On Second Thought: Long-term investment in human capital and boosting quality of life vital to Hong Kong’s survival

Financial Secretary John Tsang Chun-wah offered a HK$38.8 billion package of sweeteners in his ninth budget. At the same time, Hong Kong is anticipating slower economic growth of between 1 and 2 per cent and challenges arising from the effects of fewer tourists and exports. This will be further complicated in the near future by rapid ageing and a reduction in the size of the workforce.

Indeed the road ahead will be bumpy with lots of uncertainty. Nevertheless the goverrnment is still looking at a near $30 billion surplus in the current fiscal year, not including HK$45 billion injected into a fund for building homes.

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As housing is one of the major concerns of our generation, I hope the government can make good use of land and money to build more home ownership-style housing for those who cannot afford to buy private housing and are ineligible for public housing.

Though the rent waiver for public housing has been removed, the resource should be channelled to help poor people living in the rental market by building more public housing for them as well.

A study we conducted showed that the expenditure of those not living in public housing exceeded their income, which meant they are much worse off than those living in public housing with a similar income level. The quality of life of the local population would be greatly improved if the accommodation problem could be resolved.

In facing uncertainty and challenges in the future, investment in human capital and capacity building are a must. It is encouraging to see the support for students taking Vocational Training Council courses. We need to ensure that Hong Kong has a talent pool that can improve high-end activities.