12-step plan to help firms, save jobs

Twelve measures worth HK$18.3 billion will support businesses and safeguard jobs amid the coronavirus outbreak.

Among the measures is introducing a concessionarylow-interestloan of up to HK$2 million, with 100 percent government guarantee for small and medium-sized enterprises.

The repayment period is up to three years or interest-only for the first six months.

About 141,000 firms will also get a 100 percent reduction in profits tax for 2019-20, subject to a ceiling of HK$20,000.

Business registration fees for 1.5 million business operators and two years of registration fees for 1.4 million companies will be waived.

In addition, rates fornon-domesticproperties will be waived for 2020-21,subject to a HK$5,000 ceiling for each of the first two quarters and a ceiling of HK$1,500 for each of the remaining two quarters.

Non-domestic electricity accounts will be provided with a subsidy to cover 75 percent of monthly charges for four extra months with a ceiling of HK$5,000.

And 75 percent of water and sewage charges payable bynon-domestichouseholds will be waived for four extra months, subject to a monthly cap of HK$20,000 and HK$12,500, respectively.

Local recycling firms will see a rental subsidy for six months, costing HK$100 million, and tenants of government properties, land and EcoPark will see a rental reduction of 50 percent for another six months.

Cruise lines and existing tenants of the Kai Take Cruise Terminal will be offered another six months of fees and rent reduction.

"I hope that they will not only help support our enterprises but also safeguard jobs for more than three million workers," said Paul Chan. "I appeal to all employers and employees to stand together to ride out the difficult times."

The Tourism Board will receive more than HK$700 million to step up promotion and revive the industry after the Covid-19 outbreak. Board chairman Pang Yiu-kai thanked the government for the additional funds.

The board will launch a global brand promotion to rebuild Hong Kong's tourism image, strengthen support for business opportunities, restore customer base and promote the Convention and Exhibition Centre as well as cruise tourism, event tourism and theme tourism. The Trade Development Council will also receive HK$150 million to promote the city through means such as setting up a Hong Kong pavilion, design gallery or pop-up shops in overseas cities.

Hong Kong General Chamber of Commerce chairman Aron Harilela said the chamber is pleased that the government had accepted its calls to roll out measures to ease cash flow and stimulate the economy.

"This should provide businesses much-needed short-term relief and help stave off redundancies for the near term," Harilela said.

cissy.so@singtaonewscorp.com