Coronavirus: Hong Kong’s finance chief warns economy will contract in first quarter amid fifth wave of infections
- Paul Chan says growth depends on effectiveness of anti-epidemic efforts and more measures will soon be rolled out to help businesses
- ‘Assisting SMEs is the key to securing the strength and resilience of the economy, and more importantly, to help secure employment,’ Chan says
Hong Kong’s finance chief has warned the city’s economy will contract in the first quarter of the year and unemployment will continue to rise amid a fifth wave of coronavirus infections, adding that fresh initiatives will soon be rolled out to assist businesses struggling under the outbreak.
“Hong Kong’s economy will inevitably fall into negative growth in the first quarter of the year, with the unemployment rate further deteriorating rapidly,” he wrote. “Assisting SMEs is the key to securing the strength and resilience of the economy, and more importantly, to help secure employment.”
Chan added that SMEs accounted for 98 per cent of the total number of enterprises in the city and they employed about 45 per cent of the labour force in the private sector.
A rent deferral scheme allowing SMEs to delay payments for three months will be introduced to the Legislative Council on Wednesday for its first reading. Chan said authorities would make every effort to cooperate with lawmakers and that he hoped the legislation could be implemented as soon as possible.
The law will prevent landlords from terminating commercial tenancies, cutting services or taking legal action against businesses in vulnerable sectors for failing to pay their rent on time.
