Mouthing Off | Why McDonald’s, KFC and supermarkets will be the real winners from Hong Kong government’s HK$5,000 consumption voucher scheme
- Hongkongers will use the windfall to buy daily necessities at Wellcome and ParknShop supermarkets, rather than family-run retailers and wet market stall owners
- The other major winner of the handout will be fast food outlets – you won’t see Michelin-starred restaurants accepting an Octopus card for payment
Finally, the Hong Kong government has rolled out its consumption voucher scheme. I had assumed the giveaway, announced in February, would have occurred much sooner, because wasn’t the whole point to boost the pandemic-hit economy?
While we’re not completely out of the woods on Covid-19, it would appear the worst is over. There have been no local outbreaks for months, vaccinations are slowly increasing thanks to incentives that include lucky draws, and normal activities – such as dining out and going to bars – are resuming even if some restrictions are still in place.
The need for a financial injection is less severe, so this giveaway feels more like a token reward for surviving hard times, like a glass of water for someone who’s finally crossed the Sahara, even though the liquid might have been more useful while severely dehydrated in a sand dune under the blazing sun.
Anyway, it’s better than nothing. The goal is to prop up the whole market. That’s why “spending together, boosting the economy” is the slogan. Government materials have stressed it’s about encouraging activity for “local retail, service and catering”.
Dividing the HK$5,000 (US$643) into two or three payments through various e-payment options means the little bit of extra cash is parcelled into even smaller amounts, enough for petty cash use, really. Even with a single lump sum of the full amount, it’s not much to really splurge on anything significant – like a car, home furnishings or even an upgraded computer. HK$5,000 barely buys a new phone nowadays.
I reckon most folks will just spend most of the handout at supermarkets. My guess is a lot of families will be stocking up on daily necessities. Instant noodles, canned goods, Coke and toilet paper will be in high demand. Middle-class households might indulge a bit more on frozen Hokkaido scallops, extra tubs of Haagen-Dazs ice cream, and maybe some wagyu beef for stir-frying.
