As of the end of February 2026, the BUD Special Fund has received more than 32,000 applications. On April 1, the Hong Kong Secretary for Commerce and Economic Development announced that the Hong Kong government implemented streamlining measures in March 2025 to ensure the financial sustainability of the fund. In 2025 alone, the fund received approximately 5,350 applications, representing an increase of over 210% compared to 2019, reflecting sustained strong demand from the industry.
The "Dedicated Fund on Branding, Upgrading and Domestic Sales" (BUD Special Fund) has been providing grants since its launch in 2012, encouraging non-listed Hong Kong enterprises to develop their brands, upgrade operations, and expand sales in 40 economies that have signed free trade agreements or investment promotion and protection agreements with Hong Kong. To enhance support for businesses, the government introduced "Easy Application" in June 2023 to expedite approvals for specific measures, and launched "E-commerce Easy" in July 2024 to encourage flexible use of funding for e-commerce projects.
In March 2025, the matching fund ratio under the BUD Special Fund was adjusted, and its effectiveness will require time to assess. The government also relaxed the application frequency for "Easy Application" and provided more targeted support for green transformation and production line restructuring projects. A series of optimization measures are planned for implementation in the second quarter of 2026, including expanding the fund's geographical coverage as announced in the 2025 Policy Address, and increasing the maximum grant per application under "Easy Application" from HK$100,000 to HK$150,000, a 50% rise, as outlined in the 2026-27 Budget. More targeted funding will also be provided for projects incorporating artificial intelligence.
The current geographical coverage of the BUD Special Fund includes 40 economies, accounting for over 80% of Hong Kong's total merchandise trade in 2025. The 2025 Policy Address announced a 20% expansion of the fund’s coverage to include eight additional economies. The Commerce and Economic Development Bureau plans to seek approval from the Legislative Council Finance Committee in the second quarter of 2026 to extend the fund’s coverage to a total of 48 economies. As Hong Kong signs more free trade or investment agreements in the future, the fund’s applicable geographical scope will gradually expand accordingly.
As of the end of 2025, the success rates for "Easy Application" and "E-commerce Easy" were 60% and 41%, respectively. Approval rates depend on the quality of individual applications and compliance with funding criteria. Common reasons for rejection include failure to meet substantial business operation requirements in Hong Kong or lack of necessary licenses to operate in target markets. Since "E-commerce Easy" has been in operation for less than two years, and some applications are still pending supporting documents, the success rate does not yet include those cases.
By the end of February 2026, no enterprise had reached the maximum cumulative funding cap of HK$7 million per company under the BUD Special Fund. Only about 1% of funded enterprises had used HK$4 million or more, indicating that the current cap sufficiently meets business needs. Companies can freely allocate the HK$7 million ceiling across different application categories: general applications, "Easy Application," or "E-commerce Easy."
The government will continue to introduce further optimization measures as announced in the 2025 Policy Address and the 2026-27 Budget. It will maintain close communication with the industry and periodically review the fund’s operations to provide appropriate support for small and medium enterprises, while ensuring the fund’s affordability and financial sustainability.
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