Vital answer to economic crisis

In his latest blog update, Financial Secretary Paul Chan Mo-po mentions the answer to our economic crisis that is expected to slap Hong Kong with a budget deficit of more than HK$100 billion at the end of the current financial year.

If his gloomy forecast turns out to be correct, this would be the city's second highest deficit on record.

The financial secretary may be trying to manage the public expectation early. Yet, it is also unfortunate enough for him to see both records occur during his term as the keeper overseeing Hong Kong's financial health.

Although the blame should not be laid entirely on him in view of the unprecedented Covid crisis that has affected our way of life for over two and a half years, double record-deficits are not a joy to anyone at the helm at all.

Chan may like to have led Hong Kong to achieve new highs economically rather than seeing it being upended by Covid and the city's regional competitor Singapore.

It is so right for him to emphasize on his blog that the answer to Hong Kong's current plight lies in the resumption of cross-border travels that are swift and convenient.

Probably out of caution or a sense of political correctness, Chan said that if Hong Kong's economy is to improve, it would have to bring the pandemic under "greater control." In other words, the local pandemic situation is not satisfactorily under control yet.

Does this level of caution accurately reflect the current situation?

Despite government officials' insistence that more elderly and very young children must be vaccinated, they cannot deny the fact that Hong Kong has already achieved one of the highest overall vaccination rates in the world with a large number of its residents having recovered from infection.

Yesterday, the number of new infection cases continued its fall to just above 7,300 cases, which was a positive sign. It is common sense that while the daily count is expected to continue to fall, it won't lower to zero.

It is a pity that nobody in the government - including Chan - has been able to define what being satisfactorily under control is for cross-border travel to resume.

Nonetheless, I cannot agree with him more that the vital answer to Hong Kong's current economic crisis lies in the resumption of "convenient" travel at borders.

It is hoped that when the financial secretary updates his Sunday blog the next time, he would be in a position to tell us clearly when the government would at least begin the "zero + seven" arrangement - zero hotel quarantine plus seven days of closely monitored movement - that for international travelers remained a rumor yesterday.

When financial prudence is most needed in face of huge deficits, it is also essential to create an environment friendly to new investment.

Singapore is quickly setting an example for us in this respect. After reopening its borders to normal travel, the city-state has not only drawn a number of financial talents from Hong Kong but also the Standard Chartered marathon.