“The epidemic will pass. When it ends, the market transition will provide a rare opportunity to bring many enterprises to the same starting point while leaving room for further development”
Hong Kong and the global economy is facing enormous challenges caused by the novel coronavirus. Taking into consideration the stimulus effect of the fiscal measures announced in Hong Kong, the Financial Secretary forecasted that the economy will grow by -1.5 per cent to 0.5 per cent in real terms in 2020.
Due to the current situation of emergency, the Government announced an expansionary fiscal stance and to make optimal use of its fiscal reserves to be implemented in order to provide assistance to enterprises.
The measures announced by the Government will be the following:
- Introducing a concessionary low-interest load, under which 100% guarantee will be provided by the Government.
- reducing profits tax for the year of assessment 2019/20 by 100 per cent, subject to a ceiling of $20,000.
- waiving rates for non- domestic properties for four quarters of 2020-21, subject to ceilings.
- waiving the business registration fees for 2020-21.
- waiving the registration fees for annual returns charged by the Companies Registry for two years.
Moreover the Government will keep implementing the measures announced since last year to keep supporting the population in these difficult times. There is an additional funding of over $700 million for the Hong Kong Tourism Board to step up external promotion after the pandemic.
The Government also granted $150 million to the Hong Kong Trade Development Council to assist enterprises in exploring business opportunities.
Although the hard times the world is facing, the economic outlook of Hong Kong remains positive. As per the highlight shared by the Hong Kong Department of Foreign Direct Investment the development of China and Asia will continue to be the key driving force of global growth.