HK government calls for rent cuts to shore up retailers
Financial Secretary Paul Chan Mo-po called for concerted efforts from the government and landlords to offer more relief measures and rent reductions to help Hong Kong’s hard-pressed retailers.
Chan told a media briefing on Friday that rail operator MTR Corp and some shopping mall owners have come up with proposals — ranging from promotional activities to temporary rent adjustments — to help the city’s struggling retailers cope with four months of protracted social unrest.
MTR said it will subsidize rents on a proportional basis to tenants when rail stations are forced to close. Landlord Links Property said it would solicit information from stores that close due to protests to find out what they need to stay in business. The Airport Authority Hong Kong also pledged to offer retailers more support in terms of promotional activities and rent assistance.
Chan said the government also reached out to Cyberport and the Hong Kong Science and Technology Parks Corp to seek rent adjustments.
The government unveiled a package of relief measures worth HK$19.1 billion (US$2.44 billion) in August for the territory’s badly hit small and medium-sized enterprises, waiving government fees and charges across 27 categories for 12 months.
Annie Tse Yau On-yee, chairwoman of the 9,000-member Hong Kong Retail Management Association, told a Friday media briefing that most of local retailers’ costs has always come from rents. She said that despite this, most landlords in Hong Kong are still reluctant to agree to rent reductions. Tse believes the effect of current stimulus measures aimed at boosting consumer sentiment is rather limited; rent reductions or exemptions for a certain period will be among more “targeted measures” to help retailers cope during such a difficult time.