His remarks came after the government said it had received more than 20,000 applications for the subsidy that aims to assist employers to adapt to the policy change and processed more than 16,000 of them.
Speaking on an RTHK programme on Friday, Lam, who chairs the Federation of Hong Kong and Kowloon Labour Unions, said the number of applications was lower than expected.
“Some employers may not be aware of the scheme,” he said.
“Even if they are, they may not know the application procedure and just skip it thinking it only involves a small amount of money.
“I hope the government can enhance its promotion to small and medium enterprises.
“Since the government has reserved HK$33.2 billion for subsidies over 25 years – and only disbursed HK$40 million so far – I think this resource should be used to support SMEs.”
Lam also said many of the applications had been lodged by employers in the construction and catering sectors.