In the 2025 Policy Address, the Hong Kong government announced an additional HK$1.43 billion injection into the BUD Fund and an expansion of its coverage to more markets, including some Belt and Road countries. With rising tariffs in the US and ongoing geopolitical tensions, many businesses realize they can no longer rely on a single market. To stay competitive internationally, participation in trade fairs and product promotions is not enough; what truly matters is investing in website upgrades and app development, building a sustainable digital foundation. This is exactly where the BUD Fund provides concrete support.
What is the BUD Fund?
The full name of the BUD Fund is the “Dedicated Fund on Branding, Upgrading and Domestic Sales”. As its name suggests, the scheme supports Hong Kong enterprises in expanding into external markets, focusing on three key areas:
Branding: Helping businesses shape their brand identity, including strategy, logo design, and marketing materials, to strengthen recognition.
Upgrading: Supporting transformation in production, service models, green transition, or digitalization, such as website redevelopment, app upgrades, and internal system improvements.
Development: Assisting companies in entering new markets through trade fairs, e-commerce platforms, or other sales channels.
Currently, the BUD Fund has two streams:
Mainland Programme: Designed for businesses looking to expand into Mainland China.
FTA and IPPA Programme: Covers overseas economies that have signed Free Trade Agreements (FTAs) or Investment Promotion and Protection Agreements (IPPAs) with Hong Kong, including ASEAN, Europe, the Americas, and the Middle East.
Eligibility for the BUD Fund
To qualify, applicants must be non-listed companies registered in Hong Kong under the Business Registration Ordinance and have substantial business operations locally. Substantial operations refer to real business activity—such as hiring staff, filing tax records, or conducting transactions—rather than existing as a shell company on paper.
Given its rising popularity, the government introduced new enhancements to the BUD Fund on 14 March 2025, making it stricter yet more flexible:
Per project funding cap: Reduced from HK$1 million to HK$800,000.
Cumulative cap: Each company can receive up to HK$7 million in total across 70 projects.
Funding ratio: Changed from 1:1 to 1:3, meaning the government covers up to 25% of approved expenses and businesses bear the remaining 75%.
First disbursement: Reduced from 75% to 20%, requiring stronger cash flow planning.
“Easy BUD”: For small projects, capped at HK$100,000 with approval in 30 working days, suitable for pilot initiatives.
“Easy E-Commerce”: Dedicated to e-commerce projects such as cross-border online shops and logistics improvements, covering Mainland China and ASEAN.
Markets Covered by the BUD Fund
The BUD Fund already spans most high-potential regions for Hong Kong businesses:
ASEAN: Including Singapore, Malaysia, Thailand, and Vietnam. With large populations and growing consumption power, these are attractive for retail, food & beverage, and manufacturing.
Other Asian markets: Such as Japan, South Korea, the UAE, and Macao, offering opportunities for technology, education, tourism, and professional services.
Europe: Germany, France, Italy, the Netherlands, the UK, and the Nordics. These markets value design and brand prestige, ideal for companies building an international image.
Americas & Oceania: Australia, Canada, Chile, New Zealand, and Mexico, providing new avenues for global supply chain expansion.
For instance, a Hong Kong retail brand entering a Thai e-commerce platform could apply for BUD funding to upgrade its website and app. A design-focused business targeting Germany could use BUD to fund branding strategies and marketing materials.
How does the BUD Fund differ from the EMF?
Compared with the EMF (SME Export Marketing Fund), BUD has a much broader scope. The EMF focuses on short-term promotions, such as exhibitions, overseas ads, or online marketing. The BUD Fund, on the other hand, supports long-term development, such as website and app redevelopment, brand strategy, and cross-border e-commerce, enabling companies to establish a solid foothold in overseas markets. Put simply, EMF is a tool for “market entry promotion,” while BUD provides the “infrastructure for sustained growth.”
How Can the BUD Fund Help with Websites and Apps?
For Hong Kong SMEs seeking to expand globally, a professional website and a user-friendly app often determine customer trust and purchase decisions. The BUD Fund provides financial support for website and app upgrades, helping companies build stronger digital foundations for competitiveness.
Using BUD to Build or Upgrade Websites
With BUD funding, companies can either create brand-new websites or revamp existing ones. This goes beyond visual design, covering functional upgrades such as cross-border payment systems, member login portals, or mobile-optimized browsing experiences. Businesses expanding into new markets can also build multilingual versions—such as Thai, Japanese, or Arabic—to communicate with local customers. For retail and manufacturing, such upgrades are often the first step in entering a new market.
Using BUD to Build or Upgrade Mobile Apps
The BUD Fund also supports app development. Whether creating a new app or enhancing an existing one, funding is available. For example, a retailer could develop an app with loyalty points, instant payments, and logistics tracking to deepen customer engagement. Education or service companies could use BUD to create course platforms or membership apps to reach ASEAN or other markets. These upgrades transform apps from auxiliary tools into vital bridges between brands and international users.
Notably, the “Easy E-Commerce” stream is highly relevant for businesses relying on websites or apps as sales channels. It funds cross-border e-shops, customs clearance enhancements, and logistics optimization—particularly useful for companies expanding into Mainland China or ASEAN. For SMEs, this reduces development burdens while accelerating market entry.
Overall, BUD’s support for websites and apps goes far beyond technical upgrades. It drives brand enhancement, customer experience improvements, and market expansion as an integrated package. A company with a professional website and robust app doesn’t just increase credibility—it can tell its brand story more effectively in new markets.
Application Process and Timeline
Applying for the BUD Fund is not overly complicated, but the documents and timeline determine when funds actually arrive.
Submission: Applications are open year-round via the online portal. If documents are incomplete, companies must resubmit within 14 days or risk withdrawal.
Approval & Agreement: Once complete, applications are reviewed by the Hong Kong Productivity Council and cross-departmental committees. Approvals generally take 60 working days. Successful applicants must sign a funding agreement before receiving support.
Disbursement: Funding is released in stages. The first disbursement (20%) arrives about one month after signing. Projects longer than 18 months may apply for a mid-term payment of up to 50%. The balance is disbursed upon project completion and audit submission.
Monitoring & Reporting: Companies must submit progress reports and annual audited accounts during implementation. After completion, a final report and audited accounts are required to release the final funds.
From submission to approval, the process typically takes two to three months. With smooth internal planning, SMEs may receive their first payment within three to four months of application.
How Can EMF and BUD Work Together?
EMF emphasizes short-term promotion such as exhibitions, overseas ads, or market campaigns. BUD supports long-term initiatives like website and app upgrades, branding strategies, and cross-border expansion. They are not mutually exclusive but complementary.
For example, a company could use EMF to promote a new app internationally, then apply for BUD to rebuild its website or strengthen brand strategy in new markets. The key requirement is that projects must be clearly differentiated—no overlapping expenses. When combined wisely, EMF provides short-term exposure while BUD delivers long-term stability, maximizing resource efficiency.
Practical Strategies for SMEs
In an uncertain global trade environment, the BUD Fund offers Hong Kong SMEs a rare opportunity. By funding website and app upgrades, businesses can strengthen digital infrastructure, align with brand strategies, and present a consistent image that overseas markets recognize. Investments in cross-border e-commerce and localized design further sharpen competitiveness.
At UXlicious, we believe BUD is not just financial support but a catalyst for brand transformation and customer experience innovation. When used strategically, websites and apps evolve from simple tools into key channels for expansion and storytelling in new markets.
