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June 2021 Reviving Hong Kong’s economy – the 2021/22 Budget raft of new financial assistance was This year’s budget for Hong Kong announced in Hong Kong’s latest revealed that the Government expects A budget which includes help to both the economy to return to growth in 2021, individuals and business as they recover with GDP forecast to increase by 3.5 to from the devastating effects of the 5.5%. The economy is expected to grow coronavirus pandemic. by an average of 3.3% per annum from There was good news for virtually next year to 2025. These projections everyone in the budget, from planned however depend on the pandemic as relief measures aimed at both individuals well as the timeline to re-open borders to and businesses, measures supporting business and people. livelihoods to business tax concessions. Financial Secretary, Paul Chan, There is a commitment to spend presented the latest budget in late to “alleviate the hardship and pressure HK$9.5 billion supporting businesses February, outlining the Government’s caused by the economic downturn through a range of innovative measures plan for the economy and proposals for and the epidemic” and planned to to speed up market recovery, bolster taxation development post-Covid. He achieve this “through the introduction digitalisation and strengthen Hong Kong’s announced wide-ranging measures to of counter-cyclical measures costing competitiveness in the Guangdong-Hong aid “a gradual recovery” but warned of over HK$120 billion.” Kong-Macao Greater Bay Area financial challenges for some years to (Greater Bay Area). come. He said the key aims were Continued on page 2 Above right: Financial Secretary, Paul Chan, elaborated on the Budget at a news conference. A New Direction to ALSO IN THIS ISSUE... Fight the Pandemic Covid-19 Update With the fourth wave of coronavirus in Hong Kong under control, the Government has taken a Page 2 new approach to fighting the pandemic with Vaccine Bubble now the core tactic to overcome the virus and get the city back to work. It relies on everyone to get vaccinated “sooner rather than later”, alongside a gradual relaxation of restrictions. “The Government’s strategy of ‘preventing the importation of cases’ has successfully stopped Airport Expansion the virus variants from entering the city, and the spread of the disease in the community has plans confirmed been curbed”, said Chief Executive Mrs Carrie Lam who launched the initiative. The new Page 5 direction is aimed at restoring Hong Kong to normality “in a gradual and orderly manner”. Technology is playing its part with the LeaveHomeSafe mobile app allowing a relaxation of social distancing measures in cases where first vaccine doses have been received, permitting a range of venues to resume business including bars, restaurants, bath-houses and nightclubs. The policy was then extended to other areas such as hospital visits, care Silver Screen homes and religious buildings. talent celebrated Page 8 Above right: The Chief Executive, Mrs Carrie Lam (centre), holds a press conference on measures to fight the disease with the Secretary for Labour and Welfare, Dr Law Chi-kwong (second right); the Secretary for Transport and Housing, Frank Chan Fan (first right); the Secretary for Food and Health, Professor Sophia Chan (second left); and the Director of Health, Dr Constance Chan (first left). Continued on page 3 NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE Travel Covid-19 Covid travel update The Vaccine Bubble approach to fully vaccinated, will now be subject More than 2.5 million combating Covid-19 is also being to compulsory quarantine for just applied to cross-border travel, seven days; previously this was vaccines administered allowing a shorter quarantine 14 days. They will subsequently be for those arriving from low- required to self-monitor for seven and medium-risk places, and days and undergo compulsory permitting vaccinated Hong Kong testing on the 12th day of their residents to enjoy an Air Travel arrival at Hong Kong. Bubble plus the advantage of Those arriving from ‘medium- B shorter, or even no-quarantine risk’ areas and ‘high-risk’ Group when travelling overseas. B places, and who have been For example, at the moment, fully vaccinated, will need to use Over two-and-a-half million Covid vaccine ‘extremely high-risk’ places include the quarantine hotels for 14 days shots have been administered across Hong Kong Brazil, India, the Philippines and (this was previously 21 days), to increase protection against the ravages of South Africa, with Ireland classed and subsequently be required to the pandemic, since the programme began in as ‘very high-risk’. High-risk areas self-monitor for seven days and late February. embrace Belgium, Canada, France, undergo compulsory testing on the The figure, which is rising daily as more jabs Germany, Russia, Switzerland, 16th and 19th day of their arrival. are given, represents nearly 1.5 million first UAE, the UK and the USA. The Anyone coming from an doses administered and over a million residents categories are regularly reviewed ‘extremely high-risk’ location or being fully vaccinated against the virus. These are and countries’ designations will those deemed ‘very high-risk’ will a mix of the Sinovac and BioNTech inoculations. be updated. find the arrangements unchanged. In order for things to get back to normal as Those deemed ‘extremely high-risk’ soon as possible, the Government is urging Hotel quarantine will likely be denied boarding based everyone to come forward for their vaccine, Since late December, specified on how long they have been there. especially as mutant strains are identified hotels have been allocated for Before making travel plans, around the world. “It is imperative for us to compulsory arrival quarantine, check the latest updates on the get vaccinated to protect ourselves and others,” operating under strict regulation Covid-19 thematic website a spokesman said. and Government inspection. For www.coronavirus.gov.hk/eng/ those who have received their inbound-travel.html and note that, Above: Chief Executive, Mrs Carrie Lam, (centre) held a press conference on HKSARG’s “Early Vaccination for All” Covid vaccine, the length of stay at the time of writing, non-residents campaign with Professor Sophia Chan, Secretary for Food has been reduced. For example, are restricted from entry to Hong and Health (second from left), Patrick Nip, Secretary for the Civil Service (second from right), Alfred Sit Wing-hang, those arriving from places classed Kong although this is reviewed and Secretary for Innovation and Technology (first from right) as ‘low risk’, and who have been updated from time to time. and Dr Thomas Tsang (left), Member of the Advisory Panel on COVID-19 Vaccines. Continued from page 1 Relief measures in the Budget include: Reviving Hong Kong’s economy ✓ Salary tax reduction ✓ Individual loan guarantees – the 2021/22 Budget ✓ Business profit tax Noting that Government measures launched under the Anti-epidemic Fund and reductions in last year’s budget exceeded HK$300 billion, Mr Chan forecast a budget deficit of ✓ Domestic and business HK$257.6 billion for 2020-21. “Although I forecast an improvement in revenue for the rates concession next financial year, I expect that the fiscal deficit will be HK$101.6 billion, accounting for 3.6% of GDP, due to the counter-cyclical fiscal measures and the continued increase ✓ Business registration in recurrent expenditure,” he told reporters. fee waiver It was not entirely a give-away budget though. To increase revenue, the Government ✓ Business water and plans to raise the rate of Stamp Duty on Stock Transfers, from the current 0.1% to sewage charge waiver 0.13% of the consideration or value of each transaction payable by buyers and sellers ✓ Extra social respectively. Mr Chan said the sums raised under the Government Green Bond security support Programme will provide funding for green projects. He proposed further issuance of green ✓ Residential electricity bonds totalling HK$175.5 billion within the next five years. The Government will also subsidy review the rating system to explore what it terms “room for improvement”. The measures are much needed as the city faces a second year of recession and needs ✓ Exam fee waiver to address unemployment. There is a notable shift away from lump-sum relief, as seen in ✓ Asset management and previous budgets, to more long-term strategies this time. Its success will depend on the Family Office help course of the pandemic, success of vaccine rollout and a range of geo-political factors. ✓ Greater Bay Area investment Ending his presentation on an upbeat note, Mr Chan concluded by saying: “We have and youth support overcome many challenges and always come out stronger. Let us be steadfast and ride out the storm. Together we will build a better Hong Kong.” 2 HONG KONG REVIEW NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE • • • NEWS UPDATE Constitutional reform Electoral system overhaul Hong Kong’s electoral system has been revised to amend the way its Chief Executive and representatives are selected, in a move aimed to assure the long-term prosperity and stability of Hong Kong while mitigating the “internal rift which has torn the city apart”. New legislation was passed in the form of the Improving B Electoral System (Consolidated Amendments) Bill 2021 which the Special Administrative Region has promised to “dutifully administer” to develop the economy and improve the livelihood of citizens. As part of the changes there has been a restructuring of the Election Committee that nominates and elects the Chief Executive, Legislative Council (LegCo) members and nominates all LegCo candidates. It has been increased from 1200 members (with four sectors) to 1500 members in five sectors – each representing their respective areas.

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