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Agatha Ngai

SCMP, January 15, 2003

By Chris Yeung

Cable TV news and Sing Tao Daily jointly ran a series of reports, 'Middle Class Beaten, Still Alive' last year, to help raise the morale of people who have suffered badly since the 1997 economic downturn.

Middle-income earners talked about how they coped with shocks such as the loss of a job, drop in income, negative equity or marital troubles.

A senior Cable TV executive last week jokingly said the network might compile part II of the series this year under a new title: 'Middle Class Beaten to Death'. He was among the many middle-income earners who felt frustrated and dispirited by signs that they would be victimised in the government's all-out drive to slash the budget deficit.

As he spoke on Friday, the mass-circulation Apple Daily carried a front-page story hinting that Financial Secretary Antony Leung Kam-chung might consider a levy on savings. Its headline read: 'Ah Chung Communalises Your Assets'.

As exaggerated and sensationalised as the story might have been, it did reflect the mood and sentiment of the middle class, which fears the SAR government is planning to dip into its shrinking bank accounts to cut the deficit.

On Friday morning, Mr Leung denied he had said a tax on interest or savings would be introduced. Nevertheless, both Mr Leung and his boss, Chief Executive Tung Chee-hwa, gave clear signals in their post-policy address remarks that middle-class people would have to pay more to help solve the deficit problem.

Mr Tung has indicated tax concessions on salaries given in the 1998-99 Budget might be abolished. Separately, Secretary for Education and Manpower Arthur Li Kwok-cheung suggested at the weekend that tuition fees for Form Four students or above might go up, pending an overall review.

As low-income families are eligible to apply for government subsidies for tuition fees, middle-income parents who cannot afford an overseas education for their children are likely to suffer the most.

Meanwhile, many middle-income families feel a proposed additional levy of $400 to $500 a month on foreign domestic helpers will ultimately fall on their shoulders.

These developments might be coincidental. But they have deepened the perception among the middle-income group that they are being left out in the cold.

Middle-income groups feel their voices are not adequately represented under the present political system. Many of them no longer hold out hope that the government will help solve their negative equity problems, nor do they expect tax relief in light of the severe financial situation.

Some of them will be susceptible to Mr Tung's appeal to share the social burden, and are prepared to provide more for the vulnerable as part of a caring society.

They are adamant, though, that any burden-sharing must be founded on the principles of fairness and reason, translated into consistent and sound policies followed by good delivery.

They feel the government is fairer to highly paid civil servants and abusers of the welfare system than to middle-income people; they think they give far more to society than they get back from it. An increasing number of them have found the much-cherished freedoms they enjoyed for decades are under threat.

In the face of rapid social and political change under economic restructuring, the middle class supposedly plays a crucial role in reconciling differences between the rich and the poor over divisive issues.

That they have become one of the most restless groups creates more friction and uncertainty in the society as it tackles a difficult economic, social and political agenda.

* Chris Yeung is the Post's Editor-at-Large

Glossary

morale (n) the psychological well-being of a person or a group, measured by their sense of confidence, usefulness and purpose

dispirited (adj) showing low spirits. It describes someone who is depressed and disappointed. You may also say someone is downcast.

communalise (v) to make something the property of the community

dip into (phrasal v) to use money that one had intended to keep

left out in the cold (adjectival phrase) being ignored

hold out hope (verbal phrase) to have a reason to expect something good in the future

adamant (adj) determined not to change one's opinion

Discussion points

- In your opinion, what is causing Hong Kong's economic woes? Is it the budget deficit alone?

- How should the business sector, high-income groups, the middle class and others share the burden of the downturn?

- Do you think the government's plans for solving financial problems have been fair and reasonable so far? Give reasons.



Caught in the middle