News Forum
SARS Affects Payment Ability in Commercial Sector
Source: Editor Contribution, April 28 2003
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The Association forecasts that the outbreak of SARS would affect the payment ability in the commercial sector. Mr. Benedict Wong, FCCMA, MCE, Chairman of the Association warned that the real effect is yet to come. The situation is expected to be worsen in the next one to two months. Mr. Wong predicted an extensive effect on hotel, restaurant, retailing and entertainment business compares to a smaller effect on the import and export sector.
Mr. Wong, also the CEO of a local collection agency, further indicated that the outbreak of SARS have led to debtors in requesting extension of payment terms. "We have received three requests in the past month asking for extension of payment because of SARS. We allowed the extensions after investigation." He expected more requests of the same are coming. "I think creditors would consider the extension.", Mr. Wong spoke at the Annual General Meeting of the Association.
In the same occasion, Mr. Bobby Rozario, FCCMA, MCE, Vice-Chairman of the Association expected the bad debt rate in the commercial sector will reach its peak in the coming months. "Creditor should consider to reduce its credit exposure with customers.", said Mr. Rozario.
Chairman of HKCCMA, Mr. Benedict Wong, FCCMA, MCE