The Mainland recently eased its quarantine requirements to a five-day centralized arrangement, followed by three days of home observation for inbound visitors and close contacts – a welcome update to its Covid policy that will support Hong Kong’s economic revival.

Going forward, the business community hopes that, while adhering to the strategy of “preventing importation of cases and resurgence of domestic infections,” the Central Government will continue to adjust anti-epidemic restrictions, allowing for better connectivity between Hong Kong and the Mainland. 

The Mainland has introduced 20 measures to optimize pandemic prevention and control, among them removing the flight circuit breaker mechanism and requiring only one PCR test within 48 hours before boarding. Noteworthy is the fact that a “closed-loop bubble” system has been implemented for inbound important business personnel and sports groups to participate in business activities, training programmes and competitions. Visitors will be transferred “point-to-point” to a quarantine-free, closed-loop management area. Once there, they will be assigned with a health code and are not allowed to go out. 

In my opinion, this measure is an encouraging start to reconnecting with the Mainland. I hope that once the “closed-loop bubble” is up and running, it will be gradually extended to cover more business activities with Hong Kong, so that we can give full play to our unique strength of leveraging on the Mainland while engaging with the world.

Three years since the pandemic began, the infection fatality rate has been on a downward trend globally, according to the latest report from the World Health Organization. As such, more and more countries around the world are lifting anti-pandemic restrictions.

Since the new Government took office, the guiding principle to combat the epidemic has been to adopt targeted measures with proper risk management and to avoid backtracking by easing restrictions in an orderly manner, which will ensure favourable conditions for economic recovery.

However, as an externally oriented and open economy, Hong Kong is vulnerable to factors such as global economic and geopolitical issues. With this in mind, the Government downgraded its full-year growth forecast to -3.2%. Meanwhile, Financial Secretary Paul Chan admitted that a fiscal deficit of more than 100 billion dollars is inevitable due to shrinking revenues from profits tax and stamp duties, and said counter-cyclical measures will be rolled out if necessary.

Given Hong Kong’s bleak economic outlook, such counter-cyclical measures are needed to preserve our economic vitality, thus supporting enterprises, safeguarding jobs and stimulating the economy. The Government should also proactively consider launching a new round of the Employment Support Scheme. This would go a long way to show its determination to face challenges along with the community, and to reinforce support for businesses as the city emerges from the pandemic.

Jeffrey Lam
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