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HKFP
28-05-2025
- Business
- HKFP
Hong Kong gov't unveils measures to tap into elderly's purchasing power, push ‘silver economy'
Hong Kong authorities have announced a slew of measures to leverage the purchasing power of the city's senior citizens, including spending incentives, insurance products, and re-employment schemes. On Tuesday, the Working Group on Promoting Silver Economy, chaired by Deputy Chief Secretary Warner Cheuk, unveiled 30 measures to boost spending among senior citizens, develop elderly-focused products, enhance financial security, and encourage re-employment. Cheuk said at a press conference on Tuesday that people aged 60 and above spent about HK$342 billion last year, accounting for about 11 per cent of the city's Gross Domestic Product (GDP). 'The elderly account for a large proportion of Hong Kong's population. With favourable financial conditions and purchasing power, they are a huge consumer group that cannot be overlooked, as they create a huge demand for silver economy-related products and services,' he said. Cheuk said the new measures would 'inject vitality into the local economy and promote overall economic development, as well as [spur] the cultivation of high-quality silver products and service modes, so that the elderly can share the fruits of development.' However, the government would not set performance goals for the measures, as they would be outsourced, and their results would be 'rather beyond the control of the administration,' the deputy chief secretary said. He added that it would be 'quite substantial' if the elderly's annual spending could increase by 5 per cent per annum, amounting to a rise of HK$17 billion in the first year. Discounts, insurance, jobs To drive consumption, the retail sector will provide elderly discounts, the catering sector and food manufacturers will offer meals suitable for the elderly, while the Trade Development Council will supply 'silver products' aimed at the needs of senior citizens. The working group also announced measures to promote quality assurance for elderly-focused products through quality standards and accreditation schemes, including elderly-accessible building designs. It also announced financial security arrangements, including cross-boundary elderly care insurance products, strengthened financial planning, and anti-scam education for the elderly. To unleash 'silver productivity,' the government will assist senior citizens to re-enter the workforce through retraining programmes and job fairs. The Labour and Welfare Bureau will also review existing schemes such as the Re-employment Allowance Pilot Scheme and the Employment Programme for the Elderly and Middle-aged 'to further explore measures to encourage the employment of persons aged 60 or above.' The formation of the government working group was listed as one of the policies in Chief Executive John Lee's 2024 Policy Address, in which he cited the 'growing demand for products and services catering to the elderly' due to the rapid expansion of the silver market.
RTHK
01-05-2025
- Business
- RTHK
'Sacking workers not the way to get around MPF tweak'
'Sacking workers not the way to get around MPF tweak' Chris Sun (second from left) believes that with the MPF offsetting mechanism abolished, workers will be able to save up more money for retirement. Photo courtesy of Labour and Welfare Bureau The labour chief on Thursday said employers could lose more than they gain, if they plan on recruiting new workers to replace existing ones just to skimp on future termination payments. Starting on May 1, employers who lay off staff can no longer use the workers' Mandatory Provident fund (MPF) savings to offset severance or long service payments. The so-called offsetting mechanism, which had been in place since the MPF system came into operation in 2000, was abolished under a government bill passed in 2022. On an RTHK radio programme, Chris Sun was asked if employers can save future payments by sacking existing employees and replacing them with new recruits who earn less. "The labour market is quite tight now. Can employers really save money by sacking a worker who is resourceful and familiar with your operations, and employ a new one? I do not dare say so, as it depends on the job market situation," he said. "But think about this: the new worker needs training and takes time to understand the company's operations, so employers may stand to lose more than they gain. "Also, the existing worker's length of service before today can be offset, but not for the new hires. Therefore by doing so, it does no good to the employers." Writing on his Facebook page, Chief Executive John Lee said the scrapping of the offsetting mechanism will benefit more than three million workers in Hong Kong. He added the government is also rolling out a subsidy scheme to help employers shoulder the extra costs brought by the policy change. The scheme, worth over HK$33 billion, will be spread across 25 years. The labour minister explained the figure was only an estimate, and if necessary authorities will seek additional funding to cover the applications.
HKFP
25-04-2025
- Business
- HKFP
Hong Kong catering union calls for mechanism to halt labour import scheme after ‘200 workers replaced'
A catering labour union has called on Hong Kong authorities to establish a mechanism to halt the controversial labour import scheme after finding that over 200 local employees reported being replaced by imported workers. The Eating Establishment Employees General Union said on Thursday that some employees reported being fired and replaced by non-local workers employed through the city's 'enhanced' labour import scheme. Labour minister Chris Sun said last week that the government had approved a total of 54,278 non-local workers – mostly from mainland China – since the Enhanced Supplementary Labour Scheme was launched in early September 2023. The two-year scheme, set to end in September, allows Hong Kong employers to bring in non-local workers for 26 types of jobs that were previously only open to local residents – including cashiers, hair stylists, sales assistants, and waiters – as well as unskilled or low-skilled posts such as cleaners, dishwashers, and security guards. More than 8,900 non-local workers worked as waiters – the most popular job taken up by imported workers – followed by junior cooks, according to the Labour and Welfare Bureau. 'Just cutting costs' Citing results from an opinion survey on the scheme's impact on local employees, union chair Lam Chin-kwok said that 70 per cent of more than 2,000 respondents said their employers had imported non-local workers. Some 90 per cent said they opposed the continuation of the labour import scheme. Chiu Kwun-chung, head of the union's labour rights committee, said: 'If there are sackings after labour imports, it's obvious that they aren't solving staff shortages, or easing the pressure on employees… just cutting costs or relieving operational pressures.' Chiu also said that some employers had fired mostly older employees and replaced them with imported workers. Dishwashers had also lost their jobs to the labour import scheme, he added. Under the scheme, companies must pay non-local workers no less than the median monthly wage for that job. The union called on the government to carry out regular reviews and establish a mechanism to halt the scheme should it compromise the employment of local workers. Union chair Lam on Thursday also urged the government to establish a reporting system allowing employees to flag their bosses' alleged abuses of the labour import scheme. The Federation of Trade Unions, a pro-Beijing coalition that the catering industry union is part of, has also made similar calls, saying the catering and construction sectors were among the hardest hit by unemployment in recent years. The expansion of labour importation schemes has sparked controversy, with labour groups and political parties raising concerns that they have led to higher unemployment rates and lower salaries among local workers.
South China Morning Post
12-04-2025
- South China Morning Post
Why has the number of community nannies in Hong Kong plunged in the past year?
The number of community nannies under a Hong Kong childcare programme declined sharply by more than 40 per cent from 2023 to last year, with industry players attributing the dip partly to carers' fears over abuse allegations following an earlier scandal that tarnished the service. Advertisement There were a total of 1,043 nannies recruited to provide care for children at home or in community centres between April and December 2024 under the Neighbourhood Support Child Care Project, according to official statistics submitted to the Legislative Council 's Finance Committee by the Labour and Welfare Bureau earlier this week. The figure dropped sharply by 41 per cent from 1,770 recorded over the same period in 2023. 'Some doubted their own abilities to take care of children or meet parents' high demands, while some also worried about being suspected of child abuse,' said Jessie Yu Sau-chu, chief executive of the Hong Kong Single Parents Association. 'The supply of community nannies has already fallen short of demand, and what makes it worse is that there are fewer newcomers.' Advertisement The association runs the service in Sha Tin and has 56 nannies, and offers the nannies regular abuse prevention training.
South China Morning Post
18-02-2025
- Business
- South China Morning Post
Hong Kong puts Islamic finance experts, accountants on immigration fast track
Financial professionals with Islamic market experience and accountants can enjoy fast track immigration to Hong Kong from next month, as part of a wider government effort to address the local talent shortage. The Labour and Welfare Bureau on Tuesday added nine professions to the talent list, which now covers 60 types of jobs that the city needs most to foster a high-value-added and diversified economy. A spokesman for the Financial Services and Treasury Bureau said authorities hoped to further tap into the Islamic bond market with the help of financial professionals with relevant experience. 'We are looking for financial talent who have a professional understanding of sharia law, which governs the daily activities of Muslims, such as prohibiting charging or paying interests and restricting investment in alcohol and pork products,' he said. 'There are no key performance indicators [on how many professionals to attract], but we are aware that the Islamic finance market is still at a developing stage and we need people with practical, hands-on experience.' Asked why accountants, which the city appeared to have in abundance, were also added to the list, the spokesman referred to a study conducted by the Hong Kong Institute of Certified Public Accountants (HKICPA) that revealed a serious manpower crunch in the industry.
