Business chamber called upon another round of wage subsidy

Hong Kong General Chamber of Commerce chief executive George Leung Siu-kay called upon the government to launch another tranche of Employment Support Scheme, saying more companies need help than those ordered to close during the fourth wave.

Damages inflicted upon companies during the Covid-19 pandemic is much more serious than during the SARS outbreak in 2003, he said on a radio program this morning.

More small and medium enterprises will be struggling by Lunar New Year, and will not be easy for them to start anew after running out of cash, Leung said.

He welcomed the government of launching the fourth round of anti-epidemic fund, but he also hoped the government can offer one more batch of wage subsidy as many SMEs are not scheduled premises but their businesses have also dropped significantly as there were fewer people on streets.

He believed another round of wage subsidy would cost about HK$20 billion to HK$30 billion, but the government can offer the subsidy conditionally depending on the turnover of the enterprises, in order to reduce waste of government resources.

Financial Secretary Paul Chan Mo-po said the government will continue fiscal policy to boost economy as the public consultation on 2021-22 Budget started today.

"From the middle of last year until now, Hong Kong has been hit consecutively by social incidents and the Covid-19 epidemic. The economy has plunged into a deep recession. The overall economy, different industries and the general public have been under immense pressure,” Chan said.

“When preparing the 2021-22 Budget, I will maintain countercyclical fiscal policy to ease the pressure of the economic downturn on the public, various industries and businesses, and to protect the economy. At the same time, I will focus on the future and get prepared for reviving our economy and promoting development after the epidemic,” he said.