Opinion | Why Carrie Lam’s coronavirus relief package is friendlier to businesses than jobless Hongkongers

With the novel coronavirus outbreak sweeping across the West since March, Hong Kong has seen a second wave of the epidemic. There are now more than 1,000 confirmed cases, after imported infections surged dramatically in March. To contain the virus, the Hong Kong government has imposed measures.

Besides giving quarantine orders to almost all arrivals, the government has also banned public gatherings of more than four people, and temporarily closed fitness centres, bars and other entertainment venues. Even the businesses that are still open – for example, restaurants – have been impacted because they are operating at limited capacity. Some establishments have closed down. Social distancing is an effective measure, but at a huge economic cost.

Hong Kong’s economy has already been going downhill since last year, from the double impact of the anti-extradition bill protests and the trade war between the United States and China. Across the world now, most economies are reeling from the coronavirus fallout. Internationally, the impact of Covid-19 has definitely surpassed that of the severe acute respiratory syndrome outbreak in 2003.

Delivering his budget in February, Hong Kong’s Financial Secretary Paul Chan Mo-po unveiled a relief package of HK$120 billion (US$15 billion) to support local businesses facing hardship. The package includes a cash handout of HK$10,000 for every adult resident; however, this is less than enough and has yet to be paid out.

As much economic activity has been put on hold, many employees are either being let go or taking big pay cuts. Hong Kong has had no choice but to follow in the footsteps of many countries passing coronavirus relief packages. Last week, the government announced another relief package, this time of HK$137.5 billion.

Under most circumstances, relief packages are exercises in good intentions. However, Chief Executive Carrie Lam Cheng Yuet-ngor seems to have another agenda. Study the details of the relief measures, and Lam’s political purpose becomes obvious. Her intention is not to help the little people, but to use public money to the benefit of the pro-establishment camp, with an eye on the upcoming Legislative Council election.