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Opinion | To tackle poverty, the Hong Kong government must learn from Beijing
- Rather than granting one-time handouts, mainland initiatives aim to provide long-term help to break the poverty cycle
- Hong Kong needs to tackle the structural causes, including rising housing costs, low wages and an ageing population, and work with the private sector
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According to the Hong Kong government, more than 1 million residents have been lifted out of poverty by its relief measures. But how poverty is defined has long been a point of contention.
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The latest annual Poverty Situation Report found that government intervention brought the 23.6 per cent poverty rate (or 1.65 million people) down by 15.7 percentage points. This is encouraging, but let’s not celebrate; there are still many living in poverty among us.
In a city as affluent as Hong Kong, it is appalling that the poverty rate is so high. Housing expenses, low wages and an ageing population unable to retire are among the most prominent factors. If nothing is done, poverty will only worsen, jeopardising the city’s stability and prosperity.
So, what can be done? We must first comprehend the reasons for and causes of poverty in Hong Kong.
Rising housing costs is one of the most significant contributors. Despite Hong Kong’s low minimum wage, residents pay more rent than for properties half the size of those in London or New York. Hong Kong’s minimum wage is HK$37.50 (US$4.77) – in New York, it’s US$15. For many Hongkongers on low wages, almost all of it is consumed by rent, leaving little for other basic essentials.
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Hong Kong has until 2049 to fix its housing crisis, but is it possible?
Hong Kong has until 2049 to fix its housing crisis, but is it possible?
For the 13th year in a row, Hong Kong property prices have surged – hugely beneficial to landlords and developers but bad news for the public. Many struggle to make ends meet since wages have not kept pace with soaring housing costs. More people are being priced out and forced into inferior and frequently overcrowded accommodation such as “coffin homes”.
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