Handout system too rigid — Macau, Taiwan and Singapore offer lessons

Since the government announced its HK$6,000 handout, debate has raged. Critics suggest the government learn from Macau, Taiwan and Singapore: use existing systems and pay out flexibly. Macau’s central provident fund automatically pays eligible residents each year; Taiwan gave every citizen NT$3,600 in consumption vouchers to stimulate spending; Singapore rebates through its tax and Central Provident Fund systems.

How did the government respond?

A government spokesman said the administration has always used various mechanisms, including the MPF system, to help citizens. The MPF has run for over a decade, people are used to it, and contribution accounts can flexibly deliver welfare payments.

What’s the controversy?

Many citizens find the handout system rigid — better to inject the HK$6,000 into MPF accounts. Supporters say paying through MPF accounts encourages saving while using an existing mechanism, avoiding a complicated new registration process.