Gov’t still mulling details of next MOP10b subsidies

In reply to a lawmaker’s enquiry, head of the Financial Services Bureau (DSF), Iong Kong Leong, has affirmed that the government is still gathering public opinion on the second MOP10 billion subsidy scheme.

The enquiry had been made by lawmaker Wong Kit Cheng.

Previously, Secretary for Economy and Finance Lei Wai Nong announced plans to spend MOP20 billion on subsidies, of which the distribution of the first half has commenced. The second half, meanwhile, will include subsidies on a general basis, the secretary has ascertained.

Although funds have been successfully requested from the parliament, details on the MOP10 billion round of spending have not been made available. Given this fact, the DSF head could only assure Wong that details would be announced when available.

In his reply, he recapped about existing subsidies. For example, local businesses will have their water and power supply charges partially subsidized by the government, with ceilings set at MOP500 for water and MOP3,000 for power. The subsidies will be good for six months and the validity of the funds will last for 12 months, meaning that unused funds can be used after the six-month issuance period.

On the other hand, the government has also instigated several loan or funding plans for which local businesses can apply. For example, the government will subsidize the interest on eligible business loans, as well as issuing subsidies to eligible businesses. Existing subsidy beneficiaries will also see their repayment terms extended.

A new bank loan capped at MOP5 million with subsidized interest up to 4% of the loan and for two years at maximum is also open for applications.  AL