For Immediate Release
HKGCC Chairman Mr Y K Pang described the measures presented in the Financial Secretary’s Budget address as pragmatic, all-rounded and forward-looking. He said, “The Government has come out with concrete steps to support and provide relief to SMEs during these very challenging times. We also welcome the range of counter-cyclical programmes to help businesses in Hong Kong.”
New and notable initiatives to assist and enhance SMEs’ competitiveness include the decision to establish a “single window” for trade declaration and customs clearance, as well as the launch of a $500 million Pilot Technology Voucher Programme under the Innovation and Technology Fund to subsidise the use of technological services and solutions.
Pang applauded government efforts to devote much-needed support to industries in the new economy. He said, “It is encouraging to see that the Government will spearhead the initiative to tap into and grow our creative and knowledge industries. The potential and promise on offer are limitless, but plans will need to be nurtured carefully to ensure their healthy and sustainable growth.”
It is therefore encouraging that the FS has taken action by announcing a slew of financial measures that include earmarking $8.2 billion for the promotion of smart production and research by Science Park, $500 million for an Innovation and Technology Fund for Better Living, and $2 billion for setting up an Innovation and Technology Venture Fund, among others.
HKGCC supports the development of financial technologies (Fintech) in Hong Kong as this represents an organic and natural extension of Hong Kong’s core capabilities as a premier international financial centre. We look forward to obtaining a better understanding of the recommendations made by the Steering Group on Financial Technologies so that we can provide comments on and take forward the suggestions for the future development of Fintech in Hong Kong.
Initiatives to support an environment that is conducive to entrepreneurism and new businesses will also boost Hong Kong’s competitiveness. The provision of new space with the planned expansion at the Science Park and the allocation of fresh funds to the tune of $200 million by Cyberport are excellent examples of the Government’s commitment to that end.
Incremental measures to develop a mature and diversified debt market in Hong Kong by promoting the issuance and trade of green bonds by Chinese financial institutions and the Airport Authority, as well as further issuance of iBond and sukuk, are positive steps for Hong Kong. Plans for a pilot Silver Bond also augurs well for reinforcing our reputation as an international capital market.
While the working public is likely to view favourably the proposal to adjust two categories of personal allowances, shouldn’t the business sector receive similar treatment? We urge the Government to give serious consideration to our proposal for introducing a two-tiered profits tax regime that will have the twin benefits of bolstering Hong Kong’s attractiveness and competitiveness as a place to do business, and in providing assistance to SMEs in an efficient and effective manner. Equally important is that our proposal will not reduce the overall tax base.
HKGCC also stresses the importance of maintaining a business-friendly environment. Pang said, “Although the measures unveiled by the FS will help Hong Kong ride out the difficulties that we are facing, these are mostly one-off and therefore stop-gap in nature. We should continue to be vigilant in ensuring that Hong Kong upholds its reputation as the leading business city in Asia and that this will not be compromised by well-meaning but poorly-thought out legislation.”
Pang also appealed for common sense and rationality to prevail in LegCo. He said, “Hong Kong cannot afford the kind of shenanigans that go on in the legislature while there is the real and present danger of deteriorating global conditions. The inability to process funding proposals in a timely manner impacts every one of us who live and work here.”
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