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 Almost HK$6.6 billion worth of funds [for retirement] have been withdrawn from April 2020 to March this year by people who claimed they were leaving Hong Kong permanently.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?

Li Ka-shing Exits Stage Right

This afternoon Li Ka-shing (centre) cozies up with reporters for pictures

This afternoon was the earth-shattering announcement we've been waiting for -- tycoon Li Ka-shing is retiring.

In a live broadcast from Cheung Kong Centre, the 89-year-old said after almost seven decades in business, he is stepping down from both CK Hutchison Holdings and CK Asset Holdings and passing the reins to his younger son Victor Li Tzar-kuoi.

This was no surprise, as the younger Li has been working with his father for over 33 years, while older son Richard Li Tzar-kai "has many other businesses".

In a letter to staff that Li addressed them as colleagues, he recalled escaping war-torn China when he was 12 years old and came to Hong Kong. The famous legend of Li selling plastic flowers gave the high school dropout the capital to expand into other businesses, in particular real estate.

Li takes his final bow with son Victor on his right

"Not long afterwards, I founded Cheung Kong, the predecessor of CK Hutchison and CK Asset. That was 1950," he writes. "By 1972 I was able to grow the firm into a publicly-listed company -- stock code 001HK."

Today the conglomerate includes media, hotels, shipping, grocery stores and oil that has dealings in 50 countries.

During his announcement, Li said he would devote time to philanthropy, including the KS-LK Foundation, especially in issues related to healthcare and education.

Li finished his tenure on a high, as the companies, including Power Assets and CKI recorded higher 2017 earnings that largely met market expectations.

However, the tycoon is stepping down at a time when his influence is already waning. In 2013, dock workers went on strike for 40 days, demanding higher pay and better working conditions.

The 2013 dockworkers' strike damaged Li's reputation

At one point they occupied the front entrance of Cheung Kong Centre with a giant picture of Li's face and devil horns coming out of his head. In the end the dockworkers got a 9.8 percent pay rise, but the public's admiration for Li had nosedived because his immense wealth was compared to the lowly dock worker.

Li's reputation further spiraled during the Umbrella Movement a year later when thousands of people occupied the streets in Admiralty, Causeway Bay, Tsim Sha Tsui and Mongkok for 79 days. When it first started, the business elite were silent, and then Li finally spoke.

While he said he understood the protesters "passionate pursuits", he believed they should go home, warning them not to "let today's passion become tomorrow's regret". He knew people would be punished, but underestimated that people did not regret their actions, despite the legal challenges the protest leaders in particular faced.

Li was widely admired in China, but he cashed out anyway

And his relationship with China also soured. Despite pouring millions of yuan into the country, in 2015 Li decided to cash out, which angered Chinese state media and many mainlanders, who felt the businessman was being unpatriotic.

Nevertheless, Li won't be completely retiring. While he will continue to stay on as a senior adviser, it seems Li still wants to keep an active role in the businesses.

When a reporter tried to ask Victor Li a question about the company's future investments, his father interrupted as his son was getting the microphone. "I'll answer for him," Li said.

Mao's Loyal Army

Fans of the Great Helmsman make sure critics are silenced

It used to be that criticizing Mao Zedong would result in disaster for one's entire family, so the younger generation is shocked to find that criticizing him can still ruin careers.

Television producer Liu Yong was fired after he defended a critic of Mao online around December 26, the great leader's birthday.

Liu, a producer at Luohe Television in Henan province, was suspended for "wrongful speech that violates political discipline and morals", his employer posted on social media.

The statement didn't exactly explain what triggered the sacking, but Liu apologized on social media on Monday for "having hurt the feelings of the public".

A massive gold statue of Mao in Kaifeng, Henan province

Oh that wonderful phrase of "hurting the public's feelings" has been trotted out yet again.

Previously Liu had posted criticism of the Party and government, and on Sunday posted support for a professor who was forced to retire after criticizing Mao publicly on the eve of the late leader's birthday.

Deng Xiangchao, a communications professor at Shandong Jianzhu University, reposted a joke about Mao on December 25. Without naming Mao, Deng's post compared the late leader to an imperial ruler.

"Being an imperial ruler in China takes skill," the post read. "You should call hereditary rulers revolutionary comrades, and change the emperor's edict into a supreme instruction. But don't be honest about it."

The post angered Mao supporters, who held protests at the university last week. They held banners and yelled slogans such as "down with traitors".

Although some academics supported Deng on the grounds of freedom of expression, the professor, who was one year shy of retirement age, was forced to retire and stop teaching only a day after the protest, when the university accused him of posting "wrongful speech".

And now Liu is also a victim of this purge.

Let this be a fair warning to all!

The incident demonstrates that the country and its people still have very strong feelings about Mao. His followers are disappointed that rampant corruption and the widening wealth gaps were caused by market reforms and the intrusion of Western values.

But there are those who see Mao as a merciless and Machiavellian dictator who was indifferent to the loss of innocent lives, and who uprooted traditional culture and purged intellectuals and his colleagues.

And a posting on social media is enough to get you sacked!

Cantonese Rant Gone Viral

Kwan Ying-yi speaking at the Legislative Council earler this week

A friend posted an interesting video on Facebook, showing a young woman in a purple hoodie sitting in the Legislative Council giving a three-minute rant.

My friend commented it was like a rap song and it really does sound like one even if you don't know Cantonese.

In it Kwan Ying-yi knows she only has three minutes so she crams it all in, but she speaks in a calm demeanour, laced with sarcasm at the Leung administration. Here's the version posted on Apple Daily with music:

http://hk.apple.nextmedia.com/enews/realtime/20160223/54790251

Here's the video with English subtitles minus the music thanks to YTSL:

She was there as a "concerned citizen" to discuss retirement protection earlier this week. This is what she said:

Your so-called "universal" retirement plan puts an HK$80,000 asset limit on applicants but only offers them a paltry payment of HK$3,230 per month. Are you kidding me? There is so much government-business collusion and inflation these days that we can't even buy a catty of contaminated vegetables for HK$30!

Chief Secretary Carrie Lam rejected the need-blind proposal [favoured by the public] because she claimed it would lead to a government deficit. What she said made me laugh out loud! The government spends hundreds of billions of taxpayers' dollars on white elephant projects like the Hong Kong-Zhuhai-Macau bridge and the high speed rail link, only to nickel and dime the poor on social programs. How dare she mention the word deficit.

Then she talked about law and order:

What happened after [Chief Executive] Leung Chun-ying was accused of accepting HK$50 million in secret payments? Nothing.

What happened to the pro-Beijing camp after it blatantly rigged the district elections? Nothing.

In our topsy-turvy city, firing shots into the air is considered compliant with police protocol. The ethical standards for the government and the police are as "flexible" as the arm of the officer who hit passers-by with his baton and called it an "extension of his arm". Lawmakers are permitted to spread unfounded rumours in Legco, like the one about one of the abducted booksellers taking a speedboat to China to procure prostitution.

To be honest, I am worried that after making this speech today, I too may disappear and "go to the mainland using my own methods". [She is referring to the missing booksellers who have presumably entered the mainland without proper documentation]. Why bother with retirement protection when our personal security is unprotected?

Finally on Leung and his administration:

I want to offer Leung, his senior staff and the Hong Kong Police a piece of advice: there is something called karma in this world.

There isn't much we can do to stop you now, but future generations of Hong Kong people will be watching you. Your karma will catch up with you one day!

And then when her three minutes were up, her microphone was shut off. And not long afterwards the video of her was uploaded online and was viewed over 300,000 times in 48 hours.

Many praised her for speaking out people's frustrations with Leung, and some even encouraged her to run for Legislative Councillor in September. However others criticized her for being aggressive, others for not being aggressive enough.

Nevertheless, Kwan has definitely gotten people talking about the state of Hong Kong, and maybe she will inspire others to speak out in Legco too.

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"...

Earth Calling Macanese Officials

Young Macanese crossing their arms in protest against the retirement bill

If you think Hong Kong's government is completely out of touch with reality, take a look at Macau's -- which is on another planet.

Yesterday some 20,000 Macanese hit the streets to protest against a bill that would have given generous retirement packages to the city's outgoing chief executive and top officials.

The bill proposed that when Chief Executive Fernando Chui Sai-on steps down, he should receive 70 percent of his 270,000 pataca monthly salary until he gets a new job. He would also be granted immunity from criminal charges during his time in office.

Meanwhile retiring top officials would receive a one-off payment, with those having a civil service background receiving 14 percent of their salary times how many months they served. Non-civil servants would receive 30 percent.

In addition to this, outgoing top officials would get 70 percent of their monthly salaries as they are banned from taking up any private sector jobs for at least a year after leaving office.

Some 20,000 people took to the streets to voice their opinion

No wonder tens of thousands of people turned out and it's actually surprising there weren't more -- or maybe they had to work in the hotels and casinos?

Nevertheless the government has listened and is considering pushing back the bill to the sub-committee for further scrutiny as it was expected to pass in the legislature today.

"I support the bill, but I agree that there is room for improvement," said pro-establishment lawmaker Chan Meng-kam. "Macau residents have been holding different views towards the bill and as a lawmaker, I have the responsibility to call on the legislature to study it again," said Chan.

Quite hilarious that Chan admits he supports the bill but feels obligated to have it looked over after constituents complain...

We understand that Macau is rolling in the dough and has so much of it that the government gives out annual handouts to every resident. That's fine. But for top officials to ingratiate themselves with even more money than they would need post-retirement?

It's downright outrageous. More obscene is giving the chief executive immunity from prosecution. What has he done? Saved the world?

We expect the bill to be either shelved or severely toned down. Public money could be better spent for affordable housing for those who are priced out of the market in Macau. And what about granting more work visas to foreigners so that small and medium-sized companies can function?

And we thought the Hong Kong government was inept!