Hong Kong had barely begun to get its economy back on track post the protests of 2019, when the country took another hit with the world, that of COVID-19. “I don’t think coronavirus alone could do much damage to Hong Kong’s economy if the companies were healthy before the virus came. But the problem is many companies here were already struggling to survive when the anti-extradition protests started last June. Many only have the cash flow for three to six months,” shared Managing Director of AMAC Human Resources Consultants, Alexa Chow Yee-Ping. 

This dual impact is likely to put the country in an unfavorable position, with an estimated 20% fall in salaries. According to experts, the dip in salaries will bring down the monthly median from HK$18,200 to HK$14,000. The Census and Statistics Department in Hong Kong recently published figures that indicated a 3.8% growth in Hong Kong wages in 2020. 

This figure does not factor-in the impact of COVID-19 or the protests. Urging the government to offer half-yearly or quarterly figures to mitigate the current scenario, she highlighted, “If the government survey includes the unpaid leave conditions, I would expect that median monthly wage to drop between 10 and 20%.” 

With no immediate resolve to the scenario and dependency on precautions and reactive policies, the country’s Government, corporates and leaders must come together and identify the way forward to navigate through this difficult time and ensure financial security for its people. 

Picture source- Financial Times