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Morgan Stanley is the latest U.S. Bank after JPMorgan Chase that plans to reimburse its staff in Hong Kong up to nearly $5000 for quarantine stay when returning to the city.
Hong Kong has imposed one of the world’s toughest quarantine regimes, confining visitors from other countries to a hotel room for as long as three weeks.
The expenditure incurred due to these stays is making it difficult for companies to retain and recruit employees. Business groups in the city have said that the economic cost is too high and risks the city’s status as one of the world’s top financial centers.
On Wednesday, Morgan Stanley said in a memo that it would provide a one-time payment of up to $5,130 (HK$40,000) for staff returning to Hong Kong after visiting family members overseas. The program would begin in December 2021 and end in November 2022.
Last week, JPMorgan said the staff at the executive director level or below can claim up to $5,000 for a single quarantine stay in Hong Kong’s quarantine hotels after trips to visit family.
Bloomberg reported that a stay at Hong Kong’s designated quarantine hotel can cost $64 (HK$500) to $465.47 (HK$3,630) a night for a non-suite room.
Last week, FedEx shut down its Hong Kong pilot base, blaming the city’s coronavirus policies, reported the South China Morning Post. The Asia hub for the US logistics company is in Guangzhou.
The financial community has criticized Hong Kong’s “zero Covid” policy as leaders hope to reopen the border with mainland China for quarantine-free travel as soon as next month. This weekend, a delegation of mainland health officials visited the city to inspect the city’s Covid-19 prevention measures ahead of the expected border reopening.
(With inputs from Wall Street Journal)
Picture Credits: Financial Times