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Saturday, Feb 22, 2025

Hong Kong e-voucher scheme is a shot in the arm

Hong Kong e-voucher scheme is a shot in the arm

Billions of dollars are being handed out to boost consumption in a city hit hard by political turmoil and the Covid-19 pandemic, with the added benefit that Hong Kong can move towards being a cashless society.

Shopping makes one happy, especially when someone else is footing the bill. After a prolonged period of doom and gloom fuelled by the Covid-19 pandemic and the political turmoil of 2019, Hongkongers have been given much-needed retail therapy – a HK$5,000 (US$643) government consumption voucher.

Notwithstanding some initial hiccups at the launch of the scheme this month, the HK$36 billion giveaway has got off to a good start.

The online glitches with Tap & Go, one of the four e-payment tools for the scheme, has raised questions over preparedness. Some users said they were unable to get the money via the platform when the first HK$2,000 instalment was released on August 1.

Separately, a Sha Tin pharmacy reportedly levied a 2 per cent charge for payment via Octopus card, a move that is in breach of the rules governing the city’s most used e-wallet. The complaints received by the Hong Kong Monetary Authority and the Consumer Council over the past few days show there is still much work to be done.

Arguably, a HK$5,000 handout in phases may not mean much. But it could be timely for many families who are struggling to make ends meet.

Collectively, the voucher scheme is also proving to be a shot in the arm to the retail sector, with some members of the Hong Kong Retail Management Association saying it had increased sales by more than 50 per cent. It is to be hoped that there will be even greater synergy in the coming phases of the handout.

By distributing the money via designated payment platforms instead of transferring it into people’s bank accounts, the scheme has also given the city a much-needed push towards becoming a cashless society. The government would not divulge which of the four platforms was the most popular, for fear of affecting choices in the remaining registration period.

There have been concerns that it would not be much different from the status quo if most people opted for the Octopus card. But as the card’s operator said, the scheme had enabled it to broaden its reach, including to some high-end shops.

There is also a host of special promotions and rewards to attract customers. Hopefully, the trend will be sustained.

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