Full recovery hinges on 'quarantine-free travel to mainland'

James Lee

Quarantine-free travel between Hong Kong and the mainland must be set up before the city can make a full economic recovery, says George Leung Siu-kay, chief executive of Hong Kong General Chamber of Commerce.

Leung said on a radio program that the business and finance sector is ready to hold events.

His remarks came amid calls from political heavyweights and the retail sector for the government to lift remaining Covid curbs for arrivals, a week after authorities rolled out a "0+3" policy that eliminated hotel quarantine for inbound travelers, who are subjected to three days of medical surveillance.

"Hopefully, we are going to see '0+0' policy very soon so that we can have a more noticeable rebound early next year," Leung said.

A "0+0" policy alone is not enough to bring about a full economic recovery, he said, noting that if it is implemented this month or next it might not yield concrete results until the first quarter.

"As long as the city does not implement quarantine-free travel with the mainland, we will not be able to meet the prerequisites for a full economic recovery," Leung said.

He said the chamber had conducted a members' survey which showed that about 30 percent of large enterprises moved out of Hong Kong or had considered doing so. About 10 percent said they pulled out for good.

Considering the relaxed measures in neighboring countries such as Singapore, which is "neck and neck" in a race with Hong Kong, Leung said companies may not return to the city for business any time soon.

He said the government must recognize the severity of the brain drain, which "could lead" to a major economic crisis.

Leung urged the government to propose reforms to talent policies in Chief Executive John Lee Ka-chiu's maiden policy address on October 19, including measures to relax residency requirements and provide housing allowances for foreign talents.

The city must reposition itself as there is an "anti-globalization" trend, he said, describing the situation as "a house with a leaky roof."

Leung added: "It has been impossible to communicate with the rest of the world under a brain-drain crisis and a pandemic-induced economic downturn, while the threat of war continues to loom."

Meanwhile, Tam Yiu-chung, a member of the Standing Committee of the National People's Congress, has quoted a "mainland friend" as saying that there is a chance the border-crossing measures will be relaxed following the 20th National Congress to be held from October 16.

Speaking on television, the pro-Beijing heavyweight said Hong Kong should gradually relax its border-control measures instead of tightening the rules one day and easing them the next. Although Hong Kong's curbs differ from China's zero-Covid strategy, Beijing respects the city's decision, Tam added.

cjames.lee@singtaonewscorp.com