Coronavirus has altered the world economy. Companies, especially SMEs dependent on their physical stores have been hit hard by the effects of the virus and will be looking to recover from the financial and other losses as soon as their respective economy reopens.
In Hong Kong too, Hong Kong Economy Relaunch is going to take place which will see the promotion of the region as a major investor’s hub in the world. Hong Kong hasn’t implemented a full-lockdown and has set an example of how even a pandemic creating virus can be contained with efficient management and awareness. However, companies and the economy have still been affected, and reopening businesses after this period may be seen as a challenge for many investors.
The Use of Technology is Going to be Even More Apparent
Hong Kong is already known as a place where companies make extensive use of technology and innovation. This is going to continue in the following days, with more people preferring Work From Home and other safety guidelines. We have been seeing fewer people commute to workplaces, and virtual offices have been set up by various companies. Furthermore, investors and business owners have been opening online bank accounts to let customers buy remotely. Ecommerce and home delivery service businesses are also booming.
Tourism and Hospitality Sectors Have Been Hit Hard
The tourism industry is one of the biggest economic drivers in Hong Kong. The same goes for the hospitality industry, which has been providing opportunities for thousands of investors and employees in the region. Taking them back to normal will take time, efforts, and struggles because some businesses have closed entirely. Owners and employees have been losing incomes because of the cash flow problems. This is an issue, especially in Hong Kong, where living costs are one of the highest in the world.
The Employment Support Scheme
There is at least one good thing for Hong Kong businesses. The government recently announced the Employment Support Scheme Hong Kong, which is to help employees retain their staff. The program will offer 50% wages of employees for six months, given that the company has been making MPF contributions.