Did you have a double-take on the headline?
I know I did.
And lest you didn’t know, in Singapore, each one of us Singaporean is going to receive between $100 to $300 cash due to the COVID-19.
Singapore and Hong Kong have always been competitors, and in this instance, Hong Kong wins by a big margin.
Hong Kong Giving About SGD$1.8K Cash to Every Resident Due to COVID-19
At this moment, Hong Kong has a total of 85 confirmed COVID-19 cases and 2 deaths.
And just like Singapore, the number of new cases in the city grows gradually, though the city has taken measures that are much more drastic than Singapore: schools have been closed since Chinese New Year, travel restrictions have been much tighter and all public places like libraries or sports centres have closed until further notice.
It doesn’t help that its economy is suffering, too: it’s now already in recession and the city’s credit rating has dropped.
But that doesn’t stop the authorities from making a controversial decision aimed at reviving the economy: giving out HKD$71 billion (~SGD$12.74 billion) to its citizens.
Today, the Hong Kong Government announced a cash handout package: about 7 million Hong Kong residents will receive about HK$10,000 (~SGD$1,794) each.
Yes, that’s despite the recession the city is undergoing now due to the US-China trade war, protests that never seem to end and of course now, the COVID-19.
But where do they get the money from?
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Lest you’re not aware, Hong Kong is (was?) a rich city; despite the challenges it faces, the country’s GDP is at USD$321 billion, a tad higher than Singapore at USD$291 billion. However, if we compare the Gross National income per capital, which is “more accurate”, we win at USD$51.8K compared to Hong Kong’s USD$43.2K.
But Hong Kong’s still rich.
In order to find that money, Hong Kong taps on its reserve funds (which we’ve not touched ours yet) which they’ve accumulated during its heydays.
But why?
Helping People = Helping Businesses
The COVID-19, if you’d have realised, affects primarily businesses—but when businesses are affected, people’s livelihoods would be compromised, too.
So like it or not, the goal is still business-centric.
Last week, Hong Kong has committed HK$30 billion (~SGD$5.38 billion) to help businesses.
And this latest cash handout is done so that people in Hong Kong will spend the money in the city, which can boost the economy and help businesses.
Financial Secretary Paul Chan said, “Making good use of fiscal reserves to support enterprises and relieve people’s hardship is certainly in line with our people’s expectations.”
Hong Kong isn’t one to give cash handouts so readily; the last time they did it was in 2011 when the city went into recession.
Now, of course the question we’d be asking is this: would that soothe those people who’re still angry with the Government?
Meanwhile, in Singapore, we’re still wondering when we can get the $100 to $300. Hopefully before all the bubble tea shops have closed down lah.
