Government funding of up to $2 million to help you grow your business

To tie in with the development of smart logistics, the Government of the Hong Kong Special Administrative Region (HKSAR) has officially established the Pilot Subsidy Scheme for Third-Party Logistics Service Providers (the Pilot Scheme) on 12 October 2020 to support third-party logistics service providers (3PLs) to enhance the competitiveness of the local logistics industry through technology upgrading and process optimisation.

Program Focus:

• Maximum cumulative funding amount of HK$2,000,000* per applicant enterprise (including project audit fee)
• Each applicant enterprise can receive a maximum of four approved projects.
• The Government can subsidize up to two-thirds of the total approved expenditure of the project.
• The project will be implemented for a maximum of 24 months.
• Applicant enterprises  may choose to start the project after submitting the application and while waiting for the application result.

Program Details:

Case Demonstration

Mr. A runs a logistics and transportation company that focuses on arranging deliveries to various locations (e.g. supermarkets, grocery stores, etc.) for customers. His company, which is legally registered in Hong Kong and is in the nature of logistics and transportation, is eligible to apply for the Pilot Subsidy Scheme for Third-party Logistics Service Providers.

Challenges:

In the past, Mr. A's transportation fleet mainly relied on communication software, which led to chaotic work arrangements, inability to effectively organize daily delivery status and reports, and frequent problems of missing and wrong deliveries.

Solution:

Mr. A decided to purchase Eastop ERP system and use it with the mobile app (Driver Apps). The ERP system will be integrated with Mr. A's existing order management system to achieve the following functions:

• Order Management：Automatically collect daily delivery orders
• Drivers Coordination: Drivers receive and confirm orders and arrange deliveries through the app
• GPS Tracking: After the delivery is completed, the system automatically records the GPS data to ensure that the delivery record is transparent and traceable

This approach will significantly reduce workload and human error, improving overall operational efficiency.

Apply for funding:

Total value of the system: HK$ 800,000

Estimated total government funding: HK$ 800,000 * 75% = HK$ 600,000

Estimated government funding for the first phase: HK$ 600,000 * 75% = HK$ 450,000

Estimated government funding balance: HK$ 600,000 * 25% = HK$ 150,000

If necessary, please feel free to inquire with our company!

Latest News

2024-2 Optimization measures will be introduced

• Expanding Funding Coverage: The enhancement measures include expanding the scope of funding to cover environmental, social and governance (ESG) technology solutions and related technology solution application consultancy services to adopt ESG technologies, as well as thematic project training directly related to the approved logistics technology application projects to promote the development of green and sustainable logistics in the industry, and strengthening support for applicant enterprises to apply logistics technology.
• Increase the amount of subsidy: The maximum cumulative subsidy amount for each applicant enterprise has also been increased from HK$1 million to HK$2 million.
• Simplified application process: SMEs can submit documents through the "One-stop Platform".

Funding Scope

• Technology upgrading: Funding projects that use technology and information systems to improve the productivity and efficiency of value-added logistics processes, such as warehouse management systems (WMS), transportation management systems, etc.
• Equipment procurement: automation equipment (such as AGV handling robots, smart shelves).
• Process optimization: supply chain data analysis

Funding Principles

• Maximum cumulative funding amount for each applicant: HK$2,000,000
• The Government subsidizes up to one-third of the total approved expenditure of individual projects (excluding project audit fees).
• Each applicant enterprise is entitled to a maximum of 4 approved projects.
• Applicants can start the project on the next day after submitting their applications.

Funding Arrangements

• Initial Payment: 75% of the approved funding amount after signing the funding agreement
• Final Payment: Upon completion of the project and acceptance of the final report by the Management Committee and the Secretariat, the final payment will be disbursed and will be adjusted according to the actual total expenditure of the project and the initial payment disbursed

List of Solutions

• Warehouse Management System WMS
• Mobile WMS App
• Enterprise Resources Planning System (ERP)
• Supply Chain Management System
• Order Management System
• Warehouse Management System
• Customers Relationship Management System
• Transportation Management System

Available

A number of Eastop products are suitable for the distance business program, including:

• Eastop Enterprise Resource Planning system (Eastop ERP)
• Supply Chain Management System
• Order Management System
• Warehouse Management System (WMS)
• Customers Relationship Management System (CRM)
• Transportation Management System (TMS)

Eligibility

• All non-listed enterprises registered in Hong Kong under the Business Registration Ordinance (Cap. 310) and have substantive business operations in Hong Kong.
• The applicant must be related to import or export logistics services, not just provide local logistics services.
• Substantive business of providing 3PL services (e.g. warehousing, transportation, supply chain management)
• The project needs to be in line with the direction of smart logistics technology.

Application Process

1. Applications will be accepted throughout the year and the processing progress will depend on whether the applicant enterprise has submitted the required supporting documents.
2. The Secretariat reserves the right to request the applicant enterprise to provide additional information/supporting documents for the submitted application if necessary.
3. Applicant enterprises are required to appoint a current staff member as the Project Coordinator for their applications to act as the primary liaison with the Secretariat after submission of applications and during the implementation period (if the application is approved). During this period, the applicant enterprise is not allowed to change the project coordinator without the written permission of the Secretariat.
4. If an applicant enterprise wishes to withdraw its application, it may notify the Secretariat in writing at any time before entering into a funding agreement with the Secretariat.

Case Demonstration

Mr. A runs a logistics and transportation company that focuses on arranging deliveries to various locations (e.g. supermarkets, grocery stores, etc.) for customers. His company, which is legally registered in Hong Kong and is engaged in logistics and transportation, is eligible to apply for the Pilot Subsidy Scheme for Third-party Logistics Service Providers.

Challenges：

In the past, Mr. A's transportation fleet mainly relied on communication software, which led to chaotic work arrangements, inability to effectively organize daily delivery status and reports, and frequent problems of missing and wrong deliveries.

Solution:

Mr. A decided to purchase Eastop ERP system and use it with the mobile app (Driver Apps). The ERP system will be integrated with Mr. A's existing order management system to achieve the following functions:

• Order Management：Automatically collect daily delivery orders
• Drivers Coordination: Drivers receive and confirm orders and arrange deliveries through the app
• GPS Tracking: After the delivery is completed, the system automatically records the GPS data to ensure that the delivery record is transparent and traceable

This approach will significantly reduce workload and human error, improving overall operational efficiency.

Apply for funding:

Total value of the system: HK$ 800,000

Estimated total government funding: HK$ 800,000 * 75% = HK$ 600,000

Estimated government funding for the first phase: HK$ 600,000 * 75% = HK$ 450,000

Estimated government funding balance: HK$ 600,000 * 25% = HK$ 150,000

If necessary, please feel free to inquire with our company!