
allocation of resources and funding? Are there specific indicators or evaluation criteria
to ensure the effective utilisation of resources and maximise returns?
⚫ In exploring the Central Asia, South Asia, and North Africa markets, how will the
Government evaluate the opportunities for co-operation with these regions? What
economic benefits are expected to be brought to Hong Kong? In addition, what specific
industries or enterprises does the government wish to attract? Is there a list of potential
partners or specific plans for co-operation?
⚫ What are the resources and provision earmarked this year for organising outbound
missions to the B&R countries? What is the main purpose of these visits? Are there
any plans to visit countries in Central Asia, South Asia, and North African?
⚫ To support the exploration of the aforementioned 5 emerging markets, what is the staff
establishment and expenditure of the Belt and Road Office this year? Will there be any
increase or decrease in the staff establishment and estimated expenditure this year to take
forward the work?
⚫ It is mentioned in paragraph 112 of the Budget Speech that the Government encourages
different sectors to hold events around the B&R Summit in September for enhancing
Session 18 CEDB - Page 205
synergy. In this connection, will the Government provide assistance or funding for the
events so as to attract more organisations from different sectors to show their support?
⚫ It was proposed in the 2024-25 Budget that a new Belt and Road Festival be launched.
It is learnt that the Festival was held in September last year. What are the total
expenditure and effectiveness of the Festival? Will the Festival continue to be held this
year? If yes, what are the details and the proposed schedule of the Festival? If not,
what are the reasons?
Asked by: Hon TAN Sunny (LegCo internal reference no.: 19)
Reply:
The Government is committed to consolidating Hong Kong’s role as the functional platform
for the Belt and Road (B&R) Initiative. We, together with businesses and professional
services sectors, will further cultivate the Association of Southeast Asian Nations (ASEAN)
and Middle East markets, as well as exploring opportunities in Central Asia, South Asia, and
North Africa, to help drive all-round, multi-field collaboration for mutual benefit to Hong
Kong and B&R countries and regions, thereby laying a solid foundation for long-term
exchange and co-operation.
The Belt and Road Office (BRO) of the Commerce and Economic Development Bureau has
liaised closely with Consul Generals from B&R countries in Hong Kong, representatives of
professional bodies and enterprises, and other relevant stakeholders to understand the
potential for co-operation in the B&R region, with a view to better assisting businesses to
expand B&R business opportunities.
The Government will further cultivate the ASEAN and Middle East markets through a range
of measures, as well as exploring opportunities in Central Asia, South Asia, and North Africa,
including:
⚫ Expanding economic and trade networks – The Government will continue to expand our
economic and trade networks, with a view to facilitating Hong Kong enterprises and
investors in expanding into the B&R markets and promoting the long-term economic
development of Hong Kong. Currently, the Government has 16 offices/liaison units in
the Mainland and 14 overseas Hong Kong Economic and Trade Offices (ETOs).
Together with the offices of Invest Hong Kong (InvestHK) and the Hong Kong Trade
Development Council (HKTDC) worldwide, Hong Kong has set up offices in 68 cities
around the world, covering 129 countries. The Government is following up actively on
the establishment of ETOs in Kuala Lumpur, Malaysia and Riyadh, Saudi Arabia. In
addition, since the current-term Government took office, InvestHK set up consultant
offices in Nairobi, Kenya and Almaty, Kazakhstan in 2022, Cairo, Egypt in 2024, and
Izmir, Türkiye in January this year to explore emerging markets in the regions. HKTDC
has also set up a consultant office in Phnom Penh, Cambodia.
⚫ Negotiating and signing bilateral agreements – Hong Kong has signed agreement on
9 Free Trade Agreements (FTAs) with 21 economies (including B&R economies) so far,
and will continue to seek to enter into FTAs with other economies. Hong Kong has also
signed 24 Investment Promotion and Protection Agreements (IPPAs) with 33 overseas
Session 18 CEDB - Page 206
economies (including B&R economies), and is negotiating IPPAs with Bangladesh and
Saudi Arabia with a view to concluding the negotiations as soon as possible.
⚫ Organising outbound missions – The Government will continue to organise outbound
missions for business sector and professional services to B&R countries, and will also
deepen collaborations and exchanges arising from co-operation along the Silk Road
Economic Belt, so as to assist Hong Kong enterprises and professional services to further
expand business opportunities and build up collaborative relationships with relevant local
enterprises and organisations.
⚫ Organising major events – BRO has organised 10 exchange sessions since November
2023, inviting Consul Generals from B&R countries in Hong Kong, as well as
representatives of professional bodies and enterprises, to share the opportunities and
relevant experiences in B&R countries.
In April 2024, BRO partnered with NEOM of Saudi Arabia to organise the “Discover
NEOM Hong Kong” roadshow, which attracted around 1 100 participants, including
enterprises, investors and professional representatives from the Mainland (including the
Greater Bay Area) and Hong Kong. During the roadshow, BRO organised 2 business
matching sessions, facilitating potential collaborations of around 40 Hong Kong and
Mainland enterprises with NEOM.
The B&R Summit (the Summit) is the flagship platform for Hong Kong to participate in
and contribute to the B&R Initiative. The 9th Summit, held on 11-12 September 2024,
attracted around 6 000 government officials, business leaders and representatives from
enterprises from over 70 B&R countries and regions. Various stakeholders from
different sectors actively organised a series of B&R-related activities around the period
of the 9th Summit, including exhibitions, seminars, exchange events and cultural
performances, covering areas such as trade and business, legal, innovation and
technology, health, anti-corruption capacity building and culture, etc. These events
created synergy with the 9th Summit, thereby promoting co-operation between
Hong Kong and B&R countries and regions in a wide range of areas. It also promoted
Hong Kong as an important platform for showcasing people-to-people bonds and
fostering cultural exchanges. The 10th Summit will be held in September 2025 and we
will encourage different sectors to hold events around the Summit period for enhancing
synergies.
BRO organised the B&R Cross-professional Forum on 14 February 2025 to promote
Hong Kong’s professional services to deepen the sectors’ collaboration with business
communities of B&R countries and the Mainland. It also provided a platform for
enterprises from the 3 sides to exchange views on collaboration projects in various areas
such as multinational supply chain management and construction, with a view to jointly
seizing new opportunities brought by the B&R. It attracted over 250 business
participants from Hong Kong, the Mainland and B&R countries.
Relevant indicators on continuing to promote Hong Kong as the functional platform for the
B&R Initiative in 2025 include organising promotional programmes and networking sessions
to be attended by no less than 7 500 persons in total; reaching out to no less than 560
Session 18 CEDB - Page 207
professional and business associations, chambers and community groups; and organising
business missions to 5 B&R countries with about 120 participants in total.
In 2025-26, the establishment of BRO will remain unchanged at 19 and the estimated overall
expenditure will be about $40.185 million. The expenditure for the above-mentioned
measures has been subsumed under the overall estimate and cannot be quantified separately.
- End -
Session 18 CEDB - Page 208
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB080
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1075)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (2) of Head 152, the Commerce and Economic Development Bureau will
continue to co-ordinate bureaux and departments in formulating policies and measures on the
development of cross-border e-commerce, and work with the Hong Kong Trade Development
Council (HKTDC) and the Trade and Industry Department (TID) to assist small and medium
enterprises (SMEs) in developing e-commerce business. In this connection, will the
Government inform this Committee of the following:
⚫ How many funded projects have been approved under “E-commerce Easy” since its
launch in July 2024 to March 2025? What is the average amount of funding?
⚫ It is mentioned in paragraph 116 of the Budget Speech that the HKTDC will launch the
“E-Commerce Express” to assist local SMEs in tapping into the Mainland market and
increasing sales from e-commerce markets. When will this scheme be officially
launched? What are the specific details? Which industries will be accorded priority
to receive the support? What is the duration of services available for each Hong Kong
enterprise?
⚫ As mentioned in the Budget, the HKTDC will launch the “E-Commerce Express” in
collaboration with large-scale e-commerce platforms to provide Hong Kong enterprises
with one-to-one consultation services and thematic seminars. However, the
Transformation Sandbox and the Digital Academy of the HKTDC are providing similar
business advisory services, workshops and seminars, while the Support and Consultation
Centre for Small and Medium Enterprises under the TID is also organising business
seminars and workshops. How is the “E-Commerce Express” different from the above
supporting initiatives? What are its unique and value-added features?
⚫ Currently, both “E-commerce Easy” and “E-Commerce Express” aim to support
Hong Kong enterprises in implementing e-commerce projects in the Mainland. At the
Session 18 CEDB - Page 209
same time, the Budget mentions about the exploration of emerging markets in the
Association of Southeast Asian Nations, Middle East, Central Asia, South Asia and North
Africa. Will the Government consider extending the coverage of the two schemes to
the markets in these five regions, so as to facilitate the early entry of SMEs into the
emerging e-commerce markets for seizing business opportunities?
Asked by: Hon TAN Sunny (LegCo internal reference no.: 20)
Reply:
“E-commerce Easy” under the Dedicated Fund on Branding, Upgrading and Domestic Sales
(BUD Fund)
To assist Hong Kong enterprises in developing the Mainland market through electronic
commerce (e-commerce), the Government launched “E-commerce Easy” under the BUD
Fund on 15 July 2024 to allow each enterprise to make use of $1 million funding flexibly
within the cumulative funding ceiling of $7 million per enterprise for implementing
e-commerce projects on the Mainland. From the launch of “E-commerce Easy” in July 2024
to end February 2025, a total of 43 applications were approved or approved with conditions.
The average funding amount of the approved applications is about $576,000.
On 14 March 2025, the Government has instituted enhancement measures and other measures
under the BUD Fund and the SME Export Marketing Fund to rationalise the operation and
ensure financial sustainability of the 2 funding schemes (see the Annex). The Government
has also implemented the enhancement measures for “E-commerce Easy” announced in the
2024 Policy Address, expanding its geographical coverage to the 10 countries of the
Association of Southeast Asian Nations (ASEAN) to further support Hong Kong enterprises
to develop the ASEAN market through e-commerce business. We will keep on reviewing
the operational arrangements of “E-commerce Easy” and, having regard to actual
circumstances, duly consider making appropriate adjustments, including its applicable
geographical coverage.
“E-Commerce Express”
The 2025-26 Budget announced that the Hong Kong Trade Development Council (HKTDC)
will implement the “E-Commerce Express” (“電子商務快車”) to strengthen support for
small and medium enterprises (SMEs) to tap into the Mainland market and increase
e-commerce sales. HKTDC has renamed the Chinese name of the service as “電子商務快
綫”. To address the pain points encountered by Hong Kong enterprises when developing
cross-border e-commerce on the Mainland, HKTDC will, in collaboration with large-scale
e-commerce or social media platforms, conduct a series of thematic training seminars and
research sharing sessions, with a view to providing more comprehensive support for SMEs
interested in tapping into the e-commerce market.
HKTDC plans to organise at least 5 seminars under the “E-Commerce Express” in the first
half of 2025, featuring the following topics:
⚫ inviting specialists to provide practical guidance on legal compliance, requirements of
specific platforms and common pitfalls, and to introduce common payment tools on the
Session 18 CEDB - Page 210
Mainland as well as taxation issues to which enterprises engaging in e-commerce on the
Mainland should pay particular attention;
⚫ exploring development trends of traditional e-commerce and social platforms, and how
Hong Kong brands could choose suitable platforms to establish market influences;
⚫ exploring practical strategies for opening online stores on the Mainland e-commerce and
social platforms, understanding those platforms’ traffic patterns and consumer behaviour,
discussing how to promote brands on those platforms and reach out to new consumer
groups; and
⚫ exploring marketing strategies to promote Hong Kong brands and products on Mainland
e-commerce and social platforms, how to establish “organic communities” for natural
dissemination and create popular promotional contents, analysing the opportunities and
challenges of livestreaming promotion, understanding the ecosystem and hierarchical
structure of Mainland key opinion leaders (KOLs)/anchors and how to select and invite
appropriate KOLs/anchors for cooperation, etc.
Besides, one of the key activities to be supported by the “E-Commerce Express” will be the
2nd edition of the Hong Kong Shopping Festival (HKSF) scheduled for August 2025. The
event aims at providing SMEs with practical experience in utilising e-commerce platforms to
tap into the Mainland market. To deepen participating enterprises’ understanding of the
techniques in operating on Mainland e-commerce and online shopping platforms and assist
them in promoting brand awareness, HKTDC will, under the “E-Commerce Express”, provide
one-on-one consultation services for HKSF participants. Marketing specialists will advise
Hong Kong enterprises on appropriate e-commerce strategies based on their individual
business needs and product features. The “E-Commerce Express” consists of various
activities and seminars for enterprises to participate. We have no plan to set service duration
for each enterprise.
As the Mainland e-commerce market is mature, the Government targets at the Mainland
market in the first phase of work in promoting e-commerce development. Drawing on the
experience in implementing the “E-Commerce Express” and organising the HKSF, and
having regard to the needs of the trade and latest situation of the e-commerce market, we will
review and enhance various measures to support enterprises to develop brands and expand
e-commerce sales, including developing target markets for e-commerce business. The
ASEAN market is the next target in which the Government will encourage enterprises to
develop cross-border e-commerce businesses. We will announce the details of launching
the HKSF for the ASEAN market in due course.
The HKTDC Transformation Sandbox programme (T-box) aims at helping Hong Kong
enterprises enhance their competitiveness and achieve goals of upgrading and transformation
through business advisory services, workshops, provision of information on government
funding and networking opportunities, etc. It covers various areas including brand
upgrading, digital transformation, manufacturing and supply chain solutions, market
expansion and sustainable development. Meanwhile, the Digital Academy offers various
online courses to help local SMEs enhance their digital competitiveness, covering 4 core
areas, namely e-commerce, digital marketing, content marketing and cross-border business.
On the other hand, the “Support and Consultation Centre for Small and Medium Enterprises”
Session 18 CEDB - Page 211
(SUCCESS) under the Trade and Industry Department and the other 3 SME centres (namely
the “SME Centre” under HKTDC, the “SME One” under the Hong Kong Productivity
Council and the “TecONE” under the Hong Kong Science and Technology Parks
Corporation) provide “four-in-one” integrated services for enterprises, facilitating SMEs in
obtaining general business information (including but not limited to information related to
e-commerce), as well as information on various funding schemes and support services. The
above schemes/measures are complementary to the “E-Commerce Express” and provide
comprehensive assistance for SMEs to develop more diversified markets (including
e-commerce markets).
- End -
Session 18 CEDB - Page 212
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management
fees for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the
EMF with a view to controlling the maximum amount of funding, including the
funding ceiling, validity period of activities, restrictions on the number of repeated
applications of a similar nature on certain activities, etc.
Session 18 CEDB - Page 213
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB081
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1079)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in Programme (2) Commerce and Industry of Head 152 that the work of the
Commerce and Economic Development Bureau includes formulating policies to attract more
external direct investment into Hong Kong and support small and medium enterprises, as well
as leading and co-ordinating the work on the Belt and Road Initiative (B&RI). In this
connection, will the Government advise this Committee of the following:
(1) According to Programme (2), the revised estimate of $13.46 billion for 2024-25 is
130.9% higher than the original estimate for 2024-25, while the estimate of $12.9 billion
for 2025-26 is $500 million less than that of last year. In this regard, what are the main
reasons for the changes and variations in the relevant estimates?
(2) What specific work was done by the Government and its overseas Economic and Trade
Offices in the past year to support and maintain ties with Hong Kong enterprises setting
up factories and doing business in the Mainland, the Association of Southeast Asian
Nations and the Middle East? What specific work was done in the past to deepen
co-operation with organisations such as chambers of commerce and trade associations
established overseas by Hong Kong enterprises to facilitate unimpeded trade for local
enterprises?
(3) The Government has stated that, in 2025-26, it will continue to proactively consolidate
Hong Kong’s unique advantages and positioning as the functional platform for the
B&RI by reinforcing co-operation with relevant Mainland authorities and maintaining
ties with other stakeholders and governments along the Belt and Road. In this regard,
what plans does the Government have to strengthen collaboration with Mainland
authorities in the future? What specific sectors or industries are involved? Apart
from Mainland authorities, will there be enhanced collaboration with stakeholders such
as the Mainland government units-in-charge, as well as trade associations, chambers of
Session 18 CEDB - Page 214
commerce and entrepreneurs associations of different sectors in the Mainland to help
various sectors in Hong Kong to deeply integrate into the country’s development?
(4) According to my understanding, many government agencies, industry organisations and
enterprises of the Mainland have liaised and interfaced with relevant industry
associations in Hong Kong to learn about establishing a foothold in Hong Kong and
going global through leveraging the city’s international business environment. For
instance, the Pearl River Delta Council of the Federation of Hong Kong Industries, as
well as the Textile Council of Hong Kong Limited and its member associations, etc.
have come across a number of such cases. In this regard, will the Government consider
strengthening efforts across different industry sectors by offering financial and policy
support to chambers of commerce and business associations of various industries in
Hong Kong, with a view to enabling them to deeply integrate with their Mainland and
overseas counterparts, thereby facilitating Hong Kong’s investment promotion work?
(5) The Government has stated that it will continue to work with Trade and Industry
Department (“TID”) and Hong Kong Productivity Council (“HKPC”) to implement the
BUD Fund in 2025-26, and targeted funding support will be provided for enterprises to
implement green transformation projects. In this connection, what are the relevant
plans and details? Will additional expenditure or provision be involved? How will
the Government provide targeted funding support for the green transformation of
enterprises?
Asked by: Hon TAN Sunny (LegCo internal reference no.: 11)
Reply:
(1) The 2024-25 revised estimate under Programme (2) Commerce and Industry is $7.6348
billion (130.9%) higher than the original estimate, with the increased provisions (about
98% and 2% respectively) allocated to the SME Financing Guarantee Scheme (SFGS)
– Guarantee Products and the Incentive Scheme for Recurrent Exhibitions (ISRE) due
to the expected increase in the cash flow requirement of these 2 schemes in 2024-25.
Besides, the 2025-26 estimate is $559.8 million (4.2%) lower than the 2024-25 revised
estimate, with the decreased provision under the SFGS – Guarantee Products and ISRE
(about 89% and 17% respectively) due to the expected decrease in the cash flow
requirement of these 2 schemes in 2025-26. The decrease is partly offset by the
increase in personal emoluments and operating expenses.
(2) Over the past year, apart from collaborating with the relevant overseas Hong Kong
agencies to promote and tell the good stories of Hong Kong, the overseas Hong Kong
Economic and Trade Offices (ETOs) continued to maintain close liaison with local
business communities and organisations, with a view to keeping them abreast of Hong
Kong’s latest developments as well as advantages in various aspects, and encouraging
them to do business and invest in Hong Kong. The ETOs were also committed to
encouraging enterprises and investors in the countries/regions under their purview
(including the Association of Southeast Asian Nations and the Middle East) to leverage
the unique advantages of Hong Kong under “One Country, Two Systems”, including
Hong Kong’s status as an international innovation and technology hub, and the
established strengths in financial services, trade and shipping. Such work not only
Session 18 CEDB - Page 215
helped enhance Hong Kong’s image, but also fostered the business connections between
Hong Kong and relevant countries/regions.
(3) The Belt and Road Office (BRO) under the Commerce and Economic Development
Bureau (CEDB) has been maintaining close contact with Central Ministries and relevant
Mainland authorities and organisations to better facilitate Hong Kong enterprises and
professional services in exploring business opportunities along the Belt and Road
(B&R). The Hong Kong Special Administrative Region (HKSAR) Government, the
National Development and Reform Commission and relevant central ministries hold the
Joint Conference on Advancing Hong Kong's Full Participation in and Contribution to
the Belt and Road Initiative (B&RI) every year to discuss the HKSAR Government’s
achievements and work proposals in various aspects in promoting the B&RI. The
HKSAR Government officials attending the conference would be led by the Secretary
for Justice in his capacity as the chairperson of the Working Group on Belt and Road
Development under the Steering Group on Integration into National Development.
Moreover, the B&R Summit (the Summit) is the flagship platform for Hong Kong to
participate in and contribute to the B&RI. The 9th Summit, held on 11-12 September
2024, attracted around 6 000 government officials, business leaders and representatives
of enterprises from over 70 B&R countries and regions, including government officials
from about 10 countries and about 80 prominent international business leaders, as well
as over 100 delegations and 38 central state-owned enterprises from the Mainland.
BRO will continue to liaise closely with Central Ministries, Consul Generals from B&R
countries in Hong Kong, representatives of professional bodies and enterprises and other
relevant stakeholders.
(4) On attracting businesses and investment, Invest Hong Kong (InvestHK) will continue
to collaborate with relevant organisations, chambers of commerce, and professional
bodies (including industry associations), etc., to organise investment promotion
activities, including meetings, conferences, roadshows, seminars, exhibitions, etc., with
a view to attracting Mainland and overseas enterprises from various sectors to set up or
expand their businesses in Hong Kong.
The global trade landscape and geopolitics are rapidly changing, with parts of the supply
chains shifting to the Global South and B&R countries, while Mainland enterprises are
also proactively establishing their presence abroad. To cope with this trend, it was
announced in the 2024-25 Budget that the Government’s goal was to develop Hong
Kong into a multinational supply chain management centre. In his 2024 Policy
Address, the Chief Executive further requested InvestHK and the Hong Kong Trade
Development Council (HKTDC) to set up a high value-added supply chain services
mechanism for attracting Mainland enterprises to establish international or regional
headquarters in Hong Kong for managing offshore trading and supply chain, and
providing one-stop professional advisory services for enterprises in Hong Kong looking
to go global. In December 2024, InvestHK and HKTDC established the above
mechanism to jointly encourage Mainland enterprises to establish presence in
Hong Kong.
Through its Dedicated Teams for Attracting Businesses and Talents based in the
Mainland Offices, InvestHK is proactively organising activities under the theme of
multinational supply chains, so as to actively reach out to more Mainland enterprises for
Session 18 CEDB - Page 216
investment promotion work. As at end-February 2025, InvestHK had organised and
co-organised around 20 relevant investment promotion activities in various Mainland
cities, including Hangzhou, Nanjing and Xiamen, etc. within around one year’s time.
Meanwhile, HKTDC is providing one-stop professional advisory services for
enterprises in Hong Kong and, through its overseas offices, rendering on-site support
services. These services include assisting enterprises in establishing connections with
overseas markets and understanding overseas laws and regulations; providing market
research covering various emerging markets such as the Middle East, Central Asia and
Latin America; as well as providing information on various areas including
environmental, social and governance (ESG), testing and certification and export credit
risk management. Furthermore, in view that Hong Kong’s business sector possesses
rich knowledge and profound experience in handling compliance, labour protection,
environmental protection and other requirements of overseas markets, HKTDC
facilitates collaboration between enterprises and different organisations and industry
stakeholders to provide ESG training, etc. for Mainland enterprises seeking to expand
their reach to overseas markets. This will help them build goodwill with business
partners and expand their markets.
(5) The Chief Executive announced in the 2024 Policy Address that the Dedicated Fund on
Branding, Upgrading and Domestic Sales (BUD Fund) would provide targeted funding
support for enterprises to implement green transformation projects. We have stated in
the Guide to Application that the funding scope of the BUD Fund covers implementation
of green transformation projects in assisting enterprises in their business development.
Specific measures include conducting carbon audits for newly developed products to
enter target markets, upgrading production lines or applying new technologies to meet
the environmental standards or legal requirements of target markets, etc. Enterprises
may apply for funding support to implement green transformation projects through the
general application track of the BUD Fund. The funding ceiling for each approved
application is $800,000.
The manpower and expenditure of CEDB and the Trade and Industry Department for
implementing the BUD Fund have been subsumed under the respective overall
establishment and estimates, and cannot be quantified separately. The estimated
expenditure of the BUD Fund in 2025-26 is $1.292 billion, including the manpower and
other fees provided to the Hong Kong Productivity Council as the Programme
Secretariat for implementing the BUD Fund, as well as disbursements to grantees.
- End -
Session 18 CEDB - Page 217
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB082
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2604)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is stated in the Budget that the Hong Kong Trade Development Council will promote
awareness of Hong Kong brands, including silver product brands on Mainland e-commerce
platforms to develop the national domestic sales market, and complement the Government’s
efforts in promoting the development of silver economy by incorporating “silver economy”
elements into more trade fairs and exhibitions to enhance the promotion of relevant products
and services. In this connection, please inform this Committee of the following:
(i) What are the details of the plans to promote silver product brands on Mainland
e-commerce platforms, as well as the expenditure and staffing arrangement involved in
2025-26?
(ii) Please tabulate the time, scale, expenditure and effectiveness of the events launched at
the fairs and exhibitions incorporated with “silver economy” elements in 2024-25.
Asked by: Hon TAN Yueheng (LegCo internal reference no.: 11)
Reply:
The requested information is set out below:
(i) Relevant work is conducted with the existing manpower. The expenditure required for
promoting silver economy has been subsumed under the overall estimated expenditure
of the Commerce and Economic Development Bureau (CEDB) and the Hong Kong
Trade Development Council (HKTDC). It cannot be quantified separately.
In terms of boosting “silver consumption”, the CEDB is proactively encouraging the
business sector to give prominence to silver elements in their business operation
(including more exhibitions), and to offer to the market more products and services that
Session 18 CEDB - Page 218
better meet silver consumers’ needs. This aims to provide the silver community with
a wide array of choices, thereby promoting the development of the silver economy.
(ii) In 2024-2025, HKTDC set up a dedicated zone “Smart Ageing” and arranged silver
element programmes at exhibitions such as Hong Kong International Optical Fair, the
Asia Summit on Global Health, and Hong Kong International Medical and Healthcare
Fair. In addition, the Chinese Manufacturers’ Association of Hong Kong also
introduced special offers for silver consumers at the 58th Hong Kong Brands and
Products Expo organised in end-2024.
- End -
Session 18 CEDB - Page 219
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB083
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2605)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As the Budget indicates that the Government continued to implement measures to underpin
the further development of wine-related businesses in Hong Kong, including wine trade
promotion and the facilitation scheme for wine re-exports to the Mainland. In this
connection, will the Government inform this Committee:
(1) as data reveal that the total value of wine imports declined for 3 consecutive years from
2022 to 2024, while the total value of re-exports fell by 34.57% in 2024, how the
Government will maintain Hong Kong’s status as the wine trading and distribution hub
in Asia, and of the details on the facilitation measures for re-exports to the Mainland;
and
(2) as regards the Hong Kong International Wine and Spirits Fair held in 2024, of the
expenditure involved, the number of exhibitors and buyers as well as the effectiveness
in tabular form, and of the plan and estimated expenditure for such event in 2025-26?
Asked by: Hon TAN Yueheng (LegCo internal reference no.: 12)
Reply:
We have all along assisted in promoting local wine-related activities, including the Hong
Kong Wine and Dine Festival by the Hong Kong Tourism Board and the Hong Kong
International Wine and Spirits Fair (Wine and Spirits Fair) by the Hong Kong Trade
Development Council (HKTDC). Besides, the world’s top wine exhibition (Vinexpo Asia)
was held in Hong Kong in May 2024, indicating that Hong Kong is recognised by the
international trade as a wine trading hub in the region. The overseas Hong Kong Economic
and Trade Offices and the Mainland Offices will continue to strengthen promotion of
Hong Kong as a regional wine trading hub overseas and in the Mainland, such as promoting
Hong Kong’s wine business through organising exhibitions and investment promotion
activities, with a view to assisting the industry to expand their businesses in the global market.
Session 18 CEDB - Page 220
Regarding wine trade facilitation measures, wine traders can currently enjoy instant customs
clearance at all 42 customs districts of the Mainland when re-exporting wines from
Hong Kong to the Mainland under the Customs Facilitation Measures for Wine Entering the
Mainland through Hong Kong (the Facilitation Measures). Companies registered in
Hong Kong under the Business Registration Ordinance (Cap. 310) and engaged in substantive
business operation in wine consignment may apply for registration as Hong Kong Registered
Wine Exporters. Thereafter, they may submit advance wine consignment information
online so that their wine may enjoy instant customs clearance upon arrival at Mainland ports
under the Facilitation Measures.
The 16th Wine and Spirits Fair organised by the HKTDC was held from
7 to 9 November 2024. It attracted over 600 exhibitors from 20 countries and regions.
About 20% of the exhibitors came from the Mainland and about 70% of the exhibitors came
from overseas. The Irish Whiskey Association even made its first appearance at the Wine
and Spirits Fair in Hong Kong. As for the participants, the Wine and Spirits Fair also
attracted over 8 200 buyers from 61 countries and regions to visit and source different
alcoholic beverages, showing that Hong Kong plays a positive role in connecting the
Mainland and international alcoholic beverages markets and fostering trading of alcoholic
beverages.
The 17th Wine and Spirits Fair will be held in November this year. HKTDC will continue
to enhance the exhibition with a view to attracting more enterprises from the Mainland, the
Association of Southeast Asian Nations and the Regional Comprehensive Economic
Partnership regions to connect with international buyers at the Wine and Spirits Fair and
reinforce Hong Kong’s status as a regional trading hub for alcoholic beverages.
The expenditure for the above work has been subsumed under HKTDC’s overall estimate and
cannot be quantified separately.
- End -
Session 18 CEDB - Page 221
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB084
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3113)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (3) Telecommunications
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Since the full implementation of the Real-name Registration Programme for SIM Cards (RNR
Programme) in February 2023, the Office of the Communications Authority (OFCA) has been
collaborating with telecommunications service providers to ensure effective implementation
of the RNR Programme. Among others, telecommunications service providers are
requested to conduct sample checks from time to time and follow up on the verification of
suspicious pre-paid SIM (PPS) cards, and refer cases of suspected use of false identity
documents to the Police for handling, with a view to assisting the Police in combatting
telephone frauds. Moreover, OFCA implemented the SMS Sender Registration Scheme
(Registration Scheme) in December 2023. Figures show that the average number of
telephone fraud cases in the fourth quarter of 2023 has dropped by 38.1% when compared to
the same period in 2022. However, cases of deception in 2024 recorded a rise of 4 656 cases
or rebounded by 11.7% compared with 2023. The rise was mainly attributed to the
emergence of the new modus operandi of telephone deception involving “Impersonating
Customer Service” since early last year. A total of 5 575 cases of such modus operandi were
reported in 2024, far exceeding the overall increase of 4 656 cases in deception. In this
connection, will the Government inform this Committee of the following:
(a) in respect of the Registration Scheme, the latest number of registrations by government
departments, and the percentage and the names of registered departments;
(b) the time required for processing applications for the registration portal;
(c) the staff establishment and expenditure involved in launching and maintaining the
registration portal;
(d) the respective numbers of sample checks on the registered information arranged by the
OFCA and telecommunications service providers in the past year;
Session 18 CEDB - Page 222
(e) the number of PPS cards that have completed real-name registration with false
information in the past year, the respective numbers of cases of successful prosecution
and successful conviction, and the penalties imposed;
(f) in tabular form, the distribution of recorded telephone fraud cases among the users of
various telecommunications service providers in the past 3 years; and
(g) whether the Government will consider setting key performance indicators in relation to
blocking deception cases for telecommunications service providers, which may serve as
a reference when considering spectrum purchases and license renewals in future, or may
even be used for formulating a penalty mechanism; if yes, the details; if not, the reasons?
Asked by: Hon TIEN Puk-sun, Michael (LegCo internal reference no.: 38)
Reply:
The Office of the Communications Authority (OFCA) has been working closely with the
Police and telecommunications service providers (TSPs) to devise and implement a series of
measures from the telecommunications services perspective to combat telephone frauds by
tackling the problem at source, and actively providing assistance to the Police in their law
enforcement operations. The Police and OFCA do not maintain statistics on the distribution
of users of TSPs involved in telephone fraud cases in the past 3 years.
The SMS Sender Registration Scheme (the Scheme) has been implemented since
28 December 2023, and was fully opened to all industries in February 2024, with a view to
helping members of the public identify SMS senders and enhancing anti-fraud awareness.
Under the Scheme, only those companies or organisations qualified as Registered Senders are
able to send SMS messages using their Registered SMS Sender IDs with the prefix “#”, and
TSPs will block fraudulent SMS messages sent by non-Registered Senders via the Internet.
In general, organisations interested in participating in the Scheme are required to submit an
application and necessary supporting documents to OFCA. Upon approval, they can be
qualified as Registered Senders and be able to send SMS messages with the prefix “#”. In
general, once all necessary information is received, OFCA will notify the applicant of the
result of their application within 15 working days. As of 7 March 2025, over 480 public and
private organisations have joined the Scheme (including 76 Government
bureaux/departments, statutory bodies or other related organisations). The “SMS Sender
Registry” is available on OFCA’s website and serves as a reference for the public to identify
companies or organisations that are Registered Senders. OFCA will continue to actively
engage more organisations that frequently communicate with the public/customers via SMS
messages to participate in the Scheme. The relevant manpower and expenses will be borne
by the OFCA Trading Fund.
As for the Real-name Registration Programme for SIM Cards (RNR Programme), the RNR
Programme has been fully implemented since 24 February 2023, requiring that all SIM cards
issued and used locally (including SIM service plans and pre-paid SIM cards (PPS cards))
must complete real-name registration before service activation. Starting from 1 October
2024, Hong Kong identity (HKID) card holders completing real-name registration for PPS
cards via TSPs’ online registration platforms will by default register and verify their identities
through the mobile application “iAM Smart”. OFCA has also required TSPs to conduct full
Session 18 CEDB - Page 223
manual verification of the registration information for PPS cards submitted on the online
registration platforms by all non-HKID holders (e.g. those using valid travel documents or
passports). At the same time, OFCA has all along required TSPs to conduct regular
sampling checks on the registration information of registered PPS card users and perform
manual checks on suspected cases. If users subject to sample checks are unable to verify the
registration information following the instructions of the respective TSPs, the relevant PPS
cards may be deregistered and cannot be used further. Upon detection of suspicious cases
(including PPS cards registered using another person’s identity card), TSPs will refer the cases
to the Police for follow-up action as soon as possible. Since the implementation of the RNR
Programme, as at end February 2025, around 4.3 million PPS cards were rejected as a result
of failure of clients in providing information in compliance with the registration requirements.
In addition, TSPs cancelled the registration records of about 3.2 million non-compliant PPS
cards. In January 2025, the Police successfully prosecuted the first case of using false
identity card information to conduct real-name registration for a large number of SIM cards
for the offence of “conspiracy to use copies of false instruments”. According to the Police,
the case involved over 9 000 PPS cards.
In addition, TSPs are required to block suspicious calls starting with “+852” in accordance
with the code of practice issued by the Communications Authority (CA), and to send voice or
text alerts to users for other incoming external calls prefixed with “+852” to remind them to
stay vigilant. As at end February 2025, TSPs blocked over 5.05 million such suspicious
calls and sent over 29 million voice or text alerts. TSPs, based on the fraud records and
information provided by the Police, will block or suspend services of the telephone numbers
and access to webpages suspected to be involved in fraudulent activities. As at end February
2025, telecommunications services of over 5 900 local numbers were suspended and access
to over 39 900 fraudulent websites were blocked according to Police records. Based on the
code of practice promulgated by CA, TSPs will also monitor calls or SMS originating from
their networks and systems to identify suspected scam call and scam SMS patterns, and
suspend the services of relevant telephone numbers immediately. As at end February 2025,
about 1.39 million local telephone numbers were thereby suspended.
If a TSP violates the relevant provisions in the relevant codes of practice constituting a breach
of licence conditions, CA may issue a written direction pursuant to Section 36B of the
Telecommunications Ordinance (Cap. 106) to mandate the TSP to comply with the relevant
licence conditions, or impose a financial penalty pursuant to Section 36C, etc.
- End -
Session 18 CEDB - Page 224
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB085
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0020)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry, (7) Subvention: Consumer Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Budget Speech that the Working Group on Promoting Silver Economy
will implement measures in five areas, namely boosting “silver consumption”, developing
“silver industry”, promoting “quality assurance of silver products”, enhancing “silver
financial and security arrangements”, and unleashing “silver productivity”. In this
connection, will the Government inform this Committee:
1. of the tentative number of meetings to be held by the Working Group on Promoting
Silver Economy in 2025-26 and its concrete work plans;
2. as regards the five areas mentioned above, whether additional working or advisory
sub-groups will be set up, with representatives from the relevant sectors as well as those
of the elderly and their carers; and
3. given that elderly persons may resist the use of such services as e-commerce, e-payment
and online banking because they are not well-versed in new technologies and worry
about fraud, of the measures put in place by the Government to enhance the protection
of the rights and interests of elderly consumers while encouraging them to increase the
use of relevant services, which are more affordable and convenient?
Asked by: Hon TSE Wai-chuen, Tony (LegCo internal reference no.: 5)
Reply:
The requested information is set out below:
(1) Since its establishment in November 2024, the Working Group on Promoting Silver
Economy (the Working Group) has convened three meetings, studying and reviewing
measures in the areas of boosting “silver consumption”, developing the “silver
Session 18 CEDB - Page 225
industry”, promoting “quality assurance of silver products”, enhancing “silver financial
and security arrangements” and unleashing “silver productivity”. The Working Group
will report work progress to the Chief Executive in early 2025-26, then brief the relevant
Panel of the Legislative Council in good time and coordinate respective bureaux’
implementation of various measures as soon as possible.
(2) The Working Group has been taking into consideration views of the Legislative Council,
the business sector and different stakeholders, including the elderly and their caregivers,
in the course of formulating relevant measures.
(3) Safeguarding the rights and interest of elderly consumers is an important aspect of
boosting “silver consumption”. The Consumer Council has set up an Advisory Group
on Silver Economy to steer the work on protecting the interests of elderly consumers,
and will enhance dissemination of information relating to “silver consumption” to help
the elderly make informed choices in consumption. In addition, the Customs and
Excise Department will continue to enforce the Trade Descriptions Ordinance (Cap.
362) through a three-pronged approach, which covers enforcement actions, compliance
promotion, and publicity and public education, with a view to raising the awareness of
“smart consumption” among elderly consumers.
In terms of enhancing “silver financial and security arrangements”, the Hong Kong
Monetary Authority and the banking sector will strengthen protection for customers
(including the elderly) when using Internet or mobile banking services and encourage
banks to offer elderly-friendly electronic banking services. The Government and
regulators will also actively enhance the elderly’s awareness of fraud prevention and
knowledge of digital banking services through elderly investor education.
Moreover, the Digital Policy Office (DPO) promotes various digital inclusion measures
under the “Smart Silver” programme to help elders understand and use digital
technology products and services. These measures include outreach programme,
mobile outreach service stations, regular and fixed-point training on digital technologies
and technical support, enriched information and communication technology (ICT)
training and a web-based learning portal, enabling them to use digital technologies (such
as commonly used digital government services mobile applications, online shopping,
electronic payments, and electronic food ordering, etc.) effectively and safely, and fully
integrate into the digital society. In view of the increasing cases of internet-related
scams, DPO also works closely with the Hong Kong Police Force and Hong Kong
Computer Emergency Response Team Coordination Centre to produce learning kits for
smart tips against scams to help the elders identify frauds and online pitfalls, and raise
their awareness and knowledge of cyber security.
- End -
Session 18 CEDB - Page 226
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB086
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1965)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is reported that the latest loan default rate of the Special 100% Loan Guarantee under the
SME Financing Guarantee Scheme (SFGS) has risen to 13.5%, showing an upward trend.
In this connection, will the Government inform this Committee of the following:
1. With respect to the 80% Guarantee Product and the 90% Guarantee Product under the
SFGS, what are the latest figures on the number of applications approved and the total
amount involved?
2. Among the loan cases approved, what were the respective numbers of cases under the
categories of “at the onset of default”, “in default” and “in malicious default” in the past
2 financial years and their respective percentage shares in the total number of cases?
3. Regarding the “in malicious default” cases, how will the Secretary pursue the recovery
of the loans by all means?
4. Among the default cases, how many bankruptcy petitions were filed with the Court?
What was the recovery cost involved? And
5. What is the total amount of irrecoverable loans that need to be written off ultimately?
Asked by: Hon TSE Wai-chun, Paul (LegCo internal reference no.: 14)
Reply:
The cumulative application and default figures of the 80% and 90% guarantee products of the
SME Financing Guarantee Scheme (SFGS) as at end February 2025 are as follows:
Session 18 CEDB - Page 227
80% Guarantee 90% Guarantee
Product Product
Number of Applications Approved 27 802 15 447
Total Loan Amount of Approved 119.6 billion 27.5 billion
Applications ($)
Number of Default Cases 2 105 903
Loan Guarantee Amount of Default 4.9 billion 1 billion
Cases ($)
HKMC Insurance Limited (HKMCI), which is responsible for administering and managing
the SFGS, has been working closely with lending institutions on properly handling default
cases. In the event that a borrowing enterprise defaults on repayments, the lending
institution will first discuss a feasible repayment plan with the borrowing enterprise, e.g.
repaying only the interest or part of the principal during a transition period, so that the
borrowing enterprise can continue its operation while making a debt restructuring
arrangement as soon as possible, with a view to gradually resuming normal repayments.
If the lending institution and the borrowing enterprise could not reach agreement on the
repayment or the latter refuses to cooperate, the lending institution will consider taking
appropriate recovery/legal actions in accordance with its policy and prevailing commercial
practice, including requesting the enterprise and guarantor to repay the loan, filing a petition
for winding-up and/or bankruptcy with the court, etc. with a view to reducing the loss of the
Government.
As at mid-February 2025, lending institutions have been taking recovery actions against
around 90 default cases, and have already taken/are taking legal actions against around 1 330
cases (including cases where the relevant creditors have applied for liquidation/bankruptcy
against the borrowing enterprises due to the latter’s default on debts other than the 80% and
90% Guarantee Products). Insofar as the liquidation cases handled by lending institutions
are concerned, the average legal fee of each legal proceeding related to liquidation is about
$45,000.
As at end February 2025, the cumulative default rates of the 80%, 90% and Special 100%
Guarantee Products under the SFGS were about 5.1%, 3.8% and 14% respectively, lower than
the assumed overall default rates (12%, 16% and 25% respectively). The default rates are
subject to change having regard to the overall economic environment and the operational
situation of individual borrowing enterprises, etc. The Government and HKMCI will
continue to monitor the situation closely.
- End -
Session 18 CEDB - Page 228
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB087
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3247)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (2) Commerce and Industry, the revised expenditure for 2024-25 is more
than 100% higher than the original estimate. What are the reasons?
Asked by: Hon WONG Chun-sek, Edmund (LegCo internal reference no.: 49)
Reply:
The 2024-25 revised estimate under Programme (2) Commerce and Industry is $7.6348
billion (130.9%) higher than the original estimate, with the increased provisions (about 98%
and 2% respectively) allocated to the SME Financing Guarantee Scheme (SFGS) – Guarantee
Products and the Incentive Scheme for Recurrent Exhibitions (ISRE) due to the expected
increase in the cash flow requirement of these 2 schemes in 2024-25.
HKMC Insurance Limited (HKMCI) is responsible for administering and managing the
SFGS. The Government needs to increase the estimated cash flow in 2024-25 to cater for
the relevant expenses of the various guarantee products. These include payments of
originating fee in respect of the Special 100% Guarantee Product to the participating lending
institutions, payments to HKMCI to cover the administrative costs and the necessary
out-of-pocket expenses arising from the existing and new applications as well as the default
claim payments. The Government and HKMCI will continue to monitor the situation
closely.
The actual cash flow of ISRE depends on such factors as the number of applications and
incentive amount in the respective financial year. With the exhibition industry continuing
to improve in 2024-25, the number of eligible applications received and the incentive amount
involved under ISRE are higher than expected, thereby increasing its cash flow requirement.
- End -
Session 18 CEDB - Page 229
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB088
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0090)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic
Development (Ms Maggie Wong)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Government, together with business and professional services sectors, will further
cultivate the Association of Southeast Asian Nations and Middle East markets, and explore
opportunities in Central Asia, South Asia and North Africa.
What efforts will be made by the Government to further cultivate and tap into the markets in
collaboration with the sectors? What is the specific plan? Will there be more activities
such as visits and exhibitions? What is the estimated expenditure involved?
Asked by: Hon WONG Ying-ho, Kennedy (LegCo internal reference no.: 2)
Reply:
The Government is committed to consolidating Hong Kong’s role as the functional platform
for the Belt and Road (B&R) Initiative and deepening the co-operation with B&R countries
through various measures. We, together with businesses and professional services sectors,
will further cultivate the Association of Southeast Asian Nations and Middle East markets, as
well as exploring opportunities in Central Asia, South Asia, and North Africa.
The Government will continue to deepen the co-operation with B&R countries through a
range of measures, including:
⚫ Expanding economic and trade networks – The Government will continue to expand our
economic and trade networks, with a view to facilitating Hong Kong enterprises and
investors in expanding into the B&R markets and promoting the long-term economic
development of Hong Kong. Currently, the Government has 16 offices/liaison units in
the Mainland and 14 overseas Hong Kong Economic and Trade Offices (ETOs).
Together with the offices of Invest Hong Kong (InvestHK) and the Hong Kong Trade
Development Council (HKTDC) worldwide, Hong Kong has set up offices in 68 cities
around the world, covering 129 countries. The Government is following up actively on
Session 18 CEDB - Page 230
the establishment of ETOs in Kuala Lumpur, Malaysia and Riyadh, Saudi Arabia. In
addition, since the current-term Government took office, InvestHK has set up consultant
offices in Nairobi, Kenya and Almaty, Kazakhstan in 2022, Cairo, Egypt in 2024, and
Izmir, Türkiye in January this year to explore emerging markets in the regions. HKTDC
has also set up a consultant office in Phnom Penh, Cambodia.
⚫ Negotiating and signing bilateral agreements – Hong Kong has signed agreement on
9 Free Trade Agreements (FTAs) with 21 economies (including B&R economies) so far,
and will continue to seek to enter into FTAs with other economies. Hong Kong has also
signed 24 Investment Promotion and Protection Agreements (IPPAs) with 33 overseas
economies (including B&R economies), and is negotiating IPPAs with Bangladesh and
Saudi Arabia with a view to concluding the negotiations as soon as possible.
⚫ Organising outbound missions – The Government will continue to organise outbound
missions for business sector and professional services to B&R countries, and will also
deepen collaborations and exchanges arising from co-operation along the Silk Road
Economic Belt, so as to assist Hong Kong enterprises and professional services to further
expand business opportunities and build up collaborative relationships with relevant local
enterprises and organisations.
⚫ Organising major events – The Belt and Road Office (BRO) has organised 10 exchange
sessions since November 2023, inviting Consul Generals from B&R countries in
Hong Kong, as well as representatives of professional bodies and enterprises, to share
the opportunities and relevant experiences in B&R countries.
In April 2024, BRO partnered with NEOM of Saudi Arabia to organise the “Discover
NEOM Hong Kong” roadshow, which attracted around 1 100 participants, including
enterprises, investors and professional representatives from the Mainland (including the
Greater Bay Area) and Hong Kong. During the roadshow, BRO organised 2 business
matching sessions, facilitating potential collaborations of around 40 Hong Kong and
Mainland enterprises with NEOM.
The B&R Summit (the Summit) is the flagship platform for Hong Kong to participate in
and contribute to the B&R Initiative. The 9th Summit, held on 11-12 September 2024,
attracted around 6 000 government officials, business leaders and representatives from
enterprises from over 70 B&R countries and regions. The 10th Summit will be held in
September 2025 and we will encourage different sectors to hold events around the
Summit period for enhancing synergies.
BRO organised the B&R Cross-professional Forum on 14 February 2025 to promote
Hong Kong’s professional services to deepen the sectors’ collaboration with business
communities of B&R countries and the Mainland. It also provided a platform for
enterprises from the 3 sides to exchange views on collaboration projects in various areas
such as multinational supply chain management and construction, with a view to jointly
seizing new opportunities brought by the B&R. It attracted over 250 business
participants from Hong Kong, the Mainland and B&R countries.
Session 18 CEDB - Page 231
We will continue to maintain communication with relevant stakeholders, such as businesses
and professional services sectors, to better assist them in exploring business opportunities
along the B&R.
The expenditure for the above-mentioned measures have been subsumed under the overall
estimate and cannot be quantified separately.
- End -
Session 18 CEDB - Page 232
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB089
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0091)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
1. Will the services of “E-Commerce Express” cover all issues relating to electronic
commerce (e-commerce), such as platform selection, marketing, logistics arrangements
and regulation and compliance? Will the Government consider further integration of
the second edition of the Hong Kong Shopping Festival and the “E-Commerce Express”,
such as providing exclusive showcasing opportunities or resource allocation for small
and medium enterprises participating in the “E-Commerce Express”, with a view to
assisting them in directly engaging with Mainland consumers in the programme and
testing the market response?
2. What is the estimated expenditure for setting up the “E-Commerce Express”? What
are the scale and estimated expenditure of the second edition of the Hong Kong
Shopping Festival and the results intended to be achieved?
Asked by: Hon WONG Ying-ho, Kennedy (LegCo internal reference no.: 3)
Reply:
The 2025-26 Budget announced that the Hong Kong Trade Development Council (HKTDC)
will implement the “E-Commerce Express” (“電子商務快車”) to strengthen support for
small and medium enterprises (SMEs) to tap into the Mainland market and increase electronic
commerce (e-commerce) sales. HKTDC has renamed the Chinese name of the service as
“電子商務快綫”. To address the pain points encountered by Hong Kong enterprises when
developing cross-border e-commerce on the Mainland, HKTDC will, in collaboration with
large-scale e-commerce or social media platforms, conduct a series of thematic training
seminars and research sharing sessions to cover practical topics including the Mainland and
overseas e-commerce market landscapes, legal compliance, operational strategies and
features of both traditional and emerging online shopping platforms, how to establish fanbase,
Session 18 CEDB - Page 233
livestreaming production techniques, etc., with a view to providing more comprehensive
support for SMEs interested in tapping into the e-commerce market.
One of the key activities to be supported by the “E-Commerce Express” will be the 2nd edition
of the Hong Kong Shopping Festival (HKSF) scheduled for August 2025. The event aims
at providing SMEs with practical experience in utilising e-commerce platforms to tap into the
Mainland market. To deepen participating enterprises’ understanding of the techniques in
operating on Mainland e-commerce and online shopping platforms and assist them in
promoting brand awareness, HKTDC will, under the “E-Commerce Express”, provide
one-on-one consultation services for HKSF participants. Marketing specialists will advise
Hong Kong enterprises on appropriate e-commerce strategies based on their individual
business needs and product features.
The 2nd edition of the HKSF will continue to bring together Hong Kong enterprises to offer
discounts in Mainland online stores and arrange enterprises to conduct livestreaming
promotion on Mainland e-commerce platforms. It is anticipated that the scale of the 2nd
edition of the HKSF will be larger than that of the inaugural HKSF, including showcasing
more brands and covering major consumer products, in particular food and health
supplements which are popular among Mainland consumers, while at the same time featuring
more promotional channels to help Hong Kong enterprises raise brand exposure and grasp the
opportunities in the Mainland e-commerce market.
The manpower and expenditure of the Commerce and Economic Development Bureau and
HKTDC for implementing the “E-Commerce Express” and organising the 2nd edition of the
HKSF have been subsumed under the respective overall establishment and estimates, and
cannot be quantified separately.
- End -
Session 18 CEDB - Page 234
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB090
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0092)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Budget that the application arrangements for the Dedicated Fund on
Branding, Upgrading and Domestic Sales and the Export Marketing and Trade and Industrial
Organisation Support Fund will be streamlined. In this connection, in what ways will the
Government streamline the application arrangements and what are the specific details, so that
the application procedures for the funds will be made simple and easy and the funding will
reach the small and medium enterprises in full?
Asked by: Hon WONG Ying-ho, Kennedy (LegCo internal reference no.: 4)
Reply:
To continue to support the development of local enterprises and help them go global, the
2025-26 Budget announced the injection of $1.5 billion into the Dedicated Fund on Branding,
Upgrading and Domestic Sales (BUD Fund) and the Export Marketing and Trade and
Industrial Organisation Support Fund (EMTSF) (which covers expenditures of the SME
Export Marketing Fund (EMF) and the Trade and Industrial Organisation Support Fund).
This injection will be shared equally between the 2 funds. Together with the injection of
$1 billion into the BUD Fund announced in the 2024 Policy Address, the Government will
inject in total $1.75 billion and $0.75 billion respectively into the BUD Fund and the EMTSF.
This is a testament to the Government’s unwavering commitment to supporting SMEs
continuously despite the current fiscal conditions.
Supporting SMEs remains one of the Government’s important policies, but we are also
mindful of the fact that all support measures should be subject to constant review to ensure
that they remain effective in the ever-changing economic environment. On the one hand,
necessary support should be provided to SMEs in a timely, focussed and financially
sustainable manner. On the other hand, we need to carefully utilise public funds to ensure
that the Government could, within the limited resources available, effectively assist SMEs in
Session 18 CEDB - Page 235
enhancing competitiveness to tackle the uncertainties of the global economy and developing
markets outside Hong Kong.
To this end, the Government has instituted several enhancement measures with respect to the
BUD Fund on 14 March 2025. Firstly, each applicant enterprise can submit 1 “Easy BUD”
application every 3 months, instead of 6 months. This will enable enterprises to obtain more
timely funding support given the streamlined application and vetting arrangements under
“Easy BUD”. Besides, the funding scope of “Easy BUD” has been expanded to include
establishment of online sales platform. Furthermore, to assist enterprises in coping with
trade protectionism and geopolitical tensions, the BUD Fund also expressly provides funding
support for professional fees associated with the establishment of new business entities.
To focus our limited resources to equip enterprises for upgrading and transformation, the
Government will consolidate the EMF into the BUD Fund upon expiry of the former’s special
measure on 30 June 2026. This would attain synergy as the BUD Fund could also fund
promotional activities, often in the context of upgrading and transformation. At the same
time, to ensure financial sustainability of the two funding schemes, the Government has
instituted measures on 14 March 2025 such that the BUD Fund and the EMF will be utilised
in the most productive manner. These will involve adjustments to the funding ceiling,
matching ratio, and rationalisation of other parameters of the BUD Fund and the EMF, as
detailed at the Annex.
- End -
Session 18 CEDB - Page 236
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management
fees for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the
EMF with a view to controlling the maximum amount of funding, including the
funding ceiling, validity period of activities, restrictions on the number of repeated
applications of a similar nature on certain activities, etc.
Session 18 CEDB - Page 237
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB091
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0111)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Hong Kong Trade Development Council (HKTDC) launched a sourcing platform in
2000, which is one of the earlier B2B online procurement platforms in the world. For each
of the past 5 years, what was the annual total expenditure for the operation of the platform?
Please also provide a breakdown of the expenditure (e.g. the annual expenditure on human
resources for maintaining the platform, the marketing expenses made by the platform for
acquiring new customers, etc.).
Asked by: Hon WONG Ying-ho, Kennedy (LegCo internal reference no.: 23)
Reply:
The Hong Kong Trade Development Council (HKTDC) has been assisting buyers and
suppliers in networking and expanding businesses through its hktdc.com Sourcing platform.
Leveraging artificial intelligence and machine learning technology, the hktdc.com Sourcing
platform collects information on buyers’ sourcing demands and connects suppliers and buyers
from different regions and countries so as to provide personalised sourcing experience for
buyers. Also, the hktdc.com Sourcing platform assists exhibitors and buyers in continuing
the connections with business partners and target customers after physical exhibitions. The
manpower and expenditure for the aforementioned work have been subsumed under
HKTDC’s overall establishment and estimate and cannot be quantified separately.
- End -
Session 18 CEDB - Page 238
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB092
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0112)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
1. What are the business expansion plans for the “hktdc.com Sourcing” platform in the
coming year (e.g. whether there is any plan to increase the number of suppliers on the
platform, in particular the number of suppliers related to the professional services
category)? What is the overall budget to be allocated to the platform?
2. For each of the past 5 years, what were the total number of transactions made on the
“hktdc.com Sourcing” platform and the total amount involved? If there were
transactions made on the platform which were related to the professional services
category, what were the respective numbers and amounts of transactions?
Asked by: Hon WONG Ying-ho, Kennedy (LegCo internal reference no.: 24)
Reply:
The Hong Kong Trade Development Council (HKTDC) has been assisting buyers and
suppliers in networking and expanding businesses through its hktdc.com Sourcing platform.
In view of the market demands and technological development, HKTDC has been improving
the hktdc.com Sourcing platform in multiple ways, which include introducing thematic
promotion events to promote selected products and special suppliers; organising regular
online training courses to assist suppliers in using the platform’s functions flexibly and
formulating effective online sales strategies; and using artificial intelligence generation
technology, image recognition technology and large language models to enhance the search
function of the platform. The expenditure for the above work has been subsumed under
HKTDC’s overall estimate and cannot be quantified separately. In addition, platform users
have not provided HKTDC with such commercial information as the number of transactions
and amounts involved, and thus HKTDC does not have the relevant statistics.
- End -
Session 18 CEDB - Page 239
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB093
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0113)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
According to the Estimates, the number of advertisers of the trade portal (hktdc.com)
increased from 22 776 in 2023 to 28 387 in 2024, but the number is estimated to decrease to
27 000 in 2025. What are the reasons for the increase of advertisers in the years 2023 and
2024 and the Government’s estimation of a decrease of advertisers in 2025?
Asked by: Hon WONG Ying-ho, Kennedy (LegCo internal reference no.: 25)
Reply:
The Hong Kong Trade Development Council (HKTDC) has been assisting buyers and
suppliers in networking and expanding businesses through its hktdc.com Sourcing platform.
The number of advertisers of the hktdc.com Sourcing platform is affected by such factors as
the development of the global economy, the business environment faced by merchants and
their intention to procure. HKTDC will closely monitor the market development and adjust
its strategies in a timely manner in face of the challenges.
- End -
Session 18 CEDB - Page 240
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB094
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0532)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Budget that, to expand trade network and attract more inward investment
and enterprises from the Global South markets to Hong Kong, the Government is following
up actively with the governments of Malaysia and Saudi Arabia on the establishment of
Economic and Trade Offices in these two countries; Invest Hong Kong has established
consultant offices in Cairo, Egypt and Izmir, Türkiye; and the Hong Kong Trade Development
Council has also set up a consultant office in Cambodia.
In this connection, please inform this Committee of: the additional annual expenditure
involved for the 3 newly established consultant offices; whether the Government will reduce
the number of out-stationed staff as far as possible and increase the proportion of local staff
in the offices in overseas regions with mature operations so as to reduce the operational
expenses; and whether the Government will set up offices in Peru to enhance the services in
Latin America, given the signing of the free trade agreement between Hong Kong and Peru
last year.
Asked by: Hon YIM Kong (LegCo internal reference no.: 18)
Reply:
The international trade landscape is in a constant state of flux. In addition to maintaining
ties with traditional markets, the Hong Kong Special Administrative Region (HKSAR)
Government has been expanding Hong Kong’s economic and trade network, strengthening
ties with economies with potential especially emerging markets, thereby assisting Hong Kong
enterprises in exploring new business opportunities.
At present, the HKSAR Government has established a total of 14 overseas Economic and
Trade Offices (ETOs). Together with the offices of the Hong Kong Trade Development
Council (HKTDC) and Invest Hong Kong (InvestHK) worldwide, Hong Kong has offices in
Session 18 CEDB - Page 241
68 cities around the world, with services covering 129 countries, including emerging markets
such as South America etc. While ETOs, InvestHK (including the Dedicated Teams for
Attracting Businesses and Talents and consultant offices) and HKTDC perform their
respective duties, they work in synergy to jointly promote bilateral economic and trade
relations between Hong Kong and overseas economies.
As mentioned in the 2025-26 Budget, we are following up actively with the governments of
Malaysia and Saudi Arabia respectively on our plans to establish ETOs in these 2 countries.
As part of the initiative to expand the economic and trade network of Hong Kong, the HKSAR
Government will continue to consider the needs and benefits of establishing ETOs and
consultant offices taking into account the actual circumstances in deciding on the type(s) of
office to be established.
The relevant expenditures of the offices of InvestHK and HKTDC have been subsumed into
their respective overall estimates and cannot be quantified separately.
- End -
Session 18 CEDB - Page 242
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB095
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1492)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
On promoting the “Belt and Road (B&R)” Initiative and exploring the Middle East market,
will the Government inform this Committee of the following:
1. Please provide the current manpower, establishments, salary expenditures by rank and
total salary expenditures of the B&R Office;
2. Please tabulate the numbers of visits made in each of the past 5 years and the estimated
numbers of visits to be made in 2025-26 by the B&R Office to each of the B&R
countries, with the destinations and visit programmes, the sizes of the delegations, the
lists of institutions met and the relevant expenditures (including details of expenditures
on air tickets, hotels, etc.).
Asked by: Hon YUNG Hoi-yan (LegCo internal reference no.: 23)
Reply:
As at 28 February 2025, the staff establishment of the Belt and Road Office (BRO) was 19,
the strength was 17 and the salary expenditure (revised estimate for 2024-25) was about
$18.12 million. The establishment of the 19 posts included the Commissioner for Belt and
Road (CBR) (Directorate Pay Scale (DPS) Point 6), 1 Administrative Officer Staff Grade B
(DPS Point 3), 2 Senior Administrative Officers (Master Pay Scale (MPS) Point 45 to 49),
5 Trade Officers/Senior Executive Officer/Senior Information Officer (MPS Point 34 to 44),
3 Executive Officer I/Assistant Trade Officers II (MPS Point 14 to 33) and 7 officers of
Clerical and Secretarial Grades/Motor Driver (MPS Point 3 to 27).
In 2020-21 and 2021-22, owing to the epidemic, BRO was unable to organise delegations for
outbound visits. Nevertheless, BRO adopted an online format to actively promote
Hong Kong’s participation in the Belt and Road (B&R) Initiative and explore opportunities
Session 18 CEDB - Page 243
in the B&R markets, including organising the 5th and 6th Summit in virtual mode; organising
the 7th Summit in hybrid mode; as well as conducting a total of 10 webinars to explore
opportunities in the Association of Southeast Asian Nations and the Middle East regions, etc.
In 2022-23, 2023-24 and 2024-25, BRO organised 1, 2 and 3 delegations to B&R countries
and the Mainland respectively, details as follows:
Number of
Date Places Visited Event Details
Delegates
2022-23
4-11 February Saudi Arabia The Chief Executive (CE) led a high- About 30
2023 and United level delegation with more than 30
Arab Emirates representatives (including Secretary
(UAE) for Commerce and Economic
Development (SCED) and CBR)
from various sectors to visit Saudi
Arabia and the UAE to meet with
local political and business leaders,
visit local enterprises, and attend
forums and exchange activities to
promote Hong Kong’s unique
advantages.
2023-24
16-19 October Mainland The CE led a close to 70-strong Hong Close to 70
2023 (Beijing) Kong Special Administrative Region
(HKSAR) delegation (including
SCED and CBR) to fully and actively
participate in the 3rd B&R Forum for
International Cooperation. The
delegation attended sessions of all the
10 events of the Forum, with the CE
and 15 members being invited to
speak at the events or to host panel
discussions. The Forum featured a
dedicated Hong Kong Chapter in the
thematic forum on sub-national co-
operation to share with guests from
various places Hong Kong’s
achievement and contribution in such
areas as international economic, trade
and social development, as well as
the unique role of Hong Kong as the
functional platform for the B&R
Initiative.
4-5 December Mainland SCED led a business delegation with About 20
2023 (Shenzhen and a total of 20 representatives from 15
Guangzhou) enterprises of B&R countries
operating in Hong Kong to visit
the Greater Bay Area (GBA) to meet
Session 18 CEDB - Page 244
Number of
Date Places Visited Event Details
Delegates
with Mainland enterprises as well as
to exchange with local government
agencies or relevant organisations.
Members of the delegation include
CBR. This mission integrated the 2
important national development
strategies of the B&R Initiative and
the GBA development, with the aim
of promoting Hong Kong as the
service base for entry into the
Mainland market, thereby fully
demonstrating Hong Kong’s
distinctive role in connecting the
Mainland and the rest of the world.
2024-25
16-25 May Hungary, BRO and the Ministry of Commerce About 70
2024 Kazakhstan co-led a Mainland cum Hong Kong
and Mainland business mission to visit Hungary and
(Khorgos, Kazakhstan, and returned via
Kokdala and Xinjiang, to visit local enterprises
Urumqi) participating in “going global” under
the B&R Initiative and meet with
local government officials and
representatives of local businesses.
The mission centred on “promoting
green development” and “advancing
scientific and technological
innovation” among the eight major
steps our country has been taking to
support the joint pursuit of high-
quality B&R development. It aimed
to encourage Hong Kong and
Mainland enterprises as well as Hong
Kong’s professional services in
jointly exploring the B&R markets
and seeking collaboration
opportunities with the relevant B&R
countries.
25-27 Mainland The CE led a delegation of HKSAR About 80
November (Guangzhou, Government and senior
2024 Foshan, representatives of the business
Dongguan, sectors (including SCED and CBR)
Huizhou and to visit Mainland cities of the GBA,
Shenzhen) with a view to further promoting the
co-operation between the HKSAR
and the Guangdong Province and
various GBA cities in business, trade
Session 18 CEDB - Page 245
Number of
Date Places Visited Event Details
Delegates
and different industries. The
delegation attended the Guangdong-
Hong Kong Deepening Economic,
Trade and Investment Cooperation
Conference co-organised by the
People’s Government of Guangdong
Province and the HKSAR
Government. Representatives from
multiple Hong Kong, foreign and
Guangdong enterprises gave
thematic presentations at the
conference.
4-6 December Mainland SCED led a business delegation Over 10
2024 (Urumqi) (including CBR) to visit Urumqi to
promote Hong Kong’s business
opportunities, and met with
government officials of the Xinjiang
Uyghur Autonomous Region and
Kazakhstan to exchange views on
promoting economic and trade co-
operation among the 3 places, with a
view to jointly exploring the full
range of opportunities arising from
the B&R Initiative. The delegation
attended a co-operation and
exchange forum between China
(Xinjiang, Hong Kong) and
Kazakhstan to promote Hong Kong’s
advantages and participated in
sharing sessions focusing on various
areas including cultural exchanges,
energy industries, digital economy,
commerce and logistics and finance,
with a view to promoting economic
and trade co-operation and people-to-
people exchanges among the 3
places. The delegation also visited
local enterprises to gain an
understanding of the development of
the related industries.
In addition to the above-mentioned outbound missions, BRO participated in other outbound
missions of the Government, including:
The CE led a delegation (including SCED and CBR) to visit Laos, Cambodia and
Vietnam on 28 July to 2 August 2024, during which a total of 55 memoranda of
understanding and agreements were signed and 5 results were achieved, including
Session 18 CEDB - Page 246
strengthening government-to-government relations and communications; reaching
consensus on areas of development and co-operation; consolidating and expanding
business networks, injecting new impetus to open up new horizons and opportunities;
enhancing a shared strong will to jointly promote the B&R Initiative; and reaffirming the
three countries’ continuous support for Hong Kong’s accession to the Regional
Comprehensive Economic Partnership; and
the Financial Secretary (FS) led a delegation (including CBR) to Saudi Arabia on
28-31 October 2024 and participated in the 8th Future Investment Initiative Conference
to strengthen and deepen connections between Hong Kong and the Middle East in trade,
finance, and innovation and technology. FS delivered a speech in the themed session
titled “Where is the New Silk Road?” and CBR also spoke on the panel during the
session.
In 2025-26, BRO will continue to organise outbound missions for business sector and
professional services to B&R countries, and will also deepen collaborations and exchanges
arising from co-operation along the Silk Road Economic Belt, so as to assist Hong Kong
enterprises and professional services to further expand business opportunities and build up
collaborative relationships with relevant local enterprises and organisations.
The expenditure for outbound visits has been subsumed under the overall estimate and cannot
be quantified separately.
- End -
Session 18 CEDB - Page 247
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB096
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1504)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (3) Telecommunications
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the promotion of the development of Low Earth Orbit (LEO) satellites to enhance
mobile communications, will the Government inform this Committee of:
1. the number of licence applications for operating LEO satellites received and approved, as
well as and the average time taken to process an application in each of the past 5 years;
2. the Government's expected timetable for completing the study on streamlining the licence
applications for operating LEO satellites, as well as the anticipated increase in the number
of applications and the time shortened for vetting such applications upon completion of
the study;
3. the number of complaints received on mobile communications services in each of the past
5 years; and
4. the number, content and effectiveness of the projects carried out to enhance spectrum
supply and expand network coverage as well as the relevant expenditure involved in each
of the past 5 years.
Asked by: Hon YUNG Hoi-yan (LegCo internal reference no.: 15)
Reply:
Low Earth Orbit (LEO) satellites are the new trend in satellite development globally.
Compared with traditional satellites (i.e. geostationary orbit satellites), LEO satellites are less
costly and have the characteristics of low latency and high transmission rates. They are
widely applicable in domains such as telecommunications, remote monitoring, navigation,
tracking, satellite Internet access, etc., providing services in the areas of transport and
logistics, and smart city. According to the existing statutory requirements in Hong Kong,
Session 18 CEDB - Page 248
satellite operators need to obtain the Outer Space Licence issued by the Chief Executive (CE)
under the Outer Space Ordinance (Cap. 523) and the Space Station Carrier Licence issued by
the Communications Authority (CA) under the Telecommunications Ordinance (Cap. 106)
(TO) for each satellite operated in Hong Kong (regardless of whether the satellite is launched
in Hong Kong).
Since LEO satellites are operated in a constellation that may include tens or hundreds of LEO
satellites, operators are required to apply for the corresponding number of Outer Space
Licences and Space Station Carrier Licences in accordance with the number of satellites under
the current licensing regime. To enhance Hong Kong’s attractiveness and competitiveness
in the development of LEO satellites, the CE announced in the 2024 Policy Address and the
Financial Secretary announced in the 2025-26 Budget that the Government will conduct a
study on streamlining the vetting procedures of licence applications for operating LEO
satellites, with an aim to completing the relevant study within 2025.
CA has not received any licence application for LEO satellites in the past 5 years. The
Government expects that the streamlined satellite licensing regime will attract satellite
operators to operate LEO satellites in Hong Kong, which will in turn attract investment from
relevant enterprises and promote innovative technology and high-quality industry
development. At the same time, it will also provide relevant training and employment
opportunities to attract more talents in satellite network operation to develop in Hong Kong,
thereby consolidating Hong Kong’s position as a regional telecommunications hub.
In the past 5 years, CA received the following number of consumer complaints about mobile
communications services each year:
Year Number of cases
2020 725
2021 670
2022 669
2023 1 081
2024 1 075
Note: The nature of complaints about mobile communications services include the quality of customer service, billing
disputes, service quality, contract disputes and disputes on service termination, etc.
To enhance mobile network coverage and capacity, the Government has implemented a series
of measures in the past 5 years, including:
⚫ To ensure adequate supply of spectrum, during 2019 to September 2024, CA has assigned
a total of 3 330 MHz of spectrum that can be used for the development of 5G
communications services. The Government also conducted 2 spectrum auctions in
November 2024, providing a total of 510 MHz of spectrum;
⚫ To enhance network coverage in rural areas, the Government launched the “Subsidy
Scheme to Extend Fibre-based Networks to Villages in Remote Areas” in 2018 with a
provision of $774.4 million, which aims to subsidise fixed network operators to extend
fibre-based networks to 235 villages in remote areas by 2026, benefiting about 110 000
villagers. So far, the subsidy scheme has already extended fibre-based networks in
Session 18 CEDB - Page 249
more than 210 villages. In addition, the Government plans to implement the “Subsidy
Scheme to Extend 5G Coverage in Rural and Remote Areas” to provide subsidies to
mobile network operators (MNOs) for installation of radio base stations (RBS) at
approximately 50 different sites in Hong Kong, and the total amount involved is about
$154 million. We anticipate that upon the commissioning of all relevant RBS, the
mobile network coverage of country parks will be enhanced to at least 90%, while
coverage along major government hiking trails will exceed 98%. It is preliminarily
estimated that approximately 70 villages located in the vicinity of the proposed RBS,
involving about 20 000 villagers, will be benefited. The Government will seek funding
approval from the Legislative Council in accordance with the established mechanism,
and will launch the scheme as soon as possible within the 2025-26 fiscal year upon
relevant funding approval; and
⚫ On encouraging telecommunications investment and facilitating the installation of RBS,
the Government introduced amendments to the Inland Revenue Ordinance (Cap. 112)
and the TO in 2024, so that MNOs can enjoy full tax deductions for spectrum utilisation
fees payable on radio spectrum to be acquired and MNOs are allowed to access the
reserved space in specified buildings with building plans approved on or after 1 April
2025 to install and maintain mobile communications facilities respectively. These will
help encourage MNOs to invest in mobile communications services and further expand
mobile networks. The Government has also introduced other facilitation measures for
installation of RBS by MNOs, including facilitating MNOs in installing RBSs at
government premises through a streamlined application procedure, reserving space and
loading capacity on multi-functional smart lampposts in various districts for installation
of RBS by MNOs and actively coordinating 5G network capacity expansion at major
public event venues, etc. The relevant expenditure is funded by the Office of the
Communications Authority Trading Fund.
- End -
Session 18 CEDB - Page 250
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB097
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2999)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It was announced in the 2023 Policy Address and the 2024-25 Budget Speech that the
concessionary tax rate for the “patent box” tax incentive has been proposed to be set at 5%,
which is lower than the prevailing normal profits tax rate of 16.5% in Hong Kong. It is
mentioned in the 2025-26 Budget Speech that the Government will review the relevant tax
deduction arrangements. Please inform this Committee:
1. whether the Government will formulate clear standards or guideline(s) to ensure that
enterprises have a thorough understanding of the new tax deduction arrangements as
well as the procedures and eligibility for electing for the concessionary tax rate as
announced?
2. regarding the purchase of IP or the rights to use IP from associates, how will the
Government establish the definition of “associate” to avoid giving rise to any taxation
loophole or abuse?
3. will the Government consider setting up a dedicated platform to assist enterprises in IP
trading and management, so as to further promote the development of Hong Kong into
an international IP trading hub?
Asked by: Hon ZHANG Xinyu, Gary (LegCo internal reference no.: 37)
Reply:
Having consulted the Financial Services and the Treasury Bureau, our consolidated reply is
as follows:
For the “patent box” tax incentive that has already been implemented, in order to help
enterprises clearly understand the relevant incentive, the Inland Revenue Department (IRD)
Session 18 CEDB - Page 251
has issued detailed guidelines on its website to explain the relevant application conditions and
how to calculate the assessable profits applicable to the preferential tax rate. The IRD has
also prepared a special declaration form to facilitate enterprises to apply for the relevant
preferential treatment. If there are any measures to optimise the intellectual property
(IP)-related tax deduction arrangements in the future, the IRD will similarly assist enterprises
in understanding and applying for the relevant deductions.
The existing Inland Revenue Ordinance has anti-abuse measures against the deductions of
expenses for purchasing IP rights from associates. The definition of “associate” is very
broad, covering the taxpayer’s relatives, partners, associated corporations, directors, key
employees and controllers, etc. The Government will carefully review the relevant tax
arrangements to strike a balance between providing competitive deductions and avoiding
abuse.
The Hong Kong Trade and Development Council (HKTDC) has launched the Asia IP
Exchange (AsiaIPEX) (https://www.asiaipex.com/Home/Index_EN), a free online portal, and
formed strategic partnerships with different organisations, including over 35 local research
and development (R&D) centres and technology transfer units of universities as well as
organisations worldwide. Over 28 000 tradable IP listings are available at the AsiaIPEX
currently. The HKTDC is enhancing the AsiaIPEX with a view to facilitating more local
and non-local cultural and creative products to register on the AsiaIPEX, thereby fostering
cross-sectoral exchange, collaboration and business matching, and promoting transaction and
transformation of cultural IP. In addition, the Innovation and Technology Commission has
launched the Innovation Hub@HK website (https://www.innovationhub.hk/), showcasing
R&D outcomes of Hong Kong’s public research institutes to facilitate commercialisation and
technology transfer to the industry.
- End -
Session 18 CEDB - Page 252
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB098
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3131)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (000) Operational expenses
Programme: (1) Commercial Relations
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The provision under Programme (1) for 2025-26 is 35.4% higher than the revised estimate for
2024-25 due to the need to support the provision for the new Economic and Trade Offices
(ETOs) under planning and the salary provision for filling vacancies and staff changes.
Please provide, in respect of the new ETOs, information on their locations as well as the
manpower and estimated expenditures involved.
Asked by: Hon CHAN Chun-ying (LegCo internal reference no.: 19)
Reply:
As mentioned in the 2025-26 Budget, we are following up actively with the governments of
Malaysia and Saudi Arabia respectively on our plans to establish Economic and Trade Offices
(ETOs) in these 2 countries. As always, we will duly take into consideration the scope of
duties, country coverage and operational needs in working out the estimated expenditure and
staff establishment for the new ETOs. Generally speaking, ETOs comprise 5
Hong Kong-based officers and 12 locally-engaged staff having regard to operational needs,
with total operational expenses estimated to be around $30 million per year. We expect the
manpower and resources required by the new ETOs to be similar to those of the existing
ETOs.
- End -
Session 18 CEDB - Page 253
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB099
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1309)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (3) Investment Promotion
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
During 2025-26, one of the responsibilities of the overseas Economic and Trade Offices
(ETOs) is to step up efforts in attracting overseas companies, especially strategic enterprises,
to set up and expand their operations in Hong Kong and access business opportunities on the
Mainland and elsewhere in Asia. In this connection, will the Government inform this
Committee of the following:
1. Please specify the publicity campaigns launched, expenditures and staff establishment
involved in promoting Hong Kong by each overseas ETO during 2024-25 with a detailed
breakdown;
2. Has the Government assessed the effectiveness of the publicity campaigns and
formulated improvement measures accordingly? If yes, what are the details? If no,
what are the reasons?
3. The Dubai ETO strengthened the staffing of its Dedicated Team for Attracting
Businesses and Talents (the Team) in April 2023 to step up investment promotion efforts
in the Middle East. Please specify with a detailed breakdown: (i) the investment
promotion activities carried out by the Team in the past year; (ii) the countries and
regions covered; and (iii) the expenditure incurred by each activity.
Asked by: Hon IP LAU Suk-yee, Regina (LegCo internal reference no.: 34)
Reply:
As the official overseas representatives of the Hong Kong Special Administrative Region
(HKSAR) Government, the 14 overseas Hong Kong Economic and Trade Offices (ETOs) are
committed to maintaining close communication and contact with overseas interlocutors from
different sectors and the international community, promoting and explaining the HKSAR
Government’s important policies and Hong Kong’s unique advantages under “One Country,
Session 18 CEDB - Page 254
Two Systems”, especially the vast opportunities provided by the Belt and Road Initiative as
well as the Guangdong-Hong Kong-Macao Greater Bay Area development.
In addition to regularly providing stakeholders in countries and regions under their purview
(including think tanks, academic institutions and business organisations) with the latest
information on Hong Kong through newsletters and social media, the ETOs maintain close
liaison with them to assess the impact of local development on Hong Kong, meet with the
media and take the initiative to publish articles to rebut biased reports so as to set the record
straight.
In 2024, the ETOs organised a total of 921 public relations and cultural functions/events held
virtually or physically to promote Hong Kong. The following are some examples of the
activities to attract overseas enterprises to set up and expand their businesses in Hong Kong
for reference.
In 2024-25, through the coordination and arrangement of the Bangkok and Singapore ETOs,
the Chief Executive (CE) visited 3 countries of the Association of Southeast Asian Nations
(namely Laos, Cambodia and Vietnam) in July, during which general consensus had been
reached on areas of development and extensive co-operation and a total of 55 memoranda of
understanding and agreements had been signed, covering such areas as trade and economic
partnership, investment, customs collaboration, logistics, cultural exchanges, tourism
promotion, technological co-operation, aviation services, etc. The Secretary for Justice
visited Saudi Arabia and the United Arab Emirates (UAE) in May; Vietnam, Malaysia and
Brunei Darussalam in September; and Singapore in October to promote Hong Kong’s legal
and dispute resolution services, with a view to creating more opportunities for the industry
and consolidating Hong Kong’s position as the centre for international legal and dispute
resolution services in the Asia-Pacific region. The ETOs endeavored to actively assist in
coordinating the visit programmes and/or providing related support for the duty visits of CE
and principal officials. In addition, in June, the Toronto ETO and Invest Hong Kong
(InvestHK) jointly participated in “Collision 2024”, the large-scale I&T conference in
Toronto, during which the ETO invited the Hong Kong Monetary Authority, Hong Kong’s
venture capital experts and local I&T organisations to organise large-scale seminars,
master-class workshops and panel exchanges to promote Hong Kong’s latest advantages in
fintech, Web3, virtual assets, etc., and introduced related measures to attract businesses and
talents. In September, the San Francisco ETO co-organised an innovation tech mixer with
the Hong Kong Trade Development Council and the Hong Kong Association of Northern
California to provide opportunities for 5 Hong Kong start-ups supported by the Hong Kong
Science & Technology Parks Corporation for acceleration in Silicon Valley and networking
with start-up founders and investors in the San Francisco Bay Area, and to promote Hong
Kong’s start-up ecosystem.
For the 2024-25 revised estimate, the staff establishment and total operational expenses of the
14 ETOs are as follows:
Session 18 CEDB - Page 255
ETO 2024-25
(Revised Estimate)
Staff establishment Total operational expenses Note
(number of posts) ($ million)
Bangkok 17 27.2
Berlin 17 30.3
Brussels 17 41.6
Dubai 17 33.1
Geneva 15 44.6
Jakarta 14 22.8
London 19 36.9
New York 14 33.2
San Francisco 16 31.7
Singapore 11 25.1
Sydney 13 27.1
Tokyo 14 30.1
Toronto 11 20.8
Washington 18 39.6
Note: Total operational expenses include personal emoluments, personnel related expenses, departmental expenses and
other charges.
As promoting Hong Kong is a part of the overall work of the ETOs, the expenditure and
manpower involved cannot be quantified separately.
We have already set various indicators for evaluating the performance of ETOs’ services,
which cover the 3 Programmes, namely “Commercial Relations”, “Public Relations” and
“Investment Promotion”. Besides, in 2024, the ETOs successfully achieved the key
performance indicators included in the 2022 Policy Address, with an increase of at least 20%
compared to 2022 in the numbers of (i) visits to Governments and organisations of countries
and regions under the ETOs’ respective purview, (ii) attending speaking occasions, (iii)
conducting media interviews or briefings, and (iv) staging forums, exhibitions, seminars and
promotional activities. Moreover, after organising, co-organising or participating in the
promotional activities, the ETOs will also evaluate the effectiveness of the activities by
assessing the number of participants, their response or comments on the activities and the
media reports, etc., and formulate relevant improvement measures when necessary.
To reinforce investment promotion efforts in the Middle East, the manpower for the Dedicated
Team for Attracting Businesses and Talents (Dedicated Team) of the Dubai ETO was
strengthened in April 2023 to reach out to potential investors from the member states of the
Cooperation Council for the Arab States of the Gulf (namely Bahrain, Kuwait, Oman, Qatar,
Saudi Arabia and the UAE). In the past year, the Dedicated Team attended, supported and
organised various investment promotion activities, including conferences, investment
Session 18 CEDB - Page 256
promotion visits, forums and seminars, etc. in various Middle East countries or cities, such as
Doha in Qatar; Riyadh in Saudi Arabia; Bahrain; Dubai and Abu Dhabi in the UAE, to
introduce the latest developments of Hong Kong and promote Hong Kong as an ideal
investment destination in Asia, so as to attract companies from the Middle East to set up or
expand businesses in Hong Kong.
As the above investment promotion work in the Middle East is a part of the regular work of
InvestHK and the Dubai ETO, the expenditures have been subsumed into their respective
overall estimates and cannot be quantified separately.
- End -
Session 18 CEDB - Page 257
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB100
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2918)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (-) -
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As stated under Matters Requiring Special Attention in 2025-26 of Programme (2), the
Commerce and Economic Development Bureau will continue to strengthen the policy work
related to the overseas Economic and Trade Offices (ETOs), including enhancing their
functions and expanding the ETO network. In this connection, will the Government inform
this Committee of:
1) the staff establishment, vacancies, and total expenditure of each ETO for the past 5 years
(2020-21 to 2024-25) in tabular form;
2) the staff establishment and estimated expenditure of each ETO in 2025-26;
3) the work details of each ETO in the past year by area of work in tabular form?
4) It is mentioned in paragraph 109 of the Budget Speech that the Government is actively
following up with the governments of Malaysia and Saudi Arabia on the establishment
of ETOs in their two countries. What are the current progress, staff establishments and
estimated expenditures?
5) Has the Authority reviewed the current “Global South” economic and trade network
layout of Hong Kong, including the situation of signing free trade agreements with the
relevant countries)? If yes, what are the details; if no, why not?
6) What plans does the Authority have to encourage businesses and investors from the
“Global South” to invest in Hong Kong? What are the staff establishment and
estimated expenditure involved?
Asked by: Hon KAN Wai-mun, Carmen (LegCo internal reference no.: 2)
Session 18 CEDB - Page 258
Reply:
The staff establishment and total operational expenses of the 14 existing overseas Hong Kong
economic and trade offices (ETOs) for the past 5 financial years and 2025-26 are tabulated as
follows:
ETO 2020-21 2021-22 2022-23
Staff Total Staff Total Staff Total
establishment operational establishment operational establishment operational
(number of expenses Note 1 (number of expenses Note 1 (number of expenses Note 1
posts) ($ million) posts) ($ million) posts) ($ million)
Bangkok 17 22.2 17 26.3 17 27.2
Berlin 17 25.4 17 25.6 17 31.7
Brussels 18 29.4 18 31.5 18 40.5
Note 2
Dubai - - 17 22.7 17 25.0
Geneva 15 32.2 15 36.5 15 36.0
Jakarta 14 13.9 14 16.7 14 23.4
London 18 30.6 18 33.5 18 37.3
New York 14 26.4 14 28.5 14 45.3
San
16 28.1 16 26.0 16 31.1
Francisco
Singapore 11 20.1 11 23.5 11 26.8
Sydney 13 24.8 13 26.4 13 29.9
Tokyo 14 28.0 14 29.7 14 37.9
Toronto 11 16.2 11 17.2 11 19.7
Washington 18 29.1 18 27.6 18 28.6
ETO 2023-24 2024-25 (Revised Estimate) 2025-26 (Estimate)
Staff Total Staff Total Staff Total
establishment operational establishment operational establishment operational
(number of expenses Note 1 (number of expenses Note 1 (number of expenses Note 1
posts) ($ million) posts) ($ million) posts) ($ million)
Bangkok 17 26.7 17 27.2 17 32.3
Berlin 17 29.4 17 30.3 17 33.8
Brussels 17 40.8 17 41.6 17 48.9
Dubai 17 25.4 17 33.1 17 38.4
Geneva 15 38.8 15 44.6 15 52.4
Jakarta 14 25.5 14 22.8 14 25.8
London 19 38.4 19 36.9 19 42.1
New York 14 36.8 14 33.2 14 36.8
San
16 31.2 16 31.7 16 35.7
Francisco
Singapore 11 23.0 11 25.1 11 28.3
Sydney 13 26.9 13 27.1 13 30.0
Tokyo 14 27.2 14 30.1 14 33.3
Session 18 CEDB - Page 259
ETO 2023-24 2024-25 (Revised Estimate) 2025-26 (Estimate)
Staff Total Staff Total Staff Total
establishment operational establishment operational establishment operational
(number of expenses Note 1 (number of expenses Note 1 (number of expenses Note 1
posts) ($ million) posts) ($ million) posts) ($ million)
Toronto 11 17.6 11 20.8 11 22.9
Washington 18 25.1 18 39.6 18 43.6
Note 1: Total operational expenses include personal emoluments, personnel related expenses, departmental expenses
and other charges.
Note 2: The Dubai ETO commenced operation on 28 October 2021.
As of 28 February 2025, the 14 ETOs had a staff establishment of 213 posts, comprising 61
Hong Kong-based officer posts and 152 locally-engaged staff post. The actual total number
of staff was 193, with 20 vacancies. We anticipate that the staff establishment for the 14
ETOs will remain unchanged in 2025-26.
Detailed information on the work of the 14 ETOs over the past year can be found in the
information paper submitted to the Panel on Commerce, Industry, Innovation and Technology
of the Legislative Council in November 2024 (LC Paper No. CB(2)1428/2024(02)). For
example, in 2024, the ETOs organised a total of 921 public relations and cultural
functions/events held virtually or physically to promote Hong Kong. For activities to attract
overseas enterprises and investors (including those from the “Global South”) to set up and
expand their businesses in Hong Kong, examples include the Chief Executive (CE)’s visit to
3 countries of the Association of Southeast Asian Nations (ASEAN) (namely Laos, Cambodia
and Vietnam) in July, which was co-ordinated and arranged by the Bangkok and Singapore
ETOs. During the visit, general consensus had been reached on areas of development and
extensive co-operation and a total of 55 memoranda of understanding and agreements had
been signed, covering such areas as trade and economic partnership, investment, customs
collaboration, logistics, cultural exchanges, tourism promotion, technological co-operation,
aviation services, etc. The Secretary for Justice visited Saudi Arabia and the United Arab
Emirates (UAE) in May; Vietnam, Malaysia and Brunei Darussalam in September; and
Singapore in October to promote Hong Kong’s legal and dispute resolution services, with a
view to creating more opportunities for the industry and consolidating Hong Kong’s position
as the centre for international legal and dispute resolution services in the Asia-Pacific region.
The ETOs endeavoured to actively assist in coordinating the visit programmes and/or
providing related support for the duty visits of CE and principal officials. In addition, in
June, the Toronto ETO and Invest Hong Kong (InvestHK) jointly participated in “Collision
2024”, the large-scale I&T conference in Toronto, during which the ETO invited the
Hong Kong Monetary Authority, Hong Kong’s venture capital experts and local I&T
organisations to organise large-scale seminars, master-class workshops and panel exchanges
to promote Hong Kong’s latest advantages in fintech, Web3, virtual assets, etc., and
introduced related measures to attract businesses and talents. In September, the San
Francisco ETO co-organised an innovation tech mixer with the Hong Kong Trade
Development Council and the Hong Kong Association of Northern California to provide
opportunities for 5 Hong Kong start-ups supported by the Hong Kong Science & Technology
Parks Corporation for acceleration in Silicon Valley and networking with start-up founders
and investors in the San Francisco Bay Area, and to promote Hong Kong’s start-up ecosystem.
Session 18 CEDB - Page 260
As mentioned in the 2025-26 Budget, we are actively following up with the Governments of
Malaysia and Saudi Arabia on plans to set up ETOs. In line with our established practice,
we will take into due consideration the scope of duties, country coverage and operational
needs of the new ETOs in working out the estimated expenditure and staff establishment for
the new ETOs. Generally speaking, an ETO, depending on operational needs, comprises 5
Hong Kong-based officers and 12 locally-engaged staff with total operational expenses
estimated to be around $30 million per year. We expect the manpower and resources
required by the new ETOs to be similar to those of the existing ETOs.
To help Hong Kong enterprises and investors expand their markets, the Hong Kong Special
Administrative Region (HKSAR) Government has strived to strengthen the economic and
trade ties with other economies and actively sought to forge free trade agreements (FTAs) and
investment promotion and protection agreements (IPPAs) with more trading partners, thereby
promoting the long-term economic development of Hong Kong. The HKSAR Government
has signed 9 FTAs with 21 economies Note 3 and 24 IPPAs with 33 overseas economies Note 4,
some of which are in the “Global South”. In addition, the HKSAR Government is also
exploring the signing of IPPAs with Saudi Arabia, Bangladesh, Egypt and Peru. The
HKSAR Government is also actively seeking accession to the Regional Comprehensive
Economic Partnership (RCEP) Note 5. Besides receiving full support from the Central
People’s Government, the HKSAR Government has also received positive responses from
other RCEP members in particular ASEAN member states. Following the adoption of the
Procedures for Accession to the RCEP Agreement by the RCEP Joint Committee (RJC) in
September 2024, the HKSAR Government will continue to proactively follow up with RJC
and maintain close liaison with the trade and economic departments of RCEP members to
promote relevant discussions and seek early accession to RCEP.
In view of the huge economic potential of the countries along the Belt and Road (B&R)
(including the “Global South”), InvestHK set up consultant offices in Cairo, the capital of
Egypt, and Izmir, the 3rd largest city in Türkiye within 2024-25 according to the 2023 Policy
Address and 2024-25 Budget, for attracting capital and enterprises from high-potential
emerging countries in the Middle East and North Africa, etc. This marks the 3rd and 4th
consultant offices after the establishment of consultant offices in Nairobi, Kenya and Almaty,
Kazakhstan within the current-term Government.
InvestHK will continue to leverage Hong Kong’s role as a “super connector” and a “super
value-adder” through its consultant offices and Dedicated Teams for Attracting Businesses
and Talents in the “Global South”, as well as to collaborate with relevant organisations,
chambers of commerce, and professional bodies, etc., to organise investment promotion
activities, including meetings, conferences, roadshows, seminars, exhibitions, etc. so as to
proactively provide potential investors and enterprises in the “Global South” with the latest
information on Hong Kong’s business environment and promote Hong Kong’s distinctive
advantages of enjoying strong support of the Motherland and being closely connected to the
world and other core strengths under “One Country, Two Systems”, as well as the immense
opportunities brought by key national strategies including the Greater Bay Area development
and the B&R Initiative, with a view to attracting the enterprises in the “Global South” to set
up or expand businesses in Hong Kong. The manpower and expenditure involved in the
aforesaid investment promotion work have been subsumed under the overall staff
establishment and estimate of InvestHK, which include administrative overhead expenses,
and hence cannot be quantified separately.
Session 18 CEDB - Page 261
Note 3: Hong Kong has signed 9 FTAs with 21 economies, including Mainland China, New Zealand, the Member States
of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway and Switzerland), Chile,
Macao SAR, the 10 Member States of the ASEAN (i.e. Brunei Darussalam, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), Georgia, Australia and Peru. All
FTAs have come into force except the FTA signed with Peru on 15 November 2024.
Note 4: Hong Kong has signed 24 IPPAs with 33 overseas economies, including the 10 Member States of the ASEAN,
Australia, Austria, Bahrain, Belgium, Canada, Chile, Denmark, Finland, France, Germany, Italy, Japan, Korea,
Kuwait, Luxembourg, Mexico, Netherlands, New Zealand, Sweden, Switzerland, Türkiye, UAE, and the United
Kingdom. All IPPAs have come into force except the IPPA signed with Türkiye on 31 October 2023.
Note 5: RCEP member economies include Mainland China, the 10 Member States of the ASEAN, Australia, Japan,
Korea, and New Zealand.
- End -
Session 18 CEDB - Page 262
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB101
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0284)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (000) Operational expenses
Programme: (1) Commercial Relations
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As mentioned in paragraph 109 of the Budget Speech, the Government is following up
actively with the governments of Malaysia and Saudi Arabia on the establishment of
Economic and Trade Offices (ETOs) in these two countries. In addition, Invest Hong
Kong has established consultant offices in Cairo, Egypt and Izmir, Türkiye. The Hong Kong
Trade Development Council has also set up a consultant office in Cambodia. In this
connection, please inform this Committee of the following:
1. the number of activities expected to be organised by the new ETOs in Malaysia and
Saudi Arabia to attract enterprises and investment, and the specific outcome expected to
be achieved;
2. the manpower and estimated expenditure involved in the new ETOs and consultant
offices; and
3. whether Dedicated Teams for Attracting Businesses and Talents will be set up under the
new ETOs; and if so, the numbers of target enterprises and talents they plan to reach out
in the coming year.
Asked by: Hon LAM Shun-chiu, Dennis (LegCo internal reference no.: 1)
Reply:
The Hong Kong Special Administrative Region (HKSAR) Government is following up
actively with the governments of Malaysia and Saudi Arabia respectively on our plans to
establish Economic and Trade Offices (ETOs) in these 2 countries. As always, we will duly
take into consideration the scope of duties, country coverage and operational needs in working
out the estimated expenditure and staff establishment for the new ETOs. Generally
speaking, ETOs comprise 5 Hong Kong-based officers and 12 locally-engaged staff having
regard to operational needs, with total operational expenses estimated to be around
Session 18 CEDB - Page 263
$30 million per year. We expect the manpower and resources required by the new ETOs to
be similar to those of the existing ETOs.
For the existing 14 ETOs, except for Geneva ETO which represents Hong Kong, China in the
World Trade Organization as well as the Trade Committee of the Organisation for Economic
Co-operation and Development, and Washington ETO which is mainly responsible for
liaising with the political circle in the United States, Dedicated Teams for Attracting
Businesses and Talents (Dedicated Teams) have been established under the other 12 ETOs,
in line with the Government’s “Competing for Talents and Enterprises” strategy and
objective. The HKSAR Government plans to set up Dedicated Teams under the new ETOs
as well to assist in promoting the relevant initiatives. In addition, the Hong Kong Trade
Development Council (HKTDC) has 51 offices worldwide to provide support for organising
local business as well as trade promotion activities and conducting related business matching.
The relevant expenditures of the offices of Invest Hong Kong and the HKTDC have been
subsumed into their respective overall estimates and cannot be quantified separately.
- End -
Session 18 CEDB - Page 264
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB102
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0681)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (-) -
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
In addition to striving for economic development, Hong Kong also shoulders the important
mission of telling good stories of China and Hong Kong. Overseas Chinese organisations
play a significant role in promoting Hong Kong’s economic development, facilitating
East-meets-West cultural exchange, enhancing international understanding of China and
Hong Kong, etc.
1. Is there any mechanism for regular liaison between overseas Economic and Trade
Offices and the local overseas Chinese organisations? If so, please specify the
frequencies and forms of liaison as well as the main areas of co-operation. If not, will
the Government consider establishing relevant mechanisms to strengthen collaboration
with the overseas Chinese community?
2. Has the Government set aside any estimated provision specifically for supporting
overseas Chinese organisations in telling good stories of China and promoting
Hong Kong in their localities in the 2025-26 financial year? If so, what are the details?
If not, will consideration be given to allocating additional resources to support the work
of the overseas Chinese community in this regard?
3. Are there any key performance indicators set in respect of liaison with the overseas
Chinese organisations? If so, what are the details? If not, will consideration be given
to setting relevant indicators?
Asked by: Hon LEE Wai-king, Starry (LegCo internal reference no.: 12)
Reply:
The overseas Hong Kong Economic and Trade Offices (ETOs) are the official representatives
of the Hong Kong Special Administrative Region (HKSAR) Government in countries and
regions under their respective purview. Their responsibilities are to strengthen relations and
liaison with local political and business sectors at the governmental level, and to handle
Session 18 CEDB - Page 265
bilateral economic and cultural matters between Hong Kong and the countries and regions
under their respective purview.
The HKSAR Government attaches great importance to the relationship with overseas Chinese
in foreign countries. All along, the ETOs have been conducting their liaison and promotion
work via different channels through their respective networks. The ETOs have established
extensive network with different contacts, covering overseas Hong Kong people and overseas
Chinese organisations, in addition to stakeholders from various sectors, with the aim to unite
forces from all sectors to fully dovetail with the relevant policy measures of the HKSAR
Government; actively promote Hong Kong’s unique advantages of enjoying strong support
of the Motherland and being closely connected to the world under “One Country, Two
Systems”, as well as the opportunities brought by national strategies such as the
Guangdong-Hong Kong-Macao Greater Bay Area development and the high-quality
development of the Belt and Road Initiative.
ETOs do not maintain statistics on the liaison work with overseas Chinese organisations. As
liaison with overseas Chinese organisations is an integral part of the overall work of the ETOs,
the expenditure involved cannot be quantified separately. We have already set various
indicators for evaluating the performance of ETOs’ services, which cover the 3 Programmes,
namely “Commercial Relations”, “Public Relations” and “Investment Promotion” and have
been listed in the Controlling Officer’s Report.
- End -
Session 18 CEDB - Page 266
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB103
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0774)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (1) Commercial Relations
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The provision for 2025-26 is 74.6 million (35.4%) higher than the revised estimate for
2024-25, mainly due to the increased provision for the new Economic and Trade Offices
(ETOs) under planning.
Besides, Matters Requiring Special Attention in 2025-26 include continuing to promote Hong
Kong’s trade and commercial interests, including countering protectionism in Hong Kong’s
major markets.
In this connection, will the Government advise this Committee of the following:
(1) It is reported that to expand our trade network and attract more inward investment and
enterprises from the Global South markets to Hong Kong, the Government is following
up actively with the governments of Malaysia and Saudi Arabia on the establishment of
ETOs in these two countries. If established, what are the details of the manpower and
expenditure of these ETOs?
(2) What were the measures of the overseas ETOs in countering protectionism in 2024-25
and the effectiveness of such measures, and what are the strategies for countering
protectionism in 2025-26?
Asked by: Hon LIAO Cheung-kong, Martin (LegCo internal reference no.: 13)
Reply:
The Hong Kong Special Administrative Region (HKSAR) Government is following up
actively with the governments of Malaysia and Saudi Arabia respectively on our plans to
establish Economic and Trade Offices (ETOs) in these 2 countries. As always, we will duly
take into consideration the scope of duties, country coverage and operational needs in working
out the estimated expenditure and staff establishment for the new ETOs. Generally
Session 18 CEDB - Page 267
speaking, ETOs comprise 5 Hong Kong-based officers and 12 locally-engaged staff having
regard to operational needs, with total operational expenses estimated to be around
$30 million per year. We expect the manpower and resources required by the new ETOs to
be similar to those of the existing ETOs.
At present, the HKSAR Government has a total of 14 ETOs. To promote Hong Kong’s trade
and commercial interests, the ETOs have maintained close contact with government officials,
business leaders and chambers of commerce in the countries under their purview. Also,
through various efforts including supporting Hong Kong officials and business delegations to
visit the relevant countries and organising such business/promotional activities as seminars,
exhibitions, dinner/lunch meetings, etc., the ETOs strive to deepen and expand the bilateral
relations between Hong Kong and these countries, advocate multilateralism, and proactively
clarify relevant people’s misunderstandings about Hong Kong to combat protectionism.
Among them, the Washington ETO has been actively emphasising to various sectors of the
United States (US) through different channels that Hong Kong and the US have deep and
mutually beneficial trade and commercial ties all along, exchanging views on areas of
common concern and clarifying misunderstandings. On issues related to Hong Kong
(including the recent announcements by the US on imposition of additional tariffs on
Hong Kong products), the Washington ETO has also taken the initiative to meet and write to
the relevant US government officials to make clear Hong Kong’s position.
In 2025-26, the ETOs will continue to take forward the above work with a view to explaining
our position and telling the good stories of Hong Kong to the international community.
- End -
Session 18 CEDB - Page 268
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB104
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1179)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (000) Operational expenses
Programme: (1) Commercial Relations
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
(1) Regarding the overall expenditure of the overseas Economic and Trade Offices (ETOs),
including Programmes 1-3, the revised estimates for 2024-25 are 26.2% less than the
original estimates. What are the reasons for that? Is there any postponement of plan to
set up new ETOs or other projects? If yes, what are the reasons for the postponement?
Will the postponed plans be implemented in 2025-26 and is there any need to adjust the
estimates?
(2) It is mentioned in the “Analysis of Financial and Staffing Provision” that the expenditure
for 2025-26 is essentially the same as that for 2024-25, which is due to the provision for
establishing new ETOs as well as filling vacancies and staff changes. What are the
details of the vacancies to be filled and staff changes?
(3) What is the staffing establishment of the new ETOs under planning? Will the Economic
and Trade Representatives be deployed from Hong Kong and what is the number of them?
Will such staff movement affect the total establishment of the ETOs?
(4) With the establishment of new ETOs, will large-scale business delegations be arranged to
conduct study visits? What are the plans?
Asked by: Hon MA Fung-kwok (LegCo internal reference no.: 12)
Reply:
Under Programme (1) “Commercial Relations”, Programme (2) “Public Relations” and
Programme (3) “Investment Promotion”, the revised estimate for 2024-25 of the overseas
Hong Kong Economic and Trade Offices (ETOs) has been adjusted downwards from the
original estimate of $602 million to $444 million, which is 26.2% less. The reasons include
less salary expenses due to vacant posts and staff changes, as well as less operating expenses
Session 18 CEDB - Page 269
(covering those for the planned new ETOs but not yet established during the financial year)
than expected in 2024-25.
As at 28 February 2025, the 14 existing ETOs had an establishment of 213 posts in total,
including Hong Kong-based officer posts and locally-engaged staff posts. The ETOs had a
strength of 193 staff in total, with 20 vacancies which were mainly due to staff changes or
resignation for personal reasons. We expect the relevant vacancies will be filled in 2025-26.
Assisting in arranging overseas visits for principal officials of the Hong Kong Special
Administrative Region Government, as well as representatives from the local political,
business and professional sectors, and promoting Hong Kong’s strengths are integral parts of
the daily work of the ETOs. The ETOs will continue to tell the world the good stories of
Hong Kong through multilateral liaison.
As mentioned in the 2025-26 Budget, we are actively following up with the Governments of
Malaysia and Saudi Arabia on plans to set up ETOs. In line with our established practice,
we will take into due consideration the scope of duties, country coverage and operational
needs of the new ETOs in working out the estimated expenditure and staff establishment for
the new ETOs. Generally speaking, an ETO, depending on operational needs, comprises 5
Hong Kong-based officers and 12 locally-engaged staff with total operational expenses
estimated to be around $30 million per year. We expect the manpower and resources
required by the new ETOs to be similar to those of the existing ETOs.
- End -
Session 18 CEDB - Page 270
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB105
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0905)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (1) Commercial Relations
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under this Programme, one of the key responsibilities of the overseas Economic and Trade
Offices is to support senior officers’ overseas visits. Please inform this Committee of the
detailed expenditures on senior officers’ overseas visits in the past year, with a list of officers
on visits and their departments. What are the regions, objectives and outcomes of the visits
and the numbers of entourage members? What are the arrangements and costs for flights,
transportation and hotel accommodation? What are the estimated expenditures for 2025-26?
Are there any specific plans and timetables for overseas visits?
Asked by: Hon NG Kit-chong, Johnny (LegCo internal reference no.: 4)
Reply:
The overseas Hong Kong Economic and Trade Offices (ETOs) provided full support in
arranging overseas visits for the Chief Executive (CE) and Principal Officials, with a view to
actively promoting high-level exchanges with local officials and various sectors, advancing
Hong Kong’s development of the “eight centres” and supporting different policy bureaux in
promoting their globally-focused initiatives. As reflected from the following few examples
of major duty visits, ETOs had endeavored to actively assist in coordinating the visit
programmes and/or providing related support for the visits.
The CE visited 3 countries of the Association of Southeast Asian Nations (i.e. Laos,
Cambodia and Vietnam) in July 2024, during which general consensus had been reached on
areas of development and extensive co-operation and a total of 55 memoranda of
understanding and agreements had been signed, covering such areas as trade and economic
partnership, investment, customs collaboration, logistics, cultural exchanges, tourism
promotion, technological co-operation, aviation services, etc.
The Financial Secretary (FS) visited Georgia, France and the United States (US) in May 2024,
and Australia and the United Kingdom in September to promote Hong Kong’s economy and
Session 18 CEDB - Page 271
development of various sectors under the “eight centres”. In particular, FS highlighted
Hong Kong’s status and advantages as an international financial and trade centre, with
offshore Renminbi services and mutual access with Mainland financial markets, which helped
enterprises in Guangdong-Hong Kong-Macao Greater Bay Area cities “venture overseas by
sharing a boat”.
The Secretary for Justice visited Saudi Arabia and the United Arab Emirates in May 2024;
Vietnam, Malaysia and Brunei Darussalam in September; and Singapore in October to
promote Hong Kong’s legal and dispute resolution services, with a view to creating more
opportunities for the industry and consolidating Hong Kong’s position as the centre for
international legal and dispute resolution services in the Asia-Pacific region.
In addition to attending the Asia-Pacific Economic Cooperation Ministerial Meeting in
November 2024, the Secretary for Commerce and Economic Development visited France and
the US in May as well as Singapore in September, during which he met with representatives
of the major local chambers of commerce and introduced to them Hong Kong’s latest
developments and measures on assisting enterprises in setting up businesses in Hong Kong,
with a view to fostering closer relations between Hong Kong and these economies.
The overseas visits conducted by Directors of other Bureaux in 2024-25 included the visit by
the Secretary for Innovation, Technology and Industry to Belgium and France to strengthen
Hong Kong’s position as an international I&T centre and to enhance connections and
co-operation in the areas such as I&T with the European Union and France. The Secretary
for Financial Services and the Treasury visited the US, the Netherlands, Spain and Portugal
to promote the vibrant development of Hong Kong’s fintech. The Secretary for Transport
and Logistics led a delegation of members from the Hong Kong Maritime and Port Board to
Japan and Germany, promoting Hong Kong’s advantages as an international maritime centre
to the international maritime community. The Secretary for Culture, Sports and Tourism
visited Vietnam, underlining the country’s clear support for Hong Kong’s development as an
East-meets-West centre for international cultural exchange, which would bring continuous
development opportunities for the industry. The Secretary for Education visited the US and
France, promoting Hong Kong’s advantage as an international education hub and engaging
local education experts to consolidate Hong Kong’s position as a higher education hub.
The total expenditure of the duty visits incurred by the Secretary for Commerce and Economic
Development (including his entourage involving 0 to 3 persons for each visit) in 2024-25 was
around $1.6 million. The overseas visit plans of senior officers in 2025-26 will be
formulated by the respective policy bureaux/departments.
- End -
Session 18 CEDB - Page 272
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB106
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0930)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (1) Commercial Relations
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under this Programme, the overseas Economic and Trade Offices (ETOs) will continue to
promote Hong Kong’s trade and commercial interests, including countering protectionism in
Hong Kong’s major markets, as well as representing Hong Kong and providing support to the
Commerce and Economic Development Bureau and, as appropriate, other bureaux and
departments on issues of special interests on the bilateral, plurilateral and multilateral fronts.
Please inform this Committee of the expenditure incurred by the ETOs on the
above-mentioned work in 2024-25. What initiatives were implemented? How effective
were they? What are the work plans and objectives for 2025-26? Are there any specific
measures in face of foreign countries’ imposition of additional duties and sanctions? What
is the estimated expenditure involved?
Asked by: Hon NG Kit-chong, Johnny (LegCo internal reference no.: 28)
Reply:
To promote Hong Kong’s trade and commercial interests, the overseas Hong Kong Economic
and Trade Offices (ETOs) have all along maintained close connections with government
officials, business leaders and chambers of commerce in countries under their purview.
Through various work including supporting Hong Kong officials and business delegations in
conducting overseas visits, as well as organising seminars, exhibitions, dinner/lunch
meetings, and other business/promotional activities, the ETOs deepen and broaden the
bilateral relationships between Hong Kong and the relevant countries, advocate
multilateralism and actively clarify misunderstandings of relevant individuals about
Hong Kong, with a view to promoting and deepening Hong Kong’s bilateral, plurilateral, and
multilateral relationships with various regions.
First of all, in strengthening Hong Kong’s global economic and trade network and promoting
agreements on multilateral and regional co-operation, the ETOs have supported discussions
with relevant countries and the signing of agreements that could benefit Hong Kong, including
Session 18 CEDB - Page 273
free trade agreements, investment promotion and protection agreements and comprehensive
avoidance of double taxation agreements. The ETOs concerned have also maintained close
contact with the trade and economic departments of the member states of the Regional
Comprehensive Economic Partnership and the Association of Southeast Asian Nations
(ASEAN) Secretariat, to foster favorable conditions for the early accession of Hong Kong to
this world’s largest regional free trade agreement. The ETOs, in collaboration with the
Hong Kong Trade Development Council (HKTDC), chambers of commerce and other
relevant organisations, have promoted the vast business opportunities in Hong Kong and its
unique advantages as a “super connector” and “super value-adder”, as well as assisted
Hong Kong businesses in exploring and investing in new markets (including those in ASEAN
and the Middle East), thereby reducing reliance on traditional markets.
At the same time, the ETOs have supported the work of the Commerce and Economic
Development Bureau as well as other policy bureaux and departments, in advancing
Hong Kong’s development of the “eight centres” and promoting different policy bureaux’
globally-focused initiatives. Hong Kong has been making progress in the economic
development of emerging industries. Building on its traditional strengths as an international
financial and trading centre, Hong Kong has also been developing as a hub for innovation and
technology, as well as an arts and cultural centre where Eastern and Western cultures meet.
In this connection, the ETOs have organised relevant activities from time to time. For
instance, in June 2024, the Toronto ETO and Invest Hong Kong jointly participated in
“Collision 2024”, the large-scale I&T conference in Toronto, during which the ETO invited
the Hong Kong Monetary Authority, Hong Kong’s venture capital experts and local I&T
organisations to organise large-scale seminars, master-class workshops and panel exchanges
to promote Hong Kong’s latest advantages in fintech, Web3, virtual assets, etc., and
introduced related measures to attract businesses and talents. In September, the
San Francisco ETO co-organised an innovation tech mixer with the HKTDC and the Hong
Kong Association of Northern California to provide opportunities for 5 Hong Kong start-ups
supported by the Hong Kong Science & Technology Parks Corporation for acceleration in
Silicon Valley and networking with start-up founders and investors in the San Francisco Bay
Area, and to promote Hong Kong’s start-up ecosystem. In October, the Bangkok ETO
supported Ying Wah Chinese Opera to stage two performances in Bangkok. Led by
renowned Cantonese opera performer Law Kar-ying, the event introduced Cantonese opera
to a wider audience in Thailand, fostering a greater appreciation for its cultural significance.
From December 2024 to January 2025, the Dubai ETO organised, in collaboration with
Information Services Department, the “Immersive Hong Kong” roving exhibition in Dubai to
showcase Hong Kong’s unique attractions and advantages for business, investment and
tourism to the people of the Middle East. The exhibition received an overwhelming
response from both the public and tourists in the United Arab Emirates (UAE), attracting over
200 000 visitors to experience the appeal and vibrancy of Hong Kong through interactive art
technology. Moreover, various distinguished guests such as Minister of State for Foreign
Trade of the UAE came to view and enjoy the exhibition, thereby strengthening business and
cultural relations between the two places. In February 2025, the London ETO supported the
Hong Kong Gaudeamus Dunhuang Ensemble’s concert, titled “Resonance of the Silk Road:
Past, Present & Future Concert”, at the British Library. The event commenced with a
reception attended by over 50 guests, including diplomatic envoys and representatives from
the local business, academic and cultural sectors.
Session 18 CEDB - Page 274
On the other hand, the ETOs have endeavoured to actively assist in coordinating the visit
programmes and/or providing related support for the duty visits of the Chief Executive (CE)
and principal officials. For example, in 2024-25, through the coordination and arrangement
of the Bangkok and Singapore ETOs, CE visited three countries of the ASEAN (namely Laos,
Cambodia and Vietnam) in July, during which general consensus had been reached on areas
of development and extensive co-operation and a total of 55 memoranda of understanding
and agreements had been signed, covering such areas as trade and economic partnership,
investment, customs collaboration, logistics, cultural exchanges, tourism promotion,
technological co-operation, aviation services, etc. The Secretary for Justice visited Saudi
Arabia and the UAE in May; Vietnam, Malaysia and Brunei Darussalam in September; and
Singapore in October to promote Hong Kong’s legal and dispute resolution services, with a
view to creating more opportunities for the industry and consolidating Hong Kong’s position
as the centre for international legal and dispute resolution services in the Asia-Pacific region.
In addition, the Washington ETO has consistently leveraged different channels to emphasise
to various sectors in the United States (US) the long-standing, deep and mutually beneficial
ties between Hong Kong and the US on trade and commerce, exchanged views on areas of
mutual interest and clarified misunderstandings as well as introduced latest policies and
development opportunities (e.g. announcement in the Policy Address to reduce the duty rate
for liquor to boost Hong Kong’s development as a regional spirits hub). Regarding certain
issues about Hong Kong (including the US’ recent announcement of duties on Hong Kong
products), the Washington ETO has also proactively reached out and/or written to relevant
government officials in the US to clarify Hong Kong’s stance.
In 2025-26, the ETOs will not only continue advancing the aforementioned initiatives, but
also collaborate with relevant government departments and other Hong Kong overseas
agencies more proactively to attract enterprises to set up their businesses in Hong Kong. At
the same time, they will support Hong Kong enterprises (including Mainland enterprises that
choose to establish businesses in Hong Kong) in “going global”, helping them expand into
overseas markets and fostering a high value-added supply chain service centre. The ETOs
will also closely monitor the latest economic and political developments as well as policies in
countries under their purview (including measures related to trade restrictions), strengthen the
bilateral relations between Hong Kong and relevant countries, and promote trade, commerce
and investment cooperation within the respective regions. As mentioned in the 2025-26
Budget, Hong Kong will continue to play its role as a functional platform for the Belt and
Road (B&R) Initiative to strengthen co-operation with B&R countries. The relevant ETOs,
together with the business and professional services sectors, will deepen their efforts in
markets such as ASEAN and the Middle East.
As the above work is a part of the overall work of the ETOs, the relevant expenditure and
estimate cannot be quantified separately.
- End -
Session 18 CEDB - Page 275
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB107
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0931)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (000) Operational expenses
Programme: (1) Commercial Relations
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the Analysis of Financial and Staffing Provision for Programme (1), it is mentioned
that provision for 2025-26 is $74.6 million (35.4%) higher than the revised estimate for 2024-
25. This is mainly due to the increased provision for the new Economic and Trade Offices
(ETOs) under planning, increased salary provision for filling vacancies and staff changes, and
increased operating expenses. Please advise this Committee of the detailed breakdown of
the expenditures, work plans and timetables for the new ETOs, including the locations and
staff establishment, as well as the regions where new ETOs may be set up in the future and
the expected economic and trade benefits that may bring to Hong Kong.
Asked by: Hon NG Kit-chong, Johnny (LegCo internal reference no.: 29)
Reply:
As mentioned in the 2025-26 Budget, we are following up actively with the governments of
Malaysia and Saudi Arabia respectively on our plans to establish Economic and Trade Offices
(ETOs) in these 2 countries. As always, we will duly take into consideration the scope of
duties, country coverage and operational needs in working out the estimated expenditure and
staff establishment for the new ETOs. Generally speaking, ETOs comprise 5 Hong
Kong-based officers and 12 locally-engaged staff having regard to operational needs, with
total operational expenses estimated to be around $30 million per year. We expect the
manpower and resources required by the new ETOs to be similar to those of the existing
ETOs.
As part of the efforts to expand Hong Kong’s overseas economic and trade network, we will
continue to explore the feasibility of setting up new ETOs in different locations, especially
emerging markets and those with potential.
- End -
Session 18 CEDB - Page 276
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB108
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0932)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (2) Public Relations
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under this Programme, the overseas Economic and Trade Offices (ETOs) monitor and report
on reactions to events in Hong Kong, update overseas interlocutors on developments in Hong
Kong, and organise publicity and public relations activities for Hong Kong in the host
countries or regions under their purview etc. During 2025-26, the ETOs will continue to
step up publicity and public relations efforts and launch promotional campaigns to enhance
Hong Kong’s international image, and strengthen collaboration with other Hong Kong
overseas agencies in developing strategies for city branding and publicity. Will the
Government inform this Committee of the expenditure involved, details and results of the
related work for each of the ETOs in 2024-25? Please provide the information with a
breakdown by ETO. What is the estimated expenditure for the new financial year? What
are the specific work plans? How will the ETOs enhance Hong Kong’s international image
under the new international landscape? What are the key performance indicators?
Asked by: Hon NG Kit-chong, Johnny (LegCo internal reference no.: 30)
Reply:
As the official overseas representatives of the Hong Kong Special Administrative Region
(HKSAR) Government, the 14 overseas Hong Kong Economic and Trade Offices (ETOs) Note
are committed to maintaining close communication and contact with overseas interlocutors
from different sectors and the international community, promoting and explaining the
HKSAR Government’s important policies and Hong Kong’s unique advantages under “One
Country, Two Systems”, especially the vast opportunities provided by the Belt and Road
(B&R) Initiative as well as the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)
development.
In 2024-25, in addition to regularly providing stakeholders in countries and regions under
their purview (including think tanks, academic institutions and business organisations) with
the latest information on Hong Kong through newsletters and social media, the ETOs
Session 18 CEDB - Page 277
maintained close liaison with them to assess the impact of local development on Hong Kong,
met with the media and took the initiative to publish articles to rebut biased reports so as to
set the record straight. Besides, the ETOs provided full support in arranging overseas visits
for the Chief Executive (CE) and principal officials, with a view to actively promoting
high-level exchanges with local officials and various sectors, advancing Hong Kong’s
development of the “eight centres” and supporting different policy bureaux in promoting their
globally-focused initiatives. For example, CE visited 3 countries of the Association of
Southeast Asian Nations (namely Laos, Cambodia and Vietnam) in July 2024, during which
general consensus had been reached on areas of development and extensive co-operation and
a total of 55 memoranda of understanding and agreements had been signed, covering such
areas as trade and economic partnership, investment, customs collaboration, logistics, cultural
exchanges, tourism promotion, technological co-operation, aviation services, etc. The
Secretary for Justice visited Saudi Arabia and the United Arab Emirates (UAE) in May 2024;
Vietnam, Malaysia and Brunei Darussalam in September; and Singapore in October to
promote Hong Kong’s legal and dispute resolution services, with a view to creating more
opportunities for the industry and consolidating Hong Kong’s position as the centre for
international legal and dispute resolution services in the Asia-Pacific region. The ETOs had
endeavored to actively assist in coordinating the visit programmes and/or providing related
support for the duty visits of CE and principal officials.
The ETOs also maintained close liaison with the Governments and organsations in countries
under their purview, encouraged global business communities and enterprises to seize the vast
business opportunities, promoted Hong Kong as a “super connector” and a “super
value-adder” to continue to strengthen Hong Kong’s economic and trade ties with various
sectors overseas, thereby making important contributions to the dual circulation strategy of
our country. In addition, Hong Kong has been making progress in the economic
development of emerging industries. Building on its traditional strengths as an international
financial and trading centre, Hong Kong has also been developing as a hub for innovation and
technology, as well as an arts and cultural centre where Eastern and Western cultures meet.
In this connection, the ETOs organised relevant activities from time to time. For instance,
in June 2024, the Toronto ETO and Invest Hong Kong jointly participated in “Collision
2024”, the large-scale I&T conference in Toronto, during which the ETO invited the
Hong Kong Monetary Authority, Hong Kong’s venture capital experts and local I&T
organisations to organise large-scale seminars, master-class workshops and panel exchanges
so as to promote Hong Kong’s latest advantages in fintech, Web3, virtual assets, etc., and
introduced related measures to attract businesses and talents. In September, the San
Francisco ETO co-organised an innovation tech mixer with the Hong Kong Trade
Development Council (HKTDC) and the Hong Kong Association of Northern California to
provide opportunities for 5 Hong Kong start-ups supported by the Hong Kong Science &
Technology Parks Corporation for acceleration in Silicon Valley and networking with start-up
founders and investors in the San Francisco Bay Area, and to promote Hong Kong’s start-up
ecosystem. In October, the Bangkok ETO supported Ying Wah Chinese Opera to stage 2
performances in Bangkok. Led by renowned Cantonese opera performer Law Kar-ying, the
event introduced Cantonese opera to a wider audience in Thailand, fostering a greater
appreciation for its cultural significance. From December 2024 to January 2025, the Dubai
ETO organised, in collaboration with Information Services Department, the “Immersive
Hong Kong” roving exhibition in Dubai to showcase Hong Kong’s unique attractions and
advantages for business, investment and tourism to the people of the Middle East. The
exhibition received an overwhelming response from both the public and tourists in the UAE,
Session 18 CEDB - Page 278
attracting over 200 000 visitors to experience the appeal and vibrancy of Hong Kong through
interactive art technology. Moreover, various distinguished guests such as Minister of State
for Foreign Trade of the UAE came to view and enjoy the exhibition, thereby strengthening
business and cultural relations between the 2 places. In February 2025, the London ETO
supported the Hong Kong Gaudeamus Dunhuang Ensemble’s concert, titled “Resonance of
the Silk Road: Past, Present & Future Concert”, at the British Library. The event
commenced with a reception attended by over 50 guests, including diplomatic envoys and
representatives from the local business, academic and cultural sectors.
Furthermore, in line with the “Competing for Talents and Enterprises” strategy and objective,
the Dedicated Teams for Attracting Businesses and Talents (the Dedicated Teams) in ETOs
continued to support the work of the Office for Attracting Strategic Enterprises under the
Financial Secretary’s Office and the Hong Kong Talent Engage in the Labour and Welfare
Bureau in providing facilitation services for the attraction of businesses and talents. The
Dedicated Teams and other staff of the ETOs, through various means and channels,
proactively reached out to high potential and representative strategic enterprises and talents,
including liaising with the world’s top 100 universities and Hong Kong residents studying or
working overseas, promoting Hong Kong’s opportunities and advantages, and various talent
admission programmes, thereby encouraging them to settle in Hong Kong.
In 2025-26, the ETOs will continue to organise and participate in various events, including
conferences, seminars, cultural and arts performances, exhibitions, film festivals and sports
events, in close collaboration with policy bureaux and departments, Hong Kong overseas
agencies (such as offices of HKTDC and Hong Kong Tourism Board), chambers of commerce
and professional bodies. In line with the overall promotion strategy of the Government, the
ETOs will enhance overseas promotion of Hong Kong’s new economic highlights, new
cultural horizons, and new tourism experiences; assist in arranging visits for principal officials
of the Government to different countries, regions and markets to promote Hong Kong’s
advantages as well as various flagship events and occasions. The ETOs will also enhance
Hong Kong’s international image and branding through multilateral liaison, strengthen the
cohesion of local and overseas Hong Kong people, and actively promote Hong Kong’s unique
advantages under “One Country, Two Systems” and Hong Kong’s development of “eight
centres” as outlined in the National 14th Five-Year Plan, as well as the vast business
opportunities brought about by the B&R Initiative and the GBA development, so as to make
the best endeavours to attract businesses and talents to Hong Kong, and to tell the world the
good stories of Hong Kong.
As the above work is part of the overall public relations work of the ETOs, the expenditure
incurred and estimated expenditure cannot be quantified separately.
The actual and estimated performance indicators in 2024 and 2025 respectively in respect of
ETOs’ work in “Commercial Relations”, “Public Relations” and “Investment Promotion”
have been listed in the Controlling Officer’s Report.
Note: The HKSAR Government currently has 14 ETOs which are located in Bangkok, Berlin, Brussels, Dubai,
Geneva, Jakarta, London, New York, San Francisco, Singapore, Sydney, Tokyo, Toronto and Washington DC
respectively.
- End -
Session 18 CEDB - Page 279
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB109
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2674)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (1) Commercial Relations, (2) Public Relations, (3) Investment
Promotion
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
In 2025-26, the expenditures of the overseas Economic and Trade Offices (ETOs) under the
3 programmes of Commercial Relations, Public Relations and Investment Promotion have
increased by $74.6 million, $55.2 million and $26.3 million, representing increases of 35.4%,
35% and 34.7% respectively. Please provide a detailed breakdown of the additional
expenditures of the 3 programmes. Does the Government have any plans to adjust the
allocation of resources for the various overseas ETOs and concentrate the resources on
regions with development potentials, including those along the “Belt and Road”, with a view
to exploring new business opportunities for Hong Kong? If yes, what are the details of the
plan? If no, what are the reasons?
Asked by: Hon WONG Chun-sek, Edmund (LegCo internal reference no.: 20)
Reply:
For 2025-26, the estimated expenditures of the overseas Hong Kong Economic and Trade
Offices (ETOs) in respect of Programme (1) “Commercial Relations”, Programme (2) “Public
Relations” and Programme (3) “Investment Promotion” are $285 million, $213 million and
$102 million respectively, totalling $600 million, which is 0.2% less than the original estimate
for 2024-25. The estimated expenditure is 35.1% higher than the revised estimate for
2024-25, mainly due to the provision for the new ETOs under planning, increased salary
provision for filling vacancies and staff changes, and increased operating expenses.
The Hong Kong Special Administrative Region (HKSAR) Government has proactively
expanded our network of ETOs, strived to maintain close communication and contact with
overseas interlocutors from different sectors and the international community, strengthened
Hong Kong’s trade and economic relations with other places, explained the HKSAR
Government’s major policies, and promoted our unique status under “One Country, Two
Systems” and our multi-faceted advantages, as well as the vast opportunities brought about
Session 18 CEDB - Page 280
by the Belt and Road (B&R) Initiative and the Guangdong-Hong Kong-Macao Greater Bay
Area development.
The HKSAR Government has dedicated its efforts towards strengthening trade and economic
relations with the Middle East and the Association of Southeast Asian Nations (ASEAN),
with a view to deepening regional cooperation. The HKSAR Government is actively
advancing the plan to establish an ETO in Riyadh, Saudi Arabia and Kuala Lumpur, Malaysia
respectively, to assist us in constructing a broader network in the Middle East and ASEAN,
thereby enhancing Hong Kong’s external trade. The Middle East region, where Saudi
Arabia is located, and the ASEAN market, which includes Malaysia, are both important hubs
of the B&R Initiative. Establishing ETOs in these 2 locations will strengthen Hong Kong’s
strategic position as an international trade centre and a key connector to the world. It will
also assist Hong Kong enterprises in expanding into emerging markets such as the Middle
East and ASEAN, injecting new momentum into Hong Kong’s economic development.
The HKSAR Government will continue to proactively explore the feasibility and relevant
details in setting up ETOs in various countries, on the basis of Hong Kong’s trade interest and
needs, as well as the economic and political importance of various places to Hong Kong, and
the governance and safety-related circumstances of said places, so as to continually develop
Hong Kong’s global trade network.
- End -
Session 18 CEDB - Page 281
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB110
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0089)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (-) -
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
1. To open up markets and expand trade network, has the Government broadened its vision
to target the Global South markets; if yes, what are the planning directions?
2. As regards the discussions about the Government’s establishment of Economic and
Trade Offices (ETOs) in Malaysia and Saudi Arabia, when are the offices expected to
be established and what are the scale and recurrent expenditure?
3. What are the differences between ETOs and consultant offices in terms of their duties,
and the considerations in deciding the type of office to be set up? What are the current
number and distribution of consultant offices under the Government and their average
annual expenditure?
Asked by: Hon WONG Ying-ho, Kennedy (LegCo internal reference no.: 1)
Reply:
The 14 overseas Economic and Trade Offices (ETOs), being the official representatives of
the Hong Kong Special Administrative Region (HKSAR) Government in countries/regions,
are responsible for handling bilateral matters between Hong Kong and countries under their
respective purviews (including economic and trade, and cultural exchange matters) and
attracting businesses and talents to Hong Kong Note . Invest Hong Kong (InvestHK)’s
Dedicated Teams for Attracting Businesses and Talents (Dedicated Teams) have been
established under ETOs for attracting enterprises and investment, including assisting overseas
enterprises in setting up or expanding their businesses in Hong Kong. ETOs organise or
participate in different activities every year on external trade relations, public relations and
investment promotion. In addition, InvestHK has established a total of 17 consultant offices
in different places, 13 of which cover emerging markets including Central Asia, the Middle
East, Latin America and Africa, to expand the HKSAR’s investment attraction network. The
Hong Kong Trade Development Council (HKTDC) has 51 offices worldwide, covering
Session 18 CEDB - Page 282
Africa and the Middle East, the Americas, Europe, Asia and the Pacific, 13 of which are
located in Mainland China to support the Council in organising local business promotion
activities and related business matching.
As mentioned in the 2025-26 Budget, in order to expand our trade network and attract inward
investment and enterprises from the Global South markets to Hong Kong, the HKSAR
Government is following up actively with the governments of Malaysia and Saudi Arabia
respectively on our plans to establish ETOs in these 2 countries. As always, we will duly
take into consideration the scope of duties, country coverage and operational needs in working
out the estimated expenditure and staff establishment for the new ETOs. Generally
speaking, ETOs comprise 5 Hong Kong-based officers and 12 locally-engaged staff having
regard to operational needs, with total operational expenses estimated to be around
$30 million per year. We expect the manpower and resources required by the new ETOs to
be similar to those of the existing ETOs.
While ETOs, InvestHK (including the Dedicated Teams and consultant offices) and HKTDC
perform their respective duties, they work in synergy to jointly promote bilateral economic
and trade relations between Hong Kong and overseas economies. The Government will
continue to consider the needs and benefits of establishing ETOs and consultant offices taking
into the actual circumstances in deciding on the type(s) of office to be established.
The relevant expenditures of the offices of InvestHK and HKTDC have been subsumed into
their respective overall estimates which include administrative overhead expenses and cannot
be quantified separately.
Note: Except for Geneva ETO and Washington ETO which is mainly responsible for liaising with the political circle in
the United States.
- End -
Session 18 CEDB - Page 283
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB111
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3006)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (1) Commercial Relations, (2) Public Relations, (3) Investment
Promotion
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
1. According to the documents in the past 3 years, the financial provisions under
Programmes (1) to (3) of the overseas Economic and Trade Offices (ETOs) have shown
a persistent situation that the estimate for the next year is 20-30% higher than the revised
estimate/actual expenditure of the previous year, reflecting that the estimate for each
year has not been fully utilised (e.g. the estimate for 2024-25 is 26.2% higher than the
revised estimate, while the estimate for 2025-26 remains at a level similar to that for
2024-25). Please inform this Committee of the reasons for the substantial differences,
and the specific criteria for determining the estimated provision each year. Have any
adjustments been made with reference to the actual expenditure of the previous year?
2. Regarding Programme (3) “Investment Promotion”, what are the reasons for failing to
meet the 2 indicators (namely new projects generated and projects completed) for 2
consecutive years?
3. What are the expenditures and staffing establishments of the Dedicated Teams for
Attracting Businesses and Talents set up in each overseas ETO? Are there any key
performance indicators for these teams? If yes, what are the details? If no, what are
the reasons?
Asked by: Hon ZHANG Xinyu, Gary (LegCo internal reference no.: 14)
Reply:
For 2025-26, the estimated expenditures of the overseas Hong Kong Economic and Trade
Offices (ETOs) in respect of Programme (1) “Commercial Relations”, Programme (2) “Public
Relations” and Programme (3) “Investment Promotion” are $600 million in total, which is
0.2% less than the original estimate for 2024-25. The estimated expenditure is 35.1% higher
than the revised estimate for 2024-25, mainly due to the provision for the new ETOs under
Session 18 CEDB - Page 284
planning, increased salary provision for filling vacancies and staff changes, and increased
operating expenses.
Except for the Geneva ETO which represents Hong Kong, China in the World Trade
Organization and the Trade Committee of the Organisation for Economic Co-operation and
Development, and the Washington ETO which is mainly responsible for liaising with the
political circle in the United States, Dedicated Teams for Attracting Businesses and Talents
(Dedicated Teams) have been established in the other 12 ETOs. The Dedicated Teams
actively reach out to high potential and representative enterprises and proactively cooperate
with Invest Hong Kong (InvestHK) to implement the performance indicator as set out in the
2022 Policy Address (viz. attracting at least a total of 1 130 companies to set up or expand
their operations in Hong Kong from 2023 to 2025). The 2 performance indicators (i.e. new
projects generated and projects completed) listed in Programme (3) “Investment Promotion”
in the Controlling Officer’s Report are those for the projects handled by the Dedicated Teams
in the ETOs under Head 96. The relevant figures only account for a part of InvestHK’s
overall achievements in attracting businesses and investment. Overall, in 2024, InvestHK
assisted a total of 539 Mainland and overseas enterprises in establishing and expanding their
businesses in Hong Kong, representing an increase of over 40% as compared with the full
year figure of 2023. On a pro-rata basis, the figure well exceeded the performance indicator
as set out in aforesaid Policy Address. Apart from Mainland enterprises, InvestHK also
achieves outstanding results in attracting overseas enterprises to establish and expand their
businesses in Hong Kong.
At present, there are 47 posts established under the Dedicated Teams in the 12 ETOs. The
relevant expenditure involved has been subsumed under the overall estimates of the ETOs
and InvestHK, and hence cannot be quantified separately.
- End -
Session 18 CEDB - Page 285
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB112
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2819)
Head: (31) Customs and Excise Department
Subhead (No. & title): (-) -
Programme: (3) Intellectual Property Rights and Consumer Protection
Controlling Officer: Commissioner of Customs and Excise (CHAN Tsz-tat)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the measures mentioned by the Government to combat unfair trade practices and
offer better protection to consumers who make prepayments, will the Government inform this
Committee of:
(1) whether it can provide the progress of the relevant study and the legislative timetable
after consolidating various views on the proposal to introduce a statutory cooling-off
period since the closure of a chain fitness and beauty group;
(2) the numbers of successful prosecution cases instituted under the Trade Descriptions
Ordinance (Cap. 362) in the past 2 years;
(3) the numbers of reported cases received by the Government under the above Ordinance
and the types of industries involved in the past 2 years in table form.
Asked by: Hon CHU Kwok-keung (LegCo internal reference no.: 31)
Reply:
We are aware that different sectors of the community have put forward various suggestions
in respect of offering better protection to consumers who make prepayments. These include
stipulating a statutory cooling-off period, imposing a cap on the length of prepayment
contracts and the prepayment amounts, etc. The Commerce and Economic Development
Bureau is conducting an in-depth study into different suggestions, considering their pros and
cons and feasibility, with reference to the practices in other jurisdictions and taking into
account relevant factors (including the economic environment, operating situation of relevant
industries, relevant complaint figures and experience of law enforcement agencies, etc.), with
a view to formulating appropriate strategies to strengthen the protection of consumers’ rights
and interests.
Session 18 CEDB - Page 286
In the past 2 years, the number of complaints received by the Customs and Excise Department
relating to the Trade Descriptions Ordinance, the major industries involved and the number
of successful prosecutions are tabulated as follows:
2023 2024
Number of
18 982 Note 12 436
complaints
Goods: Goods:
Online shopping platforms Online shopping platforms
(miscellaneous goods such as (miscellaneous goods such as baby
baby products, clothing and products, clothing and footwear),
footwear), food and beverage, food and beverage, ginseng
ginseng products and dried products and dried seafood/Chinese
seafood/Chinese and western and western medicines, electrical
medicines, electrical and and electronic products, toys and
electronic products, games, supermarkets, department
supermarkets, department stores stores and convenience stores
Major industries
and convenience stores
involved
Services:
Services: Fitness and yoga, beauty and
Education, beauty and hairdressing, pain-relief treatment
hairdressing, travel, furniture, and massage, education, furniture,
decoration and interior design, decoration and interior design,
fitness and yoga, tickets for travel, tickets for sports and cultural
sports and cultural activities activities, broadcasting,
telecommunications and network
equipment
Number of 40 34
successful
prosecutions
Note: 11 565 cases were related to the sudden closure of an online diaper retailer suspected of engaging in wrongly
accepting payment.
- End -
Session 18 CEDB - Page 287
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB113
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3109)
Head: (31) Customs and Excise Department
Subhead (No. & title): (-) -
Programme: (3) Intellectual Property Rights and Consumer Protection
Controlling Officer: Commissioner of Customs and Excise (CHAN Tsz-tat)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Customs and Excise Department (C&ED) will strengthen enforcement actions against
false trade descriptions and unfair trade practices in respect of both goods and services. Will
the Government inform this Committee of:
1. the manpower and resources allocated to combat the aforesaid unlawful acts by C&ED;
and
2. the numbers of offending shops against which enforcement actions were taken by
C&ED (with a breakdown by type of shops), as well as the numbers of persons and
tourists involved in each of the past 5 years?
Asked by: Hon SHIU Ka-fai (LegCo internal reference no.: 38)
Reply:
In 2024-25, 231 Customs and Excise Department (C&ED) officers are responsible for the
enforcement of the Trade Descriptions Ordinance (TDO), involving an expenditure on
emoluments of around $144 million.
From 2020 to 2024, C&ED initiated a total of 608 cases for investigation against the suspected
contravention of the TDO by traders, involving 486 complainants, among whom 9 were
tourists. The relevant enforcement figures by year are tabulated as follows:
Number of cases
Number of
Year initiated for Major industries involved
shops involved
investigation
Ginseng products and dried seafood/
Chinese and western medicines, food and
2020 142 117
beverage, home and cleaning products,
supermarkets, department stores and
Session 18 CEDB - Page 288
Number of cases
Number of
Year initiated for Major industries involved
shops involved
investigation
convenience stores, furniture, decoration
and interior design, employment agency
Food and beverage, furniture, decoration
and interior design, electrical and
2021 120 102
electronic products, home and cleaning
products, health supplements and products
Food and beverage, electrical and
electronic products, furniture, decoration
2022 107 97
and interior design, home and cleaning
products, beauty and hairdressing
Food and beverage, ginseng products and
dried seafood/Chinese and western
medicines, furniture, decoration and
2023 96 92
interior design, home and cleaning
products, electrical and electronic
products, health supplements and products
Ginseng products and dried seafood/
Chinese and western medicines, electrical
2024 143 99
and electronic products, food and beverage,
clothing and accessories, motor vehicles
Total 608 507 -
- End -
Session 18 CEDB - Page 289
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB114
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0776)
Head: (78) Intellectual Property Department
Subhead (No. & title): (-) -
Programme: (2) Protection of Intellectual Property
Controlling Officer: Director of Intellectual Property (David WONG Fuk-loi)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As pointed out in the Aim of the Intellectual Property Department (IPD), particular attention
is paid to providing support for small and medium enterprises (SMEs) to help them identify,
protect, manage, exploit and commercialise their intellectual property (IP) assets in
Hong Kong and in the region. In this connection, please advise this Committee of:
(1) the details of the publicity and educational activities to be organised in 2025-26 for
SMEs with special emphasis on the protection, management and commercialisation of
IP assets, as well as the expenditure and manpower arrangements involved; and
(2) The Matters Requiring Special Attention by IPD in 2025-26 include continuing to
provide support to the business community in strengthening their IP protection,
management and commercialisation in the Mainland (including the Greater Bay Area)
through the Guangdong/Hong Kong Expert Group on the Protection of IP Rights.
What are the details of the relevant activities in 2024-25 and the results achieved?
What are the main difficulties encountered by Hong Kong enterprises in the Mainland
in relation to IP? Will enhancement measures be introduced in light of such
difficulties? If yes, what are the details? If not, what are the reasons?
Asked by: Hon LIAO Cheung-kong, Martin (LegCo internal reference no.: 14)
Reply:
The Intellectual Property Department (IPD) has been organising intellectual property (IP)
training courses and practical workshops for Hong Kong enterprises including small and
medium enterprises (SMEs), and providing them with the free IP Consultation Service. The
IPD has also collaborated with different stakeholders to promote IP protection, management
and commercialisation through various activities. Details are as follows:
⚫ The IPD launched the IP Manager Scheme in May 2015 with a view to enhancing SMEs’
IP manpower capacity and boosting their competitiveness through IP management and
commercialisation. To meet the development needs of the enterprises, the IPD
Session 18 CEDB - Page 290
launched the IP Manager Scheme PLUS in October 2020 to provide more comprehensive
and in-depth IP training courses and practical workshops. As at end-February 2025,
more than 9 300 practitioners had participated in such training. The IPD will continue
to enhance the above Scheme and training courses, and enrich their contents to provide
suitable IP training to different sectors. It is expected that the training courses and
practical workshops will continue to attract more than 1 000 participants in the 2025-26
financial year.
Since December 2014, the IPD has been collaborating with the Law Society of
Hong Kong to provide the free IP Consultation Service for SMEs. The Service has
been enhanced since January 2023, with an increase in the number of lawyers on the
team and an extension of the duration of each consultation session. As at end-February
2025, a total of 731 SMEs had used the relevant Service.
The Government has continued to co-organise the annual Business of IP Asia Forum
(BIP Asia Forum) with the Hong Kong Trade Development Council. The 2024 Forum
was held on 5 and 6 December and attracted over 3 000 participants from 36 countries
and regions, including leaders of the World Intellectual Property Organization and the
China National Intellectual Property Administration, as well as IP experts from the
Asia-Pacific Economic Cooperation and the Association of Southeast Asian Nations.
The IPD will continue to support the BIP Asia Forum with the addition of new features
to provide an excellent platform for IP authorities, experts, practitioners and trading
partners from different regions around the world to exchange views on the latest
developments of IP-related issues and explore more opportunities for co-operation and
development for the industry. The 2025 Forum will be held in December 2025.
To strengthen the promotion of the national support for Hong Kong to develop into a
regional IP trading centre under the National 14th Five-Year Plan and Hong Kong’s
competitive edge in IP trading, the IPD has been working with the Radio Television
Hong Kong since 2022 to produce a television series entitled “IP: New Opportunities”
with a total of 22 episodes in 3 seasons. Another new season of television programme
is being planned for broadcasting in 2025-26.
Guangdong-Hong Kong co-operation in IP protection
Under the framework of the Guangdong/Hong Kong Expert Group on the Protection of
Intellectual Property Rights (the Expert Group), the IPD has been collaborating with various
cities in the Guangdong Province in organising a variety of activities to support the business
community (including SMEs) in strengthening IP protection and management for their
Mainland operations, including the annual Guangdong/Hong Kong Seminar on Intellectual
Property and Development of Small and Medium Enterprises. The seminar invites various
expert speakers from Hong Kong and the Mainland specialising in different fields (including
arbitration and mediation) to deliver speeches in cities in the Guangdong Province, with the
aim of assisting the business community (including SMEs) in devising effective IP
management, exploitation and commercialisation strategies, so as to better understand and
capitalise on the opportunities offered by the development of the Guangdong-Hong Kong-
Macao Greater Bay Area (GBA) as well as promote the enterprises’ innovation and
development, and also enhance their competitiveness. The feedback indicated that nearly
Session 18 CEDB - Page 291
70% of the participants considered these seminars conducive to strengthening SMEs’
awareness of IP protection.
Other key co-operation projects include promoting co-operation and exchanges in the
high-quality development of the GBA; promoting the integration of public IP services into
the process of research and development and innovation; jointly strengthening co-operation
and exchanges in IP transformation; promoting diversified resolution of IP disputes;
organising major annual events such as the Guangdong-Hong Kong-Macao Greater Bay Area
High-value Patent Portfolio Layout Competition and the Guangdong-Hong Kong-Macao
Greater Bay Area High-value Trade mark Cultivation Competition; and organising exchange
activities relating to IP protection, trade marks, copyright and geographical indications.
In addition, the Hong Kong Economic and Trade Office in Guangdong of the Hong Kong
Special Administrative Region (HKSAR) Government also organises seminars from time to
time to assist Hong Kong enterprises in the Guangdong Province to understand the relevant
IP laws. For instance, a seminar entitled “New Trends in the Business Environment in
Guangdong 2025” was held in Guangzhou on 14 January 2025. Expert speakers were
invited to give an introduction of the latest amendments to the Mainland’s Trade Mark Law,
recent development in trade mark protection and relevant cases.
In recent years, the Mainland has attached great importance to and vigorously strengthened
IP protection, and optimised the environment for innovation and technology as well as
business operation, which has significantly helped mitigate the IP protection issues
encountered by the Hong Kong business community in running their businesses in the
Mainland. So far, the Expert Group has not received any reports from the Hong Kong
business community concerning major difficulties in IP protection, management and
commercialisation in the Mainland (including the GBA). The HKSAR Government will
continue to provide appropriate support to the Hong Kong business community in the
Guangdong Province.
Promoting IP trading is part of the overall work of the IPD. It is therefore difficult to
quantify the resources involved separately.
- End -
Session 18 CEDB - Page 292
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB115
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1901)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned under Matters Requiring Special Attention in 2025-26 that Invest Hong Kong
will continue to focus investment promotion efforts on priority sectors, including creative
industries as well as sports and entertainment. In this connection, please inform this
Committee:
1. whether the Government has formulated a specific work plan with targets, such as the
target number of enterprises, target markets (such as the Mainland, Association of
Southeast Asian Nations (ASEAN) regions, Belt and Road Initiative countries, etc.) and
target groups (such as enterprises of different scales, multinational companies, investors,
etc.)?
2. whether the Government has evaluated the effectiveness of its efforts on the
abovementioned sectors? Please provide specific data, including the number of
enterprises successfully attracted, the amount of investment, job opportunities created
and the impetus given to local industries. Has the Government reviewed its work
against key performance indicators, such as the number of enterprises having set up
businesses in Hong Kong and the return on investment? Has the Government
formulated a long-term plan that dovetails with other policy measures, such as
developing Hong Kong into an East-meets-West centre for international cultural
exchange and a centre for mega sports events?
3. of the staff establishment involved in the efforts on the abovementioned sectors.
Please provide a breakdown by the duties of the posts, such as marketing, liaison with
enterprises and events management. Are the current staff establishment and resources
sufficient to cope with the work in attracting strategic enterprises in cultural and sports
sectors to come to Hong Kong?
Asked by: Hon FOK Kai-kong, Kenneth (LegCo internal reference no.: 26)
Reply:
Session 18 CEDB - Page 293
Through its teams based in Hong Kong, the 17 Dedicated Teams for Attracting Businesses
and Talents based in the Mainland Offices and the overseas Hong Kong Economic and Trade
Offices, as well as consultant offices in other locations, Invest Hong Kong (InvestHK) has all
along been reaching out to a wide spectrum of companies in different sectors and industries
around the world to attract and assist them to set up or expand their businesses in Hong Kong,
and offering one-stop customised support services, from the planning to implementation
stages.
Apart from proactively attracting new enterprises to set up businesses in Hong Kong,
InvestHK also attaches great importance to providing aftercare support to the established
ones, as well as other major overseas and Mainland enterprises in Hong Kong. The
professional teams of InvestHK will continue to develop organised and systematic
programmes to reach out to major investors. Strategic discussions are also conducted to
assist them to explore and evaluate new growth areas and opportunities ahead for supporting
their business expansion in Hong Kong.
In 2024, InvestHK assisted 539 Mainland or overseas enterprises in establishing and
expanding their businesses in Hong Kong, representing an increase of over 40% as compared
with the full year figure of 2023. On a pro-rata basis, the figure well exceeded the
performance indicator as set out in the 2022 Policy Address by the Chief Executive (viz.
attracting at least a total of 1 130 companies to set up or expand their operations in Hong Kong
from 2023 to 2025).
Among the 539 enterprises mentioned above, more than 30 of them were from the cultural
and creative industries, as well as entertainment and sports, covering different business areas
such as arts, cultural exhibitions and curation, galleries and art auctions, performances and
entertainment production, stage technology, sports technology, games and amusement
facilities operations, etc. These enterprises were expected to create nearly 400 jobs in total
within their first year of operations or expansion, and bring in direct investment of over
$500 million. These enterprises concerned have not only enriched the ecosystem of cultural
and creative industries in Hong Kong, but also driven the overall development of the relevant
industrial chain, injecting momentum into Hong Kong’s economy.
Looking ahead, InvestHK will continue to attract more enterprises of different scales from
cultural and creative industries, as well as sports and entertainment from the Mainland,
Europe and Americas (such as the United States, France, Switzerland, the United Kingdom,
etc.) and the Asia-Pacific region (such as Singapore, Japan, Korea, Australia, etc.) to settle in
Hong Kong. We will also continue to deepen collaboration with various industry
stakeholders, including chambers of commerce, industry associations and internationally
renowned trade exhibition organisations, by organising, sponsoring and participating in a
series of investment promotion activities, industry seminars, international expos, business
matchmaking and exchange activities, such as the international conference “Live Matter”,
“Art Basel” and the Law Society of Hong Kong’s “Sports Law Conference” held in
Hong Kong, for further promoting Hong Kong’s business attractiveness in the
above-mentioned areas, thereby consolidating Hong Kong’s position as a business hub in the
creative industries, sports and entertainment sectors.
Session 18 CEDB - Page 294
At present, the manpower and expenditure of InvestHK involved in creative industries as well
as sports and entertainment sectors are adequate for coping with daily work. They have been
subsumed under the overall estimate of the Department, which includes administrative
overhead expenses, and hence cannot be quantified separately.
- End -
Session 18 CEDB - Page 295
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB116
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1444)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Dedicated Teams for Attracting Businesses and Talents (the Dedicated Teams) set up across
the Government’s Mainland Offices and overseas Economic and Trade Offices are
responsible for proactively reaching out to target enterprises and talents. In this connection,
will the Government inform this Committee of the following:
1. What are the staff establishments and expenditures for reaching out to and attracting
enterprises and talents of various Dedicated Teams? What are the details of the
estimates for the coming year? Have the Dedicated Teams set goals for the number of
target enterprises for each year or annual cycle? If yes, what are the goals?
2. What were the respective numbers of target enterprises with which various Dedicated
Teams engaged in the past 2 financial years? Please set out in a table form and specify
the business areas of the enterprises that were already engaged.
3. What were the numbers of target enterprises that had established their foothold and
developed their business in Hong Kong after engaging with the Dedicated Teams in the
past 2 financial years? Please set out in a table form and specify the business areas of
the enterprises that already established their foothold.
4. Has the Government noted or estimated, as far as the enterprises establishing foothold
in Hong Kong under this approach are concerned, the amount of investment and number
of employment opportunities that can be brought to Hong Kong respectively in the next
3 years?
Asked by: Hon HO King-hong, Adrian Pedro (LegCo internal reference no.: 3)
Reply:
Through its teams based in Hong Kong, the 17 Dedicated Teams for Attracting Businesses
and Talents (Dedicated Teams) based in the Mainland Offices and the overseas Hong Kong
Session 18 CEDB - Page 296
Economic and Trade Offices (ETOs), as well as consultant offices in other locations, Invest
Hong Kong (InvestHK) has all along been reaching out to a wide spectrum of companies in
different sectors and industries around the world to attract and assist them to set up or expand
their businesses in Hong Kong, and offering one-stop customised support services, from the
planning to implementation stages.
In 2024, InvestHK assisted 539 enterprises in establishing and expanding their businesses in
Hong Kong, including 273 Mainland enterprises and 266 overseas enterprises. The figure
represented an increase of over 40% as compared with the full year figure of 2023. On a
pro-rata basis, the figure well exceeded the performance indicator as set out in the 2022 Policy
Address by the Chief Executive (viz. attracting at least a total of 1 130 companies to set up or
expand their operations in Hong Kong from 2023 to 2025). The businesses of these
enterprises covered various sectors, including innovation and technology; financial services
and fintech; family office; business and professional services; consumer products; creative
industries, sports and entertainment; tourism and hospitality; as well as transport and logistics,
industrials. These enterprises were expected to create over 6 800 jobs in total within the first
year of operations or expansion, and bring in direct investment of over $67.7 billion.
There are a total of 80 investment promotion staff posts in the 17 Dedicated Teams. The
results of their investment promotion work were reflected in the above-mentioned overall
performance indicator of InvestHK.
The expenditure relating to the investment promotion work of the Dedicated Teams has been
subsumed under the overall estimate of InvestHK, ETOs and Mainland Offices, which
includes administrative overhead expenses, and hence cannot be quantified separately.
- End -
Session 18 CEDB - Page 297
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB117
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1308)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As announced in the 2022-23 Budget, Invest Hong Kong has been allocated additional
recurrent funding of around $90 million in phases starting from 2022/23. Will the
Government inform this Committee of:
- the breakdown of number of investment promotion activities in 2024 by place of origin
and sector, including meetings, conferences, seminars and exhibitions, etc.;
- the amount of foreign direct investment inflow into Hong Kong through InvestHK in
2023 and 2024 by geographic market;
- the manpower resources and expenditure involved in the above activities in the past 3
years;
- the progress, manpower resources and expenditure involved in setting up the consultant
offices in Cairo, Egypt and Izmir, Türkiye; and
- the work plan and priority sectors in 2025/26 in promoting business opportunity in Hong
Kong and the manpower resources and estimated expenditure involved.
Asked by: Hon IP LAU Suk-yee, Regina (LegCo internal reference no.: 33)
Reply:
Through its teams based in Hong Kong, the 17 Dedicated Teams for Attracting Businesses
and Talents (Dedicated Teams) based in the Mainland Offices and the overseas Hong Kong
Economic and Trade Offices, as well as consultant offices in other locations, Invest Hong
Kong (InvestHK) has all along been reaching out to a wide spectrum of companies in different
sectors and industries around the world to attract and assist them to set up or expand their
businesses in Hong Kong, and offering one-stop customised support services, from the
planning to implementation stages.
Session 18 CEDB - Page 298
In 2024, a total of about 8 900 meetings with target companies were held by InvestHK. The
origins of the companies spread across the globe, including Asia, Africa and the Pacific region
(about 5 320 meetings), Europe (about 2 260 meetings) and the Americas (about 1 320
meetings). The breakdown of the meetings by sector is as follows:
Sectors 2024
Business and Professional Services About 840
Consumer Products About 380
Creative Industries, Sports & Entertainment About 280
Family Office About 870
Financial Services and Fintech About 670
Innovation and Technology About 1 300
Tourism and Hospitality About 410
Transport and Logistics, Industrials About 360
Cross-sector About 3 790
Total About 8 900
In addition to meeting with target companies, InvestHK also conducts other investment
promotion activities to provide potential investors and enterprises from the Mainland and
overseas with the latest information on Hong Kong’s business environment. In 2024, the
other investment promotion activities conducted by InvestHK included around 150
large-scale meetings, about 300 seminars and about 30 exhibitions. The expenses involved
has been subsumed under the overall estimate of InvestHK, which includes administrative
overhead expenses, and hence cannot be quantified separately.
In 2023 and 2024, the amount of foreign direct investment (FDI) inflow into Hong Kong
attracted by InvestHK were about $61.6 billion and $67.7 billion respectively. The sources
of FDI spread across the globe, including Asia, Africa, and the Pacific region ($58.8 billion
in 2023 and $55.9 billion in 2024), Europe ($1.7 billion in 2023 and $10.3 billion in 2024)
and the Americas ($1.1 billion in 2023 and $1.5 billion in 2024).
In view of the huge economic potential of the countries along the Belt and Road (B&R),
InvestHK set up consultant offices in Cairo, the capital of Egypt, and Izmir, the 3rd largest
city in Türkiye within 2024-25 according to the 2023 Policy Address and 2024-25 Budget,
for attracting capital and enterprises from high-potential emerging countries in the Middle
East and North Africa.
In 2025-26, InvestHK will continue to leverage Hong Kong’s roles as a “super connector”
and a “super value-adder”, as well as to collaborate with relevant organisations, chambers of
commerce, and professional bodies, etc., to organise investment promotion activities,
including meetings, conferences, roadshows, seminars, exhibitions, etc. so as to proactively
provide potential investors and enterprises in the Mainland and overseas with the latest
information on Hong Kong’s business environment and promote Hong Kong’s distinctive
advantages of enjoying strong support of the Motherland and being closely connected to the
world and other core strengths under “one country, two systems”, as well as the immense
opportunities brought by key national strategies including the Guangdong-Hong Kong-Macao
Greater Bay Area development and the B&R Initiative, with a view to attracting Mainland
Session 18 CEDB - Page 299
and overseas enterprises to set up or expand their businesses in Hong Kong. The key work
plans are provided below.
The global trade landscape and geopolitics are rapidly changing, with parts of the supply
chains shifting to the Global South and B&R countries, while Mainland enterprises are also
proactively establishing their presence abroad. To cope with this trend, it was announced in
the 2024-25 Budget that the Government’s goal was to develop Hong Kong into a
multinational supply chain management centre. In his 2024 Policy Address, the Chief
Executive further requested InvestHK and the Hong Kong Trade Development Council
(HKTDC) to set up a high value-added supply chain services mechanism for attracting
Mainland enterprises to establish international or regional headquarters in Hong Kong for
managing offshore trading and supply chain, and providing one-stop professional advisory
services for enterprises in Hong Kong looking to go global. In December 2024, InvestHK
and HKTDC established the above mechanism to jointly encourage Mainland enterprises to
establish presence in Hong Kong.
At the same time, InvestHK, through its Dedicated Teams based in the Mainland Offices, is
proactively organising activities under the theme of multinational supply chains, so as to
actively reach out to more Mainland enterprises for investment promotion work. As at
end-February 2025, InvestHK had organised and co-organised around 20 relevant investment
promotion activities in various Mainland cities, including Hangzhou, Nanjing and Xiamen,
etc. within around 1 year’s time.
Besides, InvestHK will continue to implement jointly with the Immigration Department the
New Capital Investment Entrant Scheme (New CIES) under the Financial Services and the
Treasury Bureau with a view to further enriching the talent pool and attracting more new
capital to Hong Kong, strengthening the development of Hong Kong’s asset and wealth
management, financial and related professional service sector as well as supporting the
development of innovation and technology industry. The Government announced in
January 2025 a series of enhancement measures on the New CIES, which have taken into
effect since 1 March 2025. The measures include relaxing the net asset assessment and
calculation requirement, and allowing applicants to include investments made through an
eligible private company wholly owned by the applicant to be counted towards the applicant’s
eligible investment. These enhancement measures will encourage more investors to join the
New CIES, and create synergy with the tax concession regime for family offices, thereby
promoting the development of family office businesses in Hong Kong.
The overall estimated expenditure of InvestHK in 2025-26 is about $303.8 million. The
expenditure involving the aforesaid consultant offices and InvestHK’s priority work plan have
been subsumed under the overall estimate of the Department, which includes administrative
overhead expenses, and hence cannot be quantified separately.
- End -
Session 18 CEDB - Page 300
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB118
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1034)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Invest Hong Kong organised the StartmeupHK Festival from 21 to 25 October 2024. A
series of 15 roadshow events across 9 countries/regions was also held to promote the Festival.
In this connection, will the Government inform this Committee of:
a) the expenditure breakdowns for the Festival and the roadshow events;
b) the numbers of events, guests (individuals or enterprise representatives) and attendees
of the Festival; and
c) how the Festival can effectively promote the growth of the startup ecosystem in
Hong Kong?
Asked by: Hon LAM Kin-fung, Jeffrey (LegCo internal reference no.: 36)
Reply:
StartmeupHK Festival (the Festival) is Invest Hong Kong (InvestHK)’s annual flagship event,
which aims to attract global startups to establish presence in Hong Kong, promote
Hong Kong’s position as an international innovation and technology hub, and foster a thriving
startup ecosystem in Hong Kong. Focusing on Hong Kong’s latest developments, policies
and support in key areas such as web3, health technology, sustainable development and
artificial intelligence (AI), the Festival attracts investors, entrepreneurs and talents from the
Mainland and overseas to settle in Hong Kong, and promotes exchanges and collaboration
between Hong Kong and other innovation and technology centres, thereby further improving
the overall development of Hong Kong’s startup industry chain and enhancing Hong Kong’s
advantages as a startup hub.
Under the theme “A Future Unlimited”, the 2024 Festival featured 5 key events from 21 to
25 October 2024, covering popular technology topics including AI, web3, game, responsible
technology, healthtech and sustainability, etc. In addition, the 2024 Festival also hosted a
Session 18 CEDB - Page 301
series of other activities, such as reverse investor pitches, investor summits, startup roadshows
and business matchmaking. The 2024 Festival attracted more than 200 speakers and over
3 400 participants in total, including industry leaders, startup entrepreneurs, investors,
technology enthusiasts and government officials from 49 countries/regions. It also attracted
6 delegations from the Mainland, Canada, India, the Philippines, Thailand and the United
Kingdom, reflecting Hong Kong’s attractiveness to startups. Also, the 2024 Festival held a
total of 15 roadshow events in 9 countries/regions to strengthen the publicity effect of the
Festival overseas, which attracted more than 1 400 participants.
According to the results of InvestHK’s 2024 Startup Survey, the number of startups in
Hong Kong increased by 10% year-on-year to 4 694, reaching a record high. The startups
employed 17 651 individuals, up by 7% year on year, also reaching a new high. This shows
that the startup ecosystem in Hong Kong continues to flourish as driven by large-scale
investment promotion activities such as the Festival.
Looking forward, InvestHK will continue to organise and expand the scale of the Festival to
attract more startups to establish foothold in Hong Kong, and provide early-stage startups
with one-stop support services. The Department will also continue to deepen its
collaboration with various startup stakeholders, including local organisations, incubators,
accelerators and co-working spaces, and will work with the Mainland Offices, overseas
Hong Kong Economic and Trade Offices, Cyberport, the Hong Kong Science and Technology
Parks Corporation, etc. to organise and sponsor various investment promotion activities to
promote Hong Kong as a preferred destination for startups.
The expenditure of the 2024 Festival has been subsumed under the overall estimate of
InvestHK, which includes administrative overhead expenses, and hence cannot be quantified
separately.
- End -
Session 18 CEDB - Page 302
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB119
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1053)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Matters Requiring Special Attention in 2025-26, it is mentioned that Invest Hong Kong
(InvestHK) will continue to strengthen global investment promotion efforts and enhance
promotion strategies to encourage multinational companies, startups, scaleups and family
offices to set up or expand their businesses in Hong Kong, including those from the Mainland
and Belt and Road (B&R) markets, so as to capitalise on the business opportunities arising
from the key national strategies including GBA development and the B&R Initiative. Please
advise this Committee on:
1) the plans of InvestHK for attracting multinational companies and family offices from
the Mainland and the B&R countries or regions to set up their businesses in Hong Kong;
2) whether additional resources will be allocated to support Hong Kong enterprises in
expanding markets in the B&R countries or regions in order to enhance their
competitiveness; if so, on the estimated expenditure involved; if not, on the reasons.
Asked by: Hon LAM Kin-fung, Jeffrey (LegCo internal reference no.: 3)
Reply:
Through its teams based in Hong Kong, the 17 Dedicated Teams for Attracting Businesses
and Talents (Dedicated Teams) based in the Mainland Offices and the overseas Hong Kong
Economic and Trade Offices (ETOs), as well as consultant offices in other locations, Invest
Hong Kong (InvestHK) has all along been reaching out to a wide spectrum of companies in
different sectors and industries around the world to attract and assist them to set up or expand
their businesses in Hong Kong, and offering one-stop customised support services, from the
planning to implementation stages.
The Mainland is one of InvestHK’s key markets for investment promotion. To attract more
multinational corporations and family offices from the Mainland to set up businesses in
Hong Kong, InvestHK plans to organise more investment promotion activities in various
Session 18 CEDB - Page 303
Mainland cities including Chengdu, Wuhan, Ningbo, Tianjin, Shenyang, Wuxi, Zibo, Beijing
and Xiamen to introduce Hong Kong’s business advantages to local companies and promote
Hong Kong as an ideal platform for Mainland enterprises to go global. InvestHK has set up
Dedicated Teams in each of the five Mainland Offices, which are responsible for investment
promotion work in various provinces and cities, including organising and participating in
briefings and meetings with enterprises, as well as promoting Hong Kong’s business
environment through different media interviews and social media platforms. InvestHK also
maintains close collaboration with the Ministry of Commerce, relevant local departments, and
industrial and commercial organisations to strengthen investment promotion efforts in
provinces and cities in the Mainland.
In addition, the global trade landscape and geopolitics are rapidly changing, with parts of the
supply chains shifting to the Global South and Belt and Road (B&R) countries, while
Mainland enterprises are also proactively establishing their presence abroad. To cope with
this trend, it was announced in the 2024-25 Budget that the Government’s goal was to develop
Hong Kong into a multinational supply chain management centre. In his 2024 Policy
Address, the Chief Executive further requested InvestHK and the Hong Kong Trade
Development Council (HKTDC) to set up a high value-added supply chain services
mechanism for attracting Mainland enterprises to establish international or regional
headquarters in Hong Kong for managing offshore trading and supply chain, and providing
one-stop professional advisory services for enterprises in Hong Kong looking to go global.
In December 2024, InvestHK and HKTDC established the above mechanism to jointly
encourage Mainland enterprises to establish presence in Hong Kong. Through its Dedicated
Teams based in the Mainland Offices, InvestHK is proactively organising activities under the
theme of multinational supply chains, so as to actively reach out to more Mainland enterprises
for investment promotion work. As at end-February 2025, InvestHK had organised and
co-organised around 20 relevant investment promotion activities in various Mainland cities,
including Hangzhou, Nanjing and Xiamen, etc. within around one year’s time. Meanwhile,
HKTDC is providing one-stop professional advisory services for enterprises in Hong Kong
and, through its overseas offices, rendering on-site support services.
In view of the huge economic potential of the countries along the B&R, InvestHK set up
consultant offices in Cairo, the capital of Egypt, and Izmir, the 3rd largest city in Türkiye
within 2024-25 according to the 2023 Policy Address and 2024-25 Budget, for attracting
capital and enterprises from high-potential emerging countries in the Middle East and North
Africa.
In terms of attracting family offices, InvestHK has been collaborating with the Financial
Services and the Treasury Bureau (FSTB) in the relevant work. In 2024, the Dedicated
FamilyOfficeHK Team (the Dedicated FOHK Team) under the Department conducted more
than 260 investment promotion activities of various forms in the Mainland, Hong Kong and
overseas (including countries along the B&R) to promote Hong Kong’s competitiveness and
unique advantages as a family office hub to the target client groups through face-to-face
interactions. The Dedicated FOHK Team will continue to strengthen collaboration with the
Mainland Offices, ETOs and Belt and Road Office, to conduct roundtable fora with the theme
of family offices in major cities to highlight Hong Kong’s role as a leading destination for
asset and wealth management. The Government has been implementing a number of
measures, including providing tax concessions for single family offices, adopting a
streamlined approach for compliance with suitability obligation when dealing with
Session 18 CEDB - Page 304
sophisticated professional investors, establishing the Hong Kong Academy for Wealth
Legacy to expand the talent pool of family offices, and launching the “New Capital
Investment Entrant Scheme” by FSTB to attract more new capital to Hong Kong.
Going forward, InvestHK will continue to leverage Hong Kong’s role as a “super connector”
and “super value-adder” through its Dedicated Teams in the Mainland Offices and countries
along the B&R as well as the overseas consultant offices, as well as to collaborate with
relevant organisations, chambers of commerce, and professional bodies, etc., to organise
investment promotion activities, including meetings, conferences, roadshows, seminars,
exhibitions, etc. so as to proactively provide potential investors and enterprises in the
Mainland and overseas with the latest information on Hong Kong’s business environment and
promote Hong Kong’s distinctive advantages of enjoying strong support of the Motherland
and being closely connected to the world and other core strengths under “one country, two
systems”, as well as the immense opportunities brought by key national strategies including
the Guangdong-Hong Kong-Macao Greater Bay Area development and the B&R Initiative,
with a view to attracting Mainland and overseas enterprises to set up or expand their
businesses in Hong Kong.
The expenditure involved in investment promotion in the Mainland and the countries along
the B&R has been subsumed under the overall estimate of InvestHK, which includes
administrative overhead expenses, and hence cannot be quantified separately.
- End -
Session 18 CEDB - Page 305
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB120
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1820)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is stated in paragraph 28 of the Budget Speech that Invest Hong Kong (InvestHK)
successfully attracted over 500 Mainland and overseas enterprises to set up or expand their
business in Hong Kong last year, representing an increase of over 40%, and that these
enterprises are expected to bring in direct investment of over $67.7 billion. In this
connection, will the Government inform this Committee of the following:
Please set out the major industry sectors involved in the direct investment of $67.7 billion
mentioned above, the percentage share of each industry sector, and the proportion of
Mainland enterprises to overseas enterprises?
What were the number of enterprises attracted by InvestHK and the corresponding amount of
direct investment in each of the past 3 years? What is the estimated tax revenue to be
generated from every $10 billion of direct investment in Hong Kong by these enterprises?
Asked by: Hon LEE Wai-wang, Robert (LegCo internal reference no.: 18)
Reply:
Through its teams based in Hong Kong, the 17 Dedicated Teams for Attracting Businesses
and Talents based in the Mainland Offices and the overseas Hong Kong Economic and Trade
Offices, as well as consultant offices in other locations, Invest Hong Kong (InvestHK) has all
along been reaching out to a wide spectrum of companies in different sectors and industries
around the world to attract and assist them to set up or expand their businesses in Hong Kong,
and offering one-stop customised support services, from the planning to implementation
stages.
In 2022 and 2023, InvestHK assisted 300 and 382 enterprises respectively, which brought in
direct investment of about $21.1 billion and $61.6 billion respectively. In 2024, InvestHK
assisted 539 Mainland or overseas enterprises in establishing and expanding their businesses
in Hong Kong, representing an increase of over 40% as compared with the full year figure of
Session 18 CEDB - Page 306
2023. On a pro-rata basis, the figure well exceeded the performance indicator as set out in
the 2022 Policy Address by the Chief Executive (viz. attracting at least a total of 1 130
companies to set up or expand their operations in Hong Kong from 2023 to 2025). These
enterprises were expected to bring in direct investment of over $67.7 billion.
Among these 539 enterprises, analysed by place of origin, 51% of them (273 enterprises) were
from the Mainland, while the remaining enterprises were from other regions. By sector, the
top five sectors were innovation and technology (120 enterprises; 22%), financial services
and fintech (110 enterprises; 20%), family offices (95 enterprises; 18%), tourism and
hospitality (58 enterprises; 11%) and business and professional services (47 enterprises; 9%).
Riding on the good performance, InvestHK will make every effort in attracting Mainland and
overseas enterprises to invest in Hong Kong and continue to implement the aforesaid
performance indicator as set out in the 2022 Policy Address.
InvestHK does not maintain information related to the enterprises’ tax payment in
Hong Kong.
- End -
Session 18 CEDB - Page 307
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB121
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2333)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Matters Requiring Special Attention in 2025-26 that the Government
plans to strengthen its Dedicated Teams for Attracting Businesses and Talents (Dedicated
Teams) overseas and in the Mainland, and will continue to attract target strategic companies
to Hong Kong. In this connection, will the Government inform this Committee of the
following:
(a) What is the total estimate for the expansion of the overseas and Mainland network in
2025-26? What is the increase compared to the preceding year?
(b) Will new resources be allocated to the work on attracting businesses and talents? If yes,
how will the additional resources be allocated (e.g. recruiting more staff, establishing new
footholds, strengthening the consultant team, etc.)?
(c) According to the information provided by the Government, there are currently 17
Dedicated Teams based in the Mainland Offices and the overseas Hong Kong Economic
Trade Offices. What were the staff establishment and expenditure estimate for these 17
Dedicated Teams in the past 3 years? Will differentiated budget proposals and resource
allocation plans be formulated for different regions (e.g. “Belt and Road countries”,
European and American countries, first-tier and second-tier cites in the Mainland etc.)?
Asked by: Hon LEUNG Tsz-wing, Dennis (LegCo internal reference no.: 28)
Reply:
Through its teams based in Hong Kong, the 17 Dedicated Teams for Attracting Businesses
and Talents (Dedicated Teams) based in the Mainland Offices and the overseas Hong Kong
Economic and Trade Offices (ETOs), as well as consultant offices in other locations, Invest
Hong Kong (InvestHK) has all along been reaching out to a wide spectrum of companies in
different sectors and industries around the world to attract and assist them to set up or expand
Session 18 CEDB - Page 308
their businesses in Hong Kong, and offering one-stop customised support services, from the
planning to implementation stages.
In 2024, InvestHK assisted 539 Mainland or overseas enterprises in establishing and
expanding their businesses in Hong Kong, representing an increase of over 40% as compared
with the full year figure of 2023. On a pro-rata basis, the figure well exceeded the
performance indicator as set out in the 2022 Policy Address by the Chief Executive (viz.
attracting at least a total of 1 130 companies to set up or expand their operations in Hong Kong
from 2023 to 2025).
In view of the huge economic potential of the countries along the Belt and Road (B&R),
InvestHK set up consultant offices in Cairo, the capital of Egypt, and Izmir, the 3rd largest
city in Türkiye within 2024-25 according to the 2023 Policy Address and 2024-25 Budget,
for attracting capital and enterprises from high-potential emerging countries in the Middle
East and North Africa. These are the 3rd and the 4th consultant offices set up by the
current-term Government since it took office, after the ones established in Nairobi, Kenya
and Almaty, Kazakhstan.
InvestHK will continue to leverage Hong Kong’s roles as a “super connector” and a “super
value-adder”, as well as to collaborate with relevant organisations, chambers of commerce,
and professional bodies, etc., to organise investment promotion activities, including meetings,
conferences, roadshows, seminars, exhibitions, etc. so as to proactively provide potential
investors and enterprises in the Mainland and overseas with the latest information on
Hong Kong’s business environment and promote Hong Kong’s distinctive advantages of
enjoying strong support of the Motherland and being closely connected to the world and other
core strengths under “one country, two systems”, as well as the immense opportunities
brought by key national strategies including the Guangdong-Hong Kong-Macao Greater Bay
Area development and the B&R Initiative, with a view to attracting Mainland and overseas
enterprises to set up or expand their businesses in Hong Kong.
In the 3 years from 2022-23 to 2024-25, the number of posts in the 17 Dedicated Teams were
75, 79 and 80 respectively. The expenditure for salary and the consultant offices has been
subsumed under the overall estimate of InvestHK, ETOs and Mainland offices, which
includes administrative overhead expenses, and hence cannot be quantified separately.
Depending on the investment promotion needs of individual markets, InvestHK will flexibly
deploy existing resources to consolidate and strengthen its investment promotion work around
the world.
- End -
Session 18 CEDB - Page 309
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB122
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0768)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
One of the matters requiring special attention in 2025-26 is to continue to conduct global
promotion activities across sectors and arrange events to attract leading carbon neutrality
solutions and potential investors to Hong Kong, leveraging Hong Kong’s commitments and
business opportunities to achieving carbon neutrality before 2050.
In this connection, please inform this Committee of the following:
(1) In 2024, Invest Hong Kong (InvestHK) assisted a total of 539 overseas and Mainland
companies in setting up or expanding their business in Hong Kong, representing a jump
of over 41% compared to 2023. Were there carbon neutrality solutions among the
companies assisted? If so, what are the details? If not, what are the reasons? What
are the details of the work to introduce carbon neutrality solutions and potential investors
to Hong Kong in 2025-26?
(2) Reports have it that in recent years the top locations of origin (in quantitative terms) of
the companies introduced by InvestHK have been traditional areas such as the United
Kingdom, United States, Singapore and Japan, while companies from Southeast Asia,
Middle East and Eastern Europe have accounted for a relatively low proportion.
InvestHK has stated that it will devote more efforts to giving the Belt and Road countries
a better understanding of Hong Kong and attracting companies from those areas to Hong
Kong. What are the details of the manpower, expenditure and measures involved in
the relevant work?
Asked by: Hon LIAO Cheung-kong, Martin (LegCo internal reference no.: 11)
Reply:
To leverage Hong Kong’s commitments and business opportunities to achieve carbon
neutrality before 2050, Invest Hong Kong (InvestHK) has been conducting global
Session 18 CEDB - Page 310
promotional activities across sectors and arranging events to attract leading carbon neutrality
solutions companies and potential investors to Hong Kong.
In 2024, InvestHK assisted 539 Mainland or overseas enterprises in establishing and
expanding their businesses in Hong Kong, representing an increase of over 40% as compared
with the full year figure of 2023. The Department completed 38 carbon neutrality-related
projects among those 539, with main businesses covering green technology, green living,
fintech and green talent training, etc., which are conducive to reduction of carbon emission.
InvestHK proactively collaborates with relevant bureaux, departments, organisations,
chambers of commerce, and professional bodies, etc., to organise an array of carbon
neutrality-related investment promotion activities in the Mainland and overseas, including
seminars, fora, exhibitions, roundtables, etc. to proactively promote relevant policies and
Hong Kong’s competitive advantages to business communities and investors in the Mainland
and overseas, so as to attract more carbon-neutrality related companies to set up or expand
their businesses in Hong Kong.
In addition, while InvestHK is consolidating its investment promotion work in traditional
markets, it also steps up its work in emerging markets (including countries along the Belt and
Road (B&R)). For instance, in view of the huge economic potential of the countries along
B&R, InvestHK set up consultant offices in Cairo, the capital of Egypt, and Izmir, the 3rd
largest city in Türkiye within 2024-25 according to the 2023 Policy Address and 2024-25
Budget, for attracting capital and enterprises from high-potential emerging countries in the
Middle East and North Africa. These are the 3rd and the 4th consultant offices set up by the
current-term Government since it took office, after the ones established in Nairobi, Kenya
and Almaty, Kazakhstan.
Apart from setting up new consultant offices, InvestHK’s teams in Hong Kong will continue
to work closely with the Dedicated Teams for Attracting Businesses and Talents and
consultant offices along B&R to drive for attracting inward investment from countries along
B&R. The Department will collaborate with relevant organisations, chambers of commerce,
and professional bodies, etc., to organise investment promotion activities, including meetings,
conferences, roadshows, seminars, exhibitions, etc. so as to proactively provide potential
investors and enterprises with the latest information on Hong Kong’s business environment
and promote Hong Kong’s distinctive advantages of enjoying strong support of the
Motherland and being closely connected to the world and other core strengths under “one
country, two systems”, as well as the immense opportunities brought by key national
strategies including the Guangdong-Hong Kong-Macao Greater Bay Area development and
the B&R Initiative, with a view to attracting overseas enterprises along B&R countries to set
up or expand businesses in Hong Kong. For example, the Department will organise
roundtables or seminars in Eurasian countries, such as Singapore, Vietnam, Indonesia,
Malaysia, Thailand, Mongolia, Kazakhstan and Türkiye, as well as roundtables in the Middle
East and African regions, such as Saudi Arabia, the United Arab Emirates, Côte d'Ivoire and
Morocco in 2025.
The manpower and expenditure relating to the above-mentioned consultant offices and
investment promotion work have been subsumed under InvestHK’s overall establishment and
estimate, which includes administrative overhead expenses, and hence cannot be quantified
separately.
- End -
Session 18 CEDB - Page 311
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB123
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0770)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development [Note: The
question below concerns matters under the policy purview of the
Constitutional and Mainland Affairs Bureau (CMAB). The reply
was prepared by Invest Hong Kong and vetted by the CMAB.]
Question:
Matters Requiring Special Attention in 2025-26 involve, among other things, continuing to
strengthen the promotion of the business advantages and opportunities of Greater Bay Area
(GBA) development to global investors through the Pan-GBA Inward Investment Liaison
Group, and in collaboration with the Investment Promotion Bureau of Shenzhen Municipality,
continuing to conduct joint investment promotion activities on the business environment and
advantages of Hong Kong and Shenzhen.
In this connection, please inform this Committee of the following:
(1) the details and outcome of the activities carried out under the above two collaborative
investment promotion initiatives in 2024-25; and
(2) the details of the manpower, expenditure and work of Invest Hong Kong involved in
joint promotions of the advantages of GBA development in 2025-26.
Asked by: Hon LIAO Cheung-kong, Martin (LegCo internal reference no.: 12)
Reply:
Invest Hong Kong (InvestHK) has been collaborating with the Constitutional and Mainland
Affairs Bureau (CMAB) in actively promoting the unique advantages of the Guangdong-
Hong Kong-Macao Greater Bay Area (GBA), thereby attracting overseas companies to set up
or expand their businesses in Hong Kong. The Pan-Greater Bay Area Inward Investment
Liaison Group (the Liaison Group) conducted the “GBA and Europe (France) Economic and
Trade Cooperation Conference” in Paris, France in 2024, which attracted over 400 European
business professionals. The Liaison Group also hosted the “2024 Global Investment
Session 18 CEDB - Page 312
Promotion Conference for the GBA” in Guangzhou to promote the business advantages of
the GBA cities to over 900 business representatives.
In addition, InvestHK collaborated with the Investment Promotion Bureau of the Shenzhen
Municipality to conduct multiple seminars and fora in Canada, Australia and Portugal in 2024
to promote business opportunities brought by both Hong Kong and Shenzhen, which are core
engines of the GBA development, thereby attracting inward investment by fully leveraging
the advantages of the overseas networks of both cities.
The above activities brought about remarkable results. InvestHK will continue to offer
professional advice and customised support services to relevant companies, and encourage
and assist them in setting up or expanding businesses in Hong Kong.
Looking forward, InvestHK will continue to collaborate with CMAB to strengthen promotion
to global investors about the advantages and opportunities of the GBA development through
various means, in particular via the Liaison Group. It will also proactively promote to
overseas markets about the potential of the GBA market, the latest investment incentive
policies, as well as how to leverage Hong Kong’s unique advantages under “one country, two
systems” to expand into the GBA market. Amongst others, the Liaison Group will hold
various economic and trade cooperation conferences in places such as the Eastern Europe and
Southeast Asia in mid-2025, and will organise the “2025 Global Investment Promotion
Conference for the GBA” in end 2025 to further promote Hong Kong as the ideal gateway for
overseas enterprises to explore the GBA market. Regarding Hong Kong-Shenzhen
cooperation, InvestHK will continue to organise promotional events and activities worldwide
to promote the complementary advantages of Hong Kong and Shenzhen. Meanwhile,
InvestHK will enhance its connections with the investment promotion bureaux of the GBA
cities to facilitate further exchanges and cooperation.
The manpower and expenditure involved in the GBA investment promotion work have been
subsumed under the overall establishment and estimate of InvestHK, which includes
administrative overhead expenses, and hence cannot be quantified separately.
- End -
Session 18 CEDB - Page 313
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB124
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1628)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Programme of Invest Hong Kong (“InvestHK”) that it conducted around
8 900 meetings with target companies in key geographic markets in 2024, focusing on various
priority sectors, including promoting Hong Kong in the Mainland as an ideal platform for
Mainland enterprises to go global, and promoting Hong Kong overseas as the favourable
platform for overseas enterprises to tap into the Mainland markets. Would the Government
inform this Committee of the details of the aforementioned meetings, including the total
number of companies InvestHK reached out to and the sectors involved, the number of
companies which are willing to consider investing in Hong Kong, and of the 8 900 meetings,
the number of meetings held in the Mainland and abroad respectively? In addition, how
many similar promotion activities does InvestHK plan to organise in the coming year?
Asked by: Hon SO Cheung-wing (LegCo internal reference no.: 29)
Reply:
Through its teams based in Hong Kong, the 17 Dedicated Teams for Attracting Businesses
and Talents based in the Mainland Offices and the overseas Hong Kong Economic and Trade
Offices, as well as consultant offices in other locations, Invest Hong Kong (InvestHK) has all
along been reaching out to a wide spectrum of companies in different sectors and industries
around the world to attract and assist them to set up or expand their businesses in Hong Kong,
and offering one-stop customised support services, from the planning to implementation
stages.
A total of about 8 900 meetings with target companies were conducted by InvestHK in 2024.
The origins of the companies concerned spread across the globe, including Mainland
companies (about 3 000 meetings) and overseas companies (about 5 900 meetings). These
meetings were conducted in Hong Kong, the Mainland and various places overseas. By
sector, the companies concerned were from innovation and technology; financial services and
fintech; family offices; business and professional services; consumer products; creative
Session 18 CEDB - Page 314
industries, sports and entertainment; tourism and hospitality, as well as transport and logistics,
industrials, etc.
In 2024, InvestHK assisted 539 Mainland or overseas enterprises in establishing and
expanding their businesses in Hong Kong, representing an increase of over 40% as compared
with the full year figure of 2023. On a pro-rata basis, the figure well exceeded the
performance indicator as set out in the 2022 Policy Address by the Chief Executive
(viz. attracting at least a total of 1 130 companies to set up or expand their operations in
Hong Kong from 2023 to 2025).
InvestHK will continue to leverage Hong Kong’s roles as a “super connector” and a “super
value-adder”, as well as to collaborate with relevant organisations, chambers of commerce,
and professional bodies, etc., to organise investment promotion activities, including meetings,
conferences, roadshows, seminars, exhibitions, etc. so as to proactively provide potential
investors and enterprises in the Mainland and overseas with the latest information on
Hong Kong’s business environment and promote Hong Kong’s distinctive advantages of
enjoying strong support of the Motherland and being closely connected to the world and other
core strengths under “one country, two systems”, as well as the immense opportunities
brought by key national strategies including the Guangdong-Hong Kong-Macao Greater Bay
Area development and the Belt and Road Initiative, with a view to attracting Mainland and
overseas enterprises to set up or expand their businesses in Hong Kong.
- End -
Session 18 CEDB - Page 315
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB125
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1629)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Programme of Invest Hong Kong (InvestHK) that it will continue to
strengthen its overseas and Mainland network comprising Dedicated Teams for Attracting
Businesses and Talents in overseas Economic and Trade Offices (ETOs) and Mainland
Offices as well as overseas consultants, and step up efforts to attract target strategic companies
to Hong Kong. In fact, the ETOs, Mainland Offices, InvestHK, and Hong Kong Trade
Development Council jointly undertake the tasks of attracting businesses. Please give a
detailed account of the co-operation and the division of work among the departments, with
specific examples to illustrate the co-operation among them. Besides, do the departments
hold working meetings regularly to formulate common development targets and strategies,
and collaborate in taking forward the same projects?
Asked by: Hon SO Cheung-wing (LegCo internal reference no.: 30)
Reply:
The overseas Hong Kong Economic and Trade Offices (ETOs), Invest Hong Kong
(InvestHK) and Hong Kong Trade Development Council (HKTDC) are responsible for
different aspects of work in deepening international engagement and collaboration. They
also collaborate from time to time to generate synergy, thereby jointly promoting bilateral
economic and trade relations between Hong Kong and overseas economies.
First of all, InvestHK and HKTDC mainly serve the business community. InvestHK is
responsible for promoting inward direct investment to Hong Kong. Through its teams based
in Hong Kong, the Dedicated Teams for Attracting Businesses and Talents (Dedicated Teams)
based in ETOs, as well as consultant offices in other locations, the Department has all along
been reaching out to a wide spectrum of companies in different sectors and industries around
the world to attract and assist them to set up or expand their businesses in Hong Kong, and
offering one-stop customised support services, from the planning to implementation stages.
As for HKTDC, it is responsible for trade promotion as well as facilitating, assisting and
developing trade in Hong Kong. Through organising international exhibitions, conferences
Session 18 CEDB - Page 316
and business missions, HKTDC creates business opportunities in the Mainland and
international markets for Hong Kong enterprises. Although the 2 agencies’ functions differ,
they have been working closely together and are dedicated to promoting Hong Kong as a
two-way global investment and business hub, thereby fully leveraging Hong Kong’s
advantages as a two-way springboard for the Mainland and rest of the world.
For instance, in view of the rapidly-changing global trade landscape and geopolitics, some
parts of supply chains are shifting to the Global South and Belt and Road countries, while
Mainland enterprises are also proactively establishing their presence abroad. To cope with
this trend, it was announced in the 2024-25 Budget that Hong Kong would develop into a
multinational supply chain management centre, and a high value-added supply chain services
mechanism be established by InvestHK and HKTDC. Through its Dedicated Teams based
in the Mainland Offices, InvestHK attracts Mainland enterprises to set up international or
regional headquarters in Hong Kong for managing offshore trading and supply chain.
HKTDC provides those enterprises established in Hong Kong with one-stop professional
advisory services to assist them to go global, followed by on-site support services rendered
by HKTDC’s overseas offices. InvestHK and HKTDC will continue to strengthen their
collaboration to promote the economic and trade network between Hong Kong, Mainland and
overseas.
As regards ETOs, they are the official representatives of the Hong Kong Special
Administrative Region (HKSAR) Government in countries under their purview, performing
a wide range of functions. With the exception of the Geneva ETO Note 1, the other ETOs
handle bilateral affairs (including those on economic and trade, as well as cultural exchanges)
between Hong Kong and countries under their purview. Every year, ETOs organise and
participate in various activities on areas of external commercial relations, public relations and
investment promotion Note 2.
ETOs are committed to maintaining close communication and exchanges with the
international community and overseas stakeholders in different sectors (including government
officials, think tanks, media organisations, academics, cultural and business groups and other
key opinion leaders in countries under their purview), promoting and explaining the HKSAR
Government’s important policies and Hong Kong’s unique advantages under “one country,
two systems”, with a view to telling the good stories of Hong Kong and promoting economic
and trade development between Hong Kong and overseas. In addition to regularly providing
local stakeholders with the latest information on Hong Kong through newsletters and social
media, ETOs have direct dialogues with various local stakeholders, and meet with the media
and take the initiative to publish articles to rebut biased reports and to set the record straight.
Also, ETOs have been proactively supporting and participating in various conferences and
fora organised by the local governments, business organisations and groups, and assisting in
arranging overseas visits by the Chief Executive and other HKSAR Government officials to
establish and deepen networks with local sectors. They also, in collaboration with policy
bureaux and departments, relevant organisations, chambers of commerce and professional
bodies, organise and participate in various events in different cities, including conferences,
seminars, cultural and arts performances, exhibitions, film festivals and sports events, so as
to enhance publicity and promotion work.
Note 1: The Geneva ETO represents Hong Kong, China in the World Trade Organization and the Trade Committee of
the Organisation for Economic Co-operation and Development, and is mainly responsible for handling issues
Session 18 CEDB - Page 317
relating to these organisations. The work on bilateral economic and trade relations with Switzerland is handled
by the Berlin ETO.
Note 2: The Washington ETO is mainly responsible for liaising with the political circle in the United States (US), and
the New York ETO is responsible for attracting businesses and talents in the eastern states of the US.
- End -
Session 18 CEDB - Page 318
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB126
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1640)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Programme of Invest Hong Kong (“InvestHK”) that it provides
one-to-one support services to companies throughout the planning and execution of their setup
and expansion in Hong Kong. Will the Government inform this Committee of the total
number of overseas companies coming to Hong Kong that have been provided with
one-to-one support services by InvestHK over the past year, including the types of services
provided, the specific results, and the distribution between companies which have been
established in Hong Kong and those which are new entrants? Besides, InvestHK’s mission
is to spearhead Hong Kong’s efforts to attract and retain foreign direct investment. Please
explain the specific work done and results achieved by InvestHK in respect of retaining
investment.
Asked by: Hon SO Cheung-wing (LegCo internal reference no.: 31)
Reply:
Invest Hong Kong (InvestHK)’s mission is to attract and retain foreign direct investment, and
provide one-to-one support services to Mainland and overseas enterprises.
To this end, InvestHK proactively attracts and assists enterprises that are interested in setting
up and expanding businesses in Hong Kong, and offers one-stop customised support services,
from the planning to implementation stages. The services offered include provision of
market information as well as guidance on laws and regulations in relevant sectors, assistance
in office search and staff hiring, facilitation of visa and licence applications, provision of
information about funding and other support schemes, introduction of business partners and
service providers, and marketing support on business launch.
Apart from proactively attracting new enterprises to set up businesses in Hong Kong,
InvestHK also attaches great importance to providing aftercare support to the established
ones, as well as other major overseas and Mainland enterprises in Hong Kong. The
professional teams of InvestHK will continue to develop organised and systematic
Session 18 CEDB - Page 319
programmes to reach out to major investors. Strategic discussions are also conducted to
assist them to explore and evaluate new growth areas and opportunities ahead for supporting
their business expansion in Hong Kong.
Enterprises receiving one-to-one support services from InvestHK originate from all over the
world, including the Mainland and overseas. In 2024, InvestHK assisted 539 enterprises in
establishing and expanding their businesses in Hong Kong, representing an increase of over
40% as compared with the full year figure of 2023. On a pro-rata basis, the figure well
exceeded the performance indicator as set out in the 2022 Policy Address by the Chief
Executive (viz. attracting at least a total of 1 130 companies to set up or expand their
operations in Hong Kong from 2023 to 2025). Among these 539 enterprises, about 80% of
them set up businesses in Hong Kong for the first time, while the remaining 20% expanded
their businesses in Hong Kong. Within their first year of operations or expansion, these
enterprises were expected to create over 6 800 jobs in total, and bring in direct investment of
over $67.7 billion.
- End -
Session 18 CEDB - Page 320
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB127
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2856)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (000) Operational Expenses
Programme: (2) Public Affairs and General Television Programme
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in Programme 2 that in the coming year, Radio Television Hong Kong will
continue to strengthen co-production of television programmes with Mainland broadcasters
that foster the affection for our country, as well as provide more diversified programmes and
present more programmes with national perspectives to strengthen social cohesion and public
understanding (especially young people). In this connection, will the Administration inform
this Committee:
1. of the estimated expenditure and staffing involved; and
2. of the work plan, roadmap and key performance indicators in the coming 3 years; if
available, of the details; if not, the reasons for that.
Asked by: Hon CHAN Man-ki, Maggie (LegCo internal reference no.: 30)
Reply:
As a government department and the public service broadcaster, Radio Television Hong Kong
(RTHK) firmly implements the public purposes and mission in the Charter of RTHK (the
Charter), including promoting understanding of the concept of “One Country, Two Systems”
and engendering a sense of citizenship and national identity. The performance of RTHK is
evaluated under 8 Programme Production Goals (PPGs), which are drawn up based on the
public purposes, mission and programming objectives stipulated in the Charter. RTHK’s
performance under respective PPGs is set out in the Controlling Officer’s Report.
To engender a sense of citizenship and national identity, RTHK is committed to strengthening
partnership with different Mainland broadcasters and co-producing television programmes
that foster the affection for our country. RTHK has established cooperation with the China
Media Group, Beijing Radio & Television Station, Shanghai Media Group, Yunnan
Television, Guangdong Radio and Television and Guangzhou Broadcasting Network
(GZBN), etc.. Besides, the 3 digital terrestrial television channels operated by RTHK relay
Session 18 CEDB - Page 321
programmes of China Central Television and China Global Television Network, enabling the
public to watch more programmes with a national perspective.
In addition, RTHK will broadcast important activities and major events of our country and
Hong Kong or produce relevant programmes to strengthen public understanding of the
relevant subjects and promote social cohesion, such as the promotion, programme production
and live broadcast of the 15th National Games (NG), and the 12th National Games for Persons
with Disabilities and the 9th National Special Olympic Games to be held in November and
December 2025. RTHK also plans to co-produce with GZBN on a new cultural tourism
programme to introduce the preparatory work for the NG in various Greater Bay Area cities
and new tourism information in the surrounding areas.
In the coming year, RTHK will also produce and broadcast programmes targeting at young
people to nurture their patriotic feelings and promote their understanding of our country. For
instance, RTHK is preparing the production of the new series of “Basic Law Quiz
Competition” to enhance the understanding of the Constitution and the Basic Law among
young people; and will co-produce the new series of “Love Our Home, Treasure Our
Country” with the Education Bureau. Besides, young people and members of the public
from the 18 districts will be invited to participate in the “Basic Law and Patriotic Education
Quiz”, so as to deepen their understanding of the Chinese civilisation; “Young Cultural
Ambassadors” will enable young people to understand historical stories such as Hong Kong’s
resistance against Japanese aggression, inheritance of the Chinese culture, and the
establishment of Hong Kong by Chinese in the early days; and the children’s programme
“Learning Basic Law with Good Neighbours” introduces the essence of the Basic Law to
children in theatrical form. RTHK will conduct school and community tours to promote
these programmes.
The expenditure and manpower involved will be covered by existing resources. RTHK does
not maintain separate breakdown of expenditure and manpower involved.
RTHK’s production directions and work plans are devised in accordance with the Charter.
The Charter stipulates that RTHK should prepare an annual plan. The annual plan for
2025-26 will be published in April this year. To enhance the quality and effectiveness of
programmes, RTHK will review and adjust the service performance criteria on an annual
basis to assess the effectiveness.
- End -
Session 18 CEDB - Page 322
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB128
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0414)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (1) Radio, (2) Public Affairs and General Television Programme
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Promoting understanding of the concept of “One Country, Two Systems” and engendering a
sense of citizenship and national identity is one of the Programme Production Goals set by
Radio Television Hong Kong (RTHK). In this regard, will the Administration inform this
Committee of the details and specific achievements of the relevant work last year? What
was the amount of expenditure involved? Has there been any review of its effectiveness?
In the coming year, what are the work plan of RTHK and the amount of expenditure to be
involved?
Asked by: Hon CHEUNG Yu-yan, Tommy (LegCo internal reference no.: 31)
Reply:
As a government department and the public service broadcaster, Radio Television Hong Kong
(RTHK) firmly implements the public purposes and mission under the Charter of RTHK,
including promoting understanding of the concept of “One Country, Two Systems” and
engendering a sense of citizenship and national identity.
In 2024-25, RTHK produced and broadcast various programmes and events on important
topics such as the Constitution, the Basic Law, national security education, the
Guangdong-Hong Kong-Macao Greater Bay Area, etc. For television, in 2024-25, RTHK
produced and broadcast programmes including “Basic Law and Us”, “Basic Law cum Sports
Ambassadors 123 School Tours”, the new theme song for the Basic Law “Wings”, and a series
of special programmes for “The Third Plenary Session”, such as “Seminar on Promotion of
Spirit of Third Plenary Session of 20th CPC Central Committee”, “Chat on 3rd Plenary
Session”, “Quick Look at 3rd Plenary Session”, “Deepening Reform in the New Era – 3rd
Plenary Session of the 20th Central Committee of the CPC”, etc., and the live broadcast of
the flag raising ceremony, opening ceremony cum seminar for the National Security
Education Day, as well as the flag raising ceremony and seminar for the Constitution Day.
The number of transmission hours for the relevant programmes was 2 974.
Session 18 CEDB - Page 323
For radio, in 2024-25, RTHK produced and broadcast programmes including “More About
the National Security Law”, “Young Politician – National Security Education Day Special”,
“Our Neighbours”, “National Security Legal Forum”, “50 Years After: Third Plenary Session
of the 20th CPC Central Committee Series”, “Heart to Class – National Studies Special Series:
Third Plenary Session”, “Macao in My Eyes”, etc. The number of transmission hours for
the relevant programmes was 1 130.
Moreover, to efficiently utilise production resources and cater for the need of audience and
listeners, related programmes were simulcast on RTHK website and the mobile application
“RTHK TV”, and were available in archives. Some of the programmes have been authorised
to be broadcast on RTHK’s social media platforms (e.g. RTHK YouTube Channel).
Besides, RTHK launched a series of special online learning programmes on its website to
introduce national affairs, such as “Our National Anthem”, “Understanding the National
Constitution, the Basic Law and the National Security Law”, “Door of Diplomacy”, “The
Third Plenary Session of the 20th Central Committee of the Communist Party of China”, “The
20th National Congress of the Communist Party of China”, “Citizenship & Society: Special
Webcasts”, and dedicated webpages for Mainland dramas, etc. By making use of the
characteristics of internet multimedia, the “Chinese Culture” website channel presents the
great Chinese cultural heritage, such as history, culture, arts and beautiful landscape to the
public through sound, visual and words.
According to the audience surveys of 2024, over 90% of the respondents agreed that RTHK’s
radio and TV programmes had achieved the Programme Production Goal of promoting
understanding of the concept of “One Country, Two Systems” and engendering a sense of
citizenship and national identity. To enhance the quality and effectiveness of programmes,
RTHK will review and adjust the service performance criteria on an annual basis to assess the
effectiveness.
In 2025-26, RTHK will continue producing programmes to engender a sense of citizenship
and national identity among the public. For TV programmes, RTHK will launch
programmes related to the theme of “80th anniversary of victory in the War of Resistance”,
so as to enhance the sense of identity with our country and the Chinese culture among the
public through history, culture and national education. Besides, young people and members
of the public from the 18 districts will be invited to participate in the “Basic Law and Patriotic
Education Quiz”, so as to deepen their understanding of the Chinese civilization; “New
Legacy Keepers” will introduce and explore the preservation and promotion of the Chinese
culture and craftsmanship; “Young Cultural Ambassadors” will enable young people to
understand historical stories such as Hong Kong’s resistance against Japanese aggression,
inheritance of the Chinese culture, and the establishment of Hong Kong by Chinese in the
early days; “Learning Basic Law with Good Neighbours” introduces the essence of the Basic
Law to children in theatrical form, etc. It is estimated that a total of 3 000 hours of relevant
programmes will be broadcast throughout the year.
For radio programmes, RTHK will produce various programmes to promote public
understanding on the importance of safeguarding national security, including “The 17th Hong
Kong Cup Diplomatic Knowledge Contest”, which will enhance students’ interest in and
awareness of the diplomacy of our country; “NSL Chronicles III”, which will use the latest
cases as the entry point, invite young people to share their viewpoints and questions
concerning the Hong Kong National Security Law and explain the Law from diverse
Session 18 CEDB - Page 324
perspectives; “Our Neighbours II” which will deepen audience understanding of the countries
along the Belt and Road, and our country’s efforts in promoting diplomatic relationship along
this modern-day Silk Road through dialogues amongst scholars and guests as well as
storytelling. It is estimated that a total of 1 100 hours of relevant programmes will be
broadcast throughout the year.
The expenditure of the above items will be covered by existing resources. RTHK does not
maintain separate breakdown of expenditure.
- End -
Session 18 CEDB - Page 325
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB129
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1892)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (1) Radio, (3) New Media
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
In regard of the performance of Radio Television Hong Kong (RTHK), please inform this
Committee of the following:
1. The estimated expenditure provided by the Administration for radio services has been
increasing. However, according to the document, for the 8 Goals, satisfaction with
programmes, recognition, and the number of listeners have all dropped by various degrees.
What is/are the reason(s)?
2. Given that the multiple indicators mentioned above did not meet the expected targets, does
the Administration have any plans to flexibly deploy resources to improve and adjust the
service in order to enhance service level and programme quality, as well as bring about
innovative reform to radio services? Amongst other initiatives, will the Administration
consider relaxing some of the restrictions, such as language requirements, programme
hour requirements, as well as advertising restrictions in order to enhance the
competitiveness of radio programmes in the future?
3. Regarding the 6 mobile applications provided by RTHK, please provide the average usage,
as well as the manpower expenditure involved in the operation and daily maintenance of
each application in the past 3 years.
4. Given the impact of the communication power of other online platforms and social media
on the usage of RTHK’s mobile applications, will the Administration consider, in the light
of the actual situation, merging or discontinuing some of the applications, and
consolidating information to enhance the overall effectiveness of the New Media services,
so as to reduce costs while boosting effectiveness?
Asked by: Hon FOK Kai-kong, Kenneth (LegCo internal reference no.: 17)
Session 18 CEDB - Page 326
Reply:
As a public service broadcaster, Radio Television Hong Kong (RTHK)’s programme
production has to cater for the needs of different groups in the society, including the mass
audience as well as the minority groups such as ethnic minorities and non-Chinese speaking
group. Besides, programmes produced by RTHK cover various aspects including news,
public affairs, government information, national education, sports, culture, lifestyle and
education programmes, etc. RTHK reviews and updates the programme line-up of different
channels from time to time. In this regard, RTHK launched a new programme arrangement
which involved a series of programme changes in the 2nd quarter of last year, including
adjusting radio programme schedule, reducing overlap of similar programmes, providing
more diversified content, etc. to cater the needs of different audience groups. It may take
time for audience to get used to the changes of radio programmes. In the coming year, the
programme production teams will conduct focus group surveys and collect audience feedback
through various channels. RTHK will further enhance programme content and quality
taking into account the feedback and operational experience. RTHK will control its
expenditure with caution and utilise its resources to provide quality programmes to the public.
The average monthly usage of the 6 mobile applications of RTHK in the past 3 years are
tabulated below:
Usage
(based on the average usage of the application on a
Mobile Application monthly basis) Note 1
2022 2023 2024
RTHK on the Go 136 000 123 000 105 000
RTHK TV 23 000 20 000 32 000
RTHK Radio 98 000 99 000 103 000
RTHK News 125 000 79 000 61 000
RTHK Chinese History – the - Note2
Flourishing Age
RTHK Audio Description - Note2
Note 1: Rounded to the nearest thousand
Note 2: As the 2 mobile applications are not equipped with “usage” trackers, there is no relevant data.
The total annual operating expenditure of the 6 mobile applications is about $800,000.
RTHK does not have a breakdown of the operating expenditure and manpower involved by
individual mobile applications.
RTHK regularly reviews the operation of each application, and had consolidated and renamed
6 applications in mid-2023 to better reflect the respective service positioning and functions.
RTHK will continue to closely monitor the operation of each mobile application and make
adjustment where necessary to provide services to the public more effectively through the
applications.
- End -
Session 18 CEDB - Page 327
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB130
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1465)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (1) Radio, (2) Public Affairs and General Television Programme
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
As the sole public service broadcaster of Hong Kong, Radio Television Hong Kong (RTHK)
currently has 8 radio channels and 5 Digital Terrestrial Television (DTT) channels.
Regarding the operation of RTHK, will the Government advise this Committee of the
following:
1. What were the actual listenerships and viewerships of various radio channels and DTT
channels respectively over the past 3 years?
2. Has RTHK set target listenerships and viewerships for various radio channels and DTT
channels? If so, have the targets been met? If not, is there any plan to set performance
indicators?
3. This year, RTHK has to exert full efforts on the preparation and promotion of the 15th
National Games, and the 12th National Games for Persons with Disabilities and the 9th
National Special Olympic Games. What are the estimated expenditures involved and the
expected viewerships respectively?
4. There are views that RTHK television channels have a weaker viewership than other free
television channels. What are the plans (whether in the short, medium or long term) and
relevant estimates to enhance the public reach of various RTHK radio channels and
television channels, while striking a balance between supporting government policies,
promoting patriotic education, promoting Chinese culture and presenting programme
content which caters for the needs and tastes of the public?
Asked by: Hon HO King-hong, Adrian Pedro (LegCo internal reference no.: 24)
Reply:
As a public broadcaster, Radio Television Hong Kong (RTHK)’s programme production has
to cater for the needs of different groups in the society, including the mass audience as well
Session 18 CEDB - Page 328
as the minority groups such as ethnic minorities and non-Chinese speaking group. Besides,
programmes produced by RTHK cover various aspects including news, public affairs,
government information, national education, sports, culture, lifestyle and education
programmes, etc. As such, viewership and listening ratings are not appropriate reference
indicators for evaluating RTHK’s performance in providing public broadcasting services.
The performance of RTHK is evaluated under 8 Programme Production Goals (PPGs), which
are drawn up based on the public purposes, mission and programming objectives stipulated
in the Charter of RTHK. RTHK’s performance under respective PPGs is set out in the
Controlling Officer’s Report. RTHK will review and adjust the service performance criteria
on an annual basis to assess the effectiveness.
RTHK will promote, produce programmes and live broadcast the 15th National Games (NG)
and the 12th National Games for Persons with Disabilities and the 9th National Special
Olympic Games (NGD and NSOG) to be held in November and December 2025. In 2025-
26, RTHK estimates that the promotion, programme production and live broadcast of the NG,
NGD and NSOG will involve a total spending of around $153 million. RTHK will cover
the competitions of the NG, NGD and NSOG in an all-round manner through its TV channels,
RTHK website and mobile applications, and produce relevant programmes. It is expected
that the total number of programme transmission hours will be no less than 3 500 hours.
RTHK will continue to produce different types of programmes on various themes, proactively
assist in strengthening the dissemination of government information, and promote national
education, sports and culture and social inclusion. RTHK will also acquire programmes,
such as popular Chinese dramas and drama programmes from different regions, as well as
source international films and high quality documentaries, etc., in order to provide diversified
programme choices for audience.
- End -
Session 18 CEDB - Page 329
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB131
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3161)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (1) Radio
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Radio Division of Radio Television Hong Kong operates 8 AM/FM channels. The
2025-26 financial provision is HK$510.5 million (increase by 4.3%).
The rapid development of internet nowadays has facilitated the free flow of information and
provided countless ways of entertainment. The number of people who listen to the radio has
decreased compared to the past. Would it be possible to merge the channels to reduce the
expenditure?
Asked by: Hon HO Kwan-yiu, Junius (LegCo internal reference no.: 40)
Reply:
To provide diversified programmes to the public, the Radio Division of Radio Television
Hong Kong (RTHK) operates 8 AM/FM channels and every channel has distinctive
positioning. Amongst them, 2 channels relay China National Radio Hong Kong Edition and
Radio the Greater Bay of the China Media Group respectively. The other 6 channels provide
diversified programmes, with Channel 1 providing news, information and variety
programmes; Channel 2 providing entertainment and pop music programmes, and promoting
youth, family and community activities; Channel 3 providing English news, information and
variety programmes; Channel 4 providing classical music and art programmes; Channel 5
providing elderly, cultural and education programmes, catering to the needs of the broad
community and minority interest groups; and Putonghua Channel providing variety
programmes, news, financial information and Community Involvement Broadcasting Service
programmes. Apart from providing Cantonese, Putonghua and English programmes, RTHK
also broadcasts programmes in the languages of ethnic minorities, including Bahasa
Indonesia, Tagalog, Nepali and Urdu to serve audience of different ethnicities in Hong Kong.
RTHK has no plan to merge the channels at present.
In light of the rapid development of new media, RTHK has, through internal redeployment of
resources and utilisation of technology in recent years, produced convergence media
Session 18 CEDB - Page 330
programmes to present programmes in different forms through various means of media, as
well as leveraged new media and social platforms to enhance publicity, so that its programmes
can reach different communities.
- End -
Session 18 CEDB - Page 331
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB132
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3276)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (1) Radio
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Programme Production Goal 2 of Radio Television Hong Kong (RTHK) is to promote
understanding of the concept of “One Country, Two Systems” and engender a sense of
citizenship and national identity.
Why does RTHK, as the public service broadcaster, plan to reduce the hours for understanding
“One Country, Two Systems” in 2025-26 from 1 130 to 1 100 (-2.6%)?
Asked by: Hon HO Kwan-yiu, Junius (LegCo internal reference no.: 41)
Reply:
As a government department and the public service broadcaster, Radio Television Hong Kong
(RTHK) firmly implements the public purposes and mission under the Charter of RTHK,
including promoting understanding of the concept of “One Country, Two Systems” and
engendering a sense of citizenship and national identity.
For radio programmes, in 2025-26, RTHK will continue to produce programmes on important
topics such as the Constitution, the Basic Law, national security education, etc., including
“The 17th Hong Kong Cup Diplomatic Knowledge Contest”, which will enhance students’
interest in and awareness of the diplomacy of our country; “NSL Chronicles III” , which will
use the latest cases as the entry point, invite young people to share their viewpoints and
questions concerning the Hong Kong National Security Law and explain the Law from
diverse perspectives; “Our Neighbours II” which will deepen audience understanding of the
countries along the Belt and Road, and our country’s efforts in promoting diplomatic
relationship along this modern-day Silk Road through dialogues amongst scholars and guests
as well as storytelling; thematic programmes on the 80th anniversary of victory in the War of
Resistance; and educational programmes on patriotism, etc. It is estimated that a total of
1 100 hours of radio programmes on engendering a sense of citizenship and national identity
will be broadcast throughout the year. Besides, depending on the nature and theme of the
programmes, certain programmes which engender a sense of citizenship and national identity
Session 18 CEDB - Page 332
are included under other Programme Production Goals (PPGs). This does not mean that the
transmission hours of these programmes are reduced. For instance, educational, arts and
cultural programmes which are related to our country will be respectively counted towards
the transmission hours of PPG 6 (promoting education and learning) and PPG 7 (promoting
arts and cultural activities).
Besides, for TV programmes, in 2025-26, RTHK will launch programmes related to the theme
of “80th anniversary of victory in the War of Resistance”, so as to enhance the sense of
identity with our country and the Chinese culture among the public through history, culture
and national education; young people and members of the public from the 18 districts will be
invited to participate in the “Basic Law and Patriotic Education Quiz”, so as to deepen their
understanding of the Chinese civilization; “New Legacy Keepers” will introduce and explore
the preservation and promotion of the Chinese culture and craftsmanship; “Young Cultural
Ambassadors” will enable young people to understand historical stories such as Hong Kong’s
resistance against Japanese aggression, inheritance of the Chinese culture, and the
establishment of Hong Kong by Chinese in the early days; “Learning Basic Law with Good
Neighbours” introduces the essence of the Basic Law to children in theatrical form, etc. It
is estimated that a total of 3 000 hours of the above TV programmes on engendering a sense
of citizenship and national identity will be broadcast throughout the year, which has increased
by 26 hours when compared to 2024-25.
- End -
Session 18 CEDB - Page 333
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB133
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0750)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (2) Public Affairs and General Television Programme
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Will the Administration inform this Committee of the average viewership of RTHK’s
television programmes? Besides, to optimise the use of public resources, will the
Government consider acquiring programmes to replace the mass production of in-house
programmes? Does the Government have any plan to realign RTHK’s production direction?
Asked by: Hon LAM So-wai (LegCo internal reference no.: 6)
Reply:
The performance of Radio Television Hong Kong (RTHK) is evaluated under 8 Programme
Production Goals, which are drawn up based on the public purposes, mission and
programming objectives stipulated in the Charter of RTHK. RTHK’s performance under
respective indicators is set out in the Controlling Officer’s Report. As a public broadcaster,
RTHK’s programme production has to cater for the needs of different groups in the society,
including the mass audience as well as the minority groups such as ethnic minorities and
non-Chinese speaking group. Besides, programmes produced by RTHK cover various
aspects including news, public affairs, government information, national education, sports,
culture, lifestyle and education programmes, etc. As such, viewership rating is not an
appropriate reference indicator for evaluating RTHK’s performance in providing public
broadcasting services. RTHK does not conduct any survey on viewership ratings of its
television programmes nor maintain such statistics.
RTHK’s production directions are set in accordance with its Charter. RTHK will continue
to produce different types of programmes on various themes, proactively assist in
strengthening the dissemination of government information, and promote national education,
sports and culture and social inclusion. RTHK will also acquire programmes, such as
popular Chinese dramas and drama programmes from different regions, as well as source
international films and high quality documentaries, etc., in order to provide diversified
programme choices for audience.
- End -
Session 18 CEDB - Page 334
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB134
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1423)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (1) Radio, (2) Public Affairs and General Television Programme,
(3) New Media
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Government will increase the provision to Radio Television Hong Kong for the
production, promotion and live broadcast of the 15th National Games, and the 12th National
Games for Persons with Disabilities and the 9th National Special Olympic Games. In this
regard, will the Government inform this Committee:
(1) of the amounts to be used for the production, promotion and live broadcast respectively;
(2) whether additional manpower expenditure is involved; if so, of the details; and
(3) of the estimated number of programme hours?
Asked by: Hon LEUNG Man-kwong (LegCo internal reference no.: 19)
Reply:
Radio Television Hong Kong (RTHK) will promote, produce programme and live broadcast
the 15th National Games (NG), and the 12th National Games for Persons with Disabilities
and the 9th National Special Olympic Games (NGD and NSOG) to be held in November and
December 2025.
In 2025-26, RTHK estimates that the promotion, programme production and live broadcast
of the NG, NGD and NSOG will involve a total spending of around $153 million. The
relevant expenses and additional manpower involved for individual item will depend on the
actual work arrangement and hence there is no concrete figure at the moment.
RTHK will cover the competitions of the NG, NGD and NSOG in an all-round manner
through its TV channels, RTHK website and mobile applications, and produce relevant
programmes to raise public awareness and interest in these 2 mega sports events. It is
Session 18 CEDB - Page 335
expected that the total number of programme transmission hours will be no less than 3 500
hours.
- End -
Session 18 CEDB - Page 336
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB135
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1117)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (603) Plant, Vehicles and Equipment
Programme: (-) -
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The commitment approved in the context of the Appropriation Bill 2024 for infrastructure
enhancement and upgrading for the coverage and broadcast of the 15th National Games, and
the 12th National Games for Persons with Disabilities and the 9th National Special Olympic
Games was $116 million. The revised expenditure for 2024-25 is $36.25 million.
According to the Government, another new commitment of $14.50 million is sought in the
context of the Appropriation Bill 2025 for infrastructure enhancement and upgrading for
supporting the live broadcast and signal relay of the events of the 15th National Games, and
the 12th National Games for Persons with Disabilities and the 9th National Special Olympic
Games. In this connection, will the Government inform this Committee of the justification
for the proposed new commitment of $14.50 million?
Asked by: Hon LOONG Hon-biu, Louis (LegCo internal reference no.: 37)
Reply:
In supporting the promotion, programme production and live broadcast of the 15th National
Games, and the 12th National Games for Persons with Disabilities and the 9th National
Special Olympic Games to be held in November and December 2025, Radio Television Hong
Kong (RTHK) was allocated with a provision of $116 million to upgrade the broadcasting
infrastructure and production equipment. The relevant procurement work, conducted in 2
financial years, has been largely completed. The total revised estimated expenditure of the
procurement of infrastructure and production equipment for 2024-25 is $36.25 million, while
the estimated expenditure for 2025-26 is $79.75 million.
In 2025-26, an additional provision of $14.50 million is required for RTHK to procure
equipment for the transmission of 4K live broadcasting signal between Guangdong and Hong
Kong, to ensure the signal transmission of RTHK is in line with the Competition Video
Standards used in large-scale national sports events.
- End -
Session 18 CEDB - Page 337
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB136
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2013)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (3) New Media
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The New Media services of Radio Television Hong Kong (RTHK) provide different online
platforms and contents for audiences through the official website (i.e. “rthk.hk”), 6 mobile
applications featuring different services (namely “RTHK on the Go”, “RTHK TV”, “RTHK
Radio”, “RTHK News”, “RTHK Chinese History – the Flourishing Age” and “RTHK Audio
Description”), and on social media (such as YouTube, Facebook and Instagram). In this
connection, please inform this Committee:
a) of the reason(s) for RTHK to provide online platforms and contents through 6
applications, and whether the Administration can merge the 6 platforms into 1;
b) whether the expenditure for the merged online platform will reduce significantly;
c) of the average operating expenditure for each platform.
Asked by: Hon LUK Hon-man, Benson (LegCo internal reference no.: 37)
Reply:
In light of the trends of media development, Radio Television Hong Kong (RTHK)
disseminates programmes and information through its official website, mobile applications
and social media (such as YouTube, Facebook and Instagram). RTHK regularly reviews the
operation of each application, and had consolidated and renamed 6 applications in mid-2023
to better reflect their respective service positioning and functions.
With the continuous development of the new media services and diversification of RTHK’s
programmes, the initial “RTHK on the Go” mobile application has evolved into 3 other
applications (i.e. “RTHK TV”, “RTHK Radio” and “RTHK News”) to provide clearer
communication functions and contents; the applications “RTHK Chinese History – the
Flourishing Age” and “RTHK Audio Description” promotes specific themes and serves
people with special needs respectively. RTHK will continue to closely monitor the
Session 18 CEDB - Page 338
operation of each mobile application and make adjustment where necessary to provide
services to the public more effectively through the applications.
The annual total operating expenditure of the 6 mobile applications is about $800,000.
RTHK does not have a breakdown of the operating expenditure by individual mobile
applications.
- End -
Session 18 CEDB - Page 339
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB137
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1276)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (603) Plant, Vehicles and Equipment
Programme: (2) Public Affairs and General Television Programme
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under capital items 809 and 810, expenditures of $79.75 million and $14.50 million will be
incurred for the enhancement and upgrading for the coverage and on-site relay of the 15th
National Games (NG), and the 12th National Games for Persons with Disabilities (NGD).
In this connection, please advise of the following:
(1) What is the schedule for the enhancement and upgrading works? For item 810, its
funding is sought in the context of the Appropriation Bill 2025, i.e. in late April which
is only 6 months before the NG opening. Can the works be completed as scheduled?
(2) What are the arrangements for the live broadcast and relay of the NG and NGD? Will
all the programmes be provided free of charge to other local, Mainland and overseas
media?
(3) Will the facilities be suitable for use in the development of RTHK after the NG? Will
the original plans required for equipment upgrading in Hong Kong be replaced?
Asked by: Hon MA Fung-kwok (LegCo internal reference no.: 18)
Reply:
To support the promotion, programme production and live broadcast of the 15th National
Games (NG), and the 12th National Games for Persons with Disabilities and the 9th National
Special Olympic Games (NGD and NSOG), Radio Television Hong Kong (RTHK) has
started preparing for the upgrading works of the broadcasting infrastructure and production
equipment since last year.
The estimated expenditure of $79.75 million involved in item 809 under the capital account
as approved under the Appropriation Bill 2024 is mainly used for upgrading the broadcasting
infrastructure and production equipment. The procurement procedures for the relevant
Session 18 CEDB - Page 340
equipment have been largely completed, with equipment delivered, installed and tested in
phases. The overall installation and testing will be completed by September 2025.
As regards the estimated expenditure of $14.50 million involved in item 810 under the capital
account, it is used for the procurement of equipment for the transmission of 4K live
broadcasting signal between Guangdong and Hong Kong. RTHK is carrying out
preparatory work for the procurement, such as conducting market research and drafting
equipment technical specifications, and the preparatory work is close to completion. Once
the Appropriation Bill 2025 is passed, RTHK will commence the procurement procedures
immediately. It is expected that the equipment for the transmission of live broadcasting
signal will be ready by end September 2025.
The National Games Coordination Office (Hong Kong) (NGCO) is liaising with the
Organising Committees of the NG, NGD and NSOG on the arrangement for relay of
competitions (including competitions to be held in Hong Kong). The NGCO will announce
the relevant details in due course. RTHK will promote the competitions through various
platforms (including TV channels 31, 32 and popup 36, as well as radio channels, website and
mobile applications).
The relevant facilities and equipment procured for the NG, NGD and NSOG will effectively
upgrade the production equipment of some studios, signal transmission system and
broadcasting infrastructure of RTHK. RTHK will retain all facilities and equipment after
the events to optimise the use of public resources.
- End -
Session 18 CEDB - Page 341
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB138
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1314)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (000) Operational Expenses
Programme: (-) -
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
(1) There will be an overall 23.1% increase in the expenditure of Radio Television Hong
Kong (RTHK) for the 3 Programmes in 2025-26. According to the analysis of
financial and staffing provision, the increase in estimates for the 3 Programmes is mainly
due to the increase in operating expenses, as well as the increase in capital expenditure
for Programme (2). What are the operating expenses to be increased for the 3
Programmes?
(2) There will be a decrease of 2 posts for both Programmes (1) and (2) this year. What
are the posts involved?
(3) How many vacancies are there in RTHK at present? According to the Financial
Secretary, the civil service establishment will be reduced by 2% each in the coming 2
financial years, and about 10 000 posts are expected to be deleted within this term of
Government. How many posts will be deleted by RTHK this year?
(4) RTHK has currently commissioned the production of some programmes. How many
permanent posts have been reduced by RTHK as a result of this? Is there any plan for
further programme commissioning this year?
(5) What is the progress of the plan for the construction of the new Broadcasting House in
Tseung Kwan O by RTHK? Will the funding application be submitted to the
Legislative Council (LegCo) this year? What will be the change in the estimated
funding required when compared with the amount submitted to LegCo for discussion in
the past?
Asked by: Hon MA Fung-kwok (LegCo internal reference no.: 19)
Session 18 CEDB - Page 342
Reply:
The increase of $291.3 million (23.1%) in Radio Television Hong Kong (RTHK)’s estimate
for 2025-26 as compared with the revised estimate for 2024-25 is mainly for the promotion,
programme production and live broadcast of the 15th National Games, and the 12th National
Games for Persons with Disabilities and the 9th National Special Olympic Games. The
estimated expenditure for the 3 programmes are tabulated below:
Programme 2024-25 2025-26 Increase
Revised Estimate Estimate ($m)
($m) ($m) (Percentage)
Radio 489.4 510.5 21.1
(+4.3%)
Public Affairs and 723.7 990.9 267.2
General Television (+36.9%)
Programme
New Media 47.2 50.2 3.0
(+6.4%)
In 2025-26, RTHK, through internal redeployment and streamlining of procedures, will
reduce 4 non-directorate civil service posts including 1 Clerical Assistant post and 1
Programme Assistant post under Programme (1) (Radio), and 1 Clerical Assistant post and 1
Artisan post under Programme (2) (Public Affairs and General Television Programme).
As at 1 March 2025, RTHK has 125 civil service vacancies in total. RTHK will
comprehensively review its staffing and operation, and introduce appropriate measures
including streamlining its structure for more effective use of public resources without
affecting the quality of RTHK’s programmes and services.
Since 2019, RTHK has ceased programme commissioning and has been focusing on training
in-house production staff of RTHK to ensure its programme quality and the availability of
sufficient talent within the Department to meet the need of future development. RTHK has
no plan to change the existing production arrangement.
RTHK is studying the relocation of the Broadcasting House to meet long-term development
needs. There is no concrete plan at the moment. To meet operational needs, RTHK has
commenced operation of the offices and programme production facilities located in the AIA
Kowloon Building in Kwun Tong under tenancy since 2023, including studios, programme
production studios, editing rooms and prop workshops, etc. RTHK will also continue to
repair and maintain the Broadcasting House and the Television House, and rent other facilities
to meet its production and development needs.
- End -
Session 18 CEDB - Page 343
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB139
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2828)
Head: (180) Office for Film, Newspaper and Article Administration
Subhead (No. & title): (000) Operational expenses
Programme: (-) Film Classification, Control of Obscene and Indecent Articles
and Newspaper Registration
Controlling Officer: Director of Film, Newspaper and Article Administration (Mr Chaucer
LEUNG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Head 180, it is mentioned that the Office for Film, Newspaper and Article
Administration will organise publicity and public education programmes to promote public
awareness of the provisions of the Control of Obscene and Indecent Articles Ordinance
(“COIAO”). In this connection, please inform this Committee of:
1. the estimated expenditure and manpower resources for the publicity and public
education programmes in the coming 3 years; and
2. whether there is any plan to integrate the promotion of “building up good family values,
family education and family tradition” into the publicity programmes. If yes, what are
the details and the timetable? If no, what are the reasons?
Asked by: Hon CHAN Man-ki, Maggie (LegCo internal reference no.: 19)
Reply:
The Office for Film, Newspaper and Article Administration (OFNAA) has been working to
enhance public awareness of the Control of Obscene and Indecent Articles Ordinance
(COIAO) and to promote the message of staying away from obscene and indecent content on
the Internet through various publicity and public education programmes. In the coming
3 years, OFNAA will continue to conduct various publicity and public education
programmes, with an estimated expenditure in 2025-26 at about $6.1 million. The estimated
expenditure in 2026-27 and beyond will depend on factors such as the format, quantity, scale
and number of participants of the programmes. As regards civil service manpower, the
relevant manpower and expenditure have been subsumed under the overall establishment and
estimated expenditure of OFNAA, and cannot be quantified separately.
Session 18 CEDB - Page 344
Apart from conducting student programmes of various formats, such as the “Healthy
Information Student Ambassadors Scheme”, roving drama performances for schools, the
“Healthy Mobile App Sticker Design Competition”, slogan and colouring competition, the
“Healthy Student Video Contest” and the “Healthy Chinese Public Speaking Competition”,
OFNAA has also enhanced publicity efforts towards parents and schools, which include more
than 250 sessions of talks to introduce the COIAO and the proper use of the Internet, webinars
as well as workshops for parents planned to be conducted in 2025. In addition, OFNAA has
been working proactively with various bureaux, departments and organisations, including the
Home and Youth Affairs Bureau, the Education Bureau (EDB), the Hong Kong Police Force
and the Family Council, to strengthen collaborations such as taking part in the webinars of
professional development programme for teachers organised by the EDB to give briefing on
ways to help students stay away from harmful material on the Internet, incorporating
information concerning the COIAO in relevant websites or applications as well as through
various programmes or channels, so as to complement the promotion of “building up good
family values, family education and family tradition” and proactively take forward the
relevant publicity and public education works.
- End -
Session 18 CEDB - Page 345
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB140
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2864)
Head: (181) Trade and Industry Department
Subhead (No. & title): (-) -
Programme: (3) Support for Small and Medium Enterprises and Industries
Controlling Officer: Director-General of Trade and Industry (Aaron LIU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the Dedicated Fund on Branding, Upgrading and Domestic Sales, please inform
this Committee of:
1) the effectiveness and expenditure of the above programme since its launch; If so, the
details; if not, the reasons; and
2) whether any key performance indicators have been set for the next three years; if so, the
details; if not, the reasons.
Asked by: Hon CHAN Man-ki, Maggie (LegCo internal reference no.: 31)
Reply:
The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) provides
funding support for enterprises to develop business in 40 economies with which Hong Kong
has signed free trade agreements and/or investment promotion and protection agreements.
As at end February 2025, the number of applications and amount of funding approved under
the BUD Fund reached 10 417 and $6.44 billion respectively, benefitting a total of 6 841
enterprises. The Government has been conducting project completion surveys and annual
tracking surveys through the Hong Kong Productivity Council (HKPC), the BUD Fund
Secretariat, to assess the effectiveness of the BUD Fund. As at end February 2025, around
99% of the enterprises that responded to the project completion surveys considered the BUD
Fund useful in supporting their business development. The enterprises also generally
considered that the funded projects had helped them in various areas, including enhancing
corporate image, awareness of their brands/products/services, and their overall
competitiveness, etc. Moreover, around 99% of the enterprises that responded to the annual
tracking surveys considered the BUD Fund useful to their long term development.
Session 18 CEDB - Page 346
We have been closely monitoring and reviewing the operational arrangements of the BUD
Fund continuously. Targets and indicators for different aspects of the operational
arrangements of the BUD Fund have also been set in the Controlling Officer’s Report of the
Trade and Industry Department (TID), including the performance pledge of processing
applications, planned number of applications received and processed, etc.
The manpower and expenditure of the Commerce and Economic Development Bureau and
TID for implementing the BUD Fund have been subsumed under the respective overall
establishment and estimate, and cannot be quantified separately. The estimated expenditure
of the BUD Fund in 2025-26 is $1.292 billion, including the manpower and other fees
provided to HKPC as the Programme Secretariat for implementing the BUD Fund, as well as
disbursements to grantees.
- End -
Session 18 CEDB - Page 347
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB141
CONTROLLING OFFICER’S REPLY
(Question Serial No. 2906)
Head: (181) Trade and Industry Department
Subhead (No. & title): (-) -
Programme: (3) Support for Small and Medium Enterprises and Industries
Controlling Officer: Director-General of Trade and Industry (Aaron LIU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in Programme (3) Support for Small and Medium Enterprises and Industries
that during 2025-26, the Trade and Industry Department will continue to administer the
enhanced services of “SME ReachOut” in providing small and medium enterprises (SMEs)
capacity building services and enhancing assistance to SMEs in government funding
applications. In this connection, will the Government inform this Committee of the
following:
1. What are the plans and staff establishment for the coming three years?
2. Have any key performance indicators been set for the plans to review the effectiveness
of the support for SMEs in the future? If yes, what are the details? If no, what are the
reasons?
Asked by: Hon CHAN Man-ki, Maggie (LegCo internal reference no.: 37)
Reply:
The Government established “SME ReachOut”, which is operated by the Hong Kong
Productivity Council (HKPC), in January 2020 to help small and medium enterprises (SMEs)
identify suitable government funding schemes and answer questions relating to applications.
To further support SMEs, the Government announced in 2023 an allocation of $100 million
to gradually enhance the services of “SME ReachOut” in the ensuing 5 years starting from
October 2023. Adopting a multi-pronged approach, “SME ReachOut” plans to enhance its
services in the coming few years through assisting SMEs in applying for government funding,
providing one-on-one consultation services, organising major events and proactively visiting
more chambers of commerce and commercial/industrial buildings, thereby providing
capacity-building services for SMEs. The themes of the activities will focus on
environmental, social and governance, technology transformation, digitalisation and cyber
security, with a view to assisting SMEs in enhancing their competitiveness through leveraging
new technologies. In addition, “SME ReachOut” has launched a virtual platform to facilitate
Session 18 CEDB - Page 348
SMEs in using its services. Since the enhancement of the service of “SME ReachOut” in
October 2023, the headcount has been increased from 10 to 16.
The Government has worked with HKPC to set various key performance indicators for the
enhanced services of “SME ReachOut”, including handling 7 600 enquiries on average per
year over a period of 5 years; arranging 100 technology and business knowhow meetings;
assisting 2 400 enterprises through one-on-one consultations; participating in or arranging 50
promotion activities and 2 exhibitions; organising 10 to 12 seminars and 4 networking events,
as well as organising 1 major event per year.
“SME ReachOut” has to submit progress reports regularly to the Government, which will
closely monitor the work progress. The Government will conduct a mid-term review on the
services of “SME ReachOut” around 2026. In the meantime, the Government will also keep
in view the service scope and the related headcount having regard to the feedback of the trade
and the market situation.
- End -
Session 18 CEDB - Page 349
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB142
CONTROLLING OFFICER’S REPLY
(Question Serial No. 1449)
Head: (181) Trade and Industry Department
Subhead (No. & title): (-) -
Programme: (3) Support for Small and Medium Enterprises and Industries
Controlling Officer: Director-General of Trade and Industry (Aaron LIU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the “SME ReachOut” operated by the Hong Kong Productivity Council, will the
Government inform this Committee of the following:
1. What were the expenditure and manpower involved in each financial year since the
establishment of “SME ReachOut”?
2. The role of “SME ReachOut” is to help small and medium enterprises (SMEs) identify
suitable government funding schemes. How many requests for assistance were
received from SMEs each year since the establishment of “SME ReachOut” and how
was the distribution by industry sector? Please provide the relevant information in
tabular form.
3. Does “SME ReachOut” follow up on the assistance requests received from SMEs to
ensure that “SME ReachOut” has genuinely provided pragmatic assistance to SMEs?
If yes, what are the details? If no, what are the reasons?
Asked by: Hon HO King-hong, Adrian Pedro (LegCo internal reference no.: 8)
Reply:
The Government established “SME ReachOut”, which is operated by the Hong Kong
Productivity Council (HKPC), in January 2020 to help small and medium enterprises (SMEs)
identify suitable government funding schemes and answer questions relating to applications.
To further support SMEs, the Government announced in 2023 an allocation of $100 million
to gradually enhance the services of “SME ReachOut” in the ensuing 5 years starting from
October 2023. The expenditure borne by the Government for “SME ReachOut” from its
establishment in January 2020 to September 2023 was about $32.8 million, with an average
annual expenditure of about $8.75 million. After the service enhancement, the expenditure
borne by the Government for the half year from October 2023 to March 2024 was about
$9.7 million; and the estimated expenditure to be borne by the Government in 2024-25 is
Session 18 CEDB - Page 350
about $19.1 million. The headcount of “SME ReachOut” has also been increased from 10 to
16 since the service enhancement in October 2023.
Based on the needs of enterprises, “SME ReachOut” helps SMEs identify suitable funding
schemes and answers questions relating to applications through one-on-one consultations
which are free of charge. In order to provide further assistance, “SME ReachOut” also
proactively liaises with the enterprises after the consultations to follow up on the applications.
Moreover, “SME ReachOut” duly disseminates updated information on government funding
to enterprises through its virtual platform, promotion activities, visits to chambers of
commerce and commercial and industrial buildings and online social platforms. As at end
February 2025, “SME ReachOut” has handled over 29 800 enquiries, and organised or
participated in 13 exhibitions, more than 60 physical seminars or webinars, as well as over
280 promotion activities.
According to the estimation from the data collected annually by HKPC, the number of SME
beneficiaries of “SME ReachOut” and distribution of the major beneficiary sectors from 2021
to 2024 Note 1 are as follows:
Year
2021 2022 2023 2024
No. of SME About 3 200 About 2 270 About 3 590 About 4 650
beneficiaries
Major Import and Import and Import and Import and
beneficiary export trade export trade export trade export trade
sectors Note 2 (17%) (17%) (13%) (14%)
(percentage
of annual Information and Professional Information and Information and
total) communication services (e.g. communication communication
technology architecture, technology technology
(10%) legal, human (12%) (13%)
resources,
marketing,
public relations,
etc.) (12%)
Professional Hotel, food and Professional Professional
services (e.g. beverage (10%) services (e.g. services (e.g.
architecture, architecture, architecture,
legal, human legal, human legal, human
resources, resources, resources,
marketing, marketing, marketing,
public relations, public relations, public relations,
etc.) (9%) etc.) (9%) etc.) (10%)
Hotel, food and Information and Healthcare Retail
beverage communication (7%) (7%)
(8%) technology
(9%)
Session 18 CEDB - Page 351
Year
2021 2022 2023 2024
Retail (7%) Retail (7%) Education and Hotel, food and
training (6%) beverage (6%)
Note 1: “SME ReachOut” started collecting sectoral data of the SME beneficiaries in 2021.
Note 2: The figures regarding major beneficiary sectors are calculated based on the number of SMEs willing to provide
information. The number of SMEs willing to provide information is as follows:
2021: About 1 700
2022: About 860
2023: About 1 850
2024: About 3 070
- End -
Session 18 CEDB - Page 352
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB143
CONTROLLING OFFICER’S REPLY
(Question Serial No. 0260)
Head: (181) Trade and Industry Department
Subhead (No. & title): (-) -
Programme: (1) Commercial Relations
Controlling Officer: Director-General of Trade and Industry (Aaron LIU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
According to Programme 1, since Hong Kong and the Mainland signed the Mainland and
Hong Kong Closer Economic Partnership Arrangement (CEPA) in 2003, both sides have
continued to explore further trade and investment liberalisation and to facilitate smooth and
effective implementation of relevant liberalisation measures. The Trade and Industry
Department (TID) is responsible for coordinating with relevant departments in discussions
with the Mainland authorities. Will TID have discussions with relevant Mainland
authorities again in the future to further relax the restrictions on the business scope of
Hong Kong’s testing and certification bodies? For example, the Guangdong Province
currently allows proprietary Chinese medicines for external use registered in Hong Kong to
be registered and sold in the Greater Bay Area through streamlined approval procedures.
Will the Government adopt the trade’s suggestions and pursue with the relevant Mainland
authorities to expand the coverage of the relevant measures to the whole Mainland through
the “CEPA” mechanism, extend the measures to more industries (such as Chinese medicine,
health product and food, etc.), and grant market access arrangements on an equal basis to
Hong Kong products registered in Hong Kong or with certification reports issued by
designated Hong Kong’s inspection bodies ? If yes, what are the details?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 231)
Reply:
Having consulted the Environment and Ecology Bureau (EEB), the Health Bureau and the
Innovation, Technology and Industry Bureau, our consolidated reply is as follows.
The Hong Kong Special Administrative Region (HKSAR) Government strives to assist
Hong Kong’s enterprises in entering the Mainland market through the Mainland and
Hong Kong Closer Economic Partnership Arrangement (CEPA), seeking more room for
development for the trade on the Mainland and, at the same time, strengthening the economic
and trade relations between the 2 places and fostering trade and investment facilitation.
Since the signing of CEPA in 2003, the Mainland and Hong Kong have continuously enriched
Session 18 CEDB - Page 353
and updated the contents of CEPA, gradually opening up the Mainland market to Hong Kong
businesses.
Under the CEPA Agreement on Trade in Services, Hong Kong service suppliers can enjoy
preferential treatment in entering the Mainland market and developing Mainland business in
most service sectors. The HKSAR Government will maintain close communication with the
Mainland authorities to continue enriching the contents of CEPA, and to discuss and
formulate more liberalisation measures, including those for testing and certification services,
at an appropriate time.
Besides, under the CEPA Agreement on Trade in Goods, the Mainland and Hong Kong may
engage in exchanges, consultations and cooperation to further enhance the level of trade
facilitation. Specific matters are discussed directly by the relevant competent authorities of
the 2 sides. In recent years, a number of measures for enhancing the level of trade facilitation
have been implemented upon consultations between the bureaux and departments of the
HKSAR Government and the relevant Mainland authorities. Examples include signing of
the “Cooperation Agreement on the Supervision of Safety and Facilitation of Customs
Clearance of Food Products Manufactured in Hong Kong Exported to the Mainland” between
EEB and the General Administration of Customs of the People’s Republic of China to provide
customs clearance facilitation for food products meeting relevant requirements with a view to
shortening the time required for customs clearance and simplifying procedures; dovetailing
the implementation of the national policy of “Measure of using Hong Kong registered drugs
and medical devices used in Hong Kong public hospitals in Guangdong-Hong Kong-Macao
Greater Bay Area”; and implementing the arrangement of streamlining the approval
procedures for Hong Kong registered traditional proprietary Chinese medicines for external
and oral use to be sold and registered on the Mainland.
The relevant bureaux and departments of the HKSAR Government will continue to consult
the trade through professional bodies, industry organisations, etc., and actively discuss
measures with the Mainland authorities for enhancing the level of trade facilitation, so as to
assist the trade in further exploring the Mainland market and deepen the cooperation and
mutual development between the 2 places in different areas.
- End -
Session 18 CEDB - Page 354
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB144
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3367)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (000) Operational expenses
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in the Budget Speech that the Hong Kong Trade Development Council
(HKTDC) will launch the “E-Commerce Express” in collaboration with large-scale
e-commerce platforms to provide Hong Kong enterprises with one-to-one consultation
services and thematic seminars, as well as organise the second edition of the Hong Kong
Shopping Festival (HKSF). It is also mentioned in Matters Requiring Special Attention in
2025-26 under this Programme that the Commerce and Economic Development Bureau
(CEDB) will continue to work with the HKTDC to launch the HKSF on e-commerce
platforms and set up more Hong Kong Pavilions or brand showcases in Mainland and overseas
exhibitions to promote Hong Kong brands and assist small and medium enterprises in
developing non-local e-commerce markets. In this connection, will the Government inform
this Committee of the following:
1. What are the plans of works relating to the “E-Commerce Express”, including the
number of consultation services and thematic seminars to be organised in the coming
year? What is the estimated number of Hong Kong enterprises to be benefitted?
What are the expenditure and manpower to be involved?
2. How many Hong Kong enterprises and Hong Kong brands were benefitted from the
firstHKSF? What are the estimated numbers of Hong Kong enterprises and Hong
Kong brands to be benefitted from the second edition of the HKSF?
3. As the CEDB mentioned that it will hold the HKSF in the Association of Southeast
Asian Nations (ASEAN) market in due course, what are the latest details of such plan?
What will be the priority ASEAN countries? What are the expenditure and manpower
to be involved?
Asked by: Hon CHOW Man-kong (LegCo internal reference no.: 44)
Session 18 CEDB - Page 355
Reply:
The 2025-26 Budget announced that the Hong Kong Trade Development Council (HKTDC)
will implement the “E-Commerce Express” (“電子商務快車”) to strengthen support for
small and medium enterprises (SMEs) to tap into the Mainland market and increase electronic
commerce (e-commerce) sales. HKTDC has renamed the Chinese name of the service as
“電子商務快綫”. To address the pain points encountered by Hong Kong enterprises when
developing cross-border e-commerce on the Mainland, HKTDC will, in collaboration with
large-scale e-commerce or social media platforms, conduct a series of thematic training
seminars and research sharing sessions, with a view to providing more comprehensive support
for SMEs interested in tapping into the e-commerce market.
HKTDC plans to organise at least 5 seminars under the “E-Commerce Express” in the 1st half
of 2025, featuring the following topics:
⚫ inviting specialists to provide practical guidance on legal compliance, requirements of
specific platforms and common pitfalls, and to introduce common payment tools on the
Mainland as well as taxation issues to which enterprises engaging in e-commerce on the
Mainland should pay particular attention;
⚫ exploring development trends of traditional e-commerce and social platforms, and how
Hong Kong brands could choose suitable platforms to establish market influences;
⚫ exploring practical strategies for opening online stores on the Mainland e-commerce and
social platforms, understanding those platforms’ traffic patterns and consumer behaviour,
discussing how to promote brands on those platforms and reach out to new consumer
groups; and
⚫ exploring marketing strategies to promote Hong Kong brands and products on Mainland
e-commerce and social platforms, how to establish “organic communities” for natural
dissemination and create popular promotional contents, analysing the opportunities and
challenges of livestreaming promotion, understanding the ecosystem and hierarchical
structure of Mainland key opinion leaders (KOLs)/anchors and how to select and invite
appropriate KOLs/anchors for cooperation, etc.
The inaugural Hong Kong Shopping Festival (HKSF) was held in August 2024, attracting the
participation of more than 230 brands, covering products in various categories such as apparel
and accessories, personal care and cosmetics, home and living, food and beverage, smart
gadgets, health supplements and silver products.
One of the key activities to be supported by the “E-Commerce Express” will be the 2nd edition
of the HKSF scheduled for August 2025. The event aims at providing SMEs with practical
experience in utilising e-commerce platforms to tap into the Mainland market. To deepen
participating enterprises’ understanding of the techniques in operating on Mainland
e-commerce and online shopping platforms and assist them in promoting brand awareness,
HKTDC will, under the “E-Commerce Express”, provide one-on-one consultation services
for HKSF participants. Marketing specialists will advise Hong Kong enterprises on
appropriate e-commerce strategies based on their individual business needs and product
features.
Session 18 CEDB - Page 356
The 2nd edition of the HKSF will continue to bring together Hong Kong enterprises to offer
discounts in Mainland online stores and arrange enterprises to conduct livestreaming
promotion on Mainland e-commerce platforms. It is anticipated that the scale of the 2nd
edition of the HKSF will be larger than that of the inaugural HKSF, including showcasing
more brands and covering major consumer products, in particular food and health
supplements which are popular among Mainland consumers, while at the same time featuring
more promotional channels to help Hong Kong enterprises raise brand exposure and grasp the
opportunities in the Mainland e-commerce market.
E-commerce is a global trend. Drawing on the experience in organising the HKSF and views
from participating enterprises, the Government and HKTDC will review and enhance various
measures having regard to the needs of the trade and latest situation of the e-commerce market
to support enterprises to develop brands and expand e-commerce sales. The Association of
Southeast Asian Nations (ASEAN) market is the next target in which the Government will
encourage enterprises to develop cross-border e-commerce businesses. We will announce
the details of launching the HKSF for the ASEAN market in due course.
The manpower and expenditure of the Commerce and Economic Development Bureau and
HKTDC for implementing the “E-Commerce Express” and organising the 2nd edition of the
HKSF have been subsumed under the respective overall establishment and estimates, and
cannot be quantified separately.
- End -
Session 18 CEDB - Page 357
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB145
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3368)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (6) Subvention: Hong Kong Trade Development Council
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in Matters Requiring Special Attention in 2025-26 under this Programme that
the Hong Kong Trade Development Council (HKTDC) will complement the Government’s
efforts in promoting the development of silver economy by incorporating “silver economy”
elements into more trade fairs and exhibitions to enhance the promotion of relevant products
and services. In this connection, will the Government advise this Committee on the
following:
1. As of now, has the HKTDC incorporated “silver economy” elements into its trade fairs
and exhibitions? If yes, what are the details?
2. Regarding the HKTDC’s plan to incorporate “silver economy” elements into more trade
fairs and exhibitions in the coming year, please list the number of trade fairs and
exhibitions planned to add and the related sessions, as well as the names of these trade
fairs and exhibitions.
3. Will the HKTDC consider assigning a dedicated area for exhibiting products and
services related to “silver economy” at its trade fairs? What will be the manpower and
expenditure involved? What is the estimated transaction value of the products and
services related to “silver economy” in the coming year?
Asked by: Hon CHOW Man-kong (LegCo internal reference no.: 45)
Reply:
The requested information is set out below:
(1) In terms of boosting “silver consumption”, the Commerce and Economic Development
Bureau (CEDB) is proactively encouraging the business sector to give prominence to
Session 18 CEDB - Page 358
silver elements in their business operation (including more exhibitions), and to offer to
the market more products and services that better meet silver consumers’ needs. This
aims to provide the silver community with a wide array of choices, thereby promoting
the development of the silver economy. In 2024-2025, the Hong Kong Trade
Development Council (HKTDC) set up a dedicated zone “Smart Ageing” and arranged
silver element programmes at exhibitions such as Hong Kong International Optical Fair,
the Asia Summit on Global Health, and Hong Kong International Medical and
Healthcare Fair.
(2) Exhibitions of 2025-26 are to be worked out and will be announced after decisions are
made.
(3) Relevant work is conducted with the existing manpower. The expenditure required has
been subsumed under the overall estimated expenditure of the CEDB and HKTDC. It
cannot be quantified separately.
- End -
Session 18 CEDB - Page 359
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB146
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3823)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (-) -
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding overseas visits, please inform this Committee of:
1) the details of the outbound missions organised in the past 5 financial years (from
2020-21 to 2024-25) in tabular form, including the dates, destinations, purposes,
numbers of entourage members and total expenditures;
2) the support extended by each overseas Economic and Trade Office (ETO) to
government officials’ duty visits in the past 5 financial years (from 2020-21 to 2024-25),
including the dates, visiting departments, purposes of the visits, numbers of staff and
total expenditures involved;
3) the numbers of working days spent by each ETO on receiving outbound missions and
on their own duties respectively in the past 5 financial years (from 2020-21 to 2024-25);
and
4) the details and estimated expenditures of the outbound missions to be organised in
2025-26; and whether efforts have been made to co-ordinate the related activities
organised by the Hong Kong Trade Development Council or the Hong Kong Tourism
Board to ensure more effective use of resources; if yes, the details; if not, the reasons.
Asked by: Hon KAN Wai-mun, Carmen (LegCo internal reference no.: 41)
Reply:
The details of the outbound missions organised by the Commerce and Economic
Development Bureau (CEDB) with delegates from Hong Kong’s business and other
professional services sectors from 2020-21 to 2024-25 are as follows:
Session 18 CEDB - Page 360
Date of Place/Purpose of Visit Number of Number of Number of
Visit Delegates Members Members
(Including from the from the
Government CEDB Mainland
and Non- Offices or
government Overseas
Delegates) Hong
Kong
Economic
and Trade
Offices
(ETOs)
17-21 ⚫ Thailand (Bangkok) Close to 30 3 3
November ⚫ The Chief Executive (CE)
2022 attended the relevant events
of Asia-Pacific Economic
Cooperation and led a Hong
Kong trade and commerce
delegation to Thailand for
conducting business visits
and telling the good stories of
Hong Kong.
4-11 ⚫ Saudi Arabia (Riyadh) and More than 30 8 9
February the United Arab Emirates
2023 (UAE) (Abu Dhabi and
Dubai)
⚫ The CE led a delegation to
visit Saudi Arabia and the
UAE, promoting Hong
Kong’s advantages and
exploring business
opportunities.
23-29 ⚫ Singapore, Indonesia 42 7 21
July 2023 (Jakarta) and Malaysia (Kuala
Lumpur)
⚫ The CE led a delegation to
visit 3 member states of the
Association of Southeast
Asian Nations (ASEAN) to
promote Hong Kong’s
advantages and explore
collaboration opportunities in
trade and commerce.
Session 18 CEDB - Page 361
Date of Place/Purpose of Visit Number of Number of Number of
Visit Delegates Members Members
(Including from the from the
Government CEDB Mainland
and Non- Offices or
government Overseas
Delegates) Hong
Kong
Economic
and Trade
Offices
(ETOs)
16-19 ⚫ Mainland (Beijing) Close to 70 21 3
October ⚫ The CE led a delegation to
2023 participate in the third Belt
and Road (B&R) Forum for
International Cooperation.
The Forum was the highest-
level international event
under the framework of the
B&R Initiative.
4-5 ⚫ Mainland (Shenzhen and More than 20 11 11
December Guangzhou)
2023 ⚫ CEDB led a business
delegation (comprising
enterprises of the B&R
countries operating in Hong
Kong) to the Guangdong-
Hong Kong-Macao Greater
Bay Area (GBA) to promote
Hong Kong as a service hub
so as to assist the enterprises
to tap into the Mainland
market.
Session 18 CEDB - Page 362
Date of Place/Purpose of Visit Number of Number of Number of
Visit Delegates Members Members
(Including from the from the
Government CEDB Mainland
and Non- Offices or
government Overseas
Delegates) Hong
Kong
Economic
and Trade
Offices
(ETOs)
16-25 May ⚫ Hungary (Budapest), About 70 6 3
2024 Kazakhstan (Astana and
Almaty) and Mainland
(Khorgos, Kokdala and
Urumqi)
⚫ Belt and Road Office (BRO)
of the CEDB and the Ministry
of Commerce co-led a
Mainland cum Hong Kong
business mission to visit
Hungary and Kazakhstan, and
returned via Xinjiang, to visit
local enterprises participating
in “going global” under the
B&R Initiative and meet with
local government officials
and representatives of local
businesses.
28 July-2 ⚫ Laos (Vientiane), Cambodia 45 2 21
August (Phnom Penh) and Vietnam
2024 (Hanoi and Ho Chi Minh
City)
⚫ The CE led a delegation to
visit 3 member states of
ASEAN to promote Hong
Kong’s advantages and
explore collaboration
opportunities in trade and
commerce.
Session 18 CEDB - Page 363
Date of Place/Purpose of Visit Number of Number of Number of
Visit Delegates Members Members
(Including from the from the
Government CEDB Mainland
and Non- Offices or
government Overseas
Delegates) Hong
Kong
Economic
and Trade
Offices
(ETOs)
25-27 ⚫ Mainland (Guangzhou, About 80 14 About 10
November Foshan, Dongguan, Huizhou
2024 and Shenzhen)
⚫ The CE led a delegation of
HKSAR Government and
senior representatives of the
business sectors (including
the Secretary for Commerce
and Economic Development
(SCED) and the
Commissioner for Belt and
Road (CBR)) to visit
Mainland cities of the GBA,
with a view to further
promoting HKSAR’s co-
operation with the
Guangdong Province and
various GBA cities in
business, trade and different
industries. The delegation
attended the Guangdong-
Hong Kong Deepening
Economic, Trade and
Investment Cooperation
Conference co-organised by
the People’s Government of
Guangdong Province and the
HKSAR Government.
Session 18 CEDB - Page 364
Date of Place/Purpose of Visit Number of Number of Number of
Visit Delegates Members Members
(Including from the from the
Government CEDB Mainland
and Non- Offices or
government Overseas
Delegates) Hong
Kong
Economic
and Trade
Offices
(ETOs)
4-6 ⚫ Mainland (Urumqi) More than 10 4 2
December ⚫ SCED led a business
2024 delegation (including CBR)
to visit Urumqi to promote
Hong Kong’s business
opportunities, and met with
government officials of the
Xinjiang Uyghur
Autonomous Region and
Kazakhstan to exchange
views on promoting
economic and trade co-
operation among the three
places, with a view to jointly
exploring the full range of
opportunities brought about
by the B&R Initiative. The
delegation attended a co-
operation and exchange
forum between China
(Xinjiang, Hong Kong) and
Kazakhstan, and visited local
enterprises.
The expenses incurred by government officers in the above outbound missions had been
subsumed under the overall estimates of the CEDB, ETOs and relevant policy
bureaux/departments, and cannot be quantified separately.
Besides, ETOs provided full support in arranging overseas visits for the Principal Officials,
with a view to actively promoting high-level exchanges with local officials and various
sectors, advancing Hong Kong’s development of the “eight centres” and supporting different
policy bureaux in promoting their globally-focused initiatives. In the following examples of
overseas visits conducted by senior government officers, the ETOs endeavoured to actively
assist in coordinating the visit programmes and/or providing related support.
The Financial Secretary (FS) visited Georgia, France and the United States (US) in May 2024,
and Australia and the United Kingdom in September to promote Hong Kong’s economy and
Session 18 CEDB - Page 365
development of various sectors under the “eight centres”. In particular, FS highlighted
Hong Kong’s status and advantages as an international financial and trade centre, with
offshore Renminbi services and mutual access with Mainland financial markets, which helped
enterprises in GBA cities “venture overseas by sharing a boat”.
The Secretary for Justice visited Saudi Arabia and the UAE in May 2024; Vietnam, Malaysia
and Brunei Darussalam in September; and Singapore in October to promote Hong Kong’s
legal and dispute resolution services, with a view to creating more opportunities for the
industry and consolidating Hong Kong’s position as the centre for international legal and
dispute resolution services in the Asia-Pacific region.
In addition to attending the Asia-Pacific Economic Cooperation Ministerial Meeting in
November 2024, the SCED visited France and the US in May, as well as Singapore in
September, during which he met with representatives of the major local chambers of
commerce and introducing to them Hong Kong’s latest developments and measures on
assisting enterprises in setting up businesses in Hong Kong, with a view to fostering even
closer relations between Hong Kong and these economies.
The overseas visits conducted by Directors of other Bureaux in 2024-25 included visit by the
Secretary for Innovation, Technology and Industry to Belgium and France to strengthen
Hong Kong’s position as an international I&T centre and to enhance connections and
co-operation in I&T with the European Union and France. The Secretary for Financial
Services and the Treasury visited the US, the Netherlands, Spain and Portugal to promote the
vibrant development of Hong Kong’s fintech. The Secretary for Transport and Logistics led
a delegation of members from the Hong Kong Maritime and Port Board to Japan and
Germany, promoting Hong Kong’s advantages as an international maritime centre to the
international maritime community. The Secretary for Culture, Sports and Tourism visited
Vietnam, underlining the country’s clear support for Hong Kong’s development as an
East-meets-West centre for international cultural exchange, which would bring continuous
development opportunities for the industry. The Secretary for Education visited the US and
France, promoting Hong Kong’s advantage as an international education hub and engaging
local education experts to consolidate Hong Kong’s position as a higher education hub.
Assisting in arranging overseas visits for the Principal Officials of the HKSAR Government
is an important part of the overall work of the ETOs. ETOs do not maintain statistics on the
number of staff and working days involved in the work. Besides, as the relevant expenditure
has been subsumed in the overall estimate under Head 96 “Government Secretariat: Overseas
Economic and Trade Offices”, it cannot be quantified separately.
For the co-operation with the Hong Kong Trade Development Council (HKTDC) or the
Hong Kong Tourism Board, in 2025-26, CEDB will continue to partner with relevant
departments and organisations (including the HKTDC) to organise outbound missions with
delegates from business and professional services sectors. Though these missions, we will
explore potential markets, and assist Hong Kong enterprises and professional services in
further enhancing business opportunities and building up enduring partnerships with local
enterprises and organisations. The expenses to be incurred by government officers in
relevant outbound missions have been subsumed under the 2025-26 overall estimates of the
CEDB, ETOs and relevant policy bureaux/departments, and cannot be quantified separately.
- End -
Session 18 CEDB - Page 366
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB147
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3897)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Given that the maximum loan guarantee periods of the 80% and 90% guarantee products
under the SME Financing Guarantee Scheme will be extended to 10 years and 8 years
respectively, please advise whether an estimation has been made on the difference in
expenditure if the original guarantee periods are extended as well as on the opportunity cost
involved, and whether credit risk assessment has been conducted. If so, please state the
assessment methodology and outcome; if not, please explain the reasons.
Asked by: Hon LAM Siu-lo, Andrew (LegCo internal reference no.: 16)
Reply:
Since the launch of the SME Financing Guarantee Scheme (SFGS) in 2012, the Government
has kept on introducing enhancement measures having regard to the economic situation of
Hong Kong and the needs of small and medium enterprises, including extending the
application period of the SFGS, increasing the maximum loan amount, extending the
maximum guarantee period, increasing the total government loan guarantee commitment, etc.
The Chief Executive announced in the 2024 Policy Address that the borrowing enterprises
under the SFGS be allowed to apply for the principal moratorium arrangement for up to 12
months, for both existing and new loans (the application period has started from 18 November
2024 and will end on 17 November 2025); the maximum loan guarantee periods of the 80%
and 90% Guarantee Products be extended to 10 years and 8 years respectively; and the partial
principal repayment options be offered to new loans under the 2 guarantee products.
The abovementioned enhancement measures are meant to provide more repayment flexibility
to borrowing enterprises, so as to give them more room to juggle the cash flow, thereby
reducing the risk of default and the loss of the Government.
Session 18 CEDB - Page 367
A borrowing enterprise has to pay an additional guarantee fee, calculated based on the interest
rate and amount of the loan, for extending the loan guarantee period. HKMC Insurance
Limited, which is responsible for administering and managing the SFGS, estimates that the
additional guarantee fee should be able to largely offset the additional administrative expenses
incurred from extending the guarantee period of a loan. The total additional guarantee fee
income and total administrative expenses arising from extending the guarantee period will
depend on the actual number of applications.
- End -
Session 18 CEDB - Page 368
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB148
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3486)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Will the Government advise this Committee on the following regarding the Incentive Scheme
for Recurrent Exhibitions (ISRE) since its implementation:
1. the total expenditure on the implementation of the ISRE;
2. the numbers of applications received and approved, as well as the average funding
amounts granted each year;
3. the proportion of applications approved for advance payment;
4. the average and the total numbers of participants in the projects, and whether statistics
have been compiled on the economic benefits generated; if so, of the details; if not, of
the reasons;
5. whether the Government has recovered any advance payments or withdrawn any
funding support due to the fact the claims of the organisers do not tally with the
information provided in the applications; if so, of the details; and
6. regarding the identification of the place of residence of participants and non-local
individuals, whether the Government has any inspection mechanism in place to verify
the statistical data provided by the organisers; if so, of the details; if not, of the reasons.
Asked by: Hon LEUNG Hei, Edward (LegCo internal reference no.: 118)
Reply:
The Government launched the Incentive Scheme for Recurrent Exhibitions (ISRE) on 1 July
2023. As at end February 2025, ISRE supported 174 exhibitions of different scales and
Session 18 CEDB - Page 369
organised by private organisers at the Hong Kong Convention and Exhibition Centre or the
AsiaWorld-Expo (examples include the annually held JMA Hong Kong International Jewelry
Show and Cosmoprof Asia). The total incentive involved was $896 million, with an average
incentive of about $5.15 million approved for each exhibition. The maximum incentive for
each eligible exhibition is capped at $20 million. We have promulgated the Application
Guide setting out clearly the requirements of eligible exhibitions under ISRE. Also, there
are provisions requiring applications to be accompanied by auditor’s reports prepared by
certified public accountants (practising) on the verification of non-local participants (where
applicable). All applications received so far have met the eligibility criteria. The
exhibitions supported by ISRE have attracted numerous participants, including exhibitors and
buyers, benefitting the convention and exhibition industry, while bringing in high-spending
business travellers that drive economic activities in such related sectors as accommodation,
catering, retail and entertainment, thereby benefitting various industries.
- End -
Session 18 CEDB - Page 370
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB149
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3306)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (2), the Commerce and Economic Development Bureau worked with
HKMC Insurance Limited, the administrator of the SME Financing Guarantee Scheme
(SFGS), to enhance the SFGS this year, including relaunching the principal moratorium
arrangement, extending the application and maximum loan guarantee periods as well as
introducing partial principal payment options for the 80% and 90% guarantee products, so as
to alleviate the repayment burden on SMEs. To further ease the burden on SMEs, will
consideration be given to increasing the extent of guarantee fee reduction and lowering the
interest rate ceiling for guaranteed loans under the SFGS? If so, what are the details? Will
the principal moratorium arrangement be further extended? If so, what are the details?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 207)
Reply:
Since the launch of the SME Financing Guarantee Scheme (SFGS) in 2012, the Government
has kept on introducing enhancement measures having regard to the economic situation of
Hong Kong and the needs of small and medium enterprises (SMEs), including extending the
application period of the SFGS, increasing the maximum loan amount, extending the
maximum guarantee period, increasing the total government loan guarantee commitment, etc.
The Chief Executive announced in the 2024 Policy Address that the borrowing enterprises
under the SFGS be allowed to apply for the principal moratorium arrangement for up to 12
months, for both existing and new loans (the application period has started from 18 November
2024 and will end on 17 November 2025); the maximum loan guarantee periods of the 80%
and 90% Guarantee Products be extended to 10 years and 8 years respectively; and the partial
principal repayment options be offered to new loans under the 2 guarantee products. As at
end February 2025, a total of more than $290 billion of loan has been approved under the
SFGS, benefitting over 65 000 enterprises and 810 000 employees.
Session 18 CEDB - Page 371
To alleviate the burden on borrowing enterprises, the Government had lowered the factor for
calculating the guarantee fee for a number of times. For loans with an annual interest rate
of 10% or below, the above-mentioned factor had been gradually reduced from 0.1 to 0.045
(effective from November 2018). In addition, the average annual interest rates of the 80%
and 90% guarantee products in the past 5 years (from April 2020 to end February 2025) were
6.3% and 6.5% respectively, much lower than the upper limit of the annual interest rate (i.e.
10%). The annual loan interest rate for the Special 100% Guarantee Product is the Hong
Kong Prime Rate, as specified by The Hong Kong Mortgage Corporation Limited from time
to time, minus 2.5% (or equivalent), i.e. the effective interest rate is currently 3% per annum.
The Government and HKMC Insurance Limited, which is responsible for administering and
managing the SFGS, will continue to monitor the situation closely, and make necessary
adjustments to the SFGS having regard to the circumstances so as to meet the financing needs
of SMEs during the economic downturn.
- End -
Session 18 CEDB - Page 372
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB150
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3308)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
According to Programme (2), the Commerce and Economic Development Bureau continued
to implement the Incentive Scheme for Recurrent Exhibitions (ISRE) this year. The ISRE
provides incentives to organisers of eligible recurrent exhibitions, so as to support the
recovery and maintain the competitiveness of Hong Kong’s convention and exhibition (C&E)
industry, as well as consolidate and enhance Hong Kong’s status as an international trade
centre and C&E hub. How many applications in total have been received since the launch
of the ISRE? Among which, what are the respective numbers of applications that are
approved, being processed and unsuccessful? Of the successful applications, how many are
related to recurrent international exhibitions? What is the average funding amount for each
approved application? What are the manpower and expenditure involved in vetting and
approving applications for the ISRE this year?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 206)
Reply:
The Government launched the Incentive Scheme for Recurrent Exhibitions (ISRE) on 1 July
2023. As at end February 2025, ISRE supported 174 exhibitions of different scales and
organised by private organisers at the Hong Kong Convention and Exhibition Centre or the
AsiaWorld-Expo (examples include the annually held JMA Hong Kong International Jewelry
Show and Cosmoprof Asia). The total incentive involved was $896 million, with an average
incentive of about $5.15 million approved for each exhibition. The maximum incentive for
each eligible exhibition is capped at $20 million. We have promulgated the Application
Guide setting out clearly the requirements of eligible exhibitions under ISRE. All
applications received so far have met the eligibility criteria. The aforementioned work has
been subsumed under the overall establishment and estimate of the Commerce and Economic
Development Bureau, and cannot be quantified separately.
- End -
Session 18 CEDB - Page 373
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB151
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3311)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
According to Programme (2), the Commerce and Economic Development Bureau worked
with the Trade and Industry Department to enhance the SME Export Marketing Fund (EMF),
including implementing the special measure to expand the funding scope of the EMF to
30 June 2026 to continue to cover exhibitions targeting the local market and online
exhibitions, and to relax the eligibility criteria to cover non-small and medium enterprises
(SMEs) this year. With a breakdown by trade, how many applications have been received
by the Bureau in the last 3 years? Among which, what are the respective numbers of
applications that are approved, unsuccessful and being processed? What is the average
funding amount for each approved application? Will the funding ceiling of the EMF for
each enterprise be raised, and the funding ceiling for a single project be further increased?
Will consideration be given to increasing the matching ratio of the total approved
expenditure? If yes, what are the details? If no, what are the reasons? Will the special
measure for the EMF be extended or regularised? If yes, what are the details? If no, what
are the reasons? What is the number of enterprises other than SMEs benefited from the
relaxation of the initiative?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 201)
Reply:
The implementation of the SME Export Marketing Fund (EMF) in the recent 3 years is as
follows:
2022 2023 2024
Number of 21 496 29 863 30 918
applications received
Note
Session 18 CEDB - Page 374
2022 2023 2024
Number of 15 888 21 105 24 875
applications approved
Number of 2 479 4 320 5 514
applications rejected
Average amount of 20,869 27,855 32,517
funding for
applications approved
($)
Major beneficiary 1. Wholesale and 1. Wholesale and 1. Wholesale and
sectors for Retail Retail Retail
applications approved 2. Import and 2. Import and 2. Import and
(in the order of the Export Trade Export Trade Export Trade
largest number of 3. Jewellery 3. Jewellery 3. Jewellery
applications 4. Printing and 4. Electronics 4. Electronics
approved) Publishing 5. Printing and 5. Printing and
5. Electronics Publishing Publishing
Note: Applications received may not be processed in the same year. The figures include applications that could not be
processed owing to incomplete information and those withdrawn voluntarily by enterprises afterwards.
As at end February 2025, the number of EMF applications under processing is 12 902 (the
figure includes applications received at end February 2025 or before while their processing
has not been completed, as well as applications with outstanding supplementary supporting
documents from the applicant enterprises).
To focus our limited resources to equip enterprises for upgrading and transformation, the
Government will consolidate the EMF into the Dedicated Fund on Branding, Upgrading and
Domestic Sales (BUD Fund) upon expiry of the former’s special measure on 30 June 2026.
This would attain synergy as the BUD Fund could also fund promotional activities, often in
the context of upgrading and transformation. At the same time, to ensure financial
sustainability of the 2 funding schemes, the Government has instituted measures on 14 March
2025 such that the BUD Fund and the EMF will be utilised in the most productive manner.
These involve adjustments to the funding ceiling, matching ratio, and rationalisation of other
parameters of the BUD Fund and the EMF, as detailed at the Annex.
- End -
Session 18 CEDB - Page 375
Annex
SME Funding Schemes
Measures for rationalisation of operation and
ensuring financial sustainability
Dedicated Fund on Branding, Upgrading and Domestic Sales
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. Audit fees will also be subject to the matching ratio of 1:3.
(2) Adjusting the initial payment from 75% to 20% of the approved Government funding.
(3) Adjusting the funding ceiling for each approved General and “E-commerce Easy”
project from $1,000,000 to $800,000, and limiting the total approved Government
funding for an applicant to not exceeding $800,000 at any one time.
(4) Limiting the number of general and “E-commerce Easy” applications that can be
submitted by each enterprise to 1 in every 3 months, in line with Easy BUD.
Applicants should have fulfilled their obligations for completed projects before their
new applications are processed. Batch processing will be adopted for general and
E-commerce Easy applications.
(5) Adjustments to fundable items (viz. scope of fundable items under setting up of a new
business entity, recruitment of additional manpower, and duration of management fees
for placement of advertisements and establishment of online sales platforms).
SME Export Marketing Fund (EMF)
(1) Adjusting the matching ratio from 1 (Government):1 (Enterprise) to 1:3 of the total
approved expenditure. There is no change to the funding ceiling per application,
$100,000.
(2) Adjusting the initial payment from 75% to 20% of the approved government funding.
(3) Upholding additional requirements on selected expenditure items eligible for the EMF
with a view to controlling the maximum amount of funding, including the funding
ceiling, validity period of activities, restrictions on the number of repeated applications
of a similar nature on certain activities, etc.
Session 18 CEDB - Page 376
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB152
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3331)
Head: (152) Government Secretariat: Commerce and Economic
Development Bureau
Subhead (No. & title): (-) -
Programme: (2) Commerce and Industry
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Under Programme (2), the Commerce and Economic Development Bureau (CEDB)
formulates policies to support small and medium enterprises. In order to support local
enterprises in leveraging the opportunities brought about by environmental, social and
corporate governance (ESG) transformation, thereby promoting sustainable development of
Hong Kong’s economy, will the CEDB set up an inter-departmental task force, with
representatives from departments responsible for environmental protection, finance,
commerce and industry among others, to co-ordinate local ESG development from the
perspective of enhancing corporate competitiveness and promoting the development of a low-
carbon economy? If so, what are the details? Will the Government also devise incentive
measures which include providing subsidies and tax deduction for enterprises? If so, what
are the details?
Asked by: Hon NG Wing-ka, Jimmy (LegCo internal reference no.: 248)
Reply:
Relevant Government bureaux and departments are committed to strengthening the capacity
building of small and medium enterprises (SMEs) in respect of promoting environmental,
social and governance (ESG). Having consulted, among others, the Environment and
Ecology Bureau (EEB) and the Financial Services and the Treasury Bureau (FSTB), our
consolidated reply is as follows.
At the industry level, the Trade and Industrial Organisation Support Fund under the Trade
and Industry Department (TID) provides funding support for various projects that assist SMEs
in assessing and disclosing their carbon footprints, as well as enhancing their awareness of
decarbonisation, in order to help them cope with the challenges of climate change.
Session 18 CEDB - Page 377
At the corporate level, the enhancement measures for the Dedicated Fund on Branding,
Upgrading and Domestic Sales (BUD Fund) have been implemented on 14 March 2025,
including providing targeted funding support for enterprises to implement green
transformation projects for business development. We have stated in the Guide to
Application that specific measures that could be funded include conducting carbon audits for
newly developed products to enter target markets, upgrading production lines or applying new
technologies to meet the environmental standards or legal requirements of target markets, etc.
Enterprises can apply for funding support to implement green transformation projects through
the general application track of the BUD Fund. The funding ceiling for each approved
application is $800,000.
To encourage local enterprises to reduce packaging of their products, the Environmental
Protection Department (EPD) has implemented the following measures:
⚫ implementation of a new legislation on the control of disposable plastics in April 2024,
with a view to reducing the production and use of disposable plastic products by
enterprises, which will help minimise pollution to the environment; and
⚫ preparation of “Practical Guides on Packaging Reduction and Management” for specific
sectors on ways to avoid the use of packaging materials and reduce consumption in their
daily operations.
At the same time, since 2008, EPD has been assisting Hong Kong-owned factories in Hong
Kong and Guangdong Province to adopt cleaner production technologies through the Cleaner
Production Partnership Programme (CPPP), which aims at upgrading traditional industries
with green technologies, with a view to reducing emissions and energy consumption, and
improving the environmental quality of the region. As at end-2024, over 4 200 projects have
been approved under the CPPP. To expedite the green transformation of Hong Kong-owned
factories and support our country’s efforts to promote high-quality development, the Chief
Executive proposed in the 2024 Policy Address to inject $100 million to launch a new round
of the CPPP to support Hong Kong-owned factories in adopting new cleaner production
technologies, and to accelerate the promotion of upgrading traditional industries and operation
practices, with a view to saving energy as well as reducing emission, consumption and carbon
footprint.
The Electrical and Mechanical Services Department has also launched the Hong Kong Energy
Efficiency Registration Scheme for Buildings to encourage businesses to adopt green
installations and fulfil their ESG responsibilities. Starting from 1 January 2018, all types of
new and existing buildings having achieved energy performance above the minimum
statutory requirements under the Buildings Energy Efficiency Ordinance (Cap. 610); and
having obtained certificates of good building energy performance through the BEAM Plus
Assessment System managed by the Hong Kong Green Building Council or other
internationally recognised building environmental assessment systems, can apply for joining
the Scheme. Capital expenditures incurred on the energy efficient installations (including
lighting, air conditioning, electrical and lift and escalator installations) registered under the
Scheme will be eligible for tax deduction. This tax concession is also applicable to
renewable energy installations such as solar panels.
Session 18 CEDB - Page 378
In addition, the annual Hong Kong Awards for Environmental Excellence (HKAEE), jointly
organised by the Environmental Campaign Committee, EEB and major chambers of
commerce in Hong Kong, encourages businesses to implement environmental management
by recognising the outstanding performance and commitment of enterprises and organisations
to environmental management. There are 16 participating sectors in the HKAEE, 5 of which
are for SMEs (including construction, manufacturing and industrial services, environmental
industry, services, retail and trading). By participating in the HKAEE, SMEs can receive
free professional advice from technical consultants, including activities such as business
partners matching to enhance their company’s brand image, experience sharing and visits to
green facilities, etc., with a view to enhancing the long-term development and
competitiveness of their companies in environmental aspect.
As regards the provision of information, TID will set up a one-stop thematic webpage under
its “SME Link” web portal to provide information about decarbonisation and carbon audit,
etc. within 2025. The 4 SME centres (i.e. the Support and Consultation Centre for SMEs
under TID, the “SME Centre” under the Hong Kong Trade Development Council, the “SME
One” under the Hong Kong Productivity Council and the “TecONE” under the Hong Kong
Science and Technology Parks Corporation) and “SME ReachOut” will also continue to
organise physical seminars or webinars related to ESG.
As regards green transport, the Government has been promoting the use of electric vehicles
through various measures, including the reduction of the First Registration Tax for electric
vehicles and profits tax deduction for capital expenditure on environmentally-friendly
vehicles. The Government has also provided funding support under the New Energy
Transport (NET) Fund for the trades to trial various new energy transport technologies, such
as electric light goods vehicles. As at end-February 2025, the NET Fund has approved 298
trial projects involving a total funding support of $243 million. Furthermore, to help Hong
Kong achieve zero vehicle emission in the long run before 2050, the NET Fund has earmarked
about $750 million to support the taxi trade and franchised bus companies to procure electric
vehicles, in line with the “Green Transformation Roadmap of Public Buses and Taxis”
announced by the Government in December last year.
As regards personnel training, FSTB launched in 2022 the Pilot Green and Sustainable
Finance Capacity Building Support Scheme (Pilot Scheme) for application by local eligible
market practitioners and related professionals as well as students and graduates of relevant
disciplines. Upon completing eligible programmes or accomplishing relevant
qualifications, applicants can apply for reimbursement of up to $10,000. The Pilot Scheme
helps alleviate the cost of personnel training for local industries (including SMEs) and assists
them in building up professional teams and talent pool in green finance. It ties in with
industry efforts on strengthening resilience to climate risks and seizing the green
finance-related opportunities within the region. To continuously support local green-finance
talent training, we will extend the Pilot Scheme to 2028.
Besides, formed by relevant Government bureaux, financial regulators and the Hong Kong
Exchanges and Clearing Limited, the Green and Sustainable Finance Cross-Agency Steering
Group (Steering Group) launched in 2022 a Climate and Environmental Risk Questionnaire
for Non-listed Companies/SMEs. The Questionnaire is intended to assist the sustainability
reporting processes of corporates concerned and raise their sustainability visibility to lenders,
investors and supply chain clients. The Steering Group also launched in February 2024
Session 18 CEDB - Page 379
greenhouse gas emissions calculation and estimation tools, which are available for free public
access, to facilitate sustainability reporting by corporates and financial institutions in Hong
Kong. They help equip SMEs with the means to manage their environmental footprint and
encourage market participants to improve sustainable business practices.
The Government will continue to review and enhance relevant measures, with a view to
creating a favourable policy environment and/or providing incentives for local enterprises for
promoting sustainable development in Hong Kong.
- End -
Session 18 CEDB - Page 380
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB153
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3900)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (-) -
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Please advise on the staff establishment and expenditure of the Economic and Trade Offices
in the past year.
Asked by: Hon KONG Yuk-foon, Doreen (LegCo internal reference no.: 10)
Reply:
For the 2024-25 revised estimate, the establishment of the overseas Hong Kong Economic
and Trade Offices (ETOs) as at 31 March 2025 is 228 posts. The total operational expenses
(including personal emoluments, personnel related expenses, departmental expenses and
other charges) of the ETOs are $444 million.
- End -
Session 18 CEDB - Page 381
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB154
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3901)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (000) Operational expenses
Programme: (1) Commercial Relations
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
It is mentioned in paragraph 109 of the Budget Speech that the Government is actively
following up with the governments of Malaysia and Saudi Arabia on the establishment of
Economic and Trade Offices (ETOs) in the two countries. In this connection, please advise
this Committee of the following:
What is the current progress of the discussions with the governments of Malaysia and Saudi
Arabia on the establishment of ETOs? What are the estimated expenditures and manpower
involved?
Asked by: Hon LAU Ip-keung, Kenneth (LegCo internal reference no.: 36)
Reply:
As mentioned in the 2025-26 Budget, we are following up actively with the governments of
Malaysia and Saudi Arabia respectively on our plans to establish Economic and Trade Offices
(ETOs) in these 2 countries. As always, we will duly take into consideration the scope of
duties, country coverage and operational needs in working out the estimated expenditure and
staff establishment for the new ETOs. Generally speaking, ETOs comprise 5 Hong
Kong-based officers and 12 locally-engaged staff having regard to operational needs, with
total operational expenses estimated to be around $30 million per year. We expect the
manpower and resources required by the new ETOs to be similar to those of the existing
ETOs.
- End -
Session 18 CEDB - Page 382
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB155
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3922)
Head: (96) Government Secretariat: Overseas Economic and Trade Offices
Subhead (No. & title): (-) -
Programme: (-) -
Controlling Officer: Permanent Secretary for Commerce and Economic Development
(Ms Maggie WONG)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
On promoting the “Belt and Road (B&R)” Initiative and exploring the Middle East market,
will the Government inform this Committee of the following:
1. The Government earlier indicated that there were plans to set up an Economic and Trade
Office (ETO) in Riyadh, the capital of Saudi Arabia. What is the relevant
implementation timetable? What are the manpower and the relevant expenditure
involved?
2. Further to the above question, apart from Dubai ETO which has already been set up and
the Riyadh ETO under planning, has the Government planned to set up ETOs in B&R
and other Middle East countries? If yes, what are the relevant locations,
implementation timetables, and the manpower and expenditures involved? If no, what
are the reasons?
Asked by: Hon YUNG Hoi-yan (LegCo internal reference no.: 23)
Reply:
As mentioned in the 2025-26 Budget, we are following up actively with the governments of
Malaysia and Saudi Arabia respectively on our plans to establish Economic and Trade Offices
(ETOs) in these 2 countries. As always, we will duly take into consideration the scope of
duties, country coverage and operational needs in working out the estimated expenditure and
staff establishment for the new ETOs. Generally speaking, ETOs comprise 5 Hong
Kong-based officers and 12 locally-engaged staff having regard to operational needs, with
total operational expenses estimated to be around $30 million per year. We expect the
manpower and resources required by the new ETOs to be similar to those of the existing
ETOs.
Session 18 CEDB - Page 383
As part of the efforts to expand Hong Kong’s overseas economic and trade network, we will
continue to explore the feasibility of setting up new ETOs in different locations, especially
emerging markets and those with potential.
- End -
Session 18 CEDB - Page 384
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB156
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3320)
Head: (31) Customs and Excise Department
Subhead (No. & title): (-) -
Programme: (3) Intellectual Property Rights and Consumer Protection
Controlling Officer: Commissioner of Customs and Excise (CHAN Tsz-tat)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Provision for 2025-26 is $64.4 million higher than the revised expenditure for the previous
year. This is mainly due to the increased provisions for salary increments and filling of
vacancies. In this connection, will the Government inform this Committee of the following:
1. What are the details of the current vacancies, including the titles, ranks, duties and salary
expenditures of the posts, whether they are permanent or supernumerary posts and the
job descriptions? Can these vacancies be filled by redeployment of manpower from
the existing establishment?
2. What enforcement actions were taken against persons and syndicates involved in
offences relating to infringement of intellectual property rights in the past 5 years?
What are the details?
3. It is mentioned in Matters Requiring Special Attention in 2025-26 that the Customs and
Excise Department will work with the Commerce and Economic Development Bureau
to consider the way forward for offering better protection to consumers who make
prepayments. Has the Government drawn up any relevant plans and measures? If
yes, what are the details? If not, what are the reasons?
Asked by: Hon CHAN Pui-leung (LegCo internal reference no.: 49)
Reply:
There is an increase in the estimated provision for 2025-26 in respect of Programme (3)
“Intellectual Property Rights and Consumer Protection” of the Customs and Excise
Department (C&ED) as compared with the revised estimate for 2024-25. This is mainly due
to the provision reserved for salary increments and the possibility of filling vacancies,
including the following permanent posts responsible for the regulation and enforcement
relating to the enhanced protection of the rights and interests of consumers.
Session 18 CEDB - Page 385
Rank Number
Assistant Superintendent of Customs and Excise 2
Senior Inspector of Customs and Excise 7
Inspector of Customs and Excise 9
Chief Customs Officer 3
Senior Customs Officer 18
Customs Officer 44
Senior Trade Controls Officer 1
Trade Controls Officer 2
Assistant Trade Controls Officer 4
In respect of enhancing the protection of consumers who make prepayments, different sectors
of the community have put forward various suggestions. These include imposing a cap on
the length of prepayment contracts and the prepayment amounts, and stipulating a statutory
cooling-off period, etc. The Commerce and Economic Development Bureau, together with
C&ED, are conducting an in-depth study into different suggestions and considering their pros
and cons and feasibility, with reference to the practices in other jurisdictions and taking into
account relevant factors (including the economic environment, operating situation of relevant
industries, relevant complaint figures and experience of law enforcement agencies, etc.), with
a view to formulating appropriate strategies to strengthen the protection of consumers’ rights
and interests. C&ED will continue to review the need to fill the above vacancies to ensure
the proper use of manpower resources.
With regard to protection of intellectual property rights (IPR), C&ED has adopted a holistic
approach in combating IPR infringement crimes across different levels, including
cross-boundary transhipment, local retail and online activities, etc. C&ED also reviews its
enforcement strategy and effectiveness in a timely manner. Details of infringement cases
detected by C&ED in the past 5 years are set out below:
2020 2021 2022 2023 2024
Number of cases detected 591 715 523 703 783
Number of persons
296 403 334 330 330
arrested
Total value of seizures
110 166 180 288 309
($ million) (HKD)
- End -
Session 18 CEDB - Page 386
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB157
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3480)
Head: (31) Customs and Excise Department
Subhead (No. & title): (-) -
Programme: (3) Intellectual Property Rights and Consumer Protection
Controlling Officer: Commissioner of Customs and Excise (CHAN Tsz-tat)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Regarding the enforcement of the Trade Descriptions Ordinance (Cap. 362), will the
Government inform this Committee of the following:
1. How many complaints about pet food or products were received in each of the past 3
years? What follow-up actions were taken by the Government in response to the
complaints received, including figures on investigations and prosecutions;
2. Did the Government conduct proactive spot checks on pet food or products in the past
3 years? If yes, what are the details? If not, what are the reasons?
Asked by: Hon LEUNG Hei, Edward (LegCo internal reference no.: 103)
Reply:
From 2022 to 2024, the number of complaints received by the Customs and Excise
Department (C&ED) involving traders suspected of contravening the Trade Descriptions
Ordinance (TDO) in the provision of pet food or supplies and the related enforcement figures
are tabulated below Note:
Year 2022 2023 2024 Total
Number of complaints 13 18 53 84
Number of investigations 0 0 1 1
Number of prosecutions 0 0 0 0
Note: Of the 84 complaints received in the past 3 years, after investigation by C&ED, 83 complaints were closed since
they were not in contravention of the TDO. The remaining 1 case is still under investigation.
C&ED did not conduct any proactive spot check on traders offering pet food or supplies.
However, C&ED conducts inspections from time to time during various trade exhibitions,
and will take appropriate enforcement actions immediately if traders are suspected of
contravening the TDO in the provision of pet food or supplies.
- End -
Session 18 CEDB - Page 387
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB158
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3999)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
How many Mainland small and medium enterprises were successfully attracted by InvestHK
in 2024-25? What industries were primarily involved?
Asked by: Hon TAN Sunny (LegCo internal reference no.: 1)
Reply:
Through its teams based in Hong Kong, the 17 Dedicated Teams for Attracting Businesses
and Talents based in the Mainland Offices and the overseas Hong Kong Economic and Trade
Offices, as well as consultant offices in other locations, Invest Hong Kong (InvestHK) has all
along been reaching out to a wide spectrum of companies in different sectors and industries
around the world to attract and assist them to set up or expand their businesses in Hong Kong,
and offering one-stop customised support services, from the planning to implementation
stages.
In 2024, InvestHK assisted 539 Mainland or overseas enterprises in establishing and
expanding their businesses in Hong Kong, representing an increase of over 40% as compared
with the full year figure of 2023. On a pro-rata basis, the figure well exceeded the
performance indicator as set out in 2022 Policy Address by the Chief Executive (viz.
attracting at least a total of 1 130 companies to set up or expand their operations in Hong Kong
from 2023 to 2025).
Among the 539 enterprises, 273 of them were from the Mainland. The top 5 sectors were
innovation and technology (71 enterprises); family offices (71 enterprises); financial services
and fintech (52 enterprises); tourism and hospitality (31 enterprises); and business and
professional services (18 enterprises). InvestHK offers one-stop customised support
services to enterprises, irrespective of their scale of operation in the Mainland and
Hong Kong. The Department does not separately categorise enterprises by their size.
Session 18 CEDB - Page 388
InvestHK will continue to leverage Hong Kong’s roles as a “super connector” and a “super
value-adder”, as well as to collaborate with relevant organisations, chambers of commerce,
and professional bodies, etc., to organise investment promotion activities, including meetings,
conferences, roadshows, seminars, exhibitions, etc. so as to proactively provide potential
investors and enterprises in the Mainland with the latest information on Hong Kong’s business
environment and promote Hong Kong’s distinctive advantages of enjoying strong support of
the Motherland and being closely connected to the world and other core strengths under “one
country, two systems”, with a view to attracting more Mainland enterprises to set up or expand
their businesses in Hong Kong.
- End -
Session 18 CEDB - Page 389
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB159
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3923)
Head: (79) Invest Hong Kong
Subhead (No. & title): (-) -
Programme: (-) Investment Promotion
Controlling Officer: Director-General of Investment Promotion (Ms Alpha LAU)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
On promoting the “Belt and Road (B&R)” Initiative and exploring the Middle East market,
will the Government inform this Committee of the following:
1. the current manpower, establishment, salary expenditures by rank and total salary
expenditure of Invest Hong Kong (InvestHK); and
2. in tabular form, the numbers of visits made in each of the past 5 years and the estimated
numbers of visits to be made in 2025-26 by InvestHK to each of the B&R countries,
with the destinations and visit programmes, the sizes of the delegations, the lists of
institutions met and to be met, and the relevant expenditures (including details of
expenditures on air tickets, hotels, etc.).
Asked by: Hon YUNG Hoi-yan (LegCo internal reference no.: 23)
Reply:
Through its teams based in Hong Kong, the 17 Dedicated Teams for Attracting Businesses
and Talents (Dedicated Teams) based in the Mainland Offices and the overseas Hong Kong
Economic and Trade Offices (ETOs), as well as consultant offices in other locations, Invest
Hong Kong (InvestHK) has all along been reaching out to a wide spectrum of companies in
different sectors and industries around the world to attract and assist them to set up or expand
their businesses in Hong Kong, and offering one-stop customised support services, from the
planning to implementation stages.
In view of the huge economic potential of the countries along the Belt and Road (B&R),
InvestHK set up consultant offices in Cairo, the capital of Egypt, and Izmir, the 3rd largest
city in Türkiye within 2024-25 according to the 2023 Policy Address and 2024-25 Budget,
for attracting capital and enterprises from high-potential emerging countries in the Middle
East and North Africa. These are the 3rd and the 4th consultant offices set up by the
Session 18 CEDB - Page 390
current-term Government since it took office, after the ones established in Nairobi, Kenya
and Almaty, Kazakhstan.
In the light of the market potential of the Middle East countries along the B&R, InvestHK
proactively strengthened its investment promotion efforts in the region in recent years. The
department also conducted duty visits and organised different promotional activities in
various Middle East countries, including seminars, industry fora, roundtables, trade fairs and
media interviews, etc. to attract enterprises from the Middle East to set up and expand their
businesses in Hong Kong. In the past 5 years, InvestHK paid 13 visits to Middle East
countries along the B&R, including the United Arab Emirates (Abu Dhabi and Dubai), Qatar
(Doha), Kuwait (Kuwait City), Saudi Arabia (Riyadh) and Egypt (Cairo). In 2025-26,
InvestHK will continue to visit the Middle East countries, including Saudi Arabia (Riyadh
and Jeddah) and the United Arab Emirates (Abu Dhabi and Dubai), to strengthen its
investment promotion efforts in these places.
At present, there are 184 posts in the head office of InvestHK and 80 investment promotion
staff posts in the 17 Dedicated Teams based in the Mainland Offices and the overseas ETOs.
The expenditure for salary and duty visits involved in exploring the Middle East market has
been subsumed under the overall estimate of InvestHK and ETOs, which includes
administrative overhead expenses, and hence cannot be quantified separately.
- End -
Session 18 CEDB - Page 391
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB160
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3339)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (2) Public Affairs and General Television Programme
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
The Television Division of Radio Television Hong Kong operates 5 Digital Terrestrial
Television Channels for presentation of television (TV) programmes:
RTHK TV 31 – general programming
RTHK TV 32 – covering live events including local, Mainland and international news, press
conferences and Legislative Council Meetings
RTHK TV 33-35 – relaying Mainland TV programmes
Only some of the programmes on TV 31 are in-house productions, while those on TV 32-35
are mostly relayed but not in-house produced. Why is such a large amount of financial
provision of HK$990.9 million (increased by 36.9%) needed for 2025-26?
Asked by: Hon HO Kwan-yiu, Junius (LegCo internal reference no.: 42)
Reply:
Under Programme (2) (Public Affairs and General Television Programme), the increase of
36.9% in the estimate for 2025-26 as compared with the revised estimate for 2024-25 is
mainly for Radio Television Hong Kong to take forward the following key projects in the
coming year:
⚫ To promote, produce programmes for and live broadcast the 15th National Games, and
the 12th National Games for Persons with Disabilities and the 9th National Special
Olympic Games to be held in November and December 2025 respectively;
⚫ To launch a series of key programmes in alignment with patriotic education to help
citizens better understand the history of our country, and engender a sense of national
identity, including production of special programmes with the theme of “80th
Session 18 CEDB - Page 392
anniversary of victory in War of Resistance”, as well as “LIN Zexu: Beyond Opium
Destruction at Humen”, a documentary filmed in a number of Mainland cities to
commemorate the 240th anniversary of the birth of LIN Zexu; and
⚫ To acquire, produce and broadcast more local and international sports events to promote
sports culture in the territory, such as “World Table Tennis Championships”, “AFC
Asian Cup”, “AFC Asian Qualifiers Road to 2026”, “EAFF E-1 Football Championship
Preliminary Competition”, “Hong Kong Premier League”, etc.
- End -
Session 18 CEDB - Page 393
Examination of Estimates of Expenditure 2025-26 Reply Serial No.
CEDB161
CONTROLLING OFFICER’S REPLY
(Question Serial No. 3454)
Head: (160) Radio Television Hong Kong
Subhead (No. & title): (-) -
Programme: (2) Public Affairs and General Television Programme
Controlling Officer: Director of Broadcasting (Angelina KWAN)
Director of Bureau: Secretary for Commerce and Economic Development
Question:
Educational television (ETV) was a type of television programme co-produced by Radio
Television Hong Kong (RTHK) and the Education Bureau for education from 1971 to 2020.
In 2020, the Government announced the termination of ETV production and broadcast on free
television channels. In this regard, will the Government inform this Committee of the
following:
1. The Government once indicated that the ETV programmes produced would be
distributed in the form of CD-ROMs, during RTHK TV timeslots, through the internet
or mobile applications. How was the implementation over the past year?
2. ETV is a valuable asset of past RTHK productions. In order to generate fiscal revenue
for the Government, does RTHK upload past ETV productions to the internet for paid
download at present? If yes, what are the details; if no, what are the reasons?
3. If schools or members of the general public would like to review or enjoy specific ETV
programmes, is there any guide or channel at the moment for them to apply for
downloading or viewing?
4. Has RTHK ever handed ETV programmes to the Public Libraries of the Leisure and
Cultural Services Department for borrowing or viewing by the general public? If yes,
what are the details; if no, what are the reasons?
Asked by: Hon LEUNG Hei, Edward (LegCo internal reference no.: 27)
Reply:
Education television (ETV) programmes were first produced by the then Education
Department in 1971 and provided to all schools in Hong Kong free of charge through
television broadcast. ETV programmes were then jointly produced by the then Education
Session 18 CEDB - Page 394
Department and Radio Television Hong Kong (RTHK) starting from 1975, with the copyright
owned by the Government.
In the past, the Education Bureau (EDB) produced CD-ROMs on selected ETV programmes
and distributed to schools and public libraries. Upon cessation of broadcasting of ETV
programmes by RTHK, some of the ETV programmes are available as archive for schools
and members of the public to review through the EDB Educational Multimedia website and
mobile application free of charge.
As a government department and the public service broadcaster, RTHK firmly implements
the public purposes and mission under the Charter of RTHK, including promotion of
education and learning by providing education information and resources to encourage
lifelong learning for people from all walks of life and of all ages. Examples include radio
programmes “Elderly Academy”, “Knowledge Platform”, “One Minute Reading” and “5 000
Years of Chinese History”, as well as television programmes “Science: Creating the Future”,
“Talking to CEOs”, and “Power Up Your English”, etc. Besides, there is a dedicated
“e-Learning” webpage on RTHK website, which is a one-stop portal providing learning
resources.
- End -
Session 18 CEDB - Page 395
File and source
- File
- financing-small-and-medium-sized-enterprises-in-times-of-covid-19-in-hong-kong.pdf
- Size
- 3,014,693 bytes
- SHA-256
- b7050bf96323e5a1e28fff099b1537694aca8b1df695916df1f242c5699303ec
- Original
- doi.org