Hong Kong
 · 2 min read
 · George Harrislawn
Table of contents

Measures Taken by the Hong Kong Government to Support Businesses During COVID-19

Introduction

The COVID-19 pandemic posed unprecedented challenges to businesses across the globe, and Hong Kong was no exception. In response to the economic fallout, the Hong Kong government implemented a range of measures aimed at supporting businesses, ensuring their survival, and promoting recovery. This article outlines these initiatives in detail, providing insights into the comprehensive efforts made to sustain the city's economy during these challenging times.

Details

  • Financial Assistance Schemes

    • Employment Support Scheme (ESS)
      • The ESS provided employers with wage subsidies to retain employees, covering up to 50% of monthly wages.
      • Designed to benefit a wide range of sectors, the ESS helped safeguard jobs and mitigate layoffs.
    • Temporary Markets Subsidy Scheme
      • Offered funding to wet markets and public markets to offset losses due to reduced foot traffic.
      • Aimed to ensure that local food supply chains remained intact during restrictions.

  • Tax Relief Measures

    • Waiver of Business Registration Fees
      • 100% waiver of business registration fees for companies to reduce operational costs.
      • This relief was applicable for several renewal periods to ease fiscal pressure on businesses.
    • Reduction of Profits Tax
      • A one-off reduction of profits tax up to a specified limit provided immediate tax relief.
      • This measure aimed at encouraging business investment and liquidity.

  • Support for Specific Sectors

    • Hospitality Industry Subsidy
      • A targeted subsidy aimed to support the hotel and travel-related industries.
      • Provided funds directly to hotels to assist with employee wages and operations.
    • Retail Sector Support
      • Grant schemes offered to local retail businesses to encourage innovation and technology adoption.
      • Initiatives included funding for online sales infrastructure to compensate for decreased foot traffic.

  • Loan and Financing Support

    • Concessionary Loans Scheme
      • Provided low-interest loans to SMEs to help them manage cash flow and operational costs.
      • The scheme aimed to ensure that businesses could access working capital without burdensome terms.
    • Government-backed loan guarantee
      • Implemented guarantees for loans taken by businesses to encourage banks to lend more freely.
      • This initiative aimed to reduce the perceived risk for lenders when providing loans to struggling businesses.

  • Digital Transformation Incentives

    • SME Digital Transformation Fund
      • Offered financial grants for small and medium-sized enterprises (SMEs) to adopt digital technologies.
      • Encouraged businesses to enhance their online presence amid restrictions on physical operations.
    • Training Programs for Digital Skills
      • Provided free or subsidized training for businesses to upskill their workforce in digital tools.
      • Aimed at improving overall productivity and ensuring businesses could compete in a digital economy.

Conclusion

The Hong Kong government's proactive response to the challenges posed by the COVID-19 pandemic showcased a commitment to supporting local businesses through various financial aids, tax relief measures, and targeted assistance programs. These initiatives were essential in stabilizing the economy, safeguarding jobs, and positioning businesses for recovery in a post-pandemic landscape. As Hong Kong continues to navigate the aftermath of the crisis, these measures will play a critical role in shaping the future of its business environment.