André Cheong: F&B establishments gaining from simplified licensing processes

The Secretary for Administration and Justice, André Cheong, has claimed food and beverage establishments (F&B) are already benefiting from the simplified system for licensing applications and for the hiring of non-resident workers (TNR).

Cheong was responding to lawmaker Wang Sai Man on the second day of Q&A between the lawmakers and government officials at the Legislative Assembly (AL).

Wang called on the government to accelerate the process.

According to Cheong, on average, “it takes 75 working days (including renovation and decoration works) for F&B establishments to get a license, while according to government requirements, it only takes an average of 27 working days.

The lawmaker said the difference is as much as 48 days, which means there is a lot of room to improve processing time.

The same lawmaker also noted that while applying for the import of TNR, the companies find that the “quotas are only authorized once the official restaurant license has been issued.”

This causes a significant delay as the establishment begins operations.

The delay can extend for four to six months, during which time companies need to pay for rent, having a significant impact on their cashflow right from the start.

Cheong said that simplification of procedures is in force.

However, Cheong admitted that, on average, it takes about 77 days to get a license for this type of establishment, remarking that this is a significant improvement on the old system, and that processing time has been approximately halved.

Wang called for the reinstatement of part of the old licensing system that would allow shops to open on a limited-time trial basis, while waiting for the final licensing.

The Secretary said that system was stopped because it would imply that establishments would be able to open without the necessary fire safety assessments and other inspections, which could put public safety at risk.

A member of Cheong’s team said that for this year alone, the Labour Affairs Bureau has authorized some 1,134 quotas for TNRs for F&B establishments, noting also that of those, 128 were first-time new quotas.