Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Speed HK$10,000 handout to boost local economy or Hongkongers will spend it on travel, former minister says

Distributing the handout before travel restrictions are lifted will encourage local spending, former finance minister Frederick Ma Si-hang says. Registrations for the scheme start at the end of June and payouts will begin from July

The Hong Kong government should pay the promised HK$10,000 (US$1,290) handout for each permanent resident in June so that the money is spent locally to boost the city’s sagging economy, a former minister said.

“Hong Kong people like travelling and if the HK$10,000 payout is made after border controls are relaxed, most of this money will be spent on hotels or spas in Japan or other travel hotspots in Europe,” said Frederick Ma Si-hang, former secretary for financial services and the treasury.

Registrations for the HK$71.1 billion cash handout should be brought forward to this month and payments should be made in June “as people will shop and dine in Hong Kong if they are unable to easily travel overseas,” he said in an interview with the South China Morning Post.

Ma was a Hong Kong minister from July 2002 to June 2007, and his term included a period when the city was struck by the severe acute respiratory syndrome (Sars) outbreak in 2003.

The cash incentive was the centrepiece of Financial Secretary Paul Chan Mo-po’s budget in February. It was aimed at easing the financial burden on Hongkongers and injecting new life into an economy ravaged by months of social unrest and the coronavirus outbreak. Under his timetable, registrations are not due until end-June, with disbursements only in July at the latest.

Ma said that according to protocol the government has to pass the budget in the Legislative Council before it can allow people to register for the handout, but he added that these are unusual times and the government can make an exception in this case to start the registrations earlier so that the payments can be processed quickly.

Ma’s call was supported by lawmakers and entrepreneurs who want the government to do more to support the economy, which contracted by a record 8.9 per cent year on year in the first quarter due to the Covid-19 pandemic and is expected to shrink by 4 per cent to 7 per cent for the full year.

The disease has infected more than 4.2 million people and killed nearly 300,000 worldwide. In Hong Kong, the virus has infected more than 1,000 people and claimed four lives. Many governments, including the US, UK, Japan and Hong Kong, have closed their borders and made it mandatory for overseas returnees to be quarantined for 14 days. The crisis has forced people to work from home and hit the tourism, hospitality and leisure industries hard.

“It’s a good suggestion calling upon the government to give the handout as soon as possible,” said Peter Shiu Ka-fai, a lawmaker representing the wholesale and retail sector. “The sooner the people get the payout, the faster they will spend, which will help retailers and restaurants that have suffered from the outbreak and protests.”

A government source, however, said it would be impossible to speed up the administration process, and that it will proceed according to the original schedule.



Mathieu Lahalle, who co-owns a western restaurant chain in Hong Kong, said that if the government could give the payout to residents earlier, it would encourage more local people to dine out and help struggling local businesses.

“If everybody spends more locally, the impact of the HK$71.1 billion handout will provide a huge boost to the local economy,” Ma said.

Ma said that once the Covid-19 situation improves and normal travel resumes, the government should repeat what it did in 2003 by inviting some superstars, such as pop star Lady Gaga or pianist Lang Lang, to host shows and concerts here to attract overseas tourists to Hong Kong.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×