How to Exit Hong Kong

Some pointers to make it easier to leave Hong Kong these days

Here's a quick rundown on how to exit Hong Kong...

Pay your tax before you leave

Come here to do all your tax paperwork

When you resign from your workplace, be sure to get a letter from the HR department about your termination of employment due to departing Hong Kong, along with the requisite IR56G, the notification form from your employer to inform the Inland Revenue Department that you will depart from Hong Kong.

Do not leave this to the last minute before you leave. Take these two pieces of paper and your HKID to the 1/F of  Inland Revenue and it's best to go before it opens at 9am. You will get a ticket and when your number is called, tell the person at the counter you are leaving and show them these letters from your company.

They will tell you to go to the 26/F, where again you queue up and get the requisite green tax form to fill out (hence the IR56G form is handy). Be sure to bring any receipts that you may have made for charitable donations to declare in this form as well.

Hand in the green form and the person may tell you come back in the afternoon.

You will need to fill out this green tax form

At that time they will give your tax bill, which you pay by going back down to Hong Kong Post on the 1/F. There will be several people in front of you with the same white piece of paper with red ink. You cannot pay by credit, only cash or debit.

When this is processed, go back up to the 7/F to get your release letter. This is important to have in order to apply to withdraw your mandatory provident fund (MPF) if you are a foreign passport holder.

All the above can be completed in one day.

Withdraw MPF

You need to say an oath that is witnessed by the Home Affairs office before you can apply to withdraw your MPF, along with the release letter.

Because of the fifth wave, this oath could only be done by appointment only. Best to go to your closest Home Affairs office and get the phone number to make the appointment -- no walk-ins allowed. It's a very antiquated way of doing this, as you cannot book online. Just press redial on your phone 30, 40 times until you get through. 

In my case the oath service was only available Monday, Wednesday and Friday at select times. You might be lucky and get the next day booking or next week. They will ask for your name and contact phone number.

On the appointed day arrive a few minutes early (there will be a queue). A person will check each person against their appointment list (hence no walk-ins allowed). Your request is processed and then an appointed person will witness you reading out a statement in English or Chinese. It is a basically a run-on sentence in legalese saying that you abide by the Oath and Declarations Ordinance, that everything you have declared in your forms are true. While I was waiting for my turn, I was given the Oath and Declarations Ordinance to read...

Oath office is around the corner on O'Brien Road

Once you have read out the oath, the witness will sign and stamp a chop on a letter saying you have completed the oath. Send this original copy to the MPF provider along with the application to withdraw your MPF from either your provider or the MPF website. 

It will ask for information about where you are moving to, your contact details and which bank account the money should be sent to.

Your MPF provider may contact you for further information; in my case it was my tax number in the country I will reside in, and I filled that in online. 

From there it should take about a month for it to be processed.

Others have told me they received two tax refund cheques from Inland Revenue.

Packing up

Purging can be a tough exercise, but when it comes down to it, try to be as ruthless as possible. Give away as much as you can to friends and family, or to charities that could use clothing, stationary, tableware, kitchenware, and so on. 

Mail as much as you can ahead of time

If you don't have any furniture, best to send back things via Hong Kong Post via ship as the cheapest option. Either find a sturdy cardboard box or use the ones sold at the post office and make sure they are secured well with packing tape. 

When you fill out the form, you will need to itemise everything in the box and put a total value on them, so best to make a list as you pack the box -- once it's sealed it's hard to remember what exactly what was in there! Around 10kg is over HK$600 which will arrive in about three months' time. So best to ship off what you don't need first.

Before I left, SpeedPost was available -- packages under 2kg could be sent in two weeks. To make sure I was under 2kg, I brought the unsealed box to weigh it before using the packing tape. The staff don't mind you weighing the box as long as they aren't busy, hence going in the morning is a good time.

You cannot mail any electronics, liquid like perfume, but something like hand cream is OK. Obviously no batteries, lighters or hand sanitiser (anything with alcohol in it). Here's the list.

Miscellaneous

If you are renting, be sure to inform providers for electricity, gas, water, etc that you are leaving and to pay up the bills. They will return the deposits to you via cheque. Same goes for settling mobile phone and internet, gym memberships and so on.

Most people will keep their bank accounts active to either receive the MPF withdrawal or to keep paying mobile phone fees while abroad to retain their Hong Kong numbers. I have heard it is harder to open bank accounts in Hong Kong now, so if you can keep a basic one open, that could be handy.

Try to complete your "bucket list" if you have one. In my case because of the social-distancing measures during the pandemic, and time was ticking fast, I was just happy to see whoever wanted to meet up. 

Departure

Check once, twice, three times to make sure you are clear of the Covid-19 requirements for your destination, as they can change suddenly. In my case from the time I booked my flight to departure rules had changed so that there was no need for a PCR test in both the transit city or the final destination.

Some countries may require you to download a specific app to input all your flight and passport information.

Even though it's all digital, be old school and print out everything. Wifi doesn't work all the time.

Hong Kong International Airport is a ghost town when it comes to services and shops. Practically all of them were closed in the check-in area, and nothing was open past security and immigration except for washrooms and free water. Bring snacks if you want to nibble on something before your flight, or eat a big meal beforehand.

If you are flying economy, be sure to get there at least three hours beforehand as there will be a big queue to check-in, otherwise those in business and first class won't have much of a wait. Be sure to pack all your electronics in your hand carry luggage, not check-in suitcases for inspection.

OK One more post tomorrow on a few of the final things I did in Hong Kong!

Nearly 90,000 Left HK in One Year

Almost 90,000 people left Hong Kong in the past 12 months

It was revealed nearly 90,000 people left Hong Kong in the past 12 months after the national security law was implemented, a 1.2 percent drop in the population to 7.39 million.

The govt says more people left than entered HK

A government spokesman attributed the drop to various factors, including the number of deaths (50,400) higher than births (38,500), and more people leaving for work and school than coming in because of the Hong Kong government's Covid-19 restrictions preventing domestic helpers, students and workers from entering.

"Net movement, which includes the movement of Hong Kong residents into and out of Hong Kong for various purposes including work and study, is conceptually different from immigration and emigration," the spokesman said.

Trying hard to spin the fact that people are leaving in droves as being "conceptually different".

"Being an international city, Hong Kong's population has always been mobile," the spokesman continued. "During the past 10 years, net outflows of Hong Kong residents other than One-way Permit holders were recorded for most of the years."

HK$6.6 billion was taken out of MPF accounts

Meanwhile another sure sign of mass migration is the Mandatory Provident Fund Schemes Authority's latest annual report. Almost HK$6.6 billion worth of funds [for retirement] have been withdrawn from April 2020 to March this year by people who claimed they were leaving Hong Kong permanently.

The figure is 27 percent higher than the previous financial year, and the highest on record.

How do you spin a fact like that?

Paul Yip Siu-fai, chair professor in social work and social administration at the University of Hong Kong calls the trend "alarming".

"Of course many people could be leaving Hong Kong to work and study, every year there are people doing so. But what is the reason that this year saw such an increase [from 20,900 to 89,200], the government needs to find out," Yip said. 

Yip says govt needs to know why ppl are leaving

"Some people are worried about changes in freedom of speech, as well as the city's education system, while the [red lines] are unclear. Amid fears, if they had a choice, they might choose to emigrate. The government should try to address their concerns."

He believes there will be a steady stream of emigration beyond the next one or two years and says the government should consider offering incentives to young couples with newborns like prioritized housing.

But it seems Chief Executive Carrie Lam Cheng Yuet-ngor isn't too fussed about people leaving, perhaps it's a minor detail in how to keep the city functioning...

 

Middle-Aged Hongkongers Can't Quit Yet

People retiring soon don't have much saved in their MPF

 

Hong Kong's Mandatory Provident Fund, or MPF is a compulsory savings scheme for retirement. Both the employee and employer contribute a maximum of HK$1,500 each per month and the employee decides which mutual funds to invest in.

As a result, a maximum of HK$36,000 as a principal is added to the MPF per year, and since it was only started in 2000, people who are now in their 50s feel the amount in their MPF accounts is hardly enough to financially cover them in retirement, and as a result many want to continue working.

HK$36K per year is invested in the MPF

In a survey commissioned by the Hong Kong Retirement Schemes Association, a group that promotes pension schemes in the city, nine out of 10 middle-income earners reaching retirement age don't want to stop working because they feel their pension is hardly adequate.

Many also worry that because of the coronavirus pandemic, healthcare costs will rise.

The MPF on average can only provide about 40 percent of a person's salary after retirement. 

"Many people in Hong Kong don't plan for retirement and fail to make a long-term plan," said Doris Ho, chairman of the Hong Kong Retirement Schemes Association.

"The MPF is not going to be enough for those who are now in their 50s. The middle-class individual may either need to continue to work or they will need to accept a lower living standard if they are forced to retire at 60," said Kenrick Chung, general manager of employee benefits at Realife Insurance Brokers.

HK should encourage more mature workers

"This will be bad news for restaurants and retailers in the city as Hong Kong has an ageing population. Many people are entering retirement age. If they are unemployed and need to tighten their belts, they will spend less on dining out or shopping. It is inevitable."

However the opposite is true for younger employees, who have had more time to contribute to their MPF and as a result will have a bigger sum when they retire.

Hong Kong is one of the fastest-ageing populations in the world. Between 2018 and 2038, the number of people aged 65 and older will almost double from 1.27 million to 2.44 million, and their age group will increase from 18 percent to 32 percent, according to government estimates. Life expectancy in the city is also the highest in the world at more than 85 years, according to the World Bank data from 2018.

HK has the fastest-aging population in the world

While Hong Kong does not have an official retirement age, many companies require staff to retire at 60 or 65, similar to civil servants -- but they have much higher salaries and more benefits than others.

These days retiring at 60 is very young and Hong Kong employers can't just kick out employees who have a lot more to offer in terms of knowledge and experience, especially to the younger generation. This is particularly true in trades, but it applies to all kinds of companies. 

Will the government read this report and take it seriously? Chief Executive Carrie Lam Cheng Yuet-ngor herself is 64 years-old. She says her administration is concerned about social welfare. Time's ticking, Carrie...

Save More Money!

Even people in the wealthy class aren't leaving enough money for loved ones

As if Hong Kong people don't have enough to save up for -- mortgage or rent, children, education, transportation, retirement, and investments -- and now apparently they aren't leaving enough money behind for loved ones in case they die unexpectedly.

According to a survey by Citibank in December of 1,224 affluent residents who have between HK$300,000 and HK$1 million in investment assets, there is a big gap between people's incomes and what they bequeath to loved ones.

The elderly have more money to leave for their children

For example, singles who are still working have a shortfall as high as HK$2 million, while for retirees it's HK$1.05 million. However when it comes to married couples with children, the shortfall is the widest at HK$4.65 million, while for childless couples it's HK$2.11 million.

"Those families with children need to prepare for their education, so they would need to prepare more" financially in the case of unexpected deaths, says Gordon Tsui Luen-on, managing director of Hantec Pacific in Hong Kong.

The study shows even those in the affluent bracket are struggling to make ends meet, while a record 1.37 million people, or 20 percent of the population live below the poverty line.

Kenrick Chung, chief commercial officer of Charter Management Group, said Hongkongers can voluntarily increase their contributions to the mandatory provident fund (MPF), or invest in annuity to prepare for retirement needs.

Families with children need to save even more money

The MPF has been so badly run and mismanaged with very little returns that most people only contribute the minimum amount and invest elsewhere. To even suggest contributing more to MPF is ridiculous.

So what are we supposed to do? When the stock market is stagnant, interest rates are still low and there are limitations on investing in the property market, how are people supposed to grow their money?

Trying to Survive in Hong Kong

There's a lot of foot traffic on the streets, but who's spending?

As if we need more proof it's getting more expensive for people to live in Hong Kong when their salaries aren't keeping up with inflation -- a latest study says households are in nearly twice as much debt as they used to be 10 years ago.

The Legislative Council research division released its latest survey that found grassroots families are earning less than what they spend every month, and that the Mandatory Provident Fund (MPF) that employees and employers contribute to monthly is not enough to retire on.

in 2005, the average debt carried by each household consisting of mortgages, credit card advances and personal loans was HK$349,100. That amount has almost doubled to HK$646,100 last year.

Overall the outstanding balance of household loans was HK$1,594 billion, 70 percent of which are mortgages, more than twice the amount a decade ago.

Try buying a matchbox and paying it off before retirement

While people try to save for emergencies like unemployment and illness, the report says, "in the face of slowing economic growth, slackening social mobility, continued inflation and escalating property cost in Hong Kong, many lower- to middle-income families may not be able to do so".

According to the latest data from the Census and Statistics Department, the report estimated the average household expenditure in 2015 was HK$27,600 per  month, a 46 percent rise from a decade ago.

Lower-income households aren't able to save as much these days; those with incomes of HK$11,000 to HK$16,000 a month could barely cover basic expenses, having to fork out another HK$400 from their savings.

This contrasts with those making HK$61,000 to HK$85,000 who are able to save HK$23,700 a month.

Housing makes up the biggest monthly expenditure at 36 percent. Flat prices and rentals have surged by 223 percent and 100 percent respectively between 2005 and 2015, forcing many to resort to taking out bigger mortgages.

Retired couples spent between HK$6,600 to HK$38,300 per month, while their MPF only averaged HK$144,000, which covers only less than two years of spending in some cases. Relatives would have to chip in around HK$4,500 a month just to keep up.

Seniors don't have enough money to be self-sufficient

We're hoping the government is paying attention to this study -- this is why Hong Kong people are frustrated and unhappy. Employers are getting away with not paying their employees what they are worth with the excuse that the economy is bad, but then it's harder to afford even basic necessities to get through the month.

This study shows that one has to have bought a flat and paid off the mortgage before they have retired. But in many cases, because the price of flats keep going up, people may be in their late 30s or 40s before they can afford one, and they may or may not have paid it off within 25 to 30 years.

And there is also the issue of how big a flat they can afford... who wants to live in a matchbox flat of 152 square feet for over 20 years as they try to pay off the mortgage?

The income gap is getting worse and worse here even though the economy is slowing down, things aren't "cheap". We are all still beholden to landlords who seem to live on another planet when it comes to charging rent.

But the government isn't going to impose rent controls anytime soon so we are still going to have to pay more for every service or item we buy because of greedy landlords.

People can't even aspire to bigger and better things because they are just trying to keep their head above water.

How does this give people here any hope that things are going to get better? A good chunk of them are just barely surviving...

Picture of the Day: Election Literature

Who would you choose to represent your interests from this lot?

Next Sunday is the Legislative Council elections. In the geographical constituency for Hong Kong Island, there are 15 candidates vying for six seats.

These are all the flyers I have received from the candidates -- who would you pick?

This year is going to be very interesting, as people seem tired of the traditional pan-democrats and many shades of democrats have emerged, including localists who are even advocating independence which has been mooted.

Radicals like Leung Kwok-hung or "Long Hair" and Wong Yuk-man are considered passe these days, though localist parties aren't getting much traction beyond some young people.

This vote splitting only makes it easier for the pro-Beijing DAB to potentially gain even more traction.

Nevertheless there are some notable candidates for Hong Kong Island.

First up is Regina Ip Lau Suk-yee, founder and chairperson of the New People's Party and her "Team Regina" slogan. At a glance her platform looks pretty mainstream. Who doesn't want to improve air quality and reduce students' stress?

Nathan Law Kwun-chung of Demosisto escaped jail time recently following his conviction of inciting others to join in unlawful assembly almost two years ago which sparked the 79-day occupation of Admiralty.

The party's main platform is to hold a referendum in 10 years, asking Hong Kong people about how they want the city to be governed come 2047, when "one country, two systems" expires.

Independent Paul Zimmerman is the only gweilo running. He's been involved in local politics for a few years, and in the past year has been pretty active in trying to improve aspects of Hong Kong's environment, from suggesting seats at bus stops, cleaning up beaches, and cracking down on land abuses in the New Territories.

The Dutchman definitely manages to shine a light on these issues, and shows up at major rallies even if he doesn't understand everything that's been said.

Finally there's Ricky Wong Wai-kay another independent, who has campaigned on "ABC" or "Anybody except CY Leung".

His campaign material is pretty comprehensive and bilingual too going through 12 main issues advocating small class sizes in schools, reforming the MPF scheme and more transport subsidies.

It's interesting this businessman is keen to run and we'll see how he does. But he has definitely thought out how he'd like Hong Kong to be run with his 99-page policy platform.

So another week to decide... decisions, decisions...

Scaring Hong Kong on Cost of Universal Pension

A number of elderly make extra cash by collecting cardboard and recyclables

Hong Kong Chief Executive Leung Chun-ying election platform back in 2012 included setting up a fund for the elderly, but the government seems to be scaring the public into thinking implementing such a scheme would be too expensive.

We have been hearing lots of stories of elderly residents who are too poor to look after themselves despite having worked very hard all their lives. Some are too proud to ask for welfare, others are borderline cases that aren't eligible for social assistance.

There was talk of giving more money to those who needed it, but then they would have to undergo some kind of means test to confirm they qualified for the extra funds. Then there was the issue of assets -- someone may own a flat, but not have enough cash monthly to buy food to sustain themselves -- did they qualify?

Chow proposes a universal pension paid by the government

The government got University of Hong Kong Professor Nelson Chow Wing-sun to conduct a study and in August he proposed those over 70 years of age should get a pension of HK$3,230 per month and paid for by the government at a cost of HK$7 billion per year.

He said the government should pay for it because people would be reluctant to pay into the scheme, mostly because of disillusionment with how the Mandatory Provident Fund, a mandatory savings plan, had failed miserably -- people's funds are losing value instead of gaining.

Then about a week ago the government presented two different pension plans for public consultation. One was a non-universal plan where one person living alone could not have assets more than HK$80,000, while the other was Chow's idea. The government claimed that to pay for the scheme, taxes would have to be raised.

At the same time Chief Secretary Carrie Lam Cheng Yuet-ngor seemed to want to distance the Leung administration from Chow, saying what he was proposing was only a report, and turning it into policy was another matter.

This angered Chow, who has consulted the government on retirement issues since the 1980s. He held his own press conference for the first time in 30 years asking: "If the government's stance is that it does not want to implement a universal retirement scheme, why does it want to consult the public?"

Carrie Lam claims the scheme would mean increasing taxes

Lam fired back saying the academic "does not fully understand the concept and management of public finances".

If Chow is unqualified to understand funding of public services, then why has he been advising the government for over 30 years?

The Hong Kong government coffers are at over HK$730 billion. Why can't Hong Kong afford to pay for a universal pension scheme of HK$7 billion a year?

Do we want more stories of elderly people sleeping in McDonald's because they can't afford a place to live? Isn't the government ashamed it isn't doing enough to help these people?

Apparently not. If Beijing is meddling more in Hong Kong affairs, surely China would encourage the city to have a universal pension scheme... at least that would be one good thing about being "mainlandized"...