BUD Fund increases by 12% in 1st half of 2020

Mr Mohamed D. Butt, the executive director of Hong Kong Productivity Council, mentioned in an event that the BUD Fund grant increased by 12% in the first half of 2020, compared to the same period in 2019. It showed that Hong Kong companies know more how to use government fund in markets outside Hong Kong. ¹ In general, a BUD application spends around 4 months to proceed, and the US-China conflict deepened in the second half of 2019, the BUD consultant of BizMagnet believed that some factory owners anticipated the US boycott against China and planned to move the factories. The BUD Fund can certain relax their capital stress.

Discretion of ASEAN governments to factory owners

Tariff hiked in 2018 US-China trade war; Beijing and Hong Kong public opinion conflicted in 2019 anti-extradition bill social movement, which led to the national security law and legco election postponement. The US-China relation gets worsened tremendously, and Hong Kong major officers such as the Chief Executive Carrie Lam etc were sanctioned by the US. Businessmen with foresight had their plan to move factories from mainland China to ASEAN member states, such as Indonesia and Thailand. However, the unexpected COVID-19 pandemic stopped almost all traffic and cash flow which made factory production delayed. Fortunately, ASEAN governments are most considerate and don’t push for fee collection. ²

SME Reachout Fund Promotion 2020

As global economics purged, the Authority established “SME Reachout” in early 2020 to promote the most popular 5 government funding, namely the BUD Fund, the TVP Fund and SME Export Marketing Fund etc. In 24th to 26th August, the SME ReachOut Fund Fair Everywhere 2020 exhibits more than 40 types of government fund. ³

As BizMagnet expected, under the unprecedented environment, the Hong Kong government can only strengthen subsidy to help the weak economy and popularity. No matter how depressed, BizMagnet and Hong Kong are “connected”.

Further reading: Uncertain Future, and how BUD Fund can help

1. (2020) 生產力局：疫情影響不少港商於東盟部署生產線, 香港電台, https://news.rthk.hk/rthk/ch/component/k2/1544065-20200817.htm
2. (2020) 生產力局助港商申資助 料「make by HK」仍有商譽, 明報, https://news.mingpao.com/pns/%E7%B6%93%E6%BF%9F/article/20200817/s00004/1597602120671
3. (2020) SME ReachOut: Fund Fair Everywhere 2020, Youth.gov.hk, https://www.youth.gov.hk/en/startup/activities/detail.htm?content-id=2386339&section=SA