Budget in Place to Boost Hong Kong’s Economy
Hong Kong’s Financial Secretary is confident that this year’s Budget has addressed critical concerns and shares the bountiful opportunities for Hong Kong that lie ahead.
There is no question the COVID-19 pandemic has hit every economy around the world hard. With the pandemic-driven reality, Hong Kong found itself in a position where it needed to increase government revenue despite the relief measures.
Reviving Hong Kong’s economy and easing the burden of the people in the heart of the Budget for this year. Hence, resources have been judiciously allocated. The underlying goal here was to create multiplier effects beyond just boosting the investment in the infrastructure sector.
A Plan to Boost Local Consumption
To accelerate the country’s economic recovery, a boost in local consumption is needed. One strategy to boost consumption is through the issue of $5,000 electronic consumption vouchers. All Hong Kong eligible permanent residents and new arrivals over the age of 18 will benefit from this. The vouchers are set to have the same effect as crowdfunding, and it will help maintain employment while stimulating the economy.
Stimulating the Job Market
The government is creating 30,000 jobs by allocating $6.6 billion for up to 12-months. There will also be a Special 100% Loan Guarantee for the Individuals Scheme. This will serve as an additional financing option for those who are unemployed. This is a prime time for investors to start a Hong Kong Company if they were thinking about it.
Other Measures to Boost the Economy
Besides that, Hong Kong is also raising its stamp duty on stock transfers to 0.13%. The Government will also continue waiving profit taxes by 100%. With a ceiling capped at $10,000.
While the city-wide vaccination is well underway, bountiful opportunities for Hong Kong lie within the digital economy, especially since more online meetings and video streaming are happening these days. With the rise in demand for this kind of technology, there is a promise of fresh new opportunities.
The Government is also working on developing the business version of the iAM Smart digital authentication platform. This makes it easier for companies to authenticate their business identity virtually.
As for individual sectors, the government intends to fully support its development too. This year’s budget focus is on green and sustainable financing, real estate investment trust market, bond market, securities and other financial markets.
It is also part of the Government’s plan to cultivate a green community to achieve a sustainable green economy. This year’s Budget includes a road map to help make electric vehicles popular to achieve this target. The Government also plans to update the Clean Air Plan for Hong Kong within a few months.
Support for Start-ups
Start-up companies will be pleased to note that $375 million has been allocated for the next three years to the Trade Development Council (TDC). TDC aims to develop virtual platforms to help start-up companies promote their services and products.
Hong Kong will continue harnessing the benefits of the “one country and two systems” framework. The Guangdong-Hong Kong-Macao Greater Bay Area development provides us with bountiful business opportunities today and years to come.