SME Training Fund will be launched on January 16
Monday, January 14, 2002

The SME Training Fund will start receiving applications on Wednesday (January 16), a spokesman for the Trade and Industry Department said today (January 14).

"The Training Fund aims to help small and medium enterprises (SMEs) enhance human capital by subsidising part of the expenses incurred on relevant training initiatives undertaken by the employers and/or their employees," the spokesman said.

The Training Fund comprises two categories, namely "Employers' Training" and "Employees' Training". If the trainee is an active proprietor, partner or shareholder of an SME, his training expenses are eligible for partial subsidy under the "Employers' Training" category. If the trainee is a salaried employee of an SME, his training expenses are eligible for partial subsidy under the "Employees' Training" category.

The maximum amount of grant that an SME can obtain, on a cumulative basis, for training undertaken by its employers is $5,000, whereas that for training undertaken by its employees is $10,000. For each successful application, the maximum amount of grant is 50 per cent of the training expenses.

To be eligible for the Training Fund, the SMEs must be registered in Hong Kong under the Business Registration Ordinance. The training courses to be attended by the trainees must be relevant to the business operations of their companies, and must be run by professional training institutions or instructors. Also, the trainees must be Hong Kong Identity Card holders.

Under the Training Fund, SMEs may select training courses provided by local or overseas training institutions or instructors, including customised courses commissioned by the SMEs to suit their particular needs. There is no restriction on where the training courses shall take place. The training may also be in the form of distant learning or on-line learning.

The Training Fund will accept applications all year round. SMEs wishing to receive subsidies for their training initiatives should seek in-principle approval from the Trade and Industry Department, which administers the Fund, before sending their employers and/or employees to attend the training courses. They will be notified of the outcome of their applications within 12 working days from the date of submitting applications. The subsidy will be reimbursed to the SMEs upon confirmation that the approved training had been completed.

Information leaflets, application forms and application guide for the Training Fund are available at the Trade and Industry Department, District Offices, and major SME support organizations. They can also be downloaded from the homepage of the SME Funding Schemes at www.smefund.tid.gov.hk. The enquiry hotline is 2398 5125.

In its report to the Chief Executive in June 2001, the SME Committee (SMEC) recommended the setting up of a $400 million training fund for SMEs to train their employers and employees. The Chief Executive announced in his 2001 Policy Address his decision to accept all the recommendations of the SMEC, including the setting up of the Training Fund and three other funding schemes.

The other three funding schemes are the SME Business Installations and Equipment Loan Guarantee Scheme, the SME Export Marketing Fund, and the SME Development Fund. They were launched on December 14, 2001.