A study estimates that Hong Kong's population will begin to decline after reaching a peak in 2043.
We are already experiencing an ageing population and this will bring shortages to the workforce and may create serious social problems, such as putting pressure on health care services. The government has to come up with policies to deal with this ageing trend as soon as possible.
We have to understand why we are in this situation. Life expectancy has risen in developed societies. Also, more young people have degrees. They are focusing on their careers and are more reluctant to start a family, so there has been a decline in the birth rate.
When looking at the cost implications of an ageing population in the future, the largest area of expenditure will be health care and this will be a heavy financial burden for the government.
In the short term, it can bring in more skilled people under the Quality Migrant Admission Scheme, to relieve shortages of skilled staff in the labour market and ensure Hong Kong remains competitive. Raising the retirement age can have a negative impact. But it must also focus on long-term policies and these should take priority.
With the projection that the city's population will drop to 7.8 million in 2064, it must try to raise the birth rate.
