Chief Executive Carrie Lam Cheng Yuet-ngor holds a press conference before the Executive Council meeting at the Central Government Office on Dec 8, 2020. (PARKER ZHENG / CHINA DAILY)

HONG KONG - Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor said on Tuesday that the government is mulling to roll out more stimulus aid to bail out affected businesses as her administration further tightened social distancing rules to curb the city's fourth wave of COVID-19 infections, which she described as "worrying".

Meeting the press before an Executive Council meeting on Tuesday, Lam said dine-in service at restaurants would be prohibited after 6 pm while fitness clubs, sports venues, as well as massage and beauty salons would be closed.

Chief Executive Carrie Lam Cheng Yuet-ngor said dine-in service at restaurants would be prohibited after 6 pm while fitness clubs, sports venues, as well as massage and beauty salons would be closed

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Lam said the fourth wave is “very worrying”, citing health data showing that a total of 661 new cases were recorded over the past week, nearing the peak reached during the third wave.

Worse, more patients, who are relatively younger, are in critical condition, she added.

Lam said the measures rolled out last week, including the closure of leisure venues and the ban on groups of more than two people from gathering, did not have a satisfactory effect as many people were seen together on the streets during the weekend.

Citing data on the use of Octopus cards, the city’s major means of transport payment, Lam said there were more people on the streets last weekend than during the height of the third wave.

Many of these people visited restaurants and shopping malls, and therefore, tougher measures are needed, she added.

READ MORE: HK: Free testing for residents at virus-hit public housing block

Sector-targeted handouts will be rolled out to avoid widespread layoffs after the secretary discusses with players from impacted sectors, and details will be later disclosed.

Carrie Lam, HKSAR Chief Executive

Lam said the government was considering a new tranche of subsidies to bail out affected businesses, especially entertainment venues that were closed due to the pandemic. 

“The Financial Secretary will be instructed to introduce support measures as some premises are to be shut down under the latest social-distancing guidance,” Lam said. “Sector-targeted handouts will be rolled out to avoid widespread layoffs after the secretary discusses with players from impacted sectors, and details will be later disclosed.”

As the government continues to pump money into financial rescue packages, it now forecasts the budget deficit in this fiscal year will soar from the original HK$139.1 billion to a record high of over HK$300 billion (US$38.7 billion).

The government has already allocated more than HK$300 billion to shore up the beleaguered economy roiled by the novel coronavirus outbreak, accounting for 11 percent of the city’s gross domestic product. Fiscal reserves have dwindled to HK$800 billion, equivalent to 13-14 months of government spending, the same level as during the SARS outbreak in 2003, Chan told the Legislative Council’s Panel on Financial Affairs on Monday.

While the city’s economic recession may still linger for some time, US-based credit rating company Fitch Ratings said the Hong Kong economy will gradually recover due to the strong growth of the mainland economy.

“Economic activities in Hong Kong will be supported by strong growth in the Chinese mainland. Export and import activities will resume growth and certain segments of the tourism sector will recover through the implementation of travel bubbles. The city’s economic recovery will also be supported by its prudent public finances,” Fitch Ratings said.

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Regarding the new cluster in Kwai Shing West Estate, Lam said the Executive Council would amend government regulations so that people subject to mandatory testing will not be allowed to leave designated areas. 

A total of 15 cases involving eight units on the fifth floor of the public housing estate’s Block 8 had already been reported as of Monday. 

Residents living on the same floor will be issued quarantine orders and will be transferred to quarantine centers to stop the spread of the virus, the government said in statement on Monday night. Other Block 8 residents can still get free specimen bottles from a mobile station set up by the government at the estate.