Chief Executive John Lee’s latest Policy Address has embraced many of our proposals, including relaunching the principal moratorium arrangement and enhanced measures to attract enterprises and talent. This reflects the authorities’ commitment to listening to members of society and improving governance.

The path to economic recovery for SMEs in Hong Kong is fraught with challenges. Liquidity remains a significant hurdle, potentially hindering business expansion and operations. In last month’s address, the Government acknowledged the business community’s concerns and incorporated several of my suggestions.

These measures, such as the relaunch of the principal moratorium and the increase in the statutory maximum indemnity percentage of the Hong Kong Export Credit Insurance Corporation to 95%, are designed to significantly enhance support and protection for businesses. The duty on liquor was also slashed to promote the liquor trade and bolster the development of related industries such as logistics, food and beverage, and tourism. These policy initiatives are not just about supporting businesses, but also about stabilizing society and improving people’s livelihoods.

As the rate-cutting cycle begins, the Central Government has introduced a basket of preferential policies to support Hong Kong. Riding on this positive momentum, the city should proactively explore new markets and attract foreign companies and investments.

I am particularly pleased to see my proposal to enhance the New Capital Investment Entrant Scheme included in the policies. Allowing applicants to invest in residential properties will offer greater flexibility for foreign investors looking to engage in Hong Kong.

The Government also plans to submit a bill to the Legislative Council this year to introduce a company re-domiciliation mechanism. This will enable companies wishing to re-domicile in Hong Kong to preserve their legal identity without needing to wind up their original overseas entity and establish a new company in Hong Kong. The new arrangement will simplify procedures while ensuring business continuity. Meanwhile, the validity period of multiple-entry visas for foreign staff of companies registered in Hong Kong will be extended to five years, facilitating their visits to the Mainland.

The recently signed agreement on amendments to CEPA on trade in services will further liberalize various service sectors, including construction and engineering, testing and certification in the Mainland. Additionally, removing the three-year operating requirement for Hong Kong service providers in most sectors will encourage more start-ups and foreign businesses to leverage the city as a base for accessing the Mainland market. 

Looking ahead, Hong Kong’s industries are set for dynamic growth and limitless potential.

Jeffrey Lam
[email protected]