Session No. 5 File name : cedb(cit)- doc

The target of 100% meeting the pledge of processing applications for SME Export Marketing Fund within 30 working days could not be met in 2008 and 2009. In 2009, only 84.3% could be processed within 30 days due to a significant increase in the number of applications received. The $783.3 million estimate of 2010-11 is much more than 2009-10, how much are the extra resources for enhancing the operation of the Fund?

The estimated expenditure for Support for Small and Medium Enterprises and Industries is $783.3 million in 2010-11, among which $460.8 million is earmarked for the SME Export Marketing Fund, representing an increase of $49.8 million (12.1%) compared to the revised estimated expenditure in 2009-10.

Signature
Name in block letters	Ms Maria S. N. KWAN
Post Title	Director-General of Trade and Industry
Date	15 March 2010

According to “Economic Performance in 2009”, the annual growth rate in real terms of domestic exports has continued to fall over the years. In 2009, there is even a drastic decrease of 35%. What measures will the Government take to improve the situation? What are the expenditure and establishment involved?

The decline in “domestic exports” reflects the service-oriented nature of the local economy. In 2009, “domestic exports” accounted for 2.3% of the “total exports of goods” of Hong Kong. The former fell by 34.6% in real terms, whilst the latter dropped by 12%. During the period, merchandise exports have been severely affected in the aftermath of global financial tsunami. The double-digit fall in Hong Kong merchandise exports in 2009 was a common phenomenon in the region; many Asian economies recorded even larger declines. As economy regained strength, the quarterly accounts of “total exports of goods” had recovered progressively.

The Government is very concerned about the impact of the financial crisis on Hong Kong enterprises, and has introduced a series of measures to support and facilitate the trade. Those measures relating to the Trade and Industry Department (TID) include:

(1) A Special Loan Guarantee Scheme (SpGS), with a total loan guarantee commitment of $100 billion, was launched in December 2008. Response from the trade has been positive. As at the end of February, TID has approved 28 533 applications, involving a total loan amount of over $69 billion. Apart from effectively alleviating the pressure on enterprises in terms of finance and liquidity, SpGS also helps to stabilize employment. SpGS is an exceptional measure which aims to assist Hong Kong enterprises in coping with the global financial crisis. It is a time-limited scheme. The application period has been extended twice till the end of June this year. We will closely monitor the pace of economic recovery in the coming months and decide when to let the credit market resume normal operation.

(2) At the same time, TID also helps to improve the competitiveness of SMEs and helps them develop export markets through other SME funding schemes, namely the “SME Loan Guarantee Scheme” (SGS), the “SME Export Marketing Fund” (EMF) and the “SME Development Fund”. Since November 2008, TID has introduced a series of enhancement measures to increase the total loan guarantee commitment of SGS and provide more flexibility in the use of loan. In addition, TID has expanded the scope of EMF and increased the amount of grant in order to help SMEs expand their customer base and explore new markets.

In 2010-11, the estimated expenditure on support for SMEs and industries is $783.3 million, representing a significant increase of 50% compared to the revised estimate in 2009-10. Total number of employees involved is around 180.

Apart from TID, other departments and related organizations also introduced measures to help local exporters develop overseas markets. The Hong Kong Trade Development Council (HKTDC) will continue to freeze the basic charges and fees of various activities and services this year to benefit the major users (SMEs) of its services. Besides, HKTDC will provide economy exhibition stands (which will be smaller and cheaper) to cater for the needs of different SMEs. HKTDC will also continue to implement the “Trade Buyers’ Incentive Scheme” to bring more buyers to Hong Kong trade fairs.

To assist exporters to tide over the financial crisis, the Hong Kong Export Credit Insurance Corporation has implemented a series of support measures since 2008 which would facilitate the exporters in applying for export credit insurance from the Corporation.

Signature
Name in block letters	Ms Maria S. N. KWAN
Post Title	Director-General of Trade and Industry
Date	16 March 2010

Directory: citb -> doc
doc -> Replies to initial written questions raised by Finance Committee Members in examining the Estimates of Expenditure 2012-13 Director of Bureau : Secretary for Commerce and Economic Development Session No. 12 File name : cedb(cit)- doc

Download 4.7 Mb.

Share with your friends: