I. Hong Kong’s Economic Outlook and New Measures to Support SMEs Financing (Seminar)

(This seminar will be held at the CMA Building on 17 July 2024)

This seminar is co-organised by the Chinese Manufacturers’ Association of Hong Kong (CMA), the Small and Medium Enterprises Committee and the Hong Kong Association of Banks. SUCCESS is one of the supporting organisations. Representatives from the banking sector will share the latest information on banks’ support measures for SMEs, including how banks assist and support SMEs' continuous development and expansion in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), how banks leverage financial technology to facilitate SMEs’ operations and help them obtain bank financing. This seminar will also introduce the “Commercial Data Interchange (CDI)” launched by the Hong Kong Monetary Authority. (This seminar will be conducted in Cantonese.)

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II. Webinar on Competition Ordinance

(This webinar will be live-streamed on 19 July 2024)

This webinar is organised by the Competition Commission. SUCCESS is one of the supporting organisations. In this webinar, representatives from the Competition Commission will provide an overview of the Competition Ordinance, dos and don’ts under the Ordinance, red flags of anti-competitive practices and Leniency and Cooperation Policies, as well as competition law case studies. (This webinar will be conducted in Cantonese.)

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III. “Empowering Enterprises with Innovative Technologies Important Trend for Future Development!” (Online Course)

(This online course will be live-streamed on 31 July 2024)

This course is offered by the HKPC. SUCCESS is one of the supporting organisations. This online course will introduce new industrialisation cases where advanced innovative technologies have been successfully implemented, as well as relevant government funding schemes. (This course will be conducted in Cantonese.)

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Intellectual Property Department: IP Training Programme “IP201 Generative AI - IP concept and legal considerations”

Fire Safety (Buildings) (Amendment) Bill 2024 gazetted

Government to move resolution to resume collection of Hotel Accommodation Tax

The Hong Kong-Europe-Asian Film Collaboration Funding Scheme (HKEA Scheme) under the Film Development Fund (FDF) is open for application from 28 June to 22 November 2024.

Announced in "The Chief Executive's 2023 Policy Address", the HKEA Scheme aims to subsidise film projects co-produced by filmmakers from European and Asian countries to produce films featuring Hong Kong, European and Asian cultures. This would help promising Hong Kong filmmakers broaden their regional cultural horizons, achieve in-depth exchanges and learning thereby enabling Hong Kong films to go global.

The Chairman of the Hong Kong Film Development Council (FDC), Dr Wilfred Wong, said, "The Hong Kong-Asian Film Collaboration Funding Scheme has been expanded to the HKEA Scheme. We hope that the HKEA Scheme can help Hong Kong filmmakers produce more films with an international perspective and expand into overseas markets."

The HKEA Scheme is the second phase of the co-production funding scheme after the launch of the Hong Kong-Asian Film Collaboration Funding Scheme. A maximum of six films will be subsidised under the HKEA Scheme. Each approved film project will receive a grant of up to $9 million.

Under the Culture, Sports and Tourism Bureau, the Cultural and Creative Industries Development Agency is committed to supporting the sustainable development of the film industry through the FDC and FDF. A $1.4 billion injection has been made into the FDF as announced in the 2024-25 Budget.

Details of the HKEA Scheme and the relevant application form are available on the website of the FDC (www.fdc.gov.hk/en/eafcfs).

For relevant press release, please visit https://www.info.gov.hk/gia/general/202406/28/P2024062800469.htm.

The Lands Department (LandsD) launched on 28 June 2024 a 3D Visualisation Map of Lantau and the Islands, a 3D Indoor Map of Kowloon East and Kowloon Central as well as a new street image function "Streetscape 360" for the previously launched 3D Visualisation Map of Kowloon East and Kowloon Central, which are available on the online application platform "Open3Dhk".

The 3D Visualisation Map of Lantau and the Islands covers around 16 600 buildings and about 660 infrastructure facilities, including flyovers, footbridges and subways. The 3D Indoor Map of Kowloon East and Kowloon Central covers around 130 buildings including government and private buildings, and community facilities, and provides information on floor locations, units and points-of-interest for promoting innovative indoor data applications such as location-based services, tourism and indoor navigation.

Moreover, the new "Streetscape 360" function is added to the 3D Visualisation Map of Kowloon East and Kowloon Central released by the LandsD in December 2022 and September 2023 respectively, offering 360-degree street-level panoramic images for users to virtually navigate through the streets of the city.

The datasets of the abovementioned 3D Digital Maps, relevant Application Programming Interface services and sample codes have been uploaded to the Common Spatial Data Infrastructure Portal (portal.csdi.gov.hk) and "Open3Dhk" (3d.map.gov.hk) for free downloading by the public to facilitate the development of web services and smart applications by the innovation and technology sector as well as the academia.

To promote smart city development, the LandsD will continue to develop and release 3D Digital Maps for other districts.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202406/28/P2024062800325.htm.

United Nations Sanctions (Joint Comprehensive Plan of Action-Iran) (Amendment) Regulation 2024 gazetted

The Government gazetted the United Nations Sanctions (Joint Comprehensive Plan of Action-Iran) (Amendment) Regulation 2024 (the Amendment Regulation) on 28 June 2024, which came into operation on the same date.

"The Amendment Regulation amends the United Nations Sanctions (Joint Comprehensive Plan of Action-Iran) Regulation to reflect the expiry of certain restrictive measures imposed against Iran under the United Nations Security Council (UNSC) Resolution 2231," a Government spokesman said.

The expired measures relate to the prohibition against:

• the supply, sale, transfer or carriage of certain items to Iran;
• the supply, sale, transfer or carriage of certain items from Iran;
• the provision of certain training, services or assistance related to conventional arms;
• the provision or transfer of certain technology, assistance, training, services or resources related to ballistic missiles;
• making available to, or for the benefit of, certain persons or entities any funds or other financial assets or economic resources (economic assets);
• dealing with economic assets belonging to, or owned or controlled by, certain persons or entities;
• the sale and acquisition of interest in certain commercial activities; and
• entry into or transit through the HKSAR by certain persons.

The HKSAR Government has all along been implementing fully the sanctions imposed by the UNSC. The Amendment Regulation aims to give effect to the instructions by the Ministry of Foreign Affairs for fulfilling the international obligations of the People's Republic of China as a Member State of the United Nations.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202406/28/P2024062800228.htm.

Marine Department launches Green Incentive Scheme to facilitate green transformation of Hong Kong-registered ships

The Marine Department (MD) announced on 28 June 2024 that the Green Incentive Scheme is now open for applications from eligible Hong Kong-registered ships until 31 December 2026, to encourage the green transformation of the maritime industry.

The Government promulgated the Action Plan on Maritime and Port Development Strategy on 20 December 2023, outlining 10 strategies and 32 concrete action measures to support the sustainable development needs of the maritime and port industry in Hong Kong, with a view to enhancing the long-term competitiveness of the industry. One of the action measures is to provide green incentive to Hong Kong-registered ships that have attained high ratings under the international standards on decarbonisation formulated by the International Maritime Organization (IMO). The Government has allocated $65 million in the 2024-25 Budget to implement this initiative.

Under the Scheme, all Hong Kong-registered ships of 5 000 gross tonnage or above in possession of a valid "Statement of Compliance - Fuel Oil Consumption Reporting and Operational Carbon Intensity Rating" showing that the ship has attained rating A or B in the Carbon Intensity Indicator (CII) formulated by the IMO are eligible for the green incentive. Each qualified Hong Kong-registered ship is eligible to receive $20,000 per corresponding year from 2024 to 2026. If a ship attains rating A or B in the CII throughout three years from 2024 to 2026, it may receive a maximum incentive of $60,000.

A spokesman for the MD said, "Hong Kong-registered ships are renowned for their high quality and safety. The port state control detention rate of Hong Kong-registered ships in 2023 was only 0.81 per cent, significantly lower than the global average of 3.39 per cent. The Hong Kong Shipping Registry (HKSR) is consistently included in the white list of the Paris Memorandum of Understanding (MoU) and the Tokyo MoU, and recognised in the United States Coast Guard Qualship 21 programme."

"Hong Kong, China, as an associate member of the IMO, has been committed to supporting the organisation's decarbonisation initiatives. Although various green incentives have been introduced by other flag administrations, so far none of them has introduced a CII-related green incentive. Hong Kong will be the pioneer administration supporting the IMO's green shipping policy on the CII. The measure will help promote the image of the HKSR as a green fleet and reinforce its brand in the international maritime arena," the spokesman continued.

To promote the work of the HKSR and introduce the Green Incentive Scheme, the MD has uploaded a new promotional leaflet (www.mardep.gov.hk/filemanager/en/share/publications/pdf/materials/hksr.pdf). The application form of the Scheme has also been uploaded onto the MD's website (www.mardep.gov.hk/filemanager/en/share/hksr/gisform.pdf).

For relevant press release, please visit https://www.info.gov.hk/gia/general/202406/28/P2024062800156.htm.

HKSAR Government warmly welcomes increase of duty-free allowance for luggage articles for visitors who are Mainland residents

A Government spokesman said on 28 June 2024 that the HKSAR Government warmly welcomed and expressed sincere gratitude for the Central Government's active response to the HKSAR Government's proposal, announcing the increase of duty-free allowance for luggage articles brought into the Mainland from Hong Kong by visitors who are Mainland residents from the level of RMB5,000 to RMB12,000, while retaining the measure of allowing for additional duty-free goods at the value of RMB3,000 purchased at port entry duty-free stores, bringing the total amount of allowance to RMB15,000.

The new measure has been applicable to six land ports, including Lo Wu, Futian (Lok Ma Chau Spur Line), Shenzhen Bay, West Kowloon Station of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, Hong Kong-Zhuhai-Macao Bridge and more, starting from 1 July, and will then be implemented at all ports starting from 1 August.

The Chief Executive, Mr John Lee, said, "I am very grateful for the care of the Central Government and the introduction of various measures to promote Hong Kong's economy. The current measure of increasing the duty-free allowance for luggage articles brought into the Mainland from Hong Kong by visitors who are Mainland residents, implemented under the framework of the Mainland and Hong Kong Closer Economic Partnership Arrangement, shows the Central Government's support for the HKSAR's economic development. The new measure will enhance the shopping experience for Mainland resident visitors in Hong Kong and allow them greater flexibility when shopping, which is beneficial for Hong Kong in attracting more visitors and boosting the development of diversified tourism. Additionally, the measure can help stimulate the retail atmosphere in Hong Kong and bring vibrancy to the local economy."

The number of visitor arrivals has continued to increase in the first five months of 2024. As of end-May, the total number of visitor arrivals reached 18 million, representing an increase of around 78 per cent compared to the same period of 2023. Of this, 13.8 million were Mainland visitors, an increase of around 74 per cent compared to the same period of 2023. The average length of stay for overnight Mainland visitors was 3.1 nights in the first quarter of 2024, with an average per capita spending of HK$5 400. The new measure will provide Mainland visitors with more shopping choices in Hong Kong to cater to their consumption needs, allow them to enjoy the pleasure of shopping and enrich their travel experience in Hong Kong.

Under the new arrangements, it is roughly estimated that this will bring an additional HK$8.8 billion to HK$17.6 billion in shopping expenditure to Hong Kong, generating value-added of about HK$2.7 billion to HK$5.4 billion to the Hong Kong economy.

The various measures introduced by the Central Government in support of Hong Kong, including adding 10 more Individual Visit Scheme cities, extending the period of stay for holders of an exit endorsement for business visit travelling to Hong Kong, and launching the Express Rail Link sleeper train between Hong Kong and Beijing/Shanghai, will further support Hong Kong's tourism and economic development and ensure the long-term prosperity and stability. Hong Kong's tourism and related industries are in the process of complementing the concept of "Tourism is everywhere in Hong Kong" through innovation and transformation, and developing more diversified tourism resources and vibrant travel itineraries in Hong Kong, with a view to adding vitality to the city's economy.

The HKSAR Government will carry out promotional efforts to inform Mainland visitors and related trades about the new policy arrangements. In addition, the Hong Kong Tourism Board will launch a new summer promotional event, Summer Chill Hong Kong, on 11 July to coincide with the peak season of visitor arrivals during the summer holidays. This will involve distributing 500 000 sets of offers worth more than HK$100 million, covering sightseeing and transport, dining and consumption discounts. Full support will also be given to various large-scale consumption and promotion activities, including the second edition of the Hong Kong Shopping Festival organised by the Hong Kong Retail Management Association, to collaborate with the trade in attracting more overnight visitors to Hong Kong and encourage them to increase consumption.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202406/28/P2024062800210.htm.

The Environmental Protection Department (EPD) said, with the Product Eco-responsibility (Amendment) Bill 2023 passed on 18 October 2023, the enhanced Producer Responsibility Scheme on Waste Electrical and Electronic Equipment (WPRS) has been implemented on 1 July 2024 with the following enhancements:

1. Under the WPRS, the maximum storage volume of refrigerators has been increased from 500 litres to 900 litres, and the maximum washing capacity of washing machines from 10 kilograms to 15kg;

2. Stand-alone tumble dryers and dehumidifiers have been covered by the WPRS; and

3. The requirement for providing the recycling label in the distribution and sales of products under the WPRS has been removed.

In the past, when a customer purchased a new product under the WPRS (namely air-conditioners, refrigerators, washing machines, televisions, computers, printers, scanners or monitors), the seller was required under the law to arrange for the customer a free door-to-door removal of the old product of the same type. Starting from 1 July 2024, customers can enjoy this same free removal service under the law when purchasing the above-mentioned four additional products under the WPRS, i.e. refrigerators and dryers with larger capacities, stand-alone tumble dryers and dehumidifiers. The Government encourages the public to make good use of this service to ensure that old electrical equipment can be properly collected and treated so as to turn waste into resources. Members of the public not making a new purchase of products under the WPRS but need to recycle old electrical equipment can also make an appointment for a free collection service of old items through the recycling hotline 2676 8888 or through WhatsApp (6081 5096).

Moreover, starting from 1 July 2024, suppliers (including manufacturers and importers) distributing the above-mentioned four new types of products under the WPRS must first register with the EPD as a registered supplier before distributing such regulated products in Hong Kong. Failing to do so will result in committing an offence and the supplier will be liable to a maximum fine of $100,000 on conviction. Suppliers shall also pay the EPD the recycling levy for the regulated electrical equipment they have distributed. In order to streamline the operation, suppliers and sellers are no longer required to provide recycling labels in the distribution and sales of the regulated electronic equipment. Nevertheless, sellers are required to continue with the current practice of providing customers with a receipt showing the prescribed wording on the recycling levies for identifying the regulated electrical equipment distributed under the WPRS.

An EPD spokesman said, "After gazetting the commencement notice of the legislation last November, the department started various preparatory work shortly after, including notifying electrical equipment suppliers, sellers, trade associations and other stakeholders about the details of the enhanced WPRS, and disseminating useful information through trade associations to their members. During January to June this year (2024), the EPD sent staff to visit around 1 600 suppliers and sellers of electrical equipment to distribute relevant documents and publicity materials, and explain to them the details of the enhanced WPRS, assisting them in registering and updating company information with the EPD."

For details of the WPRS, please visit the EPD's website at: weee.gov.hk/en/.

In addition, according to the Waste Disposal Ordinance (Cap. 354), save for certain exceptions, any person who is engaged in the storage, treatment, reprocessing or recycling (but not repair) of e-waste must obtain a waste disposal licence issued by the EPD under the law. A permit issued by the EPD is also required for the import and export of e-waste. For information and application forms for waste disposal licenses and waste import and export permits, please visit the websites: www.epd.gov.hk/epd/english/application_for_licences/guidance/facilities_e-waste.html and www.epd.gov.hk/epd/english/environmentinhk/waste/guide_ref/wdo_e-waste.html.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202406/25/P2024062500338.htm.

In view of the cash-flow pressure of SMEs, SUCCESS has compiled a summary of support measures relating to liquidity.

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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.