The Severe Acute Respiratory Syndrome (SARS) has emerged as the biggest challenge to face Hong Kong business since the 1997 Asian Financial Crisis. The local business community has been reeling from the SARS epidemic, which began more than two months ago, and some companies in the four hardest hit sectors -- tourism, retail, restaurant, and entertainment -- have been forced to close down.

As a result, the community realises that the government's 3 percent GDP growth projection for 2003/04 is no longer valid. Moreover, as more companies are forced to close down and cut headcount to survive, unemployment is expected to rise. Given this gloomy scenario, it is imperative that the government contains the disease as soon as possible and implements various initiatives to "rescue" the economy.

I support the government's HK$11.8 billion SARS Relief Package unveiled last month, which not only adopts the joint proposal of the seven parties in the Legislative Council to waive rates, water and sewage charges for one quarter, but it has also unveiled other measures, several of which were proposed by the Chamber.

The loan guarantee scheme, which aims to provide immediate cash flow to the four industries worst hit by the disease, can be used to cover operational expenses and prevent affected companies from terminating their operations.

I contacted a number of Chamber member companies in these industries to gauge their views on the plan. Basically, they support the initiative which can help solve their immediate cash flow problems by paying employees with low-interest (best lending rate -3) loans.

After deliberating members' input, I supported the allocation of funds for this plan in Legco, in addition to submitting two more ideas to government. The first of these is a hotel with over 100 workers might need to borrow more than the proposed loan ceiling of HK$1 million. Second, is that some listed companies might find it difficult get their shareholders holding 90 percent or more of the equity interest to guarantee the loans. As such, I hope that the administration will be able to fine-tune the scheme to benefit more companies.

Obviously, we should also implement other measures to enable the economy to recover as quickly as possible, with controlling SARS the top priority to boost confidence of Hong Kong citizens, tourists and investors. To contain the virus, the most important task is to prevent it from spreading further.

In recent months, I have spared no efforts to provide input on how to deal with this to the government, and faxed a letter to Chamber member companies to encourage all employers observe the following suggestions and ask their employees to co-operate :

• Any employee who suspects they may be infected should see a doctor immediately and call their company. It is suggested that the employer gives the worker rest days with pay, and insist they stay at home.

• An employee should inform their employer if anyone in their family is suspected of having SARS. For the health of that employee, their family members and colleagues, it is better for the employer to let them take leave.

• If their operations allow it, employers may consider flexible working hours to minimise the chance of their staff getting infected during rush hours.

• Employers should encourage front-line workers to wear face masks.

I believe that these measures will be able to help minimise infections in the workplace. Co-operation among the community to combat the disease is the best way to clear this cloud hanging over Hong Kong.