The Chinese Manufacturers' Association of Hong Kong has urged the government to provide more fiscal and tax support for local enterprises, including extending the principal moratorium arrangements to allow companies to delay their loan payments for a longer time.

This was among an array of proposals it put forward to the administration on Thursday ahead of the financial budget next month.

The association’s president Wingco Lo said small and medium-sized companies are facing several challenges at the moment.

"Currently we are facing a couple of difficulties, like the pricing from the importer, and also the geopolitical pressure, and also the operating [costs]. We are suggesting the government have more support for the small and medium companies to promote local businesses," he said.

With Donald Trump set to return to the White House next week, Lo said more efforts are needed to diversify businesses to minimise the impact of possible tariffs and Sino-US tensions.

Lawmaker Jimmy Ng, and the association's executive committee member, said he wants to see more bilateral free trade agreements between the SAR and emerging economies.

"We should now focus more on the Asean countries and the Belt and Road countries. For a traditional market they are either not rich enough now or they are not very friendly to us. So the international market is no longer only the States and Europe. We should look for other business economies for a better future."