Panic-shoppers and widespread fear: effect of Covid-19 on the economy and public sentiment in HK
Image Source: © Dale De La Rey/AFP via Getty Images
Since the outbreak of Covid-19, Hong Kong has been amongst one of the worst affected regions in Asia. This is primarily due to its close proximity to mainland China, where the epidemic originated. The outbreak has caused further damages to the already struggling city, which has been embattled by political polarisation and economic downturn since the start of the Extradition Bill saga in 2019.
In early February, an article on Bloomberg described the semi-autonomous city-state as showing symptoms of a failed state, which has drawn extensive attention in the city as it has taken pride in being one of the leading financial powerhouses in the entire world for the past few decades. Anxiety is heightened in a society that has been constantly on-edge for the past six months. Together with the traumatic experience of SARS outbreak that is still fresh in people’s memory, the outbreak has fueled widespread panic. Hong Kongers rushed to shops to stockpile facemasks, food and even toilet rolls. Before the recent stabilisation of supply, the prices of facemasks peaked at around HKD$ 2500 (£250) for a box of 50 in early February, while a series of armed robberies were seen targeting supermarkets and pharmacies, attempting to steal hundreds of toilet rolls in mid-February. Economic turmoil prevails, prompting the government to hand out HKD$10,000 (£1000) to every adult resident, around seven million people, to boost business confidence and social morale.
Image Source: Oiyan The StandNews HK https://bit.ly/2U54eKt
However, resentment towards the government seems to be unwavering as the popularity of the government continues to drop. According to the research conducted by Hong Kong Public Opinion Research Institute, the approval rating of Carrie Lam decreased to a new low of mere 9%, with a rating of 18.21, after the cash handout was proposed. The SAR’s No.2, Chief Secretary for Administration Mathew Cheung’s rating has dropped from 25.29 in early February to 22.95 in the latest survey. Nevertheless, an anomaly exists in the recent ratings, with that of the Financial Secretary dramatically increasing from 26.64 to 43.46, showing that the proposed relief measure is indeed fulfilling its purpose to a certain extent.
In the meantime, the political struggle against the government remains active. Even though the risk of infection has deterred large scale rallies, protests continue as several hundred people took to the streets on 29th February to memorialise the half-year anniversary of the 8.31 incident. The coronavirus outbreak has also marked the continuation of hostility towards Beijing and the government. In Early February, medical workers in Hong Kong went on strike for a week to urge local authorities to close off its border with Mainland China to prevent the spread of the virus to the city. The border today remains partially open as people continue to flood into the city through Shenzhen Bay Port. Ironically, the government has announced a complete travel ban on South Korea, where the outbreak occurred much later than it did in China.
Extra Reading
Disclaimer: the article above was written for the date it was published - we apologise in advance for any new developments and changes to the information and data published since.