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Coronavirus Hong Kong
Hong KongHong Kong Economy

Carrie Lam gives green light to Hong Kong’s controversial rent deferral plan despite lobbying by developers and landlords

  • City leader supports amended version of finance minister Paul Chan’s rent deferment scheme, with no option to extend moratorium period
  • Proposal to be presented to Legislative Council, source says it could take effect very soon

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A controversial rent deferment scheme could be presented to the Legislative Council soon, after receiving the backing of the Executive Council. Photo: Felix Wong
Natalie WongandLilian Cheng
Hong Kong leader Carrie Lam Cheng Yuet-ngor has approved a controversial rent deferral scheme to support struggling commercial tenants affected by the city’s coronavirus outbreak, the Post has learned, shrugging off mounting pressure from developers to shelve the plan.

Sources said the final version of the budget proposal, which would allow local businesses to delay rental payments for up to three months, was opposed by several members of the Executive Council, Lam’s de facto cabinet, during a long debate on Tuesday, even as the majority endorsed it.

“In the end, Lam made the decision to pass the bill without the need of voting,” one source said.

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Another insider said even though some Exco members opposed the proposal, including Lam herself, it was difficult for them to reject the budget measure.

“It would be embarrassing for Exco to throw out the budget proposal as this will undermine the government’s credibility. Many small and medium enterprises have great expectations for it to be rolled out very soon,” the source said.

Empty retail shops in Tsim Sha Tsui. Photo: Felix Wong
Empty retail shops in Tsim Sha Tsui. Photo: Felix Wong

The bill could be gazetted on Friday, according to a government insider, and presented to lawmakers next week at the earliest for first reading.

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