Government Aid to Stimulate Growth of Hong Kong Construction Industry
2020-12-08 加盛工程
Due to adverse economic effects of the Covid-19 pandemic, not less than 50,000 construction workers in Hong Kong have lost their jobs while 80,000 others have had their work hours cut down. While the forecasts show that the construction sector in Hong Kong is improving by 1.58% to reach US$29 billion in 2024, the Hong Kong government has a huge role to play in reviving the sector.
Government’s across the world have been actively providing economic stimulus programs to boost their economies. Hong Kong hasn’t been left behind. It is engaging with various stakeholders including those in the construction industry to stimulate the economic growth in these challenging times.
Since the pandemic hit, the construction sector has been on a downward spiral across the world. In Hong Kong, the continued effort by the Development Bureau (DEVB) in liaison with the Construction Industry Council will see the sector rebound at the start of 2021.
In mid-2020, DEVB announced that the Anti-epidemic Fund will be used to revive the construction sector. Employers in the sector can apply up to $36,000 for every qualified employee (a casual employee a construction company has been making contributions for under Mandatory Provident Fund (MPF) Industry Schemes).
The government support is set to upend Hong Kong’s construction industry downward trend, which was already taking shape before the pandemic. Part of the government’s plans in reviving the sector include rolling out large infrastructural projects. Construction of new rail lines, housing, public facilities and roads will bolster the construction industry.
As the government plans to pump in HKD1 trillion in infrastructure by 2028–2029, construction companies are eyeing on opportunities that will come when the government commissions its small and mega projects.
Hong Kong is one of the few smart cities in the world; therefore, stakeholders see the construction industry as the pathway for maintaining its status. The government’s subsidies for construction firms will stimulate growth and create employment opportunities. Despite the economic impacts of the pandemic, Hong Kong construction sector will likely rebound in 2021 and maintain an uptrend for the next decade.