How Tough COVID-19 Laws Affect Expats in Hong Kong

Home to many giant financial institutions, Hong Kong has been regarded as one of the leading financial centres in the world. The semi-autonomous region’s financial sector prides itself with “effective and transparent regulations,” ensuring compliance in the international business arena. However, a total of 75,000 people reportedly left Hong Kong between mid-2020 and mid-2021 due to challenges brought by the pandemic that affected the business and tourism sectors.

According to a Bloomberg report, white-collar professionals and a few bankers from Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley, and HSBC Holdings Plc have decided to move back to their home countries.

“Zero-COVID” policy

As of February 2021, the number of people who were infected by COVID-19 in Hong Kong reached about 1.7 million since the Omicron wave started in December 2020. With this, the city’s hospitals were congested and the government implemented a stricter imposition of quarantine measures.

This March, Hong Kong’s compulsory testing among 7.4 million residents exacerbated uncertainty and frustrations. As part of Hong Kong’s policy, an infected person shall be held in quarantine camps to further contain the virus. However, these facilities somehow add insult to injury as four people reportedly attempted suicide at Penny’s Bay quarantine centre. Hence, more expat families are now leaving as they fear being separated from their children.

Travel Restrictions

In a report from Reuters , more than 40% of members surveyed by the American Chamber of Commerce said they would likely exit the region due to ongoing draconian travel restrictions. About 10% of Hong Kong’s population are foreign workers, but the government only allows returning residents to enter the border and they must comply with the three-week mandatory hotel quarantine upon arrival, regardless of vaccination status. Not to mention, the hotel room rental fees are shouldered by the person under quarantine.

Meanwhile, the immigration department data showed that work visa applications under general employment policy declined by 66%, with 13,800 foreign professionals only in the past couple of years versus 41,000 in 2019 or before the pandemic.

Lower Economic and Business Projections

Last February, Hong Kong’s2022 GDP growth forecast was revised from 3.0% to 1.5% by Fitch Ratings. The revision came after the Hong Kong government decided to implement stringent social distancing rules.

The ongoing restrictions have affected businesses related to the entertainment industry, shopping malls, barbershops, and supermarkets, among others.