Scholar Urges Govt To Hand Out More Spending Vouchers

"); jQuery("#212 h3").html("

Related News Programmes

"); });

2021-08-23 HKT 11:32

Share this story

facebook

  • A business lecturer says he believes the effect of cash vouchers in boosting the economy is limited. Image: Shutterstock

    A business lecturer says he believes the effect of cash vouchers in boosting the economy is limited. Image: Shutterstock

A business lecturer from Chinese University said on Monday that he believes the government is financially capable of handing out more spending vouchers, but it should consider tweaking the arrangement to encourage people to spend some of their own money too.

The current electronic voucher programme cost the government HK$36 billion, but Simon Lee, senior lecturer of the university’s Business School, said its effect in stimulating the economy will be limited, as this sum is no match for the city’s consumption figures before the 2019 social unrest and the Covid-19 pandemic.

“It also depends on whether people would spend more than the cash voucher. I am rather pessimistic. Some people would spend the money the government gives them, but would they spend more than that? Maybe not a lot. So the effect on boosting the economy would be limited,” said Lee.

“But I support rolling out one more round. Hong Kong is capable of doing so. As long as the pandemic is not over, we still need to boost the economy. The effect may be limited, but at least it can improve sentiment,” he said.

He said Hong Kong can take reference from Macau’s stimulus packages which give out electronic cash vouchers only after people spend a certain sum of money, and allows consumers to use the e-vouchers to pay for only part of a transaction.

For instance, an individual can receive five patacas in e-vouchers after spending 50 patacas, and can redeem 10 patacas when they spend at least 30 patacas in one transaction.

"When you spend some, and I spend some, we can make the pie bigger," said Lee.

But Lee said if the government decides to introduce another round of vouchers, it should streamline the procedure and hand out the money more efficiently.

RECENT NEWS

ZA Bank Brings Nasdaq Data To Hong Kong, Expanding US Stock Access And Investor Education

ZA Bank and Nasdaq have announced a collaboration aimed at enhancing digital wealth management in Hong Kong and interna... Read more

Hong Kong To Study One‑Stop Infrastructure For Equities, Bonds And Digital Assets

The Hong Kong Monetary Authority’s (HKMA) CMU OmniClear and the Hong Kong Exchange (HKEX) are set to begin a study on... Read more

Hong Kong To Issue First Stablecoin Licenses In March, Expand Crypto Regulation

Hong Kong will issue its first licenses for fiat-referenced stablecoin issuers in March and introduce new legislation l... Read more

MSIG Joins US$6B IFC Credit Insurance Facility To Boost Emerging Market Lending

MSIG USA and Mitsui Sumitomo Insurance (MSI Japan), together referred to as MSIG, have joined a new insurance-ba... Read more

Why The $2 Trillion Stablecoin Prediction Is Too Low

McKinsey estimates the stablecoin market will hit $2 trillion by 2028. But according to Sam Lin, COO of dtcpay, even th... Read more

RedotPay Eyes US IPO With Potential US$1 Billion Raise

RedotPay is reportedly exploring an IPO in the US that could raise more than US$1 billion, according to people famili... Read more