IN DETAIL: ANTI-EPIDEMIC FUND
To the Rescue When COVID-19 first forced the closure of businesses, the Government of the Hong Kong SAR immediately launched a relief fund to offer a lifeline to struggling companies. It appointed PwC to disperse the much-needed aid. – By Sam Sze and Simon Booker
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OVID-19 has tested businesses like never before. Hong Kong’s role as an international trade hub has been disrupted and the impacts have been widely felt. Businesses have struggled to adapt to changes in demand and customer spending. In this time of uncertainty, with business confidence being low, investment has been deferred and cash preservation prioritised. The impacts throughout supply chains have been deeply felt. Faced with such severe challenges, the government ignited the Anti-Epidemic fund. Almost HK$290 billion has been allocated to alleviate impacts upon the economy and individuals, providing muchneeded relief in challenging times. The flagship of this fund is the Employment Support Scheme (‘ESS’). With HK$80-plus billion allocated to the fund, it has the potential to make a lasting impact on businesses and employees. It can provide the resources necessary to sustain employment and encourage businesses to retain staff in these extraordinary times – until the green shoots of recovery emerge.
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Running from June until the end of November this year, the ESS was launched in two separate Tranches. Tranche 1 supported employers by paying a proportion of wages between June and August, whilst Tranche 2 launches on 31 August and will run until November. The scheme complements other more targeted relief schemes that are also running, and focusses relief measures on specific businesses in their time of need. These include the HK$6 billion Retail Sector Subsidy Scheme and the Beauty Sector Scheme. Together with the ESS, PwC has the honour of acting as the Central Processing Agent to disperse these funds. From the outset, in our role as Central Processing Agent, we faced a challenging task. The speed of delivery of funds was critical. Businesses were facing significant challenges, and many small and medium sized businesses in particular lacked the reserves to plan ahead. Getting funds into circulation to the benefit of these businesses was our priority – to save jobs. The responsibility placed upon the PwC team was keenly felt.
