Editorial | Hong Kong’s economic recovery rests on more than voucher giveaways
- Consumption vouchers may have been well received by the Hong Kong public, but they can only go so far and other prudent financial options are needed
There is no denying that the latest tranche of consumption vouchers has been well received by the Hong Kong public, though the economic benefits of a smaller handout remain the subject of debate.
In any case, it takes more than domestic consumption to fully revive the economy. Given the initiative is neither justified nor sustainable in the long run, the government must better manage expectations and ensure fiscal prudence will not be compromised by populism.
With 1 million Octopus card holders unable to receive the HK$2,000 (US$260) per head subsidy on Sunday because of unused credit from the previous round, grievances are understandable.
However, they have taken the gloss off the occasion for a city that is still on a long journey of recovery after Covid. It is a shame that the scale of the problem was only revealed by Financial Secretary Paul Chan Mo-po in his weekly blog as the vouchers were due to be released.
Upset could have been avoided by advance publicity. Those concerned now have until October to spend any outstanding credit and become eligible for the remaining subsidy.
06:10
Underprivileged class bearing the brunt of Hong Kong’s rising inflation
This is the third year the government has sought to stimulate the economy through electronic spending vouchers. It remains unclear whether politicians will again join forces to press for similar sweeteners next year.