Since 2003, some 1,210 local small and medium-sized enterprises (SMEs), which received government subsidies under the SME Aid Scheme, have closed down, according to the Deputy Director of the Economic Bureau (DSE), Lau Wai Meng.
Over the past 17 years, the SAR government financially supported 13,329 SMEs. The number of closed business represents approximately 9% of the total number.
Twenty-five SMEs shut down during the Covid-19 pandemic, most of which were from the retail and food and beverage sector.
The SME Aid Scheme provides interest-free financial assistance to SMEs for the purposes of purchasing equipment, renovating, and general working capital, among others. The maximum aid amount per enterprise is MOP600,000. The maximum period for loan repayment is eight years.
According to Lau, a lack of capital and mismatch between business services and the actual demands of the market are the reasons behind the closures.
Lau also voiced disagreement with suggestions that the government should lower the entry bar for the subsidy. The DSE official said that some applicants with low income and low expenditure had applied for the highest subsidy.
Lau highlighted that the approval procedure must be well considered because all subsidies come from public money. JZ
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