Budget 2022-2023: Hong Kong’s rents deferment plan for certain SMEs only a short-term solution, industry observers say
- The government should clarify whether rents could be paid in instalments after the deferral period, if business continued to be bad, industry body executive says
- HSBC and Hang Seng Bank vow to help sector in response to budget speech
Hong Kong’s small and medium-sized enterprises (SMEs) on Wednesday said the government’s plan allowing them to defer rent payments for up to six months might provide short-term relief, but resolution of the difficulties they face depended very much on the fifth Covid-19 wave being brought under control.
“Of course, we hope the measure are introduced as they will help relieve the immediate pressure,” said Gordon Lam, convenor of the Hong Kong Small and Middle Restaurant Federation.
But he urged the government to clarify whether rents could be paid in instalments after the deferral period, if business continued to be bad. He also asked how the city would handle any subsequent waves of Covid-19.
Hong Kong imposed its toughest social-distancing rules to date in February. Many food and drink (F&B) outlets have been hit badly by a blanket ban on dining after 6pm, and a cap of two people on public gatherings. The city has 343,699 SMEs, including 18,050 property companies. SMEs employed 1.21 million people as of March 2021, according to the latest Census and Statistics Department data.