A Step-by-Step Guide for Singapore SMEs to Expand into Hong Kong with the Market Readiness Assistance (MRA) Grant
Hong Kong remains one of Asia’s most dynamic, sophisticated, and strategically positioned markets. As a global financial centre and a major retail hub, it offers Singapore SMEs an ideal platform to build regional brand awareness, access high-income consumers, and test expansion strategies before moving deeper into Mainland China or the Greater Bay Area.
However, despite its open economy, Hong Kong’s highly competitive landscape and distinct cultural expectations require a well-planned entry. With the support of Enterprise Singapore’s Market Readiness Assistance (MRA) Grant, SMEs can reduce their cost of entry and launch with confidence.
This article explores how Singapore SMEs can tap into the Hong Kong market and how the MRA Grant can be used to build, market, and sustain your entry strategy.
1. Why Expand into Hong Kong?
a. Strategic Gateway to Greater China
Hong Kong’s proximity and strong connectivity to Mainland China, especially through the Greater Bay Area (which includes Shenzhen, Guangzhou, and Macau), makes it an ideal launchpad for regional expansion.
b. High-Income, Urban Consumer Base
Hong Kong has one of the highest GDPs per capita in Asia. Its urban population is well-educated, digitally connected, and accustomed to high-quality products and services.
c. Favourable Business Environment
Hong Kong ranks among the world’s most business-friendly economies. With minimal bureaucracy, low taxes, and a rule-of-law-based system, it’s a preferred destination for foreign business setups.
d. English as an Official Language
English is widely used in business, contracts, and public communications—making it easier for Singapore companies to enter the market without language barriers.
2. Sectors with High Growth Potential for Singapore SMEs
Singapore brands are well-regarded in Hong Kong for their quality, design, and innovation. The following sectors offer strong entry opportunities:
a. Food & Beverage (F&B)
- Hong Kong consumers actively seek unique flavours, premium ingredients, and health-conscious products
- Singapore F&B brands enjoy credibility and are often associated with trust and hygiene
b. Education and Professional Training
- Demand is growing for STEM, language, and professional development courses
- Singapore’s educational framework is well-respected, creating opportunities for enrichment brands and platforms
c. Health, Beauty & Wellness
- Hong Kong consumers are highly brand-aware, especially in skincare, cosmetics, and supplements
- A strong preference exists for clinically tested, clean-label, or anti-ageing products
d. Technology and B2B Services
- As a regional HQ hub, Hong Kong has strong demand for cloud solutions, cybersecurity, SaaS tools, and corporate services
- Singapore tech firms can offer efficiency-focused services tailored for SMEs or financial institutions
3. Navigating the Hong Kong Business Landscape
Though open, Hong Kong is a highly competitive and brand-conscious market. SMEs must be ready to localise their approach and deliver strong first impressions.
a. Business Registration and Incorporation
- Setting up a company is straightforward with the Companies Registry
- Most Singapore SMEs choose to register as private limited companies in Hong Kong
b. Customs and Licensing
- Hong Kong is a free port with minimal customs duties, but certain products like health supplements, cosmetics, and F&B items may require registration or testing
- SMEs should check with the Centre for Food Safety or Department of Health where applicable
c. Retail and Channel Access
- Physical retail remains strong in shopping districts like Causeway Bay, Central, and Tsim Sha Tsui
- E-commerce is rapidly growing, especially via platforms like HKTVmall, Amazon HK, and local Instagram shops
4. Localising Your Offer for Hong Kong Consumers
a. Language and Messaging
- While English is accepted, Cantonese is the primary spoken language
- Localisation of product packaging, websites, and marketing materials into Traditional Chinese (not Simplified Chinese) is essential for consumer resonance
b. Brand Positioning
- Hong Kong shoppers value international prestige, product safety, and peer reviews
- Highlight your Singapore origin, quality certifications, and unique selling propositions
c. Pricing Strategy
- While Hong Kong has high spending power, consumers still seek value
- Consider launching promotional bundles, VIP offers, or loyalty programs for new customers
d. Customer Experience
- Fast, responsive, and personalised service is expected
- Support channels via WhatsApp, WeChat, or live chat can enhance engagement
5. Effective Marketing Channels in Hong Kong
To build brand awareness and conversion in Hong Kong, digital marketing and community engagement are essential.
a. Instagram and Facebook
- Widely used for product discovery, lifestyle inspiration, and social shopping
- Sponsored posts and local influencer tie-ups perform well
b. YouTube and Video Marketing
- Hongkongers consume product demos, testimonials, and brand stories on YouTube
- Collaborate with vloggers and creators for reach
c. WeChat and WhatsApp
- Especially for B2B, service-based, or F&B businesses with Mainland Chinese clientele
- WeChat is critical for any cross-border commerce or China-linked promotions
d. HKTVmall and E-Commerce Ads
- If listed on platforms like HKTVmall or Ztore, run on-platform ads and flash sale promotions
- A seamless online-to-offline experience is key to capturing omnichannel buyers
6. How the MRA Grant Helps Fund Hong Kong Market Expansion
The Market Readiness Assistance (MRA) Grant by Enterprise Singapore subsidises up to 50% of eligible third-party costs, capped at S$100,000 per company per market per fiscal year.
a. Overseas Market Promotion
Eligible marketing expenses include:
- Digital ad campaigns on Facebook, Google, and Instagram targeting Hong Kong audiences
- Influencer marketing and KOL collaboration in Hong Kong
- Public relations (PR), content creation, and local website development
- Translation of promotional materials and packaging into Traditional Chinese
b. Overseas Business Development
This helps Singapore SMEs build in-market connections and insights:
- Business matching with Hong Kong-based distributors, partners, or franchisees
- Market entry feasibility studies
- Engaging consultants or agencies to assess demand, competition, and pricing
- Trade show participation or business mission travel to Hong Kong
c. Overseas Market Setup
The grant covers the following:
- Incorporation and legal registration in Hong Kong
- Trademark registration with the Intellectual Property Department
- Rental of temporary retail, office, or pop-up space for market testing
- Product licensing and certification fees, if applicable
7. Eligibility Criteria for the MRA Grant
To be eligible for the MRA Grant for Hong Kong expansion:
- Your business must be registered and incorporated in Singapore
- Must have at least 30% local shareholding
- Have a group annual turnover of not more than S$100 million, or fewer than 200 employees
- Must be new to the Hong Kong market, meaning no prior paid transactions or entity
Note: Only Enterprise Singapore-approved vendors may be used, and all expenses are reimbursed after project completion with the required documentation.
8. Best Practices for Entering the Hong Kong Market
a. Pilot with a Limited Product Range
Start with a curated selection of your top-performing SKUs to test local demand and logistics.
b. Partner with Local Influencers
Authentic product reviews from local micro-influencers help build trust, especially in the beauty, wellness, and F&B categories.
c. Invest in Professional Localisation
Use experienced translators and native content creators for your Traditional Chinese copy and visuals.
d. Offer Omnichannel Convenience
Customers may browse on Instagram, buy via HKTVmall, and expect same-day delivery—ensure you’re ready to meet these expectations.
9. Why Work with a Grant Consultant?
Hong Kong may be business-friendly, but applying for the MRA Grant and managing a market entry project can be complex. A grant consultant helps by:
- Reviewing your business model and matching it with grant criteria
- Recommending pre-approved vendors for digital marketing, setup, and localisation
- Assisting with Business Grants Portal (BGP) application and compliance
- Helping manage post-project claim documentation to ensure timely reimbursements
- Maximising your grant potential while reducing administrative burden
Final Thoughts: Let Hong Kong Be Your Brand’s Regional Launchpad
Hong Kong offers an exciting opportunity for Singapore SMEs ready to take on a high-income, fast-moving, and globally connected market. Its blend of Eastern and Western consumer behaviours, strong digital infrastructure, and financial openness make it a unique stepping stone for regional growth.
With the right strategy—and the financial support of the Market Readiness Assistance (MRA) Grant—your brand can enter, test, and scale effectively without taking on disproportionate risk. Whether you’re in F&B, tech, beauty, or education, Hong Kong can be the beginning of your greater Asia-Pacific success story.