HKSAR Economic Relief Measures
Hong Kong’s economy has been impacted by the Sino-US trade war, social unrest and, more recently, the COVID-19 pandemic. To assist enterprises to cope with the pressure brought about by the economic downturn and alleviate their burden, the HKSAR Government has announced various measures to support enterprises and safeguard jobs.
Find here more information about government funding and relief schemes.
On April 8th, the government announced an additional economic relief package of HK$137.5 billion (US$17.6 billion) to help individuals and industries affected by the COVID-19 outbreak. This takes to HK$287.5 billion (US$36.85 billion) - about 10% of GDP - the total pledged by the HKSAR Government to help offset the economic fallout from COVID-19 including the HK$120 billion relief package in the 2020-21 Budget and the HK$30 billion anti-epidemic fund.
The 2020-21 deficit will rise to HK$276.6 billion (9.5% of GDP) from the Budget forecast of HK$139.1 billion (4.8% of GDP).
The package covers four major areas
1. Job retention, job creation, job advancement
2. Sector specific relief
3. Government rental concessions, fee waivers, deferral of loans
4. Government facilitation in other areas
On job retention, the government will launch a HK$80 billion employment subsidy scheme
- All employers making MPF contributions are eligible
- Capped at $9,000 per month (i.e. 50% of monthly median wage of HK$18,000) per employee for six months
On job creation, the government and private sectors will create 30,000 time-limited jobs at a cost of $6 billion; civil service will recruit 10,000 people in 2020-21
On sector specific relief, HK$21 billion pledged for 16 support measures.
Find here more information about the additional economic relief package of HK$137.5 billion.