HONG KONG • Hong Kong will implement measures from next month to support small and medium-sized enterprises (SMEs) in the wake of the protests that have battered the local economy.
One initiative is a higher cumulative funding ceiling for companies that need help. Additional resources will also be allocated to help firms that want to explore opportunities in mainland China and around the region.
"Enterprises are facing the challenges... The measures will more effectively support enterprises in expanding markets, while enhancing their competitiveness to help them capture new business opportunities," Hong Kong's Secretary for Commerce and Economic Development Edward Yau said yesterday.
An information service starting on Wednesday will help SMEs identify suitable funding schemes.
Hong Kong has already rolled out economic relief measures - in August, September, October and earlier this month - to help businesses deal with the downturn.
These included more relaxed mortgage rules, compulsory land purchases for housing, waivers on government fees for companies and increased subsidies for low-income families.
Financial Secretary Paul Chan said yesterday that his budget in February will focus on helping Hong Kong weather the slump.
There will be steps to support business, safeguard jobs, revive the economy and relieve social distress, said Mr Chan. The city also faces global turbulence from protectionism and geopolitics.
The anti-government protests that flared in June have undermined Hong Kong's economy, discouraging tourists and slashing retail sales.
The number of mainland Chinese visitors, who comprise the biggest group of tourists, plunged a record 46 per cent in October to just over 2.5 million, less than half of the record set in January. Recent data showed a 24.3 per cent fall in retail sales - the biggest ever.
The government forecasts an annual economic contraction of 1.3 per cent for 2019 while unemployment rose to 3.2 per cent last month, the highest since July 2017.
However, Mr Chan said the core competitiveness of Hong Kong's financial market, including the banking and securities system, the dollar peg and free flow of capital, remains robust and orderly.
More than 1,000 people braved the rain yesterday to rally at a park in Central, chanting slogans for democracy as they huddled under a sea of umbrellas.
Last Saturday, police arrested about a dozen protesters and used pepper spray to break up a gathering aimed at disrupting retail businesses near the border with mainland China.
More protests are planned in the coming days, including a countdown to New Year's Day and a march on Wednesday.
Protesters are angry about what they see as increased meddling by Beijing. China denies interfering, saying it is committed to the "one country, two systems" framework and blames foreign forces for fomenting unrest.
BLOOMBERG, REUTERS
