One year into Chief Executive John Lee’s tenure, Hong Kong has seen a lot of positive changes as it emerges from the pandemic. Nevertheless, considering the difficulties that the business sector still faces, the road to economic recovery is fraught with challenges.

Once the Covid situation began to stabilize, the Government gradually initiated measures to restore normalcy. These included relaxing anti-epidemic restrictions, removing quarantine requirements for incoming visitors, as well as opening up travel with the Mainland. It served as an important first step towards resuming regular social and economic activities.

Despite these measures, the value of Hong Kong’s total exports of goods recorded a year-on-year decrease, dampened by the weak external environment and the sluggish economies of major advanced countries over the past few months. Even though businesses are eager to contribute to economic recovery, they simply lack the required resources as they are grappling with challenges such as cash flow constraints and labour shortage.

To support businesses during the pandemic, the Government took on board advice and introduced a series of relief measures, including the Special 100% Loan Guarantee and the Pre-approved Principal Payment Holiday Scheme. Now that economic and tourism activities are going back to normal, businesses understand that these support measures will be withdrawn one day. Unfortunately, given that many are still struggling to find their feet, it will take some time before they are able to turn things around. 

In view of this, any withdrawal of Government support schemes should be staggered and carried out in an orderly manner. For instance, to alleviate the repayment burden on businesses and keep from adding to their hardships, the Government should avoid a “one size fits all” approach when dealing with the repayment terms of various loan schemes.

While the road to economic revival may not be smooth, there is no need to be pessimistic either. Indeed, the Government has made considerable efforts to set Hong Kong on the path to normalcy. To promote a positive image of the city, top officials have been going on missions to various countries and regions, telling good stories about Hong Kong and working hard to clear misperceptions.

Importantly, these overseas trips also serve to help the business community explore new markets and opportunities. Besides the Government’s delegation to the Middle East in February, I also went on a trip to Dubai and Abu Dhabi in June. During the visit, members of Hong Kong’s business community made connections with local officials and business leaders, and no fewer than 30 MoUs were signed. I look forward to continuing to work together with the business community to explore new opportunities for development.

Jeffrey Lam
jeffrey@jeffreylam.hk