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Press Releases

Higher funding ceilings for the SME Export Marketing Fund,
and higher subsidy level for the SME Training Fund
Friday, June 20, 2003

The Government announced today (June 20) that small and medium enterprises (SMEs) may receive up to a maximum of $80,000 under the SME Export Marketing Fund (EMF) to help them expand markets, opportunities and business networks.

"The proposal to double the EMF ceiling from $40,000 was approved by the Finance Committee of the Legislative Council today," a Trade and Industry Department (TID) spokesman said. "The sub-ceiling for each successful application will also be increased from $20,000 to $30,000, or 50% of the total expenditure on fundable items of an approved export promotion activity, whichever is the less."

As part of the package to enhance the support to SMEs, the subsidy level per successful application under the SME Training Fund (STF) will be increased from 50% to 70% of the training expenses, subject to the existing ceilings of $10,000 for employers' training and $20,000 for employees' training per SME (i.e. total amount of grant up to $30,000 for each SME).

"The outbreak of Severe Acute Respiratory Syndrome (SARS) has further hit the businesses of many SMEs. With the WHO and CDC lifting their travel advisory against Hong Kong, SMEs will need more help to step up efforts in export promotion. The improvement measures for the EMF will encourage SMEs to be more proactive in marketing their goods and services to overseas customers," the spokesman added.

To ensure that the training needs of the employers and employees of SMEs are not overlooked while they are directing their resources to keep their businesses running and to identify new opportunities, the improvement measures for the STF will provide more incentive for SMEs to upgrade the skills level and knowledge of their manpower.

"The original sub-ceilings for the EMF ($300 million), STF ($400 million) and the SME Development Fund (SDF) ($200 million) have also been removed and we now have more flexibility to deploy resources among the three funding schemes, having regard to SMEs' actual demand and actual take up rates and subject to the total expenditure not exceeding $900 million," said the spokesman.

The new measures will take effect from 23 June 2003. Information leaflets, application forms, and guidelines for the revised EMF and STF are obtainable at the Trade and Industry Department (Trade and Industry Department Tower, 700 Nathan Road, Mongkok, Kowloon), District Offices, major SME support organisations, major training institutions and major organisers of export promotion activities. They can also be downloaded at the website of the SME Funding Schemes (www.smefund.tid.gov.hk). For enquiries, please call 2398 5125.

The Government set up the EMF, STF and SDF in December 2001/January 2002 to help SMEs rise to new challenges and opportunities. EMF aims at helping SMEs expand their businesses through participating in export promotion activities. STF aims at encouraging SMEs to provide training to their employers and employees and to enhance the quality of human resources. SDF aims at subsidising projects to be carried out by support organisations, trade and industrial organisations, professional bodies and research institutes to enhance the competitiveness of SMEs in general or SMEs in specific sectors.

END