Suspending Mandatory Provident Fund contributions is unsuitable for alleviating small and medium enterprises' financial difficulties amid the atypical pneumonia outbreak.

Secretary for Commerce, Industry & Technology Henry Tang said the MPF scheme will give long-term advantages to employees. However, the question of whether MPF contributions should be reduced or suspended needs careful consideration.

Brainstorming: Henry Tang exchanges views with representatives of the trade and industry sectors on the impact of atypical pneumonia on the local economy.

Attending a forum today, Mr Tang exchanged views with representatives of the trade and industry sectors on the impact of the outbreak on the local economy.

Some criticised the Government's handling of information on the disease and the outbreak. They suggested the Government enhance publicity to rebuild Hong Kong's international image.

A number of suggestions on reviving Hong Kong's business vitality were made, including setting up relief funds or loans, and exempting some Government charges.

They also urged the Government to introduce alleviation measures as soon as possible to restore Hong Kong people's confidence and buying power.

In response, Mr Tang agreed there is room for improvement in the Government's handling of information, adding that it has been updating the situation with the international community frequently.

Speaking on the possibilities of setting up relief funds, he said it is a complicated issue because it will be difficult to decide which sectors should be eligible for application.