For Immediate Release
The Hong Kong General Chamber of Commerce (HKGCC) welcomes the Hong Kong Monetary Authority’s (HKMA) decision to establish an SME Financing Task Force to help beleaguered small and medium-sized businesses in the repayment of loans.
The Task Force, which supplements the nine support measures announced in March, will help alleviate the liquidity pressure SMEs currently face. It will ensure the implementation of proactive bank policies in frontline services, particularly in addressing complaints about mortgage reviews and requests for early loan repayments. Individual cases will be reviewed and referred to banks as appropriate, leading to greater efficiency, transparency in communication and improved customer experience in the approval process. Banks have also pledged to respond with approval results within two weeks of receiving mortgage loan applications if all required documents are submitted. While some defaults on loans are expected, the positive impact of assisting most SMEs is anticipated to outweigh it.
In its submission to Chief Executive John Lee for the 2024 Policy Address, HKGCC made several suggestions to support SMEs. These included reinstating the SME Financing Guarantee Scheme’s (SFGS) Special 100% Loan Guarantee, which ended on March 31 2024, and raising the funding ceiling for the SME Export Marketing Fund (EMF) from 50% of total approved expenditure to 75% to help businesses expand internationally. The Chamber has also called for restoring the Pre-approved Principal Payment Holiday Scheme which expired in July 2023, and increasing the insurance amount guaranteed under the Export Credit Guarantee Programme managed by the Export Credit Insurance Corporation.
Although the economy is recovering gradually, many SMEs still face operational challenges. A recent survey by the Chamber revealed that nearly three-quarters of businesses identified cash flow as their biggest challenge in the coming 12 months. Despite various government schemes, almost half of the respondents found it difficult to secure financing.
As the cornerstone of Hong Kong’s economy and a crucial customer category for banks, SMEs play a vital role in driving growth. The Chamber is committed to supporting SMEs as they strive to regain pre-pandemic levels of growth and profitability.
Media inquiries: Please contact Ms Chloe Lee at 2823-1297 / [email protected]