MR CHAN KIN-POR (in Cantonese): Deputy President, people’s life expectancy is growing longer. And Hong Kong is one of the places in the world where the life expectancy is the longest, and many people are still in good health and spirits over 60 years of age. They are still able to continue working, or they have to work because of financial difficulty. It is obviously out of touch with reality to continue to impose 60 years as the threshold of retirement. Meanwhile, given the effect of population ageing, the young labour force in Hong Kong is dwindling and society has begun to extend the retirement age to 65 to counter the shrinkage of the labour force.
Information shows that, at present, among males aged between 60 and 65, 60% are still working. Such a situation is also an international trend. And the Government has also set the eligibility age for most elderly welfare benefits at 65 or above. In fact, overseas studies indicate that deferment of retirement is conducive to reducing the risk of death of healthy people. Therefore, deferment of retirement is underpinned by not only economic factors, but also physical and mental benefits. Therefore, we should not look at the matter from a negative angle.
However, the new trend also brings forth social problems. Many of the people aged between 60 and 64 may continue to work, but inevitably some others may not be able to continue working because of health problems, or they fail to find jobs for various reasons. However, they have yet to meet the age requirement for application of elderly welfare benefits, and so problems emerge. I believe extension of retirement age is an international trend which Hong Kong cannot avoid. Yet the Government, at the same time, should seriously study how to render assistance to such disadvantaged people.
Currently, the Labour Department organizes, from time to time, large-scale thematic job fairs for elderly persons, which are reportedly well-received. Moreover, it introduced the enhanced Employment Programme for the Elderly and Middle-aged last year. Employers engaging unemployed persons aged 60 or above can apply for an on-the-job training allowance of up to $4,000 monthly per employee for 6 to 12 months. Such a measure is good, but it carries an age limit. The Government should consider providing tax incentives for enterprises so that those hiring persons aged 60 or above can receive tax concessions, thereby incentivizing enterprises to hire a certain proportion of elderly employees on a long-term basis. Such a practice will presumably produce better results.
Furthermore, some people in society opt to start their own businesses, especially people with special skills, such as cooks opening snack stalls and pastry chefs opening bakeries. But, given the exorbitant rents in Hong Kong, the success rate of start-ups is not high. Recently, I have heard that many people chose to start their own businesses in the Greater Bay Area, such as opening Hong Kong style wonton noodle shops, egg tart shops, snack stalls and even Hong Kong style cafes near residential premises. In the Greater Bay Area, owing to the high spending power, a lifestyle closer to that of Hong Kong, and, most importantly, lower rents, the cost of start-ups is much lower than that in Hong Kong. Shops can survive even without a huge amount of business. I believe more and more people will set up businesses in the Greater Bay Area. I hope the Government can provide assistance for such people aspiring to start their own businesses there. Apart from requesting the Mainland governments to offer favourable conditions, the Government can render assistance to such people intending to start their own businesses by, for example, providing necessary information pertinent to start-ups, and information on relevant laws and regulations and application for licences. Now, more and more people prefer going to the Greater Bay Area for leisure and entertainment. Next, more people will be willing to work or set up businesses there because the Greater Bay Area offers a much bigger market and way more opportunities than Hong Kong.
Lastly, I wish to point out that insurance can also afford appropriate protection. If people really cannot work after reaching 60 years of age due to, for example, poor health, the grass roots will inevitably rely on public resources and the Government thus needs to figure out ways to help them. But the capable middle class can make early preparations for themselves. Even if they have no work after turning 60 years old they can rely on insurance as a solution. I have been advocating that the Government makes use of the model of insurance to solve problems arising from population ageing, such as providing financial or taxincentives to encourage the middle class to take out retirement-related insurance policies, so as to reduce the reliance on public resources. It is a multiple-win option which has long been popular in foreign countries. In recent years, the Government has been very supportive of and responding positively to proposals in this respect. It has, one after another, put forth the Voluntary Health Insurance Scheme, deferred annuity policies and tax deductible voluntary contributions under the Mandatory Provident Fund System. Among them, the deferred annuity policies even allow self-arranged “pensions” so that people can make early preparations for retirement to obtain monthly benefits at 60 years of age or earlier, if and when necessary. At present, deferred annuity policies or the Government’s annuity scheme are not quite popular, but in view of the worsening problem of population ageing, I believe the demand in society will increase over time and so the middle class should also make preparations for themselves.
I so submit.