LCQ15: BUD Fund
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Question:
To enhance the competitiveness of Hong Kong enterprises, the Government launched the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) in 2012 to provide funding support to eligible Hong Kong enterprises. In this connection, will the Government inform this Council:
(1) of the numbers of applications received and approved under the BUD Fund each year since its launch in 2012, as well as the geographical coverage, the industries, the uses and amounts of the funding involved in such applications;
(2) given that some enterprises have relayed that some intermediaries charge large amounts of fees for assisting enterprises in applying for the BUD Fund, which has in effect reduced the amounts of funding that really reach the hands of applicant enterprises, whether the Government has received relevant complaints or requests for assistance; if the Government has, whether it can provide information such as the number and types of relevant complaints or requests for assistance as well as the amount of funding involved; if the Government has not, whether it will take the initiative to investigate and examine the situation; and
(3) whether the Government will review if there are loopholes in the existing application mechanism and requirements for the BUD Fund, and how the Government will step up its monitoring in the future to ensure that the funding can really reach the hands of applicant enterprises?
Reply:
President,
The reply to the three parts of the question is as follows:
(1) The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) was established in 2012. As at end 2022, a total of 5 476 applications had been approved, with a funding amount of over $3.232 billion, the details of which are shown in Annex 1. In addition, the distribution of major target markets, major industries and project scopes of the approved applications are shown in Annex 2.
(2) The Trade and Industry Department (TID), which is responsible for administering the BUD Fund, and Hong Kong Productivity Council (HKPC), which serves as the Programme Secretariat, have not received any complaints or requests for assistance from enterprises regarding consultant agencies overcharging for assisting in applications. According to the Guide to Application, enterprises are required to submit applications by themselves and appoint their staff members to act as the project co-ordinator and deputy project co-ordinator for overseeing the implementation of the project.
In recent years, the Government introduced a series of measures to facilitate enterprises in submitting applications, such as simplifying the application form and redesigning the webpage of the BUD Fund to provide graphic illustration of the application process, application tips and success stories, etc., so that enterprises can obtain simple and clear information on application. The Government also provides free one-on-one consultation service to enterprises, through the HKPC as well as the SME ReachOut established in 2020, to answer enterprises' enquiries relating to application, so that they can plan projects and submit applications by themselves, without having to resort to consultant agencies for assistance.
In addition, the Government continues to provide "four-in-one" integrated services through the four consolidated small and medium enterprises (SMEs) centres (i.e. the Support and Consultation Centre for SMEs under the TID, the SME Centre under the Hong Kong Trade Development Council, the SME One under the HKPC, and the TecONE under the Hong Kong Science and Technology Parks Corporation), so that enterprises can obtain information on the BUD Fund from any of the centres. Enterprises can also access to such information on the "SME Link" webpage of the TID and the "Biz Expands Easy" online platform of the HKPC.
(3) The Government has been reviewing the operation and implementation of the BUD Fund on an on-going basis. The HKPC will examine the supporting documents provided by applicants to confirm that they fulfil the eligibility criteria, and will follow up and verify the contents of the applications with the enterprises via phone, email or meeting based on actual circumstances and needs. If it is found that an applicant does not meet the eligibility, the application will be rejected. The HKPC will also conduct on-site inspections on selected approved projects to prevent misuse of funds. As regards the approved projects, if the enterprises fail to complete the relevant projects or violate other terms of the funding agreement, the projects will be terminated. Subject to the actual circumstances of individual cases, applicants will be required to return to the Government all or part of the project funding disbursed.
Ends/Wednesday, February 15, 2023
Issued at HKT 15:30
Issued at HKT 15:30
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