Press ahead with full steam on Anti-epidemic Fund measures
23 February 2020
The continuous spread of the epidemic has dealt a severe blow to the declining local economy. Many industries are hard hit amidst the increasingly tough business environment. With further slackening of the labour market, there exists immense pressure on citizens in terms of both employment and livelihood.
According to the latest figures in February, daily visitor arrivals have fallen to below 3 000. With more citizens staying at home and a sharp reduction in visitor arrivals, business and economic activities have decelerated markedly. In particular, the catering, retail, consumption- and tourism-related sectors are bearing the brunt of the slump. The local employment market is expected to come under even greater pressure. As recently announced, the unemployment rate has risen to 3.4%, which is the highest in more than three years.
The Government has earlier announced the establishment of the Anti-epidemic Fund (the Fund), which aims to enhance the city's capability of combating the epidemic and to provide assistance to enterprises and members of the public hard hit or affected by the outbreak. To expedite the setting up of the Fund, the Government sought approval from the Finance Committee of the Legislative Council (LegCo) for a one-off funding of $30 billion. Two days ago (21 February), I attended the Committee's meeting together with nine Directors of Bureaux and other colleagues to explain the measures proposed under the Fund and answer questions raised by LegCo members. The funding was passed on the same day by a large majority after ten hours of discussion. I am indeed grateful to the LegCo for its cross-party support.
To ensure effective deployment of financial resources, the Government will set up the Steering Committee on the Anti-epidemic Fund next week. Under my chairmanship, the Committee is tasked to oversee the operation and use of the Fund. We will race against the clock to press ahead with various anti-epidemic measures. The application process will be streamlined to facilitate early disbursements so as to benefit relevant enterprises and members of the public as soon as possible.
The Government will ride out the difficulties together with the community in the fight against the disease. With an open mind and the greatest determination, we have taken bold and pragmatic steps to introduce the Fund with a view to addressing the pressing needs of the public. The Fund covers 24 specific measures, with about $10 billion for enhancing the capability of the Government and various parties to combat the epidemic, $17 billion for providing relief to enterprises and members of the public hard hit by the epidemic or affected by anti-epidemic measures, and the remaining $3 billion for contingency.
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Among the 24 measures, ten are for enhancing the city's capability in combating the epidemic. As the Chinese saying goes, "one must have good tools in order to do a good job". Ensuring the supply of masks and personal protection equipment (PPE) is of utmost importance, and so are sustained efforts in the fight against the epidemic. To this end, $4.7 billion is allocated to the Hospital Authority for enhanced support for combating the epidemic, procurement of additional PPE and related expenses in frontline manpower. Another $1.5 billion is for supporting local mask production so as to address the imminent shortage and build up stock in the long run. Besides, $1 billion is earmarked for the Government's speedy placement of orders for PPE amidst fierce competition in the global market.
Meanwhile, another 14 measures involving a total of $17 billion are introduced under the Fund to provide one-off subsidies to support businesses affected by the epidemic (including the transport sector, travel agencies, food establishments, retailers, etc.) and special allowances for the disadvantaged and the needy as timely assistance to help them ride out the storm.
On disadvantaged groups, the Fund will provide a one-off special allowance to eligible households under the Working Family Allowance (WFA) and means-tested Student Financial Assistance (SFA) for pre-primary, primary and secondary students. It is expected to benefit about 58 000 WFA households and 145 000 SFA households, with an estimated total expenditure of $990 million.
To ease parents' financial burden, the Government will make use of the Fund to provide an additional $1,000 to each recipient of the Student Grant for the 2019-20 school year, i.e. the Student Grant amount will increase from $2,500 to $3,500. The total additional expenditure is approximately $900 million, benefitting about 900 000 students.
At this critical time, controlling the epidemic and safeguarding public health remain the top priorities of the SAR Government. No time should be lost in introducing further anti-epidemic measures for the early benefit of the affected members of the public. The sizable Fund covers a broad spectrum and will benefit a lot of people. This fully demonstrates the Government's determination to stand shoulder to shoulder with all sectors to fight the virus and tide over the hardship. We will keep a close watch on the development of the epidemic and assess its impact on society. Upon listening to expert advice and considering the actual situation of Hong Kong, we will not hesitate to introduce more measures whenever necessary.
