HK$5,000 voucher scheme: discounts, flexibility will discourage Hongkongers from abusing drive by returning products for cash, finance chief says
- Financial Secretary Paul Chan brushes aside concerns Hongkongers may try to find a way to convert the HK$5,000 in vouchers into cash
- However, he does not rule out taking legal action against businesses found to be conspiring with customers to abuse scheme
Discounts enticing consumers to buy items they actually want, and the flexibility of spending on daily commutes will discourage Hongkongers from abusing a HK$36 billion government voucher scheme by cashing in through product refunds, the city’s finance chief has said.
Chan said he and his colleagues had noted the practical need to exchange defective goods, and authorities would refrain from imposing unnecessary barriers to prevent it. But he also warned of the legal consequences of abusing the scheme, adding that shops would be blacklisted if they were found to have breached the rules by conspiring with customers.
Hong Kong’s first HK$5,000 vouchers to be delivered from August 1, with residents given at least five months to spend them
“If they conspire in a fraud, we do not rule out taking legal action,” he said, pointing out the four digital platforms engaged already had established mechanisms against such activities.
Chan suggested that because of the vouchers, shops would be keen to offer discounts to lure in customers, who would then buy products they actually wanted. “In other words, when one spends the voucher, it will be worth more than its actual value,” he said.
“There is also a wide range of products you can spend the voucher on. This covers clothes, food, accommodation and commuting. This is money that has to be spent anyway.”
He estimated that if the worth of the vouchers was averaged out over their usage period, the daily value would be about HK$19 – the amount one would typically pay for transport.
“For ordinary residents, we don’t see the need to find a way to cash the money out,” he said.
The government has engaged e-wallet services AlipayHK, Tap & Go and WeChat Pay HK, as well as the cashless payment platform Octopus to distribute the digital vouchers.
AlipayHK, a subsidiary of the Alibaba Group, which owns the Post, will offer early registrants using its platform a chance to dine with celebrity chef Ricky Cheung Kam-cheung, win HK$30,000 worth of transport subsidies, or watch the Hong Kong Tennis Open with VIP treatment, among other prizes. It has also teamed up with Sino Group for a special zone at the Olympian City mall in Tai Kok Tsui, where HK$20 vouchers will be given away.
Chan added customers who returned products bought through the e-wallet services would be refunded with digital credits, which would help address concerns of abuse, although he conceded those using their Octopus cards could still get cash back.
HK$5,000 vouchers: Hong Kong digital payment providers offer more goodies to lure consumers to platforms, finance chief warns merchants to play straight
Unveiling the scheme on Friday, the financial secretary said the vouchers would be available to all adult permanent residents – including those studying abroad or taking part in the Labour Department’s working holiday plan, a short-term overseas employment programme for young people – as well as recent migrants from mainland China aged 18 and above.
Dependents sponsored by a permanent resident and elderly Hongkongers living in the mainland provinces of Guangdong and Fujian who participate in designated social welfare schemes would also benefit, according to Chan.
The vouchers can be spent both online and in person at local retail outlets, restaurants and other businesses, as well as on public transport. However, they cannot be used to settle fines, taxes or utility bills. Online applications for the scheme will start on July 4 and close on August 14, with the first batch of vouchers expected to be handed out on August 1.
Those opting for e-wallets will get their vouchers in two instalments: HK$2,000 in the first, and the remainder in the second, all to be spent within five months. Those using Octopus will receive their vouchers in three instalments: two of HK$2,000, and a third of HK$1,000, to be spent within seven months.
The discrepancies had sparked concerns that residents may be confused by the arrangements, although Chan maintained the government’s intentions had been good.
Hong Kong e-payment operator Octopus to spend HK$1 million helping city’s small businesses capitalise on e-vouchers plan
“We hope to provide more choices to everyone in terms of the variety of digital payment services and the time frame. The range of services where the money can be spent has also been made flexible,” he said.
Chan also said digital payment methods accounted for just 7 per cent of the city’s overall retail transactions, but that figure soared to 20 per cent in some neighbouring places. The new scheme would help the city adapt to such transactions, which Chan argued were the wave of the future.
Later on Sunday, Chan went shopping on Fa Yuen Street, part of the iconic Ladies’ Market in Mong Kok, and noted that many stalls were installed with electronic payment systems.
