Business

Hong Kong's Financial Secretary Paul Chan Mo-po said in his budget speech on Wednesday that the city’s economy is expected to return to positive growth this year after experiencing two consecutive years of recession. Hong Kong's economy will face significant challenges in the first half amid COVID-19 while the economy is expected to recover in the second half on a rebound in the global economy, Chan said. He forecasts the economy to grow by 3.5-5.5% in real-term this year on back of the stimulus effect of the fiscal measures. But Chan also said, "The progress of economic recovery will hinge on the development of the epidemic." From 2022 to 2025, he expected the city's economy will grow by an average of 3.3% per annum in real terms, with the underlying inflation rate forecasted to average 2%.    The Financial Secretary expected the government to post a budget deficit of HK$101.6 billion in 2021/22, accounting for 3.6% of GDP due to the relief measures and the continued increase in recurrent expenditure. The government also announced several one-off measures including cutting personal salaries tax and personal assessment tax by 100% with a ceiling of HK$10,000. Enterprises will also be eligible for 100% reduced profits tax with a limit of HK$10,000. Unemployed citizens can apply for a government-backed personal loan capped at HK$80,000 at an interest of 1% per year, said Chan.  In addition, to stimulate domestic consumption, every Hong Kong permanent resident and new arrivals aged 18 or above will receive HK$5,000 electronic consumption vouchers, which will involve about 7.2 million people with a total of HK$36 billion.

On the final day of the Chinese New Year, workers from the catering industry headed to community testing centres to get tested for COVID-19. On Feb 10, Sophia Chan Siu-Chee, secretary for Food & Health said in a press conference that restaurants may be allowed to extend their business hours until 10 p.m starting Feb 18 after the Chinese New Year Holidays, if numbers of COVID-19 cases continue to go down.  In addition to extended operating hours, restaurants can allow four people to dine in per table restaurant staff test for covid every 14 days and the establishment must use the LeaveHomeSafe mobile application so customers can keep record of their visit.  All community test centers in Hong Kong have been fully booked on days prior to Feb 18th.  People wait outside Henry G Leong Yau Ma Tei Community Centre to get tested for Covid on the last day of Chinese New Year. “My manager told us all to get tested as soon as possible so we can go to work,” said Monica Rai, 28, waitress. She was at Henry G Leong Yau Ma Tei Community Centre with two other co-workers.   Regarding the LeaveHomeSafe app, MsRai said that her workplace does not enforce it on customers.  “It’s useless,” she said. “Customers walk right past the QR code and managers are also indifferent.”  Restaurants that do not comply with the new regulations will have to shut down for 14 days and the restaurant license owners may be fined a maximum amount of HK$50,000 and face imprisonment for  six months.