Do right by foreign workers to preserve Hong Kong’s competitive advantage
- Foreign domestic workers are an often-overlooked part of Hong Kong’s success story, and they are struggling amid the city’s push for ‘zero Covid’
- Flight bans, a shortage of quarantine hotels and other difficulties are hurting thousands of families in both Hong Kong and the Philippines
They make up more than 9 per cent of our workforce and provide support in at least 275,000 Hong Kong homes. Paid a pittance and often working long hours in claustrophobic circumstances, they make it possible for tens of thousands of Hong Kong mothers to pursue meaningful, well-paid careers, strengthening our local skills pool for the thousands of international companies based here.
It has enabled Hong Kong to achieve a 54 per cent female workforce participation rate. That is behind Singapore, but on a par with Japan and well ahead of the global average of around 47 per cent.
While the disruption in Hong Kong is severe and still unresolved, the disruption in the Philippines itself could be greater. That is because of the country’s reliance on its bagong bayani, or heroes, as the country’s army of overseas workers are called.
According to the Philippine Overseas Employment Administration, around 2.2 million Filipinos work overseas. Around 12 per cent of Filipino families rely on remittances from at least one bagong bayani.
The economic turbulence arising from the global pandemic has sent alarms ringing through the corridors of power in Manila and through millions of families. Hong Kong thankfully appears to be an outlier, though, and remittances overall have remained more resilient than expected.
Against predictions during the direst months in the middle of 2020 that remittances might fall by 13 per cent or more, figures from the Philippines central bank at the end of 2021 suggest a life-saving recovery since the nadir in 2020. They now predict a fall of just 0.8 per cent.
Why is this? First, Hong Kong is an insignificant outlier. It accounts for just 7 per cent of all Filipino overseas workers, compared with more than 20 per cent working in Saudi Arabia, 13 per cent in the United Arab Emirates and almost 220,000 seafarers who staff the world’s merchant ships and cruise ships.
As a World Bank blog noted last November: “It is remarkable to see the recovery in remittance flows in 2021, proving again their reliability as an absolute lifeline for families of migrants back home, especially in times of need.”
For now, families back in the Philippines have found some relief. Whether this can be sustained is another matter. Unemployment within the country remains high. Many of the stranded overseas workers can find no work at home and see no early prospect of returning to their jobs overseas or on cruise ships.
The upheavals here in Hong Kong need to be resolved as speedily as possible, not just for the sake of thousands of families in the Philippines but for thousands of families here in Hong Kong. And there is that other, not-insignificant matter of maintaining an essential competitive advantage that has for decades been largely ignored.
David Dodwell researches and writes about global, regional and Hong Kong challenges from a Hong Kong point of view