Population growth not enough for John Lee to declare ‘happy Hong Kong’ job done

While population growth is encouraging, officials must remember that retaining the talent they have attracted requires addressing many long-running issues
Unaffordable housing, long working hours, poor support for families, falling birth rates and more will keep new talent from putting down roots in Hong Kong

Alice Wu

Published: 2:30pm, 20 Aug 2023

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Chief Executive John Lee Ka-chiu’s result-oriented administration appears to be delivering, at least looking at some of the latest figures released by the Census and Statistics Department. Hong Kong’s population saw a net one-year rise of more than 150,000 people in the year to mid-2023.

Lee vowed during his policy address last October to deploy a series of measures including tax breaks and looser visa rules as part of efforts to scour the world for talent. Reopening the border with the mainland and enacting schemes to attract talent to the city seem to have made up for the many families that have packed up and left for greener pastures.

The government said last month that it had approved more than 60 per cent of the more than 100,000 applications for its various talent schemes. Things appear to be looking up for Lee as he prepares for his second policy address. While he might not have good stories to tell yet, he at least has some good numbers to show.

Hong Kong is still struggling to recover from its self-imposed isolation during the Covid-19 pandemic as well as dealing with the aftermath of years of social unrest. The city’s food and catering sector is suffering from a bad summer slump with many residents going abroad or heading across the border during school holidays and many travellers watching their spending.

Even those who have stayed in the city are not spending their days off here. This could just be “revenge travel” as people rush to get out after being cooped up in the same place for the past three years.

I hope those who have set their sights on moving to Hong Kong find it a good place for them to settle down for good – hopefully with their families. We are stuck in a bit of a rut at the moment, but the city still has a great deal to offer.

The grass here isn’t all that bad. Some of my friends who have left in search of greener pastures have noted the higher taxes they have to pay. One lamented that they were “taxed to breathe”.

So in terms of taxes, Hong Kong is a sprawling, luscious green lawn. Smell the sweet scent of personal income tax being no higher than 17 per cent and a corporate tax capped at 16.5 per cent. Our low taxes have been instrumental in creating better opportunities and environment for businesses. Our low tax regime and free flow of capital continue to make the city a good place to do business.

In terms of liveability, Hong Kong is an efficient, fast-paced city with one of the world’s best transport systems. Our living spaces are cramped, but our beautiful coastline and country parks are accessible. And we do have a top-of-the-line healthcare system.

Families play at Hong Kong’s Repulse Bay beach on July 26. Photo: Jonathan Wong

Another friend of mine who has left Hong Kong regularly shares photos of her mother’s beautiful rose and vegetable gardens. Every time I see the photos, I can’t help but smile knowing that Auntie is enjoying her retirement and can finally grow her beautiful gardens.

And here is where Hong Kong officials and policymakers can do better. To retain the talent they have successfully attracted in recent months, they must address the long-running issues that continue to plague this city.

We are still having discussions about a shortage of affordable housing, long working hours and a lack of support for families, whether they are caring for young children or elderly family members. These factors all play a role in our population ageing and dismal birth rate.

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A glimpse inside Hong Kong’s notorious subdivided homes

How about working on nurturing our home-grown talent? We are closing schools while pushing our young people and our retirees to find better opportunities and living environments on the mainland.

If we make Hong Kong a family-friendly city where we do not have to send our elders across the border to make room for the rest of us – a city that truly is one that provides opportunities for all and does not tell its youth to seek their futures elsewhere – we will be able to keep our residents happy and draw talent from abroad.

Is our chief executive doing a good job? I will remain unconvinced as long as the city’s birth rate keeps dropping. A “happy Hong Kong” cannot only be attainable for the privileged few.

Alice Wu is a political consultant and a former associate director of the Asia Pacific Media Network at UCLA