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Budget Address 2021: Effects of unemployment loan in doubt
- 2021-02-24
- Business
- The Young Reporter
- By: Zhu Zijin Cora 朱子槿、Yoyo Kwok Chiu TungEdited by: Zhou Yichen Gloria 周奕辰
- 2021-02-24
Hong Kong's Financial Secretary Paul Chan Mo-po said on Wednesday unemployed citizens can apply for government-backed low interest personal loans of up to HK$80,000 but citizens cast doubt on its effectiveness because some fear that they cannot repay the loan. The one-off loan at an interest rate of 1% per annum is part of the government’s relief measures announced by the Financial Secretary in his budget speech amid the city’s unemployment rate hitting a 17-year high of 7% in January, with more than 250,000 people unemployed. “The labour market deteriorated sharply,” said Mr Chan in the speech. “This prolonged economic downturn has plunged some people into financial difficulties.” As an extra financing option for the unemployed, eligible individuals can pay interest only in the first year, and then repay the principal plus interest within the next five years. People who repay on time will get the interest back at the end. “I think the budget is reasonable and fair, especially in giving low interest rate loans to the unemployed,” said Teresa Tong, 65, former Partner at Ernst & Young Hong Kong. “ It’s a new idea for this year and it’s pretty innovative. It’s the right way to support the poor and unemployed rather than just offer them money.” “But some people are reluctant to borrow from the government”, said Kwok Man-ho, district councillor Tin Shui Wai. He has received comments from about a dozen of residents and none of them planned to apply for the loan as they were not sure if they were able to repay later. Besides, Mr Kwok also said the amount of the loan was too small, especially for people who were not living in public housing. “Since the unemployed have no idea when they can find jobs, most of them prefer direct unemployment grants …
Budget Address 2021: Deficit hits record high Forecasts economy return to growth this year
- 2021-02-24
- Business
- The Young Reporter
- By: Zhou Yichen Gloria 周奕辰、Vikki Cai ChuchuEdited by: Zhu Zijin Cora 朱子槿
- 2021-02-24
Hong Kong government's fiscal deficit would hit a record of HK$257.6 billion this financial year, Financial Secretary Paul Chan Mo-po said in his budget speech on Wednesday. The deficit was expected to narrow a bit to HK$101.6 billion in 2021/22, accounting for 3.6% of GDP as a series of supporting measures and the continued increase in recurrent expenditure. Mr Chan also forecasted the city's economy would return to growth of between 3.5% to 5.5% this year, due to an expected recovery in the global economy and the effect of local stimulus measures. The Financial Secretary delivered his budget speech at a Legislative Council meeting today with a focus on “stabilising the economy and relieving people's burden”. He said the economy would still face significant challenges in the first half of the year, but "economic recovery will likely gain a stronger momentum in the second half of the year in tandem with an expected rebound in the global economy." However, he also said, “With the epidemic still lingering, our economy is yet to come out of recession.” “As the social distancing restrictions are relaxed and more people are vaccinated, confidence among investors and citizens will increase, and there will be corresponding economic activities to help the economy recover,” said Billy Mak, associate professor from the Department of Finance and Decision Sciences of Hong Kong Baptist University. “But the recovery process may take three or four years, and the economy this year will still be difficult.” Mr Chan also alerted that Hong Kong would record a deficit for a number of years after achieving a surplus for 15 years. Despite this, the government still decided not to cut spending that affects people's livelihood, especially resources for education, social welfare and healthcare, in order to protect people's livelihood and maintain public confidence. By …
Budget Address 2021: Initiative to achieve carbon neutrality and funding for recycling welcomed by NGO
- 2021-02-24
- Health & Environment
- The Young Reporter
- By: CHEN Bingyi、LAMA Sumnima RaniEdited by: GOH Kylan
- 2021-02-24
The Hong Kong government will allocate additional funding for green projects in the new budget proposal announced this morning to help the city meet its carbon neutrality target by 2050. A billion dollars has been injected into funding more than 80 projects that aim to install small-scale renewable energy systems, like solar panels and solar water heaters at government buildings. The Recycling Fund will also receive $1 billion for individual local recycling enterprises aimed to enhance and expand their recycling operations in Hong Kong and non-profit-distributing organisations to undertake non-profit making projects. The city has been widely criticized for its lack of effort in recycling and waste management. “The fund is very important to help local traditional recycling companies to transform into a more workable and sustainable model,” said Lo Kiu-fung, the Project Manager of Designing Hong Kong, a local environmental NGO. NGOs can also benefit from $150 million, a separate fund set aside so the government can help install energy-saving appliances and conduct energy audits for free. The scheme is expected to benefit more than a thousand businesses, said Mr Chan. “The application period for recycling funds will be extended to 2027 so as to render continuous support to the trade, particularly the SMEs, in enhancing its operational capabilities and efficiency as well as coping with the latest needs of both the local and non-local markets,” said Financial Secretary, Paul Chan Mo-po. Mr. Lo describes the city's waste disposal situation as very urgent. “We are behind a lot of Asian cities, and people are producing more and more waste,” he said. Hong Kong's major environmental concern is air pollution and waste management, according to the Environmental Protection Department. The city is facing a landfill shortage. The total amount of solid waste disposed of in Hong Kong's landfills in 2019 was …
Budget Address 2021: No cash handout amid recession; $5,000 e-vouchers for eligible residents
- 2021-02-24
- Society
- The Young Reporter
- By: TUNG Yi Wun、Bowie TseEdited by: Sara Cheng
- 2021-02-24
Financial Secretary Paul Chan Mo-po announced in his budget speech Wednesday there will be no cash handout for this financial year. But electronic vouchers of HK$5,000 will be issued in instalments to each Hong Kong permanent resident and new arrival aged 18 or above to encourage local consumption. The measure, which involves about HK$36 billion, is expected to benefit more than 7.2 million people, Mr Chan said. The government has not said yet where the vouchers can be spent or how they will be given out. “The HK$5,000 e-voucher cannot tackle the current situation and provides limited support to citizens who have been struggling throughout the pandemic,” said Owan Li, Tai Kok Tsui North district councilor. The numbers have been grim. Under the global sweep of the coronavirus, Hong Kong’s economy has shrunk by 6.1% for two consecutive years, hitting the highest annual decline on record. The unemployment rate surged to 7% in the fourth quarter of 2020, reaching a 17-year high. Tourism-related sectors are hard hit as they reached the highest jobless rate since SARS in 2003. Retail, accommodation and food services sectors have suffered a surge in the unemployment rate to 11.3%. Tourism sectors have frozen with extensive global travel restrictions, and the export travel service plummeted by 90.5% “I actually agree with the government decision to not launch another cash handout since it has not been effective,” said Angus Chan, an employee dismissed from the InterContinental Hotel during the pandemic and now works in the Rosewood Hotel. He has one to two no-pay leave days per week at the new job, and some of his shifts are cut, he said. As the world continues to restrict travel, the hospitality industry is uncertain about when it will recuperate from the pandemic. Small and medium enterprises are hoping the …
Budget Address 2021: Hong Kong sees 2021 positive GDP growth at 3.5% - 5.5%
- 2021-02-24
- Business
- The Young Reporter
- By: Zhu Zijin Cora 朱子槿、Zhou Yichen Gloria 周奕辰Edited by: Alison Leung
- 2021-02-24
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.
LIVE: Hong Kong Budget Address 2021-22
- 2021-02-24
- The Young Reporter
- By: Shameel Ibrahim、Jasmine TseEdited by: Simran Vaswani
- 2021-02-24
Introduction This year's Budget Address comes after the city suffered an economic shrinkage of 6.1% in 2020 due to the coronavirus pandemic. Financial Secretary Paul Chan Mo-po is expected to forecast an economic growth from 3.5% to 5.5%. Mr Chan will deliver the Budget Address today (Wednesday) at 11am. His speech will include supporting enterprises and employment, reviving the economy, focusing on land and housing among other things. 12:53pm This concludes the live coverage of Hong Kong Budget Address 2021. Stay tuned for more in-depth coverage on our website and social media platforms. 12:52pm The govt’s revised estimate on its revenue is $543.5 billion, lower than the estimates by 5.1% or $29 billion, mainly due to the lower land premium. #BudgetAddress2021 @hkbutyr — Shameel Ibrahim (@shameel_ibrahim) February 24, 2021 HK govt revenue for 2020-21 was lower than estimated (by $29 billion) while govt expenditure was higher than estimated (by $89.3 billion) @hkbutyr #budgetaddress2021 — Jasmine Tse (@jasmineytse) February 24, 2021 12:48pm The govt will not revise rates of profits tax and salaries tax, two of the major sources of revenue for the govt, due to financial woes by the public as well as businesses. #BudgetAddress2021@hkbutyr — Shameel Ibrahim (@shameel_ibrahim) February 24, 2021 12:46pm “This is not the time to introduce new taxes,” said Financial Secretary Chan @hkbutyr #budgetaddress2021 — Jasmine Tse (@jasmineytse) February 24, 2021 12:42pm Govt spending on livelihood, policy areas of education, social welfare and health care will not be reduced, said Paul Chan.#BudgetAddress2021 @hkbutyr — Shameel Ibrahim (@shameel_ibrahim) February 24, 2021 12:38pm He added that the city will record a deficit for a number of years after achieving a surplus for 15 years. #BudgetAddress2021 @hkbutyr — Shameel Ibrahim (@shameel_ibrahim) February 24, 2021 “I expect that the fiscal deficit will be $101.6 billion, accounting for 3.6 per …
More than 60,000 sign up for Sinovac jabs
- 2021-02-23
- Health & Environment
- The Young Reporter
- By: POON Hiu LamEdited by: LAMA Sumnima Rani
- 2021-02-23
Online registration for Hong Kong’s first round of Covid vaccination began at midnight last night. But the waiting time exceeded 50 minutes soon after the start. By morning, the waiting time was still about 30 minutes. Some of those who tried to sign up complained that they encountered up to 521 errors on the website. Secretary for Innovation and Technology, Alfred Sit Wing-hang said in an interview on RTHK that the demand exceeded the capacity of the government’s registration system, but the glitch was fixed within an hour. By noon, at least 60,000 people had signed up. To register, the system will first ask for an identity card number. The first inoculation is available from 26 February, followed by a second jab 28 days later. Registrants can choose between five Community Vaccination Centres and 18 general out-patient clinics under the Hospital Authority. But by noon, most of the slots had been taken. The earliest available slots are not till the end of next week. Five priority groups can make appointments online to get the vaccine. They include healthcare staff, persons aged 60 years or above, staff of residential care homes, essential public service workers, and personnel involved in cross border transportation. Reservations can be made at www.covidvaccine.gov.hk.Elderly people may bring up to two carers to receive the vaccine at the same time. Only the Sinovac vaccine will be available for the first round. Private clinics participating in the inoculation programme are expected to start providing the jabs by mid-March. On Feb 22 Monday, Hong Kong‘s leader Carrie Lam was the first person to receive China’s Sinovac Covid-19 vaccine in a bid to improve public confidence in the mainland-developed vaccine. The Executive Council on Tuesday passed that starting from Wednesday, social gathering restrictions will be relaxed to allow up to four …
Peaceful protests and strike sweep Myanmar despite deadly police violence
- 2021-02-23
- Politics
- The Young Reporter
- By: Sara ChengEdited by: Jasmine Tse
- 2021-02-23
Protesters across Myanmar staged one of its largest anti-coup protests on Monday since the military overthrew democratically-elected Aung San Suu Kyi's government and arrested members of the National League for Democracy three weeks ago. In Mandalay, the country’s second-largest city where two protesters were shot dead on Saturday, hundreds of thousands rallied peacefully, among them medical workers, lawyers, engineers, monks and grocery shop keepers, said Aung San Thein, 22, a Mandalay protester in a phone interview. Mr Thein went into exile with his family as a child due to political prosecution. He returned home after the National League for Democracy won a landslide victory in the 2015 election. "We’re not taking any violent action,” Mr Thein said. Demonstrators gathered in front of the central railroad station, passed boiled eggs and snacks to one another and listened to speeches, he said, adding all the shops he saw were closed. "Protesters at the front shouted: ‘What do we want,’ and the crowd behind chanted: ‘We want democracy," he said. "Everything is in order. There is no chaos in the country that [the military] has to declare a national emergency. The only chaos that we are having right now is because of the military," Mr Thein said. "That's what we want to show." A one-year state of emergency has been imposed on Feb. 1 after the coup, during which the military chief Min Aung Hlaing will remain in power. The strike defied the junta’s warning on Sunday that protesters, who they blamed for “inciting emotional teenagers and youths,” could "suffer a loss of life." Three protesters have been killed by live bullets during clashes with police, including a 16-year-old boy and Mya Thwate Thwate Khaing, a 20-year-old who was shot in the head on Feb. 9 in the capital Nay Pyi Taw and …
A third of pupils back in classes after schools agree to COVID rules
- 2021-02-22
- Society
- The Young Reporter
- By: LAM Tsz YauEdited by: Editor
- 2021-02-22
Students from about 2000 schools can now resume half-day classes while schools can have a full half-day resumption if all members of staff have the COVID-19 test every 2 weeks. But The Professional Teachers Union doubts if the frequent testing is needed for teachers.
Mosques in the city reopen following relaxation of Covid-19 social distancing measures
- 2021-02-20
- Society
- The Young Reporter
- By: Shameel IbrahimEdited by: Simran Vaswani
- 2021-02-20
Hong Kong’s mosques opened on Feb 19 for prayers after being shut for almost three months. Members of the Muslim community flocked to the mosque following the announcement from the Incorporated Trustees of the Islamic Community Fund of Hong Kong - the official body representing the city's Muslims. All five official mosques are open to conduct prayers with social distancing measures in place. The city's mosques have been closed since December intermittently every two weeks which were put in place to combat the fourth coronavirus wave. “It was a sense of relief, a sense of joy,” said Adeel Malik, chairman of the Muslim Council of Hong Kong. He added that many Muslims were longing for the mosques to open, but also noted that the government implemented strict measures for the larger good of the community. The opening of the mosques coincided with the weekly Friday prayers, which is an important day of the week for the Islamic faith. Religious sermons are held during Fridays on issues in both the Muslim and wider communities in Hong Kong. One of the weekly sermon topics were "Lessons from Lockdown", where Mufti Muhammad Arshad, the chief Imam of the Kowloon Mosque and Islamic Centre urged the community to unite against the pandemic regardless of race or religion. Muslims came to the city as sailors in 1829, working for the British-owned Jardine Matheson, a shipping company. By the 1850s, the growing Muslim community led to the formation of the Incorporated Trustees of the Islamic Community Fund, which became the official representative body for Muslims in Hong Kong.