HKSAR Government Engaged HKPC as Secretariat for Local Mask Production Subsidy Scheme
Local Mask Production Subsidy Scheme
In view of the spread of the COVID-19 worldwide, the demand for masks has surged significantly, aggravating the acute supply shortage situation in Hong Kong which largely relies on import for masks and driving up prices. The HKSAR Government has decided to launch the “Local Mask Production Subsidy Scheme” (the Scheme) under the Anti-epidemic Fund, facilitating the start of local mask production as soon as possible to help address the imminent shortage as well as to build up some reserve stock. The Hong Kong Productivity Council will administer the Scheme and serve as the Secretariat, and the Commerce and Economic Development Bureau (CEDB) will be responsible for approving applications.
An applicant must be a company holding a valid Business Registration Certificate and a valid Certificate of Incorporation in Hong Kong and demonstrate ALL the conditions when submitting application:
- having the production equipment in Hong Kong;
- having the raw materials in Hong Kong;
- having already in place or rented the production venue in Hong Kong;
- having already in place, rented or hired a contractor to set up clean room facilities in Hong Kong; and
- each production line being able to produce at least 500,000 masks per month.
In addition, the applicant must submit the following information and proof:
- the capability to comply with the Level 1 standard of the latest version of American Society for Testing Materials (ASTM) F2100, ISO 13485:2016 quality management system standard, and to achieve ISO Class 8 under ISO 14644-1 for the clean room;
- ensuring to meet the committed production output and ability to achieve it; and
- target commencement date of mass production and detailed timetable;
Each applicant may be granted a subsidy of up to HK$3 million for setting up the first mask production line, while an additional subsidy of up to HK$2 million may be given for the second production line. The subsidy will cover the capital costs of production equipment, venue setup, clean room setup, as well as testing and standard compliance incurred. The Scheme will initially accept applications with at most two production lines. The subsidised production lines must commence mass production before 31 December 2020.
The Government will commit to a one-year order from each production line:
- For those producing two million masks or less per month, all such masks must be sold to the Government.
- For those producing more than two million masks per month, upon fulfilling the Government’s order of two million masks, they can sell the surplus for local consumption but shall not export them.
- The purchase price of masks is determined by the Government based on the specified production costs of the production lines, with detailed arrangement to follow the agreements signed between the Government and the applicants.
The Scheme provides subsidies to a maximum of 20 production lines. Having reviewed the information provided in the applications received as of 26 March 2020 evening, the Government estimated that the number of potentially eligible production lines would very likely have exceeded the remaining quota. The Scheme will stop reviewing new applications from 27 March 2020.
For inquiry, please contact the Local Mask Production Subsidy Scheme hotline at: +852 2788 6035, then press "2" or email to email@example.com. Working hours: Monday - Friday 9:00am - 6:00pm