Coronavirus threatens Hong Kong’s very future if it cannot protect livelihoods along with lives
- Compared to the US, Britain and Singapore, Hong Kong’s stimulus package is relatively small, at 5 per cent of GDP. The government must do more to protects jobs
- Hong Kong faces a deeper downturn that other global cities as its economy has already been battered by months of protests
Globally the picture is also bleak, with Organisation for Economic Cooperation and Development data suggesting that tourism will suffer losses of between 45 per cent and 70 per cent globally in 2020, placing up to 50 million jobs at risk.
Singapore’s commitment of US$38 billion represents around 11 per cent of its gross domestic product while the support provided in Britain and the US sits at 15 per cent and 9 per cent of their GDPs respectively.
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Importantly, financial support in all three countries is primarily structured to help businesses retain employees over the coming difficult months. A strategic focus on preserving jobs is not just socially responsible, it is also an economic imperative as it means that the economy will be better placed to move strongly to recovery once the situation improves.
Furthermore, populations will have the confidence to continue to buy products and services once conditions allow. It is this confidence that will power the eventual recovery.
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Or is it because the government cannot afford to provide support? No. Hong Kong boasts one of the world’s largest fiscal reserves of about HK$1.1 trillion.
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A continued failure to act will wreak havoc on businesses, and therefore society. If businesses are allowed to fail, the city will not recover and every one of us will struggle to preserve our livelihood and confidence in the future.
Decisive economic action is urgently needed to prevent a downward spiral which will further exacerbate tensions.
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It is no exaggeration to say that Hong Kong’s position and standing are at stake. The government needs to show strong leadership and help ensure the future of key businesses and their workforces if we are to weather the storm.
By helping Hong Kong to recover and rebound quickly, the government can also recover its own credibility after the most challenging nine months we have faced for a generation.
Francis Neoton Cheung is the convenor of Doctoral Exchange, a public policy research collective, and a former member of the Land and Building Advisory Committee