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| Chamber in Review 活 動 重 溫 |With banks in the process of deleveraging their books,many SMEs said they are also worried about their credit beingcut off.HKGCC’s Legco Representative Jeffrey Lam said SMEs aretelling him they are increasingly being shut out by banks. Evenbusinesses that are doing well and trying to expand their operationsare being given the cold shoulder by banks. He suggestedthe government should reintroduce the Special Loan GuaranteeScheme to give banks more confidence in extending credit.“SMEs tell me that the tightening of credit is even worsethan in 2008, so we really need to do something to help themsurvive this cold winter,” he said.Getting creativeOther speakers suggested that the government needs toget creative helping businesses and to ensure that Hong Kongretains its competitive crown. Hong Kong’s once low tax rate isno longer the trump card that it used to be, as other economiesin the region have slashed their rates too.Citing how abolishing the wine duty helped to stimulate therelated support economies and turn Hong Kong into the winehub of the world practically overnight, they suggested the governmentshould try similarly innovative measures to stimulatebusiness.Significantly reducing tax for SMEs, abolishing the collectionof provisional taxes, or slashing the tax rate across theboard were some of the suggestions raised. Speakers said thesewould not only help ease businesses’ cash-flow difficulties, butalso attract more enterprises to Hong Kong, and encouragemore start-ups.“Established companies would come to Hong Kong to setup here if we have a very low tax base,” Dr Allan Zeman, Chairman,Lan Kwai Fong Holdings Ltd, said. “I feel that is somethingwe can really look. Let’s think about innovative ideas andget out of the old mould that we were in.”With the global economic swing to Asia, speakers also suggestedcompanies look beyond the traditional markets ofEurope and the United States. Both continents are not expectedto see any significant growth next year as their economies tryto rebalance their debts. Conversely, the BRICS’s economiesaccounts are in good health, so companies can look to expandin these markets, particularly Mainland China.Summing up the Forum, Chamber CEO Shirley Yuen said,“Speakers presented a mixed view, but on the whole they werevery positive about Hong Kong’s outlook. Businesses expressedconcerns about increasing regulations, rising inflation, andbanks tightening credit, but on the whole they were optimisticabout the shift in economic focus from Europe and the U.S.that will create new opportunities, especially in the Mainlandand Asia.”12 January 2012 The Bulletin 工 商 月 刊