Hong Kong to unveil fresh US$3.9b stimulus: SCMP

[HONG KONG] The Hong Kong government is set to announce a fresh round of more than HK$30 billion (S$5.52 billion) in stimulus to support businesses devastated by the coronavirus pandemic, the South China Morning Post (SCMP) reported, citing an unidentified source.

The aid package would cover businesses that so far have been left out of support measures, including those related to schools such as tutorial centres, school bus operators and externally contracted physical education coaches, the newspaper reported. Nine types of businesses covered by recent social-distancing measures including movie theatres, gyms and karaoke lounges also would receive aid, as well as firms in the tourism industry.

Fares on public railways also will be temporarily discounted, the paper reported.

Messages left with the Hong Kong government and the office of Chief Executive Carrie Lam to confirm the details of the report were not immediately returned. SCMP did not report on a specific time Wednesday when the government will make an official announcement.

The Executive Council is meeting to discuss measures involving far more than the HK$30 billion in the first round of stimulus and an announcement could come as soon as Wednesday evening, the Hong Kong Economic Journal reported, citing unidentified people.

Speaking with the press Tuesday, Ms Lam said she "very clearly" heard the feedback from businesses about helping their workers keep jobs, though she did not elaborate. She said what to include in the round of virus relief measures has been the focus of discussions with local businesses.

The Hong Kong government is under pressure to support an economy that had already slid into recession following months of political unrest and is further pressured by escalating measures to control the spread of the coronavirus. The government previously announced a HK$30 billion anti-epidemic fund and HK$120 billion relief package in this year's budget centred on a HK$10,000 handout to all permanent residents age 18 and above.

That payout isn't expected until the third quarter or even later as the government awaits spending approval and works through logistical preparations. The government is projecting the start of registrations in July with distribution beginning during the summer vacation.

BLOOMBERG