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BUD Fund Latest Update

Updated on: 16 Jun 2023

The Hong Kong government has introduced the “BUD Fund” — making the application process simpler and shortening the application processing time to 30 working days. For the “BUD Fund” — each approved project has a funding cap of HK$100,000.

Updated on: 07 Nov 2022

The cumulative funding cap for each enterprise under the BUD Fund has been adjusted to HK$7 million, and the maximum number of approved projects for each enterprise has also been adjusted to 70.

Updated on: 14 Feb 2022

Starting from February 14, 2022, the geographical scope of funding under the “Free Trade Agreement and Investment Agreement Program” of the BUD Fund includes the ten ASEAN countries (i.e., Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam), Australia, Chile, countries of the European Free Trade Association (i.e., Iceland, Liechtenstein, Norway, and Switzerland), Georgia, Macau, New Zealand, Japan, South Korea, Austria, Belgium-Luxembourg Economic Union, Canada, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Sweden, and the United Kingdom, totaling 36 economies.

Updated on: Mar 2021

To support businesses in exploring more diversified markets, the government has injected another HKD 1.5 billion into the “BUD Fund” and will roll out a new round of enhancements in phases, including:

Expanding the geographical scope of the fund’s support, from covering all economies that have signed free trade agreements (FTAs) with Hong Kong, to gradually include economies that have signed FTAs and/or investment promotion and protection agreements (IPPAs) with Hong Kong.

The first phase of enhancements took effect from July 30, 2021, extending the fund’s geographical coverage to Japan and South Korea. Furthermore, the cumulative funding limit for each enterprise was raised from HKD 4 million to HKD 6 million.

Starting from July 2021, the government will expand the geographical coverage of the “BUD Fund” in phases.

Phase I(Jul 2021) Japan and South Korea.
Phase II(Q1 ) United Kingdom, Canada, Germany, France, Italy, Denmark, Finland, Mexico, the Netherlands, Sweden, Belgium, Austria, and Luxembourg
Phase III(Q2 2022) Kuwait and the United Arab Emirates.

Updated on: April 2020

Starting from April 9, 2020, the “BUD Fund” will abolish the individual maximum limit of HKD 2 million for each enterprise to implement projects in the Mainland (“Mainland Program”) or in other economies that have signed free trade agreements with Hong Kong (“FTA Program”). This allows enterprises to more effectively and flexibly utilize the total subsidy of HKD 4 million to implement projects in the Mainland or other economies with free trade agreements with Hong Kong. In addition, enterprises participating in virtual exhibitions organized by relevant government agencies or exhibitions with a good reputation and track record will benefit from the subsidy under the “BUD Fund”.

 

Updated on: Jan 2020

The new round of “BUD Fund” optimization measures will be implemented on January 20, 2020. Below is an overview of the optimization measures:

  1. Expansion of Coverage Area: The “BUD Fund” subsidy region will be expanded to cover all economies that have signed free trade agreements (FTA) with Hong Kong. The FTA regions include Macau, the 10 ASEAN countries (Malaysia, Singapore, Vietnam, Cambodia, Philippines, Indonesia, Thailand, Laos, Brunei, and Myanmar), members of the European Free Trade Association (Switzerland, Norway, Iceland, and Liechtenstein), New Zealand, Australia, Chile, and Georgia, totaling 19 countries or regions.
  2. Increased Funding Cap: The cumulative subsidy limit for each enterprise will be raised to HKD 4 million. Of this, HKD 2 million will be allocated for Mainland projects (“Mainland Program”) and HKD 2 million for ASEAN and other FTA economy projects (“FTA Program”).
  3. Enhanced Initial Funding Ratio: The initial grant ratio will be increased from 25% of the approved government subsidy amount to up to 75%.
  4. Easing of Account Requirements: The requirement for subsidized enterprises to open and maintain a separate interest-bearing account will be abolished. Before receiving the initial disbursement, there is no need to deposit matching funds into the account.
  5. Project Commencement: All projects (including those choosing to apply for the first installment) can start after submitting the application form.
  6. Relaxed Budget Limits: The individual expenditure item budget limit has been relaxed, including: purchase/lease of additional machinery/equipment, production of samples/models, and registration of patents/trademarks/designs/utility model patents.
  7. Additional Subsidized Projects: There will be an addition of eligible projects, including: setting up new business units in the Mainland, purchasing/leasing additional machinery/equipment under the Mainland program to increase production capacity, etc.