The Hong Kong Budget 2024 unveiling by Finance Chief Paul Chan marks a pivotal moment for entrepreneurs and businesses looking to capitalise on new growth avenues.
This new plan is designed to fortify Hong Kong’s position as a leading global business hub, addressing the challenges and opportunities the current economic climate presents.
With a focus on enhancing business attractiveness, talent acquisition, and supporting digital transformation, the budget lays the groundwork for an ecosystem in the midst of recovering after a series of setbacks.
Explore the implications of the budget for your business and the overall economic landscape of Hong Kong, gaining valuable perspectives for entities entrenched or aspiring to establish a presence in Hong Kong.
Strengthening the Brand Value of Hong Kong
The government’s initiative to host mega events and allocate HK$100 million for their promotion over three years is poised to amplify Hong Kong’s global brand value.
Such large-scale events and enhancing visitor experiences through regular shows and commercial amenities are expected to have a ripple effect, benefiting businesses in tourism, hospitality, retail, and entertainment by drawing international attention and increasing foot traffic.
Enhancing Business Attractiveness and Talent Acquisition
The Budget’s commitment to fostering partnerships with strategic enterprises is set to invigorate the business environment with an influx of over HK$40 billion in investments and the creation of about 13,000 jobs.
Hong Kong is enhancing its attractiveness as a global business hub by facilitating fund re-domiciliation and proposing legislative changes to attract foreign businesses.
This strategic move opens doors for new enterprises and existing businesses to tap into a broader talent pool and capital.
Boosting Tourism with Innovative Strategies
The additional funding of HK$1,095 million towards tourism aims to transform Hong Kong into a destination for immersive and unique experiences.
Among other initiatives, the Hong Kong Tourism Board (HKTB) plans to improve its tourism services and launch new promotional activities, including reality TV shows and awards for exceptional service industry workers, to highlight Hong Kong’s reputation as a friendly, people-oriented city in collaboration with various sectors.
This move is particularly advantageous for businesses in the tourism sector, as it not only attracts a diverse visitor demographic but also encourages spending in local businesses, from outdoor activities to cultural explorations, thereby stimulating the economy.
Empowering SMEs through Support and Digital Transformation
Acknowledging the pivotal role of SMEs, the budget extends financial support through the SME financing guarantee scheme by an additional HK$10 billion.
A digital transformation pilot program focusing on online promotion, digital payment, shopfront sales and customer-management solutions will also be introduced, benefitting at least 8,000 businesses.
Furthermore, the government plans to allocate an additional HK$500 million to the specialised fund for branding, upgrading, and domestic sales (BUD fund) to enhance SMEs’ competitive edge and facilitate their entry into mainland and international markets.
This expansion includes the introduction of “eCommerce easy” within the fund, offering up to HK$1 million in support per enterprise for executing e-commerce initiatives in the mainland.
Accelerating Digital Economy and AI Integration
The Hong Kong Monetary Authority (HKMA) plans to launch a regulatory “sandbox” to facilitate testing and discussion on the issuance of stablecoins, ensuring a balanced approach to investor protection and risk management.
Concurrently, Cyberport is fast-tracking the development of an AI supercomputing centre to meet the increasing research and industry computational demands.
Additionally, the government is investing HK$3 billion in a three-year AI subsidy program through Cyberport to support local institutions and businesses in leveraging this computational power for scientific progress, enhance cybersecurity and data protection, and attract global AI talent and projects to Hong Kong.
Cultivating a Hub for Cultural and Creative Industries
The budget’s investment in cultural exchange and the creative industries, including the film sector, fashion, and performing arts, positions Hong Kong as a crucible of East-meets-West cultural dynamics.
Specifically, the government plans to allocate approximately HK$1.4 billion to the Film Development Fund and HK$2.9 billion to the CreateSmart Initiative to back various projects spanning film, arts, and design sectors.
This opens up new avenues for businesses in the creative sectors to gain international exposure, connect with global markets, and tap into the city’s rich cultural capital.
The Takeaway
Hong Kong’s 2024 Budget presents a multifaceted approach to economic development with significant implications for businesses.
By enhancing the city’s global appeal, supporting SMEs, embracing digital transformation, and fostering cultural exchange, the budget lays down a blueprint for businesses to navigate challenges, seize opportunities, and drive growth in the evolving economic landscape of Hong Kong.
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