SUCCESS
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The Support and Consultation Centre for SMEs (SUCCESS) run by the Trade and Industry Department (TID) of the Government of the Hong Kong Special Administrative Region (the Government of the HKSAR) provides small and medium enterprises (SMEs) with free business information and consultation services. "Four-in-One" Integrated Services of SMEs CentresTo strengthen support for SMEs and to raise SMEs' awareness of the various funding schemes and support services, the TID consolidated the services of the existing four SMEs centres, namely, the "SUCCESS" under the TID, the "SME Centre" under the Hong Kong Trade Development Council (HKTDC), the "SME One" under the Hong Kong Productivity Council (HKPC) and the "TecONE" under the Hong Kong Science and Technology Parks Corporation (HKSTP), in October 2019 to provide one-stop "Four-in-One" integrated services for SMEs. Enterprises can obtain business information, funding schemes information and advisory services, etc. at any of the centres. In addition, a web portal called "SME Link" is also established for SMEs to access information and support services provided by the four SMEs centres and government departments from a single online platform. "Government Funding Schemes" of the SME Link
The Government provides over 40 funding schemes with different funding scopes, amounts and requirements to promote and support the development of enterprises and industries in Hong Kong. The "Government Funding Schemes" web page of the SME Link features information on these 40+ funding schemes, including overview and useful hyperlinks. The web page's search tool supports multiple search filters to facilitate enterprises identifying suitable funding schemes.
Events & Activities of the SME LinkThe "Events & Activities" of the SME Link facilitates enterprises to obtain information on activities organised by the four SMEs centres and various government departments, including seminars, workshops, exhibitions, conferences, training courses, etc., from a single platform, and also provides relevant links to facilitate registration.
What's New
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| Lift travel level | Rated speed of lift | Average monthly lift maintenance cost | Changes as compared with last survey (Note) |
| 1 to 15 |
≤ 1.0m/s > 1.0m/s |
$5,276 $6,144 |
+3.1% +2.6% |
| 16 to 25 |
≤ 1.5m/s > 1.5m/s |
$5,492 $7,416 |
+3.4% +1.5% |
| 26 to 35 |
≤ 1.75m/s > 1.75m/s |
$6,539 $9,557 |
+1.9% +0.4% |
| More than 35 |
≤ 2.5m/s > 2.5m/s |
$10,206 $10,781 |
+1.2% +2.1% |
Private commercial buildings
| Lift travel level | Rated speed of lift | Average monthly lift maintenance cost | Changes as compared with last survey (Note) |
| 1 to 15 |
≤ 1.5m/s > 1.5m/s |
$7,241 $9,187 |
+2.7% +0.7% |
| 16 to 25 |
≤ 2.0m/s > 2.0m/s |
$8,355 $12,310 |
+2.9% +0.5% |
| 26 to 35 |
≤ 3.0m/s > 3.0m/s |
$10,898 $15,584 |
+2.9% +3.2% |
| More than 35 |
≤ 3.5m/s > 3.5m/s |
$21,872 $25,971 |
+0.0% +3.6% |
The cost information is available in the Responsible Persons' Corner on the EMSD website (www.emsd.gov.hk/en/lifts_and_escalators_safety/responsible_persons_corner/index.html). The EMSD will update it on a half-yearly basis.
In choosing registered lift contractors, the responsible persons for lifts are advised to make reference to the materials published in the Responsible Persons' Corner in addition to the price factor. The materials include:
- performance ratings of registered contractors;
- sample contracts for procurement of lift maintenance services;
- a guidebook for persons responsible for lifts;
- guidelines for selection of registered contractors for provision of maintenance services;
- guidelines for modernisation of existing lifts;
- guidelines for management of lift maintenance works;
- a checklist for building management staff to conduct daily safety inspection of lifts; and
- common questions and answers on lift management.
Note: The above price figures were updated on 31 March 2024, whereas the previous price figures were updated on 30 September 2023.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/27/P2024052700251.htm?fontSize=1.
Demand notes for Government rent issued
The Lands Department announced on 24 May 2024 that the following demand notes for Government rent in respect of properties subject to the Government Leases Ordinance (Cap. 40) and certain other properties have been issued:
(1) in excess of $100 per annum for the half year ending 24 June 2024; and
(2) not exceeding $100 per annum to be paid only once every five years for the five years ending 24 June 2024.
Payers can settle Government rent through various electronic means including autopay, bank automated teller machines, e-Cheque/e-Cashier's Order, the Faster Payment System, payment by phone service (PPS), and bill payment services provided by banks and PPS on the Internet. Payment may also be made in person and in cash or through the Easy Pay System at designated convenience stores. For details, please visit the Treasury's website at www.try.gov.hk.
Payment may be made by sending a crossed cheque to PO Box No. 28000, Sham Shui Po Post Office, Hong Kong, or in person to any post office. Please ensure sufficient mailing time and postage to make sure the delivery is in order. Underpaid mail will be rejected. For locations of post offices and their opening hours, please call Hongkong Post's enquiry hotline at 2921 2222 or visit its website at www.hongkongpost.hk.
Government rent payers who have not received their demand notes should enquire at the Government Rent and Premium Unit of the Lands Department at 1/F, North Point Government Offices, 333 Java Road, North Point, Hong Kong, or call 2231 3033.
Purchasers of properties are strongly advised to instruct their solicitors to ensure that Government rent has been paid to date at the time of purchase. Enquiries on outstanding accounts can be made at 2231 3033 or email to landsd@landsd.gov.hk. An enquiry fee is payable for each property if a written confirmation of accounts position is needed.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/24/P2024052300280.htm?fontSize=1.
Gazettal of legal notices for onboarding of second batch of Mandatory Provident Fund schemes to eMPF Platform
To prepare for the onboarding of the second batch of MPF schemes to the eMPF Platform, the Government published in the Gazette the following legal notices on 24 May 2024:
(i) the Mandatory Provident Fund Schemes (Specification of Dates for Purposes of Section 19M(2)(a)) (Amendment) Notice 2024 (Mandatory Use (Amendment) Notice 2024); and
(ii) the Mandatory Provident Fund Schemes (Appointment of Dates for Purposes of Section 19U(4)) (Amendment) Notice 2024, the Mandatory Provident Fund Schemes (Appointment of Dates for Purposes of Section 19Y(3)) (Amendment) Notice 2024, and the Mandatory Provident Fund Schemes (Appointment of Dates for Purposes of Section 19Z(4)) (Amendment) Notice 2024 (collectively Fee Control (Amendment) Notices 2024).
The Mandatory Provident Fund Schemes (Amendment) Ordinance 2021 (Amendment Ordinance 2021) enacted by the LegCo in October 2021 provides the necessary legal basis for the implementation of the eMPF Platform, and confers power on the Secretary for Financial Services and the Treasury to publish legal notices in the Gazette to put certain provisions of the Amendment Ordinance 2021 into operation when the eMPF Platform is ready for use. Such legal notices will be published in the Gazette in batches to dovetail with the phased onboarding of MPF trustees in ascending order of their assets-under-management size. The first batch of legal notices was gazetted in April 2024 to prepare for the launch of the eMPF Platform on 26 June 2024.
On the mandatory use of the eMPF Platform by MPF trustees, the Mandatory Use (Amendment) Notice 2024 specifies 3 September 2024, 2 October 2024, and 29 October 2024, as the "material day" for the purposes of section 19M(2)(a) of the Mandatory Provident Fund Schemes Ordinance (Cap. 485) (MPFSO) for the BCOM Joyful Retirement MPF Scheme administered by the Bank of Communications Trustee Limited, the SHKP MPF Employer Sponsored Scheme administered by the Standard Chartered Trustee (Hong Kong) Limited, and the BEA (MPF) Value Scheme administered by the Bank of East Asia (Trustees) Limited respectively. On cost savings and fee-setting of MPF schemes to be charged by MPF trustees on scheme members, the Fee Control (Amendment) Notices 2024 appoint 3 December 2024, 2 January 2025, and 29 January 2025, as the "material day" for the purposes of sections 19U(4), 19Y(3) and 19Z(4) of the MPFSO for the constituent funds of the BCOM Joyful Retirement MPF Scheme, the SHKP MPF Employer Sponsored Scheme, and the BEA (MPF) Value Scheme respectively. Mandatory Use (Amendment) Notices and Fee Control (Amendment) Notices for the remaining MPF trustees will be published when the respective onboarding dates are ascertained having regard to their onboarding preparation status.
"With the phased onboarding of the second batch of MPF trustees to the eMPF Platform commencing in September 2024, more scheme members and employers will be able to enjoy a new experience in managing their MPF. As regards scheme members and employers whose MPF schemes have yet been onboarded to the eMPF Platform, there is no need to rush to register for an account as their MPF account information has yet been migrated to the Platform," a spokesperson for the Financial Services and the Treasury Bureau said.
If scheme members/employers have any question regarding the detailed operation of the eMPF Platform, they may visit the Platform's official website (empf.org.hk), or call the Platform's customer service hotline (183 2622).
The aforementioned legal notices will be tabled at the LegCo for negative vetting on 29 May 2024.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/24/P2024052300392.htm?fontSize=1.
Liberalisation of cargo fuel surcharge to be implemented from 1 January 2025
The Government announced on 23 May 2024 that the implementation of cargo fuel surcharge (CFS) liberalisation will take effect starting from 1 January 2025, after a six-month lead-in period (i.e. from 1 July to 31 December 2024).
With the liberalisation of CFS, airlines may set their own CFS levels or choose not to levy such surcharges for flights originating from Hong Kong. The prevailing requirement on airlines to impose CFS having regard to the levels promulgated by the Civil Aviation Department (CAD), which may inhibit market competition and further diversification of cargo industry development in Hong Kong, will be removed.
"The liberalisation of CFS aligns with the global trend of deregulating fuel surcharges and encourages competition in the air cargo industry, thereby maintaining the competitiveness of Hong Kong's aviation industry and its status as an international aviation hub. We are thankful for the support and views expressed by various stakeholders to enable us to take forward the liberalisation. In order to facilitate our continuous dialogue with stakeholders on the matter, we will put in place a communication platform to work in collaboration with stakeholders for the smooth transition towards the liberalisation of CFS from 1 January 2025," a Government spokesman said.
In order to ensure transparency after the liberalisation of CFS, the CAD will require airlines to promulgate their maximum CFS levels for flights originating from Hong Kong on company websites or other platforms for the public's information.
With a view to providing the air cargo industry with sufficient time to better prepare for the liberalisation, there will be a six-month lead-in period (i.e. from 1 July to 31 December 2024) prior to the liberalisation. The existing CFS mechanism managed by the CAD for flights originating from Hong Kong will therefore remain in force until 31 December 2024. For details on the existing CFS mechanism, please refer to the CAD's website (www.cad.gov.hk/english/cargo_fuel_surcharge.html).
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/23/P2024052300391.htm?fontSize=1.
Government to introduce resolution to adjust fees payable by banks and other financial institutions to Government prescribed in Second Schedule to Banking Ordinance
The Government served a notice to the LegCo on 22 May 2024 to introduce a resolution under the Banking Ordinance to adjust various fees relating to banking licences, establishment of branches and local representative offices (LROs) and registration of approved money brokers (AMBs).
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "As announced in the 2024-25 Budget, the Government will review the different fees and charges in a timely manner. The Hong Kong Monetary Authority (HKMA) has recently completed a review on the fees prescribed in the Second Schedule to the Ordinance, and proposes to raise the related fees."
"In making the proposal, the HKMA has taken into consideration relevant factors, including the 'user pays' and cost recovery principles, general price inflation, and the operating cost of the financial institutions, etc. The impact on Hong Kong's competitiveness as an international financial centre has also been assessed and taken into account. As the total licence fees account for an insignificant portion of the total operating expenses of authorised institutions (AIs) and AMBs, we expect that the impact on the affected financial institutions will be minimal after the implementation of the proposal. The financial competitiveness of Hong Kong will also not be affected," Mr Hui added.
Under the Ordinance, AIs (including licensed banks, restricted licence banks and deposit-taking companies), LROs and AMBs are required to pay to the Director of Accounting Services the licence fees, the registration fees, the establishment fees of local and overseas branches or overseas representative offices, upon authorisation or approval by the Monetary Authority, and the relevant renewal fees upon the anniversary in each year of the date on which an AI was authorised (including the fees of the relevant local and overseas branches and overseas representative offices), or the LRO or AMB was approved. The levels of the fees are specified in the Second Schedule to the Ordinance.
Subject to the legislative process, the Government will move the resolution in LegCo on 12 June 2024.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/22/P2024052200594.htm?fontSize=1.
Government welcomes passage of Inland Revenue (Amendment) (Tax Concessions and Two-tiered Standard Rates) Bill 2024
The Government welcomed the passage of the Inland Revenue (Amendment) (Tax Concessions and Two-tiered Standard Rates) Bill 2024 by the LegCo on 22 May 2024. The Bill gives effect to the Government's proposals announced in the 2024-25 Budget and the 2023 Policy Address, which include:
1. implementing a two-tiered standard rates regime for salaries tax and tax under personal assessment starting from the year of assessment 2024/25. In calculating the amount of salaries tax or tax under personal assessment at standard rates, the first $5 million of net income will continue to be subject to the standard rate of 15 per cent while the portion exceeding $5 million will be subject to the standard rate of 16 per cent;
2. reducing salaries tax, tax under personal assessment and profits tax for the year of assessment 2023/24 by 100 per cent, subject to a ceiling of $3,000 per case; and
3. allowing an additional deduction ceiling amount of $20,000 for home loan interest or domestic rents, on top of the basic deduction ceiling ($100,000), for a taxpayer if specified conditions (including the taxpayer should reside with his/her newborn child in Hong Kong for a continuous period of not less than six months, or a shorter period that the Commissioner of Inland Revenue considers reasonable in the circumstances) are met starting from the year of assessment 2024/25. Each taxpayer may be allowed an additional deduction ceiling amount for a maximum of 19 years of assessment.
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "The Government takes into account various factors when adjusting different tax measures. In addition to balancing economic and social needs, we are also committed to maintaining the competitive advantage of a low and simple tax regime. The proposed two-tiered standard rates regime is expected to bring about an additional revenue of $905 million per annum for the Government, affecting only 0.6 per cent of taxpayers. We believe that it will not have adverse impact on Hong Kong's tax competitiveness and attractiveness to talent. On the other hand, the one-off tax concessions will benefit about 2.06 million taxpayers chargeable to salaries tax and tax under personal assessment as well as about 160 000 tax-paying businesses. The additional deduction ceiling amount for home loan interest and domestic rents will benefit all taxpayers meeting the specified conditions, alleviating their financial burden of housing."
The Bill as passed will be gazetted on 31 May 2024. The one-off tax concessions will be reflected in taxpayers' final tax payable for the year of assessment 2023/24. Moreover, in calculating the provisional salaries tax for the year of assessment 2024/25, the Inland Revenue Department will determine the amounts of home loan interest and domestic rents to be allowed based on the information provided by eligible taxpayers, and apply the two-tiered standard rates as appropriate.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/22/P2024052200258.htm?fontSize=1.
Shipping Legislation (Electronic Certificates and Electronic Documents) (Amendment) Bill 2024 gazetted on 24 May 2024
The Shipping Legislation (Electronic Certificates and Electronic Documents) (Amendment) Bill 2024 was published in the Gazette on 24 May 2024 to amend three pieces of shipping legislation, namely the Shipping and Port Control Ordinance (Cap. 313), Merchant Shipping (Prevention and Control of Pollution) Ordinance (Cap. 413) and Merchant Shipping (Local Vessels) Ordinance (Cap. 548), to facilitate the use of electronic certificates/licences/permits/documents (collectively referred to as e-certs) for local vessels and their operators, as well as visiting ocean-going vessels.
The use of e-certs and electronic logbooks (e-logbooks) for Hong Kong-registered ships and local vessels was announced in the Chief Executive's 2022 Policy Address, with a view to further enhancing the efficiency of marine services. Phase 1 of the amendment to marine legislations came into force on 21 July 2023, and implemented the use of e-certs and e-logbooks for Hong Kong-registered ships and their seafarers. The current legislative amendment mainly aims to extend the use of e-certs to local vessels, their operators, and visiting ocean-going vessels.
A spokesman for the Transport and Logistics Bureau said on 22 May 2024, "In line with the goal of digitalisation of government services and the trend of digitalisation in the maritime and shipping sector, we introduce legislative amendments to provide greater convenience to shipowners and vessel operators when applying for and obtaining relevant certificates and documents. This will further enhance the efficiency of marine services and contribute to the image and status of Hong Kong as an international maritime centre."
The Panel on Economic Development of the LegCo, the Local Vessels Advisory Committee and the Port Operations Committee of the Marine Department have been consulted. Members supported the proposal.
The Bill will be introduced into the LegCo on 5 June 2024.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/22/P2024052200196.htm?fontSize=1.
Government announces calendar of mega events in Hong Kong (second half of 2024)
The Deputy Financial Secretary, Mr Michael Wong, together with the Secretary for Culture, Sports and Tourism, Mr Kevin Yeung, and the Executive Director of the HKTB, Mr Dane Cheng, announced the calendar of mega events in Hong Kong (second half of 2024) on 21 May 2024.
Mr Wong said, “At least 210 mega events will be held throughout 2024, with over 100 events both in the first and second halves of the year. Similar to the first six months, different types of mega events in the second half of the year cover various areas including cultural, arts and creative events; sports; conventions and exhibitions; finance, economy, innovation and technology related events; as well as festivals, celebrations, galas and carnivals. There will be more than 15 new events, and return of popular events. The distribution of types of mega events in the first and second halves are generally similar, which reflects Hong Kong’s year-round offering of diverse events for all to choose from and participate in.”
Mr Wong said that mega events would bring substantial economic benefits. It is estimated that approximately 1.7 million tourists would participate in the mega events in 2024. Their spending is estimated to be about HK$7.2 billion, bringing value-added of about HK$4.3 billion to the Hong Kong economy.”
Mr Yeung said, “To fully exploit the stimulating effect of tourism on various industries, we will strengthen our liaison with industries related to mega events, so that these events may attract more tourists and generate more business opportunities and boost the economic gains of tourism, hotel, catering, retail and other sectors. We believe that the industries can make reference to the upcoming events, and plan, design, and launch cross-sector promotion and tourism products that connect different sectors and events. This will create comprehensive and immersive travel experiences for tourists, making them the best ambassadors to tell good stories of Hong Kong.”
Mr Yeung said the Culture, Sports and Tourism Bureau (CSTB) will continue to fully explore and utilise Hong Kong’s rich tourism resources through thematic tours. At the same time, the CSTB will continue to extend warm hospitality, with a view to reinforcing and strengthening Hong Kong’s position as “the best tourism destination”.
The HKTB has established the “Mega Events Development and Advancement Division” (MEDA), which has started operating as the first point of contact for mega events. Over the past two months, MEDA has proactively reached out to different event organisers and has received a number of inquiries. Currently, they are handling a total of over 40 projects. Based on the current assessment, five projects have been preliminarily confirmed, with the majority of them planned to take place within 2024. The events cover a wide range of fields including ball games, sports tournaments, entertainment performances, and art and cultural activities.
The Government has compiled a calendar of mega events in Hong Kong to keep the public and the relevant industries apprised of the mega events held in Hong Kong. The Government will continuously update the calendar of mega events to inform members of the public and visitors of the mega events to be held in Hong Kong in advance. With a view to promoting Hong Kong’s status as an Events Capital of Asia, the Government also hopes to foster cross-sector collaboration among different industries and mega events, and encourages the tourism, hotel, catering, retail and other sectors to make plans on promotion and design tourism products beforehand.
The calendar of mega events in Hong Kong (second half of 2024) is in the Annex 1 and Annex 2. The public can also browse it through the website for Brand Hong Kong (www.brandhk.gov.hk).
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/21/P2024052100373.htm.
Government further promotes adoption of Smart Site Safety System
The Development Bureau (DEVB) announced on 20 May 2024 that the Smart Site Safety System Labelling Scheme (4S Labelling Scheme) and a series of relevant measures will be jointly launched by the DEVB and the Construction Industry Council (CIC) to drive a wider adoption of 4S in the industry for providing a safe working environment for site personnel.
Speaking at the launching ceremony of the Labelling Scheme, the Secretary for Development, Ms Bernadette Linn, said the Government has been striving to speed up the adoption of technologies for site safety and to promote the full adoption of 4S in recent years. Currently, all capital works contracts with a contract sum exceeding $30 million have fully adopted 4S. The Government has also subsidised private works projects to widely adopt 4S through the Construction Innovation and Technology Fund (CITF) and provides the latest information and support on relevant training and equipment through the CIC. However, adoption of 4S at private worksites remains relatively low. In this connection, the Government will roll out three new measures to promote and facilitate a wide adoption of 4S in the industry.
The Buildings Department (BD) will introduce mandatory measure starting from 1 July. Conditions will be imposed under the Buildings Ordinance requiring the adoption of 4S to provide qualified supervision of building works when granting the first approval or major revisions of superstructure plans of private development projects. For building works with estimated cost exceeding $30 million and involving the use of mobile plants and tower cranes, registered contractors are required to adopt relevant 4S alert systems.
Under the 4S Labelling Scheme jointly launched by the DEVB and the CIC, applications can be submitted to the CIC. After on-site inspection and evaluation of proper usage of 4S, the CIC will approve the application and issue the labels. The issued label will be placed in a conspicuous place around the construction sites for identification and ease of monitoring. The list of worksites with labels will also be uploaded to the CIC’s website, with a view to encouraging more worksites to adopt 4S. It is expected that around 500 worksites (including public works and private works), representing more than 60 per cent of the total number of construction sites at present, will participate in the scheme and labels will be issued to the first batch of around 100 worksites in July 2024 and the approval will be largely completed by the end of 2024.
Regarding subsidising the application of 4S in private works projects, the CITF has increased the amount of funding available to each applicant for 4S from $6 million to $7.5 million from 1 April 2023. Premised on this basis, the scope of support of the CITF will be extended to cover the relevant additional expenses in various aspects of adopting 4S, including upgrading the network capacity, additional manpower to be employed for maintenance and technical support, helping applicants obtain quotations for commonly used 4S products in advance from suppliers etc. arising from the use of 4S. To further support the industry to adopt 4S, the DEVB and the CIC have launched respective packages of 4S products for different types and scales of private works projects.
Representatives attending the launching ceremony of the 4S Labelling Scheme included members of the LegCo, government departments, statutory bodies, developers' associations, professional bodies, contractors and subcontractors' associations, and construction trade unions. Sharing the view that 4S can effectively enhance site safety, they expressed support for the DEVB and the CIC in promoting a wide adoption of 4S within the industry on all fronts.
Following the launching ceremony, representatives from the DEVB, the CIC, and the BD conducted a sharing session to brief the industry on the details of the new support measures for 4S.
For details of the 4S Labelling Scheme, please visit the following website (www.cic.hk/4s-labelling/en/home).
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/20/P2024052000694.htm.
31 May 2024 deadline for lodging proposals to alter rateable values
The Rating and Valuation Department (RVD) reminded members of the public on 17 May 2024 that proposals to alter the rateable value of properties effective from 1 April 2024 must be served on the Commissioner of Rating and Valuation (the Commissioner) on the specified form (Form R20A) or specified electronic form (Form e-R20A) by 31 May. Proposals served on the Commissioner after 31 May will not be accepted.
Members of the public can lodge a proposal by submitting an electronic form (Form e-R20A) using the Electronic Submission of Forms service provided on the RVD website (www.rvd.gov.hk), or on a Form R20A available from the website. The completed Form R20A must be served on the Commissioner by personal service or by post. Proposals served by fax will not be accepted.
In respect of domestic tenements with 2024-25 rateable value over $550,000, the RVD already issued letters to individual payers concerned in mid-April, notifying them that the rates for the tenement with effect from the fourth quarter of 2024-25 (i.e. January to March 2025) may be charged in accordance with the progressive rates charge scale as proposed in the 2024-25 Budget. To enquire about the proposed progressive rating system for domestic tenements, members of the public may visit the RVD website or call the RVD's 24-hour hotline 2152 0111 (handled by 1823).
Notwithstanding the lodging of a proposal, payers of rates and Government rent must pay rates and Government rent by the last day for payment shown on the demand notes. The RVD will inform the proposers of its decisions before 1 December. Any changes in rates and Government rent payable resulting from such decisions will date back to 1 April 2024 and any overpayment will be adjusted in subsequent demands.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/17/P2024051700394.htm.
Expanding cross-boundary e-CNY pilot in Hong Kong
The HKMA and the People's Bank of China (PBoC) have made further progress in the e-CNY pilot for cross-boundary payments, to expand the scope of e-CNY pilot in Hong Kong to facilitate the set up and the use of e-CNY wallets by Hong Kong residents, as well as the top-up of e-CNY wallets through the Faster Payment System (FPS). The interoperability between the FPS and the e-CNY system operated by the Digital Currency Institute (DCI) of the PBoC also marks the first linkage of a faster payment system with a central bank digital currency system in the world. It provides an innovative use case which underscores interoperability, a key area set out in the G20 Roadmap for enhancing cross-border payments.
The expansion of the cross-boundary e-CNY pilot in Hong Kong is one of the six measures announced by the PBoC earlier in 2024 under the "three connection, three facilitation" initiative. With the expansion of the pilot scope, users can now set up e-CNY personal wallets in Hong Kong, which requires only their Hong Kong mobile phone numbers. The e-CNY wallets can be used for cross-boundary payments but cannot be used for person-to-person transfers. Users can top up their e-CNY wallets via the FPS through 17 retail banks in Hong Kong (Annex 1). In addition to the GBA, the e-CNY can also be used in other Mainland pilot areas. Progress is being made on the interoperability of e-CNY with traditional e-payment service providers in the Mainland, which would also provide more consumption choices to Hong Kong residents in the future.
The Chief Executive of the HKMA, Mr Eddie Yue, said, "We are delighted that Hong Kong, being the first place in conducting cross-boundary e-CNY pilot, has also become the first place outside the Mainland that enables its residents to set up e-CNY wallets locally. By expanding the e-CNY pilot in Hong Kong and leveraging the 24x7 operating hours and real-time transfer advantages of the FPS, users may now top up their e-CNY wallets anytime, anywhere without having to open a Mainland bank account, thereby facilitating merchant payments in the Mainland by Hong Kong residents. We will continue to work closely with the PBoC to gradually expand the applications of e-CNY, enrich the range of functionalities of the e-CNY wallet available to Hong Kong residents and step up efforts in promoting the acceptance of e-CNY by more retail merchants in the two places."
The HKMA will continue working with the DCI to explore upgrading the e-CNY wallet to higher tiers through real-name verification and enhancing the interoperability in payments so as to provide more convenient user experiences, whether for individuals or merchants. Additionally, corporate use cases will also be explored with a view to facilitating cross-boundary trade settlement.
The e-CNY will provide an additional safe, convenient and innovative means of cross-boundary retail payments to residents in Hong Kong and the Mainland. It will also enhance the efficiency and user experience of cross-boundary payments, and promote the interconnectivity of the GBA.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/17/P2024051600533.htm.
Hong Kong and Peru substantially conclude free trade agreement negotiations
The Secretary for Commerce and Economic Development, Mr Algernon Yau, met with the Minister of Foreign Trade and Tourism of Peru, Ms Elizabeth Galdo Marín, and jointly announced the substantial conclusion of negotiations of the free trade agreement (FTA) between Hong Kong and Peru on the sidelines of the Asia-Pacific Economic Cooperation Ministers Responsible for Trade Meeting in Arequipa, Peru on 17 May 2024 (16 May 2024, Arequipa time).
"The negotiations, which began in 2023, cover trade in goods, trade in services (including e-commerce), investment and other related areas. I am pleased to note that our shared objectives in achieving a high-quality and comprehensive bilateral FTA are met," Mr Yau said.
"Peru is Hong Kong's important trading partner in Latin America. The FTA will enhance the trade and investment ties between the two sides, provide Hong Kong products, enterprises and investors with legal certainty and better access to the Peruvian market, and bring mutual benefits to our two economies," he added.
The two sides aim to finish the few remaining issues and the respective internal procedures with a view to signing the FTA within 2024. Details of the agreement will then be announced.
In 2023, Peru ranked fifth among Hong Kong's merchandise trading partners in Latin America. The total merchandise trade between Hong Kong and Peru amounted to HK$5,231 million in 2023 and grew at an average annual rate of four per cent from 2019 to 2023.
Hong Kong has so far signed eight FTAs with 20 economies, including the Mainland of China, New Zealand, the member states of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway and Switzerland), Chile, Macao, the member states of the Association of Southeast Asian Nations (i.e. Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam), Georgia and Australia. All FTAs have entered into force.
In addition to the FTA with Peru, Hong Kong will continue to actively expand economic and trade network, such as seeking early accession to the Regional Comprehensive Economic Partnership and exploring FTAs or investment agreements with other potential partners in the Middle East and other regions along the Belt and Road.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/17/P2024051700138.htm.
Construction Industry Security of Payment Bill gazetted
The DEVB published the Construction Industry Security of Payment Bill on 16 May 2024 to establish a mechanism for improving the delay payment problems among contracting parties, which have existed in the construction industry for a long time.
A DEVB spokesman said that there is a wide scope of construction work that involves a variety of professions/trades, and the work has unique features, making it challenging for an individual contractor or consultant to undertake an entire project. To enhance the flexibility in project procurement, subcontracting arrangement is commonly adopted in the construction industry in Hong Kong. There are various contracting parties involved in construction projects including clients, contractors, subcontractors, suppliers, consultants, etc. If a party delays in payment, it will pose financial pressure on various stakeholders along the supply chain, especially the small and medium-sized enterprises with relatively low financial risk tolerance level. Payment problems may also lead to project delays and disruptions, and wage arrears of construction workers.
The Bill stipulates provisions to improve contractual payment terms, establish an adjudication mechanism to resolve disputes quickly, and grant unpaid parties the right to suspend or slow down the progress of work or services under the circumstances specified in the legislation, to ensure that all stakeholders can get their entitled payment in a timely manner. The key provisions of the Bill are as follows:
1. Improvement of contractual payment terms
Prohibit the use of unfair payment terms, such as "pay when paid" and impose time limits for the paying party to give response to payment claims and make payment of the full amount that the paying party has admitted payable;
2. Introduction of adjudication mechanism
When a payment dispute arises, the claiming party is entitled to initiate the adjudication proceedings; the contracting parties can resolve the payment dispute through an independent adjudicator; the adjudicator has to make the determination within 55 working days after the appointment; and both parties have the rights to refer the payment dispute to litigation or arbitration, if they are dissatisfied with the adjudicator's determination; and
3. Suspension or slowing down progress
If the paying party has admitted the amount payable but fails to pay to the claiming party the admitted amount in full on or before the deadline, or the adjudicator has made a determination on the case but the paying party fails to pay the adjudicated amount in full on or before the deadline, the claiming party is entitled to suspend or slow down work or services.
The Bill applies to contracts with the main contract values not less than the specified minimum contract values, i.e. $5 million for carrying out construction work and $0.5 million for contracts for the supply of goods (e.g. materials and plant) and services related to the construction work. Considering that the general public may not be familiar with the construction contracts and relevant legislations, and it is difficult for them to comply with the requirements in the legislation, to avoid causing impact to the general public, the Bill will not apply to: (1) contracts for works on existing private residential buildings (e.g. interior renovation, building maintenance, etc); and (2) contracts for relatively minor works on existing private non-residential buildings, i.e. those works not requiring approval and consent of the Building Authority under the Building Ordinance (Cap. 123) (e.g. maintenance and repair of building services installation, shop renovation, etc).
The spokesman said that great importance is attached to the freedom of contracting parties to agree among themselves terms of a contract. The Government/legislation will not determine or order payment for any of the contracting parties. The Bill prohibits unfair contractual payment terms, and provide a speedy and binding adjudication mechanism for the contracting parties to revolve interim payment disputes.
When establishing the legislative framework and drafting the legislation, the DEVB has maintained close contact and communication with various stakeholders in the construction industry. The LegCo Panel on Development was briefed on the proposed legislation in November 2023.
The spokesman said, "As the construction volume in Hong Kong will be maintained at a high level, it is an opportune time to bring forward the legislation to improve the delay payment problem in the construction industry. The construction industry has also reached a broad consensus on the major provisions of the Bill, and urged for early legislation. We expect that the project procurement cost may reduce over time after the implementation of the Bill as price premiums for risk in association with delay payment will decline following improved security of payment. The Government will fully support the LegCo's examination of the Bill, with the hope that the Bill could be passed and implemented as soon as possible."
The Bill was gazetted on 17 May and will be introduced into the LegCo for first reading on 29 May 2024. For details of the proposed legislation, please refer to the LegCo Brief issued on 16 May 2024.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/16/P2024051600346.htm.
HKSARG welcomes country's policy of visa-free entry via cruise ships at coastal provinces
The HKSAR Government (HKSARG) welcomes the announcement by the National Immigration Administration (NIA) on 15 May 2024 on implementing the policy of allowing visa-free entry of foreign tourist groups aboard cruise ships at provinces along the country's coastline.
A spokesman for the CSTB said, "As Asia's cruise hub, Hong Kong attracts visitors from around the world to come for cruise travel. They would stay in Hong Kong before or after their voyages to experience our tourism offerings and bring economic benefits to the city. The new policy measures announced by the NIA today (15 May 2024) will attract international cruise lines to develop more cruise itineraries involving Mainland ports and Hong Kong, leveraging our role as a core demonstration zone for multi-destination tourism and promoting the development of Hong Kong's cruise industry."
The CSTB will continue to enhance Hong Kong's competitiveness as Asia's cruise hub through various measures, and seize the opportunities brought about by the development of the country's cruise industry.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/15/P2024051500480.htm.
Refined arrangements for renewal applications of Northbound Travel for Hong Kong Vehicles and increased number of applications to be processed
The Transport Department (TD) said on 14 May 2024 that, from 14 May, arrangements for renewal applications for Northbound Travel for Hong Kong Vehicles will be refined. Eligible applicants may submit their renewal applications online during the application period allotted by the TD without having to participate in a computer ballot.
The refined arrangements are only applicable to Northbound Travel for Hong Kong Vehicles renewal applicants who meet all of the following criteria:
- the applicant remains unchanged;
- the vehicle remains unchanged (including vehicle registration mark, colour and chassis number/vehicle identification number); and
- the designated drivers remain unchanged (including the number of designated drivers and their Hong Kong identity card numbers).
If the applicants for the renewal of Northbound Travel for Hong Kong Vehicles fail to meet any of the above criteria, they are required to participate again in the computer ballot and submit applications for Northbound Travel for Hong Kong Vehicles in the form of a new application within the allotted designated period. To enable applicants who submit new applications to register for the computer ballot, the TD will relax the computer ballot registration period at the same time, from 30 days before the expiry of their Closed Road Permit to 60 days before.
The refined arrangements for renewal applications for Northbound Travel for Hong Kong Vehicles introduced by the TD are as follows:
- starting from 14 May, the TD will issue emails in phases to holders of Northbound Travel for Hong Kong Vehicles Closed Road Permit that expires in or after July this year to invite permit holders to submit Northbound Travel for Hong Kong Vehicles renewal applications;
- after receiving invitation emails from the TD, eligible applicants for renewal of the Northbound Travel for Hong Kong Vehicles may use the passcode provided in the emails and their personal information to submit renewal applications on the designated website within the allotted designated application period specified in the invitation email;
- the designated application period allotted by the TD covers six calendar days, allowing sufficient time for applicants submitting renewal applications for Northbound Travel for Hong Kong Vehicles to prepare the necessary application documents. If eligible applicants for the renewal of Northbound Travel for Hong Kong Vehicles do not submit the renewal applications within the designated period allotted, the applicants will be required to participate again in the computer ballot to obtain an application quota, and submit the application as a new application within the allotted designated period; and
- to further enable holders of valid licences for Northbound Travel for Hong Kong Vehicles to enquire whether they are invited to submit renewal applications, to learn when their allotted application periods are and what their passcodes are, etc, the TD launched a new function, "Enquire Renewal Application Invitation Details", on the designated website on 20 May for applicants to check by themselves.
In addition, according to the "Guangdong Province Administrative Measures for Hong Kong Private Cars Travelling to the Mainland via the Hong Kong-Zhuhai-Macao Bridge", Mainland authorities will accept and vet applications submitted by holders of valid licences for Northbound Travel for Hong Kong Vehicles 30 days prior to the expiry of electronic vehicle licences from the Mainland authorities at the earliest. Hence, after completion of the preliminary vetting of the applications, the TD will pass the applications for Mainland authorities' processing within 30 days prior to the expiry of electronic vehicle licences from the Mainland authorities. Applicants will be notified by email of the updated application status by then, and they may also check the status of their applications online on the designated website. Applicants are advised to wait patiently after submission of their applications for renewal of Northbound Travel for Hong Kong Vehicles.
Details of the refined arrangements for renewal applications of Northbound Travel for Hong Kong Vehicles are available at the Renewal Application page on the designated website (www.hzmbqfs.gov.hk/en/RenewalApplication).
Furthermore, the number of applications of Northbound Travel for Hong Kong Vehicles to be processed will be increased from 300 to 400 applications per working day starting from June, to better cope with the needs of new applications and renewal applications.
The governments of Guangdong and Hong Kong will continue to monitor the operation of the Northbound Travel for Hong Kong Vehicles and will keep close liaison with relevant departments to review and enhance the arrangements of Northbound Travel for Hong Kong Vehicles in a timely manner.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/14/P2024051400443.htm.
Swap Connect enhancements to advance high-quality opening-up of China’s financial markets
To implement the national strategy to steadily advance the opening-up of China's financial markets, the mutual access between the Mainland and Hong Kong interest rate swap markets (Swap Connect) was launched on 15 May 2023. Since the launch, the trading and clearing arrangements of Swap Connect have been operating smoothly and its trading volume has been on the rise with active participation of Mainland and overseas investors. As of the end of April 2024, 20 Mainland dealers and 58 overseas investors had conducted more than 3 600 interest rate swap transactions with an aggregate notional amount of approximately RMB1.77 trillion, representing an average daily turnover of RMB7.6 billion or thereabouts in notional amount. The average daily turnover calculated on a monthly basis had increased by around three times from approximately RMB3 billion in the first month after the launch to over RMB12 billion in April 2024, providing Mainland and overseas investors with a convenient and efficient risk management tool to manage their RMB asset allocation.
To further promote the co-ordinated development of financial derivatives markets in the Mainland and Hong Kong and establish a framework to facilitate high-quality opening-up in the realm of finance, the People's Bank of China, the Securities and Futures Commission and the Hong Kong Monetary Authority have resolved to support the following further enhancements of Swap Connect, after thoroughly reviewing the operational experiences of Swap Connect and carefully considering comments and suggestions from Mainland and overseas investors. First, to enrich the product types, interest rate swap contracts with payment cycles based on the International Monetary Market dates will be accepted for clearing to align with mainstream products traded globally and meet the diverse risk management needs of Mainland and overseas investors. Second, to improve the ancillary services, compression service and the clearing of backdated swap contracts as the associated supporting arrangement will be introduced to facilitate participating institutions to manage the notional amount outstanding, lower capital costs, and foster active trading. In addition, the China Foreign Exchange Trade System (National Interbank Funding Center), the Shanghai Clearing House, and OTC Clearing Hong Kong Limited will roll out other system enhancements and incentive programmes simultaneously to reduce the participation costs of Mainland and overseas investors.
For the next step, the Mainland and Hong Kong regulators will guide the financial market infrastructure institutions in both markets to extend the business collaboration under Swap Connect in a steady and orderly manner and further enhance the operational arrangements of the scheme, with a view to facilitating the steady opening-up of China's financial markets and strengthening Hong Kong's status as an international financial centre.
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/13/P2024051300430.htm.
2024 Mainland-Hong Kong Joint Funding Scheme opens for applications till 28 June 2024
The Innovation and Technology Commission (ITC) launched the 2024 Mainland-Hong Kong Joint Funding Scheme on 13 May 2024 to invite proposals for applied research and development (R&D) projects jointly conducted by institutions in Hong Kong and the Mainland under three specific themes:
- Biotechnology: R&D of innovative drugs to treat chronic diseases;
- Artificial Intelligence (AI): research on the security and privacy of AI systems, brain-inspired intelligence, smart healthcare (including medical robots), smart city; and
- Sustainability engineering and technology: optoelectronic materials, third-generation semiconductor technologies, advanced green manufacturing, power management integrated circuits and modules.
Applications are accepted from 13 May until 28 June 2024.
Launched in 2019, the Scheme aims to support and encourage further R&D collaboration among universities, research institutes and technology enterprises in Hong Kong and the Mainland. Applications must be submitted simultaneously by the Hong Kong and Mainland institutions to the ITC and the Ministry of Science and Technology (MOST) respectively, and the R&D work must be conducted in both places and involve co-operation between the two places. The ITC and MOST will provide funding to the Hong Kong and Mainland applicant organisations respectively, and will monitor project progress according to their own requirements.
An ITC spokesman said, "The Scheme facilitates R&D collaboration between Hong Kong and the Mainland, thereby enhancing the R&D development in the two places. As at end-February 2024, 94 projects were approved under the Scheme, involving a funding amount of over $180 million."
Further information is available on the Innovation and Technology Fund (ITF) website (www.itf.gov.hk/en/mhkjfs). For enquiries, please contact the ITF Secretariat (Tel: 3655 5678; email: enquiry@itf.gov.hk).
For relevant press release, please visit https://www.info.gov.hk/gia/general/202405/13/P2024051000267.htm.
Topical Issues
Support Measures relating to Liquidity
In view of the cash-flow pressure of SMEs, SUCCESS has compiled a summary of support measures relating to liquidity.
More Details
SME ReachOut
“SME ReachOut”, a dedicated service team operated by HKPC, has commenced operation since 1 January 2020 to enhance SMEs’ understanding of the Government’s funding schemes, with a view to encouraging better utilisation of the support provided by the Government. The team would help SMEs identify funding schemes that suit their needs, and answer questions relating to applications.
The Government has allocated $100 million to HKPC to gradually enhance the services of “SME ReachOut” in the ensuing five years starting from 2023. HKPC has enhanced the services of “SME ReachOut” in October 2023, including arranging visits to more chambers of commerce, commercial and industrial buildings and co-working spaces, and increasing the publicity in social media so as to step up the promotion of government funding schemes. At the same time, more one-on-one consultation sessions will be provided to assist SMEs in applying for government funding and building their capacities, focusing on areas such as ESG, technology transformation, digitalisation and cyber security, with a view to enhancing their competitiveness through leveraging new technologies.
For further information or enquiries on “SME ReachOut”, please contact “SME ReachOut” Hotline / WhatsApp (Text Message Only) at 2788 6868 or email by sme_reachout@hkpc.org or visit https://smereachout.hkpc.org/en.
Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
Following the signing of the Investment Promotion and Protection Agreement between Hong Kong and Bahrain, the geographical scope of funding support of the BUD Fund has been extended to Bahrain with effect from 3 March 2024 to further support Hong Kong enterprises in developing their businesses in the market. The total number of economies covered under the BUD Fund is thereby increased to 391 .
The HKPC as the BUD Fund implementation partner regularly organises seminars/webinars in order to enhance enterprises’ understanding of the BUD Fund, including "Easy BUD". For more details of the BUD Fund, please visit its website (www.bud.hkpc.org/en) or contact the HKPC at 2788 6088.
1Besides the newly added economy of Bahrain, the other 38 economies covered under the BUD Fund are the Mainland, New Zealand, the four member states of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway and Switzerland), Chile, Macao, the ten member states of the Association of Southeast Asian Nations (comprising Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), Georgia, Australia, Austria, Belgo-Luxembourg Economic Union, Canada, Denmark, Finland, France, Germany, Italy, Japan, Korea, Kuwait, Mexico, the Netherlands, Sweden, Türkiye, the United Arab Emirates and the United Kingdom.
Corruption Prevention Advisory Service (CPAS) of ICAC
A good governance system is vital for SMEs' effective operation, and can help sustain their company image and hence counterparts' confidence in doing business with them. The Corruption Prevention Department of the Independent Commission Against Corruption (ICAC) has launched the Corruption Prevention Advisory Service (CPAS). The CPAS is a specialised unit dedicated to providing tailor-made, free and confidential corruption prevention advice on system control in common business areas such as procurement and staff administration. Enterprises can access its user-friendly web portal (https://cpas.icac.hk/EN/) for details of the services and to get timely and useful resources on corruption prevention such as staff code of conduct, corruption prevention guides and tools, case studies, quick tips and red flags. To receive regular updates on corruption prevention, please click here to subscribe to the CPAS e-news.
Free IP Consultation Service
The IPD, supported by the Law Society of Hong Kong, now provides FREE One-On-One IP Consultation Service for SMEs. To obtain more information and/or apply for the Service, please visit IPD's dedicated website "Hong Kong – Regional IP Trading Centre": https://ip.gov.hk/en/home/consultation-service/index.html.
Business News
GDETO Newsletter
The latest issue of the Hong Kong Economic and Trade Office in Guangdong (GDETO) Newsletter has been published.
More Details (in Chinese only)
Commercial Information Circulars (CICs) of the Mainland
The TID issued a number of Commercial Information Circulars (CICs) on the Mainland's trade and economic rules and regulations. The latest CICs have been published.