Donald Tsang Yam-kuen acknowledges the wealth gap in Hong Kong is increasing but says his government is focusing on ensuring the poor do not become poorer rather than narrowing the divide.
Describing the wealth gap as 'a worry of capitalism', the chief executive said the city's problem was particularly acute because of its social and economic structure.
'In Hong Kong's case it is even more serious because of two reasons. First of all we are a servicing centre, particularly a financial centre - then the most capable people, the most intelligent service providers, come to Hong Kong to live and settle. They are making tonnes of money every month,' he said.
Tsang added that at the same time 150 people were migrating to Hong Kong every day from the mainland. 'Most of them are unskilled and poor. So you always have this problem of people making a lot of money unrestrained, and we have people coming in from the bottom of the ladder. 'The bottom is unable to rise. But the top continues to rise. Because of our competitiveness, Hong Kong is getting richer over time, and then those people making high incomes - more than HK$10 million a month through the financial services - are making more and more. So you know when we measure the gap, the gap will enlarge throughout over time,' he said.
Tsang said his government would maintain the level of welfare services in the city and protect the poor.
'The most important thing is the floor will not fall. The floor ... means a whole spectrum of services we are providing, in terms of housing, medical, education and welfare as well as money dispersement every month. We are not diminishing all that.
'What is important is that we will ensure enough social mobility for people to move up the ladder,' he said. 'Those who are poor today will not be poor five years down the road.'
