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Budget 2022: Financial Secretary announces additional $10 billion to boost Hong Kong’s biotechnology industry

Hong Kong will continue to invest billions in the biotechnology industry as it works to enhance institutional capacity with HK$10 billion earmarked for life and health technology, Paul Chan Mo-po, Financial Secretary, said in his budget address today.  The investment in the innovation and technology sector comes amid the Greater Bay Area development. The establishment of the InnoLife Healthtech Hub in the Hong Kong Shenzhen Innovation and Technology Park, announced in the 2021 policy address, will bring the research strengths and resources of laboratories to create greater synergy, Secretary for Innovation and Technology Alfred Sit Wing-hang said in October last year. Biotechnology plays a significant role globally as it will dominate important economic activities in the 21th century and firms or countries that control key biotechnology will be able to rule the market and the economic development, according to scholars. “With more than 16 laboratories and the eight relevant State Key Laboratories, we can pool together top‑notch research teams from all over the world and focus our efforts on R&D work as well as global research collaboration in the field of life and health sciences,” Chan said. There are more than 250 biotechnology‑related companies in Hong Kong, with the majority of them operating in pharmaceuticals, traditional Chinese medicinal, healthcare products or medical devices and diagnostics, according to the Hong Kong Trade Development Council. In the 2018-19 Budget Address, biotechnology was recognized as one of four priority sectors, which Chan had earmarked an additional $50 billion for developing innovation and technology in Hong Kong. “Continuous promotion of Innovation and Technology development is an important strategy to foster a more vibrant and diversified economy.  The 14th Five‑Year Plan supports Hong Kong's development into an international I&T hub,” said Chan.  The current-term government has invested more than $130 billion in I&T development, which …

Society

Budget 2022: Silver Bonds and Care Homes to help Hong Kong’s elderly people

The Financial Secretary has earmarked an additional $2.38 billion in this year’s budget to provide an extra half-month payment of Comprehensive Social Security Assistance (CSSA), Old Age Allowance, Old Age Living Allowance, and Disability Allowance, to Hong Kong’s most needy. But Sze Lai-shan, deputy director of the Society for Community Organisation said more needs to be done,  “There are very few measures for the elderly, but mainly giving money to the middle class. The budget should be allocated more to the grassroots like the elderly and the weak,”said Sze. “The government should spend more money on the healthcare services for the elderly as many of them are staying at home and no one can take care of them.”  As of Jan. 31 last year, nearly 37,000 elderly were waiting for a subsidised place in Care and Attention homes and Nursing Homes, according to the Social Welfare Department.  The budget sets aside an additional HK$19 billion to be spent on strengthening services for the elderly, the disabled and children. Part of the sum will go towards building eight new contract homes for residential elderly care service in the Kwu Tung North New Development area and Fanling, providing an estimated additional 800 places. On top of four existing neighbourhood elderly centres offering basic elderly support, one more will be constructed in Area 54 in Tuen Mun.  To help well off elderly people, the government will issue at least HK$35 billion worth of silver bonds in the coming year. That’s an increase of HK$10 billion from last year. Only people aged 60 years and above can invest in silver bonds and it will give them a fixed income on a half-yearly basis. A fixed rate of 3.5% per annum is given to silver bonds due 2023 and 2024, according to the key features …

Society

Budget 2022: How do Singapore and Hong Kong’s pandemic relief measures for the hardest hit compare?

Singapore and Hong Kong, two small and open Asian economies that are often compared, have adopted completely different COVID-19 policies. Singapore has moved to "living with COVID-19" while Hong Kong sticks to China’s "dynamic zero COVID" strategy. But the effects of the pandemic have not been equal, and both cities have implemented financial relief for the hardest hit. With the Hong Kong government announcing its 2022-23 budget today and the Singapore government delivering its 2022 Budget Plan last Friday, The Young Reporter explains five ways both Singapore and Hong Kong have attempted to alleviate COVID-19’s impact on its neediest residents. 1. Tax Relief Tax redistribution is a way to cope with inequality in many countries, according to the United Nations, as poor households are often affected more. Singapore: Consumption taxes tend to be regressive, meaning they are disproportionately difficult on low earners, economists say. The Singapore government suspended its plan to raise the goods and services tax from 7% to 9% in 2021, a broad-based consumption tax on nearly all supplies of goods and services in Singapore. It is expected to be raised in 2023. This year, a S$560 million ( HK$3.25 billion) Household Support Package, which provides support for daily essentials through utilities rebates, top-ups for children’s education and vouchers for use at heartland shops, will be provided to support households, especially poor families, in dealing with a future hike in the GST. The Singapore government also provided tax relief for the self-employed and low-income workers with pandemic-driven support schemes, including the Self-Employed Person Income Relief Scheme and Workfare Special Payment. Hong Kong: The government has waived a portion of employment taxes for three years, including salaries tax and tax under personal assessment reduction, with a ceiling of HK$10,000 this year and last year, and HK$20,000 in 2020. For …

Society

Australia reopens to vaccinated travellers, while Hongkongers struggle with quarantine

After 704 days, Australia finally reopens its international border to fully vaccinated travellers, except for Western Australia, its border is scheduled to reopen on March 3. At least two jabs of vaccines are required to visit Australia. To visit State Victoria, travellers must be vaccinated with a booster on top of the two doses.  Unvaccinated travellers with medical proof of not being suitable for vaccination may need to quarantine for 14 days, while the vaccinated do not need to undergo quarantine. There will be 56 international flights landing in Australia today worldwide, including Hong Kong. “My message to tourists all around the world is: ‘Pack your bags and come and have one of the great experiences you could ever imagine,” said Australian Prime Minister Scott Morrison.   “Don’t forget to bring your money with you because you will find plenty of places to spend it’,” he added. Karla Warner, the manager of Queensland Museum Shop, said she is excited to see visitors returning to Australia. “Finally, we can have international visitors after two years,” said Warner. She expects that more visitors will go to the museum and grab souvenirs, which can boost the shop's sales. “I am optimistic with the sales,” said Warner. She expects that visitors will bring new energy to the economy which has been affected by the pandemic. However, potential visitors from Hong Kong are struggling with the local quarantine policy. Li Chi-chung, said he wants to meet his son, who is studying in Melbourne, but the quarantine policy in Hong Kong stops him. “I want to see my son face-to-face, but I do not want to spend a month in quarantine when I come back from Australia,” said Li over the phone. Currently, Australia is one of the listed countries with flight suspension in Hong Kong. Travellers …

Society

Employment agency kicks off four-day work week in Hong Kong

The Fair Employment Agency has started a six-month trial of a four-day work week on Feb. 14, the first foreign domestic helper employment agency in Hong Kong to start such a work model. Employees at the agency now work 36 hours in the new work week, down from around 45 hours. They will still be doing the same work with the same monthly pay, with eight to nine working hours each day. "With the new work model, we can provide better services to meet the needs of our foreign domestic helper and employer clients," said Grace Cheng, General Manager of Fair Employment Agency, a non-profit social business that recruits and matches domestic helpers with employers. According to the latest labour data published by the Census and Statistics Department, 14.7% of the city's employed persons work 60 hours and above, while 13.7% work less than 35 hours. The agency, founded by Fair Employment Foundation in 2014, has processed more than 6,000 domestic helper visas, mostly women from the Philippines and Indonesia, with no fees for the person being hired. Its mission is to eliminate the abuse and mistreatment against migrant domestic workers, by professionalizing the industry as a whole. It has more than 20 full-time staff. “In order to disrupt this industry, we need to hire talented people who are motivated by more than just a paycheck. So we decided to focus on giving our employees what they want. With an extra day off, our team can focus their work time on providing awesome service to our customers. Ultimately, this is how the industry will be transformed,” Cheng said. Hong Kong is known for its long work hours, but a four-day week is gaining momentum globally. In August 2019, Microsoft in Japan started a four-day work week, which found that productivity …

Society

Government tells fundraisers to stop financial aid for foreign domestic helpers fined for breaking social distancing rules

The government warned people who joined in fundraising activities to help foreign domestic workers pay a government fine are committing a crime. Seventeen foreign domestic helpers were fined HK$5,000 each last weekend for violating the social distancing rule that limits public gatherings to two people, according to the government press release. In response, netizens set up an online fundraising platform for the domestic workers. “We will ask for legal advice to stop such fundraising activities,” said Law Chi-kwong, the secretary for Labour and Welfare in a radio program yesterday. “Fundraising is encouraging the domestic workers to gather and not be afraid of being fined, which is maliciously damaging our anti-epidemic works.” The fine is more than the HK$4,630 minimum monthly wage for domestic workers. “There will be rigorous enforcement action against foreign domestic workers who violate the two-person social gathering limit this weekend,” said Law. Helping Helpers, the fund organiser, said they suspended the fundraising. The received donations will be returned to the donors through the fundraising platform, and they will not pay the fines for the 17 domestic workers, according to the updates on the webpage. Chief executive Carrie Lam Cheng Yuet-ngor said in a press conference that employers should ask their domestic helpers to stay home during weekends. She said the enforcement officers would show “no mercy” to anyone breaching the social distancing rule. The government announced the tightening of social distancing measures on Feb. 8 under the fifth wave of pandemic in Hong Kong. Public gatherings of more than two people from two different families are banned. A maximum penalty for breaching the social-distancing rule will be charged a fine of $25,000 and up to six months prison. Law said employers can pay the domestic helpers to stay home on public holidays if the helpers are willing, …

Society

Lantern Festival with no fanfare

Lunar New Year lantern festivities are cancelled in Hong Kong for a third year because of the fifth wave of Covid-19. Traditionally, the Lantern Festival is celebrated on the first full moon after Lunar New Year. It marks the end of the New Year celebrations and is also known as Chinese Valentine's Day. But Covid restrictions have forced cancellation of carnivals that used to be held in public parks in Hong Kong. Ng Jing-yi, a mother of four, used to invite her relatives and friends over for dinner and would take her children to the Lantern Festival carnival. However, this year she only plans to celebrate the last day of the Lunar New Year by cooking some frozen rice dumplings at home. “When there was no epidemic, the lantern carnivals in Tsim Sha Tsui were always crowded with people who talked and laughed in a festive atmosphere. But now the increasing number of new cases makes me anxious and I just want to stay at home,” Ms.Ng said. Li Zishuo, a mainland student in his junior year at the University of Hong Kong, said this was his third Lunar New Year in Hong Kong, but he never felt the lively festival atmosphere that he heard of before the pandemic. “Before I came to Hong Kong for university, I heard that the Lunar New Year celebrations here are unique, especially the Lantern Festival carnival. Unfortunately, since 2020 the activities have been cancelled because of the coronavirus,” he said. Hong Kong on Tuesday reported 1,619 new confirmed cases and another 5,400 preliminary positive cases of Covid. “As far as Hong Kong is concerned, we need to find our own way out of this epidemic, and so far, our measures to contain the spread of the disease remains a legitimate and valid one. …

People

Cross-border drivers stuck in quarantine, driving up fresh food prices

Fresh food prices in Hong Kong soared due to the increasing number of cross-border truckers undergoing compulsory 3-week quarantine, disrupting the fresh food supply chain. As of yesterday, 35 cross-border drivers have either tested positive or preliminary positive for Covid-19 at Shenzhen Bay Port, according to Shenzhen’s checkpoint office, scaling down the human power for transporting fresh food from mainland to Hong Kong. Around 300 to 400 drivers who were considered as close contacts are isolated, said Cheung Yuk-fai, representative from the Hong Kong-Guangdong Transportation Drivers and Employees Association in a RTHK programme yesterday.  The cross-border truck drivers are responsible for transporting fresh produce from the mainland to Hong Kong. “Less than 50 workers remain working,” Cheung added.  Ada Chan, the owner of a stall at On Tai Market in Kwun Tong, said the vegetable price doubled or tripled from the previous days in order to make a balance. “The transportation fee was raised from HK$10 to HK$80. Of course I have to raise the vegetable price,” said Chan. Hong Kong receives 92 per cent of vegetables, 94 per cent of fresh pork and 97 per cent of live freshwater fish from the mainland, according to the Food and Health Bureau.  “I would prefer buying more cured products and frozen food since I am afraid the fresh food will be insufficient one day. The vegetable price is already expensive for me now,” said Leung Yuk-yee, a customer in the supermarket of On Tai Estate at Kwun Tong.  Chinese green cabbage was sold for HK$6.60 per kilogram at the beginning of the month. It escalated to HK$21.70 as of Feb. 12, according to the Vegetable Marketing Organisation. “The government could give immediate subsidies to help poorer families, it may be hard for some of them to afford the food price,” said …

Society

One last haircut and worship before toughened Covid rules

As Covid cases in the city hit record high, religious premises and hair salon are required to close for two weeks starting from Thursday. Citizens rushed to barber shops and temples today, seized the final opportunity for a nice haircut and good fortune.

Business

Hong Kong stocks slip on Wuxi Biologics’ record 32 percent slump

Hong Kong stocks slid as the US Department of Commerce added two subsidiaries of Wuxi Biologics’ to the red-flag list, with other 32 Chinese companies. Today’s main turnover was HK$129.5 billion. The Hang Seng Index closed at 24,329.49, down 1.02% following weakness from technology stocks. The city’s Tech index dropped 1.67%, closing at 5,436.92. Alibaba and Meituan fell 3.30% and 2.13% respectively. The stock price of Alibaba Health Information Technology tumbled 7.52%. Before its suspension started from 10:51 am, Wuxi Biologics plunged 22.77% to HK$ 62.3 after its inclusion to the “Unverifyed list” of US government, a list of business wordwide subjected to stricter export control as US officials cannot do routine check. The company’s stock sank as much as 32% in Hong Kong before the halt, dragging down the city’s benchmark and health-care stocks. WuXi Biologics’ associates, WuXi AppTec slumped 11.36% while JW (Cayman) Therapeutics fell 4.01%. Auto stocks also shrank. Great Wall was down 3.55% while BYD and Geely shrank 2.49% and 2.2% respectively. The state’s decision affected mainland stocks. Crypto stocks fell while semiconductor stocks followed. Insurance stocks demonstrated movements in opposite directions. The Shanghai Composite Index was up 0.67%, closing at 3,452.63, while the SZSE Composite Index inched down 0.24% to 2,280.51. The CSI Health Care Index, which tracks the performance of pharmaceutical companies listed in Shanghai and Shenzhen, decreased 1.32% to a 22-month low.