A repeat next year of Hong Kong’s consumption voucher scheme to boost local spending will depend on the government’s financial strength, top officials have said, noting the ongoing initiative has had a positive impact on the economy and may further ease unemployment.

Financial Secretary Paul Chan Mo-po said on Sunday the stimulus effects of the first round of the HK$5,000 (US$642) in e-vouchers would be felt this month.

A total of 6.93 million participants out of 7.2 million eligible people have signed up for the scheme since registration ended on August 14. About 5.47 million people received their first tranche of HK$2,000 on August 1.

Financial Secretary Paul Chan.

The HK$36 billion programme is aimed at accelerating the city’s economic recovery during the Covid-19 pandemic. Chan previously estimated the initiative would contribute 0.7 per cent growth to gross domestic product this year.

While the unemployment rate had eased sharply to 5 per cent for the three-month period ending in July, officials had no room to be complacent, he wrote on his official blog.

“It is worth noting that even though the employment situation in various industries has gradually improved, it has not fully recovered to the level before the outbreak of the coronavirus early last year,” he said.

The jobless rate in the retail, accommodation and food sectors stood at 7.6 per cent, down from its peak of 11 per cent in the three-month rolling period to September last year, but it remained higher than the 5.2 per cent recorded before the coronavirus hit, he noted.

“We expect the consumption voucher [benefits] to take effect this month, further stimulate the growth of private consumption and further improve the employment situation in related industries,” he said.

Chan reiterated that the progress of the economic recovery hinged on pandemic-control measures and the local vaccination drive.

Despite the boost in business that retailers and restaurants have enjoyed from the voucher scheme, the government has not committed to repeating it next year. During a rare town hall meeting featuring Chief Executive Carrie Lam Cheng Yuet-ngor on Sunday, a resident expressed hope the government would hand out HK$5,000 in digital vouchers again next year.

“We hope the consumption voucher scheme can be rolled out again next year as it has had a visible impact on boosting local spending and spurring economic growth,” said Wong Tai Sin resident Ng Wai-ying. “But we hope that the distribution procedures won’t be so complicated.”

Lam said the financial secretary needed to take into account the city’s fiscal situation before making a decision.

“I believe everybody has been very happy in using the consumption vouchers,” she said. “But this first-ever consumption voucher scheme required a large amount of public funds. I believe the financial secretary has to consider the city’s finances and Hong Kong’s overall economic situation.”

Retailers and restaurants have enjoyed a boost from the scheme, but it is uncertain whether it will be reprised next year.

On his blog, Chan also stressed that the government would do more to promote how China’s 14th five-year plan was crucial to the success of the city’s economy.

“Hong Kong’s social and economic development has always been closely linked to the growth of mainland China,” he said. “A deeper understanding of the overall situation and deployment of the country‘s development will help Hong Kong accurately position itself and better grasp the opportunities for growth in mainland China, and in turn improve the quality of the city’s own development.”

Under the plan, officially adopted in March, Beijing vowed to safeguard national security in Hong Kong and support the city in reinforcing its status as an international financial centre. But it also pledged to encourage the development of new strengths, such as becoming an international aviation and technological hub, as well as a centre for arts and cultural exchange between the country and the rest of the world.

Chan said the blueprint tapped into the city’s strength as a global hub for offshore yuan business and as an international centre for asset and risk management.

Huang Liuquan, a deputy director of the State Council’s Hong Kong and Macau Affairs Office, was due to arrive on Sunday to discuss the plan with senior local officials on Monday morning. He will then attend an unprecedented briefing at the Legislative Council in the afternoon and meet business leaders and youth groups on Tuesday and Wednesday, respectively.

He will be accompanied by senior officials from the National Development and Reform Commission, the Ministry of Science and Technology and the People’s Bank of China.