COVID-19: How the HK Government Supports Local Business

The Hong Kong Government has opened up their coffers to the tune of HK$25 billions to help support both individuals and businesses during the COVID-19 outbreak. This relief package is in addition to Hong Kong’s swift containment of the outbreak, with electronic monitoring and home-quarantines.

The HK$25 billion will be shared amongst a range of interests, as well as initiatives to actively maintain the health of Hongkongers.

Chief Executive Carrie Lam said, “[The] Hong Kong government is putting every effort to fight this infection,” Lam said. “We will continue to work very hard based on our very good track record in our public health experience and expertise.”

One-Off Handouts for Affected Sectors

Sectors that are severely impacted by the COVID-19 crisis will receive one-off payments to help the companies survive until the virus is fully contained.

• Individual travel agencies and retailers can receive a one-off payment of HK$80,000.
• Restaurants will receive subsidies of between HK$80,000 and HK$200,000.
• HK$5,000 will go to licenced Hawkers.

Public Safety Through Hygiene

Hong Kong has recognised that no industry can survive and flourish without a healthy population. Therefore a portion of the response fund has been dedicated to subsidising private corporations to develop and manufacture reusable surgical masks.

There will also be HK$4.7 billion allocated to the Hospital Authority to obtain more personal protective gear (PPE) for hospital staff treating those affected by COVID-19.

240,0000 workers on construction sites will also receive upgraded PPE, while residential buildings will receive HK$26,000 each to help contain the contagion within their respective buildings through cleaning.

Extra Payments for Low-Income Individuals and Families

Greater funding will be provided for the more vulnerable individuals and groups in Hong Kong.

• Extra payments to low-income families averaging HK$5,000.
• Subsidies for students are to be increased from HK$2,500 to HK$3,500.
• Kindergartens will also receive an undisclosed sum.

Where to Next for Hong Kong Businesses

There is no doubt that these are difficult times for both individuals and businesses in Southeast Asia. It may very well be that you are searching for the right path to help ensure your business comes out the other side relatively unscathed.

HKCR’s team comprises qualified, experienced bankers, brokers and accountants who can help find a tailored solution for your individual needs.

If you have any questions about how your business can go forward, despite the Covid-19 crisis, please do contact us — it’s both our job and pleasure to assist.