The government just announced the 2024 Policy Address on 16 October. The theme of enhancing development and build the future together with the citizens. As a startup, an entrepreneur or a citizen, you must be concerned about what measures will have an impact on the operations of enterprises. Especially small and medium-sized enterprises (SMEs). Therefore, Centre O is specially highlight to screen and integrate relevant important information for you.
Measures relevant to SMEs
Property
– The mortgage ratio for non-residential properties (including office buildings, shops and industrial buildings, etc.) will be adjusted to 70% regardless of the property value, whether it is self-occupied or owned by a company, and whether the buyer is a “first-time home buyer”
– The upper limit of contribution to income ratio will be adjusted to 50%
– Cancellation of the 10% mortgage factor deduction arrangement for existing loans or guarantees for other mortgage properties
SME Financing Guarantee Scheme (SFGS)
– The enterprises with exiting loans approved under 80%, 90% and 100% special guarantee products. As well as new loans under 80% and 90% credit guarantee products to apply for “interest-free repayment” for up to 12 months. “Repay the principal”
– Extend the maximum loan guarantee period of 80% and 90% credit guarantee products to ten and eight years respectively, and provide a “partial principal repayment” option for new loans under the two guarantee products
Digital Transformation Support Pilot Scheme
– In order to support SMEs in seizing e-commerce opportunities, the scope of coverage will be extended to the tourism and personal service industries, etc. Also including one-to-one funding will be provided for the digital transformation of SMEs.
Employee Protection
– On 1 May 2025, the arrangement for “offsetting” severance pay and long service payment accrued by employers’ mandatory contributions under the Mandatory Provident Fund System will be cancelled. The government will also launch a 25-year subsidy plan totaling more than HK$33 billion to share the burden. Employer expenses after cancellation of “offsetting”
– Amend the “continuous contract” requirements under the Employment Ordinance, relaxing from 4 consecutive weeks of 18 hours of work per week (i.e. 72 hours in total) to 4 weeks in total of 68 hours
Top Talent Pass Scheme
– The list of universities has been expanded to 198 by adding 13 top universities at home and abroad. And the first visa period for high-income talents in the plan has been extended from 2 years to 3 years.
For further information, please contact us.
You may want to read: HONG KONG: BUSINESS POLICY ADDRESS 2023 HIGHLIGHTS