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HK govt mulling more relief measures to cushion virus impact

By Kathy Zhang in Hong Kong | HK EDITION | Updated: 2020-04-06 11:02
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A pedestrian walks past Insomnia bar, temporary closed due to the coronavirus, in Hong Kong, March 28. [PHOTO / BLOOMBERG]

The Hong Kong government is mulling additional relief measures to ease the pressure on businesses and help the swelling ranks of unemployed workers as the economy is hit hard by the global coronavirus pandemic, Financial Secretary Paul Chan Mo-po said on Sunday.

Some Hong Kong companies are facing a tightening squeeze on their cash flow due to an increase in cancelled orders from overseas customers, Chan wrote in his online blog.

The government is reviewing the debt situation of small and medium-sized enterprises and will optimize its policy to allocate more support to them in these difficult times, he said.

Meanwhile, the government is exploring ways to make use of the Anti-epidemic Fund to offer relieve to workers who have their pay cut or are being laid off, according to Chan.

The economic slowdown could continue for another six months, he warned, urging both enterprises and individuals to prepare for even tougher times.

The government faces the dilemma of introducing stricter control measures against the spread of the coronavirus and sacrificing local businesses, Bernard Charnwut Chan, convenor of the Executive Council, said in a television interview Sunday.

Hong Kong Financial Secretary Paul Chan, right, delivers the annual budget at the legislative council in Hong Kong. [ISAAC LAWRENCE / AFP]

In view of the spike in infections, Chan said the government could expand its social distancing requirements by measures such as requiring all restaurants to provide only delivery service.

Last week, the government ordered the shutting down of karaoke lounges, mahjong parlors and nightclubs for two weeks to control the spread of the deadly disease.

Conceding that the move would lead to economic loss and spread fear among the public, he reckoned it was necessary as the situation continued to worsen.

As of Saturday, Hong Kong has confirmed 862 cases of novel coronavirus pneumonia. A patient tested positive for COVID-19 with unknown source of infection was reported the same day.

It is worrisome that some coronavirus cases in Hong Kong cannot be traced to the source of infection, Chief Secretary for Administration Matthew Cheung Kin-chung said in his Sunday blog.

People's self-discipline and efforts to comply with the law are key to ensuring whether the city can successfully fight against the pandemic, he said.

Cheung also urged people to avoid unnecessary social contacts in the joint effort to cut the disease transmission chain.

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