Hong Kong Fudges Poverty Numbers

A record 1.65 million people are in poverty in Hong Kong

Hong Kong has a record 1.65 million people living in poverty in 2020, since the government kept records 12 years ago. The latest number was released in its annual Poverty Situation Report released today.

That's over one in five Hongkongers live on HK$4,400 a month or less, or a three-person family at HK$16,000 or less. 

Govt says handouts made poverty stats smaller

However, instead of being concerned about the situation, the government preferred instead to add that it has given residents lots of subsidies and handouts so the actual number of people in poverty is 554,000, at just 7.9 percent of the population, better than the 9.2 percent recorded in 2019.

Huh?

In its tally, because the government gave several cash handouts and public housing, the people who fit its definition of "poverty" is actually less than 1.65 million.

But campaigners and experts say the numbers are too high, masking the reality of how the coronavirus pandemic has financially impacted not only individuals but families as well.

"Poor people have been hit the hardest during the year of the pandemic, from job losses to underemployment and homelessness. The government must not turn a blind eye to the serious findings in its own report," said Sze Lai-shan, of the Society for Community Organization (SoCO).

Sze says poor hit hardest during pandemic

In 2020, the government gave out HK$316.4 billion (US$40.6 billion) in four rounds of subsidies from its anti-epidemic fund to support businesses from closing due to strict social-distancing rules, as many of them had to shut for months.

But unemployment soared to a 16-year high of 6.6 percent in the final quarter of the year, with some 245,800 people out of work during the fourth wave of the pandemic.

Wednesday's report saw Hong Kong's poverty-stricken population rise from 1.49 million to 1.65 million in one year. 

While the government claimed in the report that its interventions helped prevent an even sharper poverty rate, SoCO's Sze said last year's mass unemployment was a direct result of the government's tough policy on social distancing, and that relief measures fell short of supporting those most in need. For example, relief measures for businesses did not trickle down to employees.

What will Xia think of the poverty report?

One wonders what Xia Baolong thinks of this report and if he believes it. The director of the State Council's Hong Kong and Macau Affairs Office has singled out poverty and wealth inequality as deep-rooted issues that need to be tackled by the next leader.

He and his staff have done several home visits, so they have seen on the ground how some of Hong Kong's down-and-out live -- and those are the ones with roofs over their heads. Has Bao seen the homeless people living on the streets and asked them how they are doing?

Meanwhile at the other end of the spectrum, it was reported today one buyer bought two luxury flats on The Peak for a record HK$1.2 billion (US$154 million). The two flats next to each other are at Mount Nicholson, at HK$134,000 per sq ft and HK$140,800 per sq ft.

How will the next leader resolve this is anyone's guess.