National security law, the future of Government Funding

The HKSAR Government is required to enact the controversial National Security Law. According to the new law, 4 types of offences may lead to life sentence, and the Office for Safeguarding National Security of the Chinese Government shall exercise jurisdiction in some cases. After the announcement (1st July, Hong Kong SAR establishment day), thousands of Hong Kong citizen protested against the measure.

Related news: The Law of the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region gazetted and takes immediate effect

Short term impact to SMEs

No matter what will happen, we expect that Hong Kong may suffer series of social unrest as last year. The very first impact will go to retail, catering and tourism related businesses. These sectors have purged significantly due to social unrest in 2019 and COVID-19 epidemic in 2020, if there is a new wave of conflict we can anticipate a great depression ahead. The socioeconomic impact now spreads to a variety of businesses. The unemployment rate raises to 5.9%, a new record in 15 years. Moreover, the West is about to sanction on Hong Kong, and the economy will be hopeless.

Nothing can be done but welfare

Due to the conflict between the Central Government and Hong Kong people, the administration can do nothing but welfare in a short term. The government is likely to give tax reduction and cash subsidy to general citizens and to provide funding to enterprises. For instance, the Employment Support Scheme and the enhancement of subsidy programmes are the measures the current administration can do. The BUD Fund and the EMF increase to HK$ 4,000,000 and HK$ 800,000 respectively, which are typical examples.

Government Funding consultant reduces your risk

As businessmen, we cannot control the external factors. Unless we close the business, it must go on. Now we expect the government to provide number of subsidies, why not get well-prepared today? Asking a staff to study how to apply some government funding is not cost-effective and risky. Most enterprises are not familiar with the application procedure, and a minor mistake may ruin the application as a whole. Government Funding consultant BizMagnet Limited understands the need of enterprises and provides reliable services to facilitate the application. You should focus on the core business to survive in the great economic depression and we will walk with you.

Further reading: The US is about to revoke the special status of Hong Kong

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