Carrie Announces More Relief Measures

Carrie Lam announced more relief measures for businesses to stay afloat

So many things to write about today, but perhaps most importantly a belated response from the government for more bailout measures to keep Hong Kong's economy going.

It is spending HK$137.5 billion (US$18 billion) on a raft of measures, including helping employers pay their employees HK$9,000 (US$1,160) of their monthly wages for six months. Only those companies that contribute to the Mandatory Provident Fund are eligible and they must promise not to lay off any workers.

There were questions from the media about possible loopholes, but Chief Executive Carrie Lam Cheng Yuet-ngor said if the list of employers was made public then employees could expect that money. This means 1.5 million workers would benefit from this scheme.

1.5 million workers could get HK$9,000 from the government

She stressed this was the third time the government was making an effort to buoy the economy, though it will cause the budget deficit to surge to HK$276.6 billion, equivalent to 9.6 percent of  gross domestic product.

"We have to try our best to prevent the closure of businesses or large-scale job cuts," Lam said as the number of confirmed coronavirus cases reached 960.

"In these unprecedented circumstances, the government must have some unprecedented responses -- to help businesses to survive, safeguard employment, and minimize the burden on businesses and citizens."

And about that controversial pay raise? Lam announced she and her senior ministers would take a 10 percent paycut for a year, which means she will be making HK$390,000 per month, or HK$4.68 million a year.

It took her long enough to decide to do that, but perhaps better late than never?

Almost 450 police officers quit last year, up 38.5 percent

Another interesting piece of news was reported that is protest related: Almost 450 officer quit during the eight months of unrest, while new hires fell short of targets.

The police force claimed it was not surprised by the large number, and added it still received some 10,000 applications.

In his budget announced in February, the financial secretary approved a 7 percent budget increase in police manpower for the next financial year, including an extra 2,543 posts created.

The Security Bureau defended the proposed budget increase, explaining that 446 officers not expected to leave the service had quit between June and February this year, an increase of 38.5 percent from the same period last year.

"For these officers, their reasons for leaving include resignation during training, early retirement, family and personal reasons," the bureau said in reply.

Were some of those "personal reasons" related to the protests?

And finally, today the lockdown on Wuhan was lifted, and as expected, some 55,000 people left the city by train, and on 100 commercial flights. People were definitely fleeing Wuhan after being shut at home since January 23.

Lots of people fled Wuhan today with the lockdown lifted

However... where are they going? There are a lot of fears many of them to show up in Hong Kong and the media pressed health officials about why they let passengers from Wuhan go home with a plastic bottle to collect the saliva sample and not have them stay at AsiaWorld-Expo to conduct the saliva test and wait for the results.

But health officials insisted that the risk assessment was low.

"Among the first batch of returnees from Wuhan earlier, only one person tested positive among some 400," Dr Chui Tak-yi, Undersecretary for Food and Health said.

However reporters in the press conference were not impressed, as anyone from anywhere could have the virus; perhaps health officials will change their mind tomorrow?

Compensating Her Misery

Today Carrie Lam sidelined the question of whether she would take a pay cut

A few days ago we found out that Chief Executive Carrie Lam Cheng Yuet-ngor got a pay rise of HK$120,000 (US$15,480) to HK$5.2 million annually. Calls from all political stripes for her to consider the Hongkongers who have lost their jobs or been furloughed, and business owners whose enterprises are in dire straits because of the coronavirus as well as months of anti-government protests, but she ignored their pleas.

Even Liberal Party honorary chairman Michael Tien Pei-chun, who owns the fashion label G2000 wrote a letter to Lam, saying he was "shocked and dismayed" that she still found it conscionable to increase her salary at this time.

Michael Tien wrote a letter to Lam urging her to cut her pay

He goes on to say: "Compared to senior officials of other governments, Hong Kong leaders' pay has always been extremely generous. We believe the people of Hong Kong would consider an increase in salary for your team at this time to be most inappropriate. In fact, the community would be reasonable to expect your team to take a pay cut so as to demonstrate your togetherness with the community to wrestle with this crisis that is presently threatening all of us, as never before, physically, emotionally and financially."

The letter was also signed by Miriam Lau Kin-yee, Selina Chow Liang Shuk-yee, and Felix Chung Kwok-pan.

However, when asked again today by reporters about taking a pay cut, Lam preferred to focus on something else.

"My first priority right now is to finalize as early as possible the package of relief measures under the second round of anti-epidemic funding," she said.

Lam's campaign slogan back in 2017... times have changed

Lam also pointed out (as we did the other day) that she and other politically appointed officials had donated one month's salary to the Community Chest of Hong Kong for charity purposes, adding she would consider similar ways in future "to demonstrate solidarity with the people of Hong Kong".

The Legislative Council is currently scrutinizing the budget that was unveiled in February, which will be voted on in early May.

The chief executive doesn't seem to care about anyone else -- for all the criticisms and heat she is getting from all sides, she believes she deserves this increased compensation.

How far she has veered from her campaign slogan of "We Connect".

Perhaps it should be "So Disconnected".

In Midst of Pandemic Carrie Lam Gets Pay Rise

Carrie Lam will be one of the highest paid leaders in the world... for what?

Over the past three years, Chief Executive Carrie Lam Cheng Yuet-ngor has demonstrated lacklustre leadership, particularly last year during the anti-government protests in which she hid behind the police to do her bidding, and now during the coronavirus, it is the community rather than her governance that has kept the numbers of positive cases relatively low.

So why does Lam deserve a pay raise of HK$120,000 for a salary of HK$5.2 million (US$670,671) a year?

She is one of the highest paid leaders in the world, more than US President Donald Trump (US$400,000 donated to charity), Canadian Prime Minister Justin Trudeau (around US$265,000), and UK PM Boris Johnson (US$96,800).

Last summer protesters demanded Lam step down

Lam's pay raise was revealed when the Civic Party's Tanya Chan Suk-chong asked about it as the Legislative Council prepares to vet this year's budget.

Considering Hong Kong's economy continues to be in free fall because of the impact of the coronavirus pandemic, Eunice Yung Hoi-yan of the New People's Party asked if the chief executive could take a pay cut to show solidarity with Hongkongers, as tens of thousands of them have lost their jobs or had pay cuts.

The response? The government replied Lam and her ministers will make "timely responses" should the situation deteriorate.

Isn't the situation deteriorating already?

Granted on February 28, Lam, her cabinet and other top officials donated one month of their salaries which was around HK$10 million to charities under the Community Chest.

Lam and senior officials donated their salaries to charity

But a month later she gets a pay rise?

How bad are the optics on that? And what has she done for Hong Kong to deserve that?

Even pro-establishment lawmakers must be shaking their heads at this tone deaf move. If she can earn more money, why do us citizens have to wait until at least July to get our HK$10,000 handout?

Perhaps she can single-handedly stimulate the local economy with her higher salary? 

Fact of the Day: Hongkongers are Overworked

Hongkongers are some of the most overworked people in the world

A study released today has found one in five employees work an average of 11 hours a day, with security guards working the most.

The Hong Kong Confederation of Trade Unions analyzed the latest labour data from the Census and Statistics Department and found 20 percent of the city's 3 million employees worked an average of 55 hours per week last year, or an average of 11 hours a day for a five-day work week.

Half of food and drink employees work 56 hours a week

"Hong Kong employees have been working super long hours for years," says Mung Siu-tat, chief executive of the confederation. "This is because the government has never taken any concrete measures to ease this problem, which has been harming workers' family well-being, health and even lives."

People who work in security, food and drink, land transport, construction and retail industries have the longest working hours.

Almost half of security guards work 56 hours a week, a quarter of them work a staggering 72 hours. Also almost half of food and drink employees work 56 hours a week, along with one-quarter of land transport workers, 16 percent of construction workers and 16 percent of retail employees.

On top of that their salaries hardly compensate for the hours worked -- entry- and mid-level employees saw an average growth in their salaries of just 0.7 percent between 2008 to 2018 -- after taking into account inflation rates, while gross domestic product per capita rose annually by 2 percent.

"This shows that even though employees work so hard, they cannot get reasonable returns," Mung says.

Many security guards work 12 hours shifts, six days a week

While the government set up a Standard Working Hours Committee in 2013, it was only two years ago that the committee recommended the government require employers to establish agreements with entry-level employees about working hours and overtime compensation arrangements.

But the government has so far only promised to introduce working hours guidelines in 11 industries, with no plans announced yet to legislate standard working hours.

This shows the government doesn't care about the city's 3 million workers, the ones who keep Hong Kong's capitalistic characteristics functioning, whether it be feeding people, selling customers products, or making sure a property is safe from intruders.

Instead it's all about helping companies squeeze out as much labour as they can from their staff to ensure a profitable bottom line. If they're burned out, just hire the next person.

In 2016 financial services firm UBS released a study of working hours among 71 world cities and found Hong Kong workers had the longest.

Is this something we really want to brag about?

China's Painful Economic Woes

The chances of finding a job is harder with more people out of work

The New York Times recently reported how the economic slowdown in China is affecting its workers and it's very worrying.

It's not just the factory workers and construction workers who are hurting -- it's also the white-collar ones with university degrees, making them wonder how stable their futures are.

There are fewer jobs available, some companies reporting layoffs of up to 30 percent in firms that employ hundreds of people, while jobs ads across all sectors have dropped by 10 percent. Start-ups have had it the hardest with new positions falling 51 percent in the third quarter of 2018 from a year earlier.

Not just factory workers, but white-collar ones are laid off too

Just after Spring Festival in February, Didi Chuxing, China's largest ride-sharing and taxi-hailing service, told employees that it would cut 2,000 jobs, or 15 percent of its workforce.

Previously the Chinese government would create an economic stimulus by throwing money at infrastructure projects like bridges and airports, and that would generally solve the problem, but not anymore.

Fraser Howie, co-writer of three books on the Chinese financial system says now, "there is no obvious catch up, and therefore it makes it all the more important that China makes important, difficult decisions to move forward."

The government really should be restructuring its state-owned enterprises that have grown into lumbering behemoths but they are the elephants in the room that aren't being addressed. Instead the government is in denial and hoping things shall pass, but perhaps not this time.

The economic slowdown is impacting young professionals like Sherry Xu, a 34-year-old finance professional who did all the right things, studying at a prestigious university and then rising up the ranks of the finance industry.

Infrastructure projects aren't solving China's economic issues

And then recently, right after she had just pitched a group of potential investors Xu was called into a meeting with human resources who told her that her employer, a financial firm was having difficulties and she would be laid off.

Xu then accepted a job as a freelance contractor with the same firm for half her previous salary. "The job marketing isn't looking good. I feel this time, it will be harder than ever for me to find a job."

Not only that but people's budgets have tightened which means less disposable income for shopping, dining and travel.

Maybe it's because of this worrying sentiment that the government just announced on Friday the May Day holiday would be extended to four days instead of one in a desperate bid to stimulate the economy.

But really, who is in the mood to spend when their futures are uncertain?

Donald Tsang Loses Appeal

Donald Tsang was rushed to hospital after he lost his appeal in court

Disgraced former chief executive Donald Tsang Yam-kuen did it again -- he came into court to hear the verdict of his appeal, and came out claiming illness and was carried out in a stretcher.

Today his appeal to turn over a conviction for misconduct while in public office was rejected. It was for not declaring his interest in a three-storey penthouse flat in Shenzhen that he was leasing from a company owned by Chinese businessman Bill Wong Cho-bau.

Businessman Bill Wong Cho-bau let Tsang a flat in Shenzhen

Wong was also majority shareholder of radio station Wave Media, that was applying for a  broadcasting license of which Tsang was in charge of approving these license applications.

Three Court of Appeal judges unanimously ruled the evidence was "formidable as it was compelling", that the 73-year-old Tsang had concealed this conflict of interest from the public while he was chief executive from 2005-2012.

However, his original sentence of 20 months in jail was reduced to 12 months, while his fine of HK$3 million to cover prosecution costs was dropped to only HK$1 million.

Apparently the court took into consideration the impact of paying the full amount would have had on Tsang, as he was "not a wealthy businessman but a retired civil servant", who would depend solely on his savings and pension in his remaining years.

Tsang was to live in the penthouse flat

Can we remind readers that the salary of the chief executive of Hong Kong is over HK$300,000 a month -- which is more than what then US President Barack Obama was paid at HK$260,000, while Chinese President Xi Jinping makes HK$14,000.

And being a career civil servant for 40 years, surely Tsang has a decent chunk of change in the bank -- he certainly made much more than the average person in Hong Kong -- or perhaps he is completely unaware of how us plebeians live.

How long will he be at Queen Mary Hospital in Pokfulam, and will that count for jail time as well?

Meanwhile, outside the court his wife Selina Tsang Pou Siu-mei said, "Today I feel disappointed, and my heart aches."

Tsang looked fine when he arrived at court this morning

Will this be the last we hear of Tsang, the son of a police officer? Probably not...

Lin Dan Threatens to Sue for Wages

Lin Dan publicly revealed he and six players have not been paid for months

It was shocking to read today that badminton superstar Lin Dan had to resort to social media to complain that he and his fellow players on his team have not been paid 4 million yuan in over five months.

He and six other players competed in the lucrative China Badminton Super League, the prime national team competition for badminton players on the mainland. It was held from December 6, 2016 to January 14th this year and is run by the China Badminton Association.

On Weibo, Lin complained to his three million followers that his team Guangzhou Yueyu had yet to pay them.

"It is chilling that so far all the athletes have not received salaries. We athletes in order not to affect the collective honour, still insisted on completing matches despite not being paid.

"We have communicated many times with the club to pay the salaries and so far their attitude is really frustrating and disappointing. For the club to win honour while we get nothing, please do not let our sweat flow white!

Lin was in hot water when he wasn't seen with his wife (left)

"We solemnly declare that the Guangzhou Yueyu Badminton Club's Mr Gao Jun and Mr Fu Xun respect the athletes and pay the full salaries... or we will take legal means to defend our rights and interests!"

Apparently Guangzhou's chairman Gao said even he himself was owed wages, and that he would rush to the city of Heyuan in Guangdong province, where the club's main sponsors are based, to have the wage matter settled as soon as possible.

While Lin is a very popular athlete, his image took a big hit when he was photographed with another woman while his wife Xie Xingfan was pregnant. The couple reconciled and his wife also took to social media, asking that the athletes be paid.

It turns out the club is registered in the national league under the name Heyuan Agricultural and Commercial Bank Guangzhou Team, and Gao said the bank was one of the club's major sponsors but had yet to pay up.

"This incident has nothing to do with Yueyu," says Gao. "We have been made scapegoats."

So will Lin and his fellow players be paid eventually? Does the bank have enough funds? Sounds strange for it to not pay the athletes... or is their money stuck in some soured loan no one is supposed to know about?

The Perils of being Overpaid

Carrie Lam paid a dozen students HK$100 an hour to work on her campaign

It's been revealed that chief executive-elect Carrie Lam Cheng Yuet-ngor paid students up to HK$100 an hour to help her on her campaign. That amounts to HK$20,000 a month.

That salary amount is about 33 percent higher than the average starting salary for fresh graduates, or three times the minimum wage.

Not only were there students visible on stage with her to show that she was in touch with young people as part of her "We Connect" campaign, there were several working behind the scenes, a dozen in total that were paid.

One of them made HK$20,000 a month.

Laurence Li Lu-jen, deputy director of Lam's campaign office, defended paying the students, saying they did a lot of work, from filing documents to data compilation.

"Paying them is a recognized token for their commitments. It is wrong to undervalue our youngsters," Li said. He added that the other young people at Lam's rally were volunteers, and no one was paid just to show up at the event.

While John Tsang Chun-wah's campaign office claimed they did not recruit students, there were some student volunteers who were not paid.

It is believed Lam's campaign cost more than HK$11 million, under the maximum of HK$15.7 million for campaign expenses.

Nevertheless we question why students should be paid up to HK$20,000, when the market rate is much less.

The reason is that these students will think they are worth HK$20,000 and will be severely disappointed when they find out the reality is that their salary should be much less.

It's much like a friend of mine who is looking to hire someone under her, and the company had an "internal reference", which is code for a son or daughter whose parents are friends of the owners.

She did interview this fresh graduate who was found to be suitable for the job, but my friend's bosses will pay this person HK$20,000 for a job that should be around $12,000-HK$15,000.

Hopefully this "internal reference" will be a good employee, but when he or she tries to find another job, they will wonder why they can't find a better paying job.

Jacking up salaries for young people does a disservice to them and to the employer.

But alas these kinds of "internal references" are common in Hong Kong... we can only hope these kids understand the reality of the situation, that they are very lucky to have really good paying jobs that people with more qualifications and experience should be doing...

Hong Kong Getting More Depressed

Hong Kong seems to have more depressed people since about three years ago

There are concerns there may be a growing number of depressed people in Hong Kong. According to a survey by the Mental Health Association of Hong Kong -- a non-profit group funded largely by the government -- says around 5.5 percent of 2,351 people show signs of clinical depression, almost double the number in 2014.

In addition, 9.1 percent of respondents scored a medium level on the depression index, which means they should be monitored for depression, up 8.6 percent in 2014.

Ching Chi-kong, an assistant director of the association, believes people had an outlet to voice their frustrations during the 79-day Occupy protests.

The 2014 Occupy protests allowed people to let off steam

"At that time, people had somewhere to express their anger and they may have hoped for change," he said. "If we think we lost something, we will get depressed more easily."

Another factor, suggests Dr Benjamin Lai, psychiatrist and chairman of the association, is the economic downturn that could contribute to "a high chance of depressive symptoms".

But look more closely at the survey results and 35.8 percent of respondents did no exercise for at least 30 minutes during the week, and only 18.1 percent did so only once a week.

"We need a balance in life, so it's not just about money or work," Ching said.

The Hospital Authority estimates about 1.7 million people suffer from various mental illnesses, but wait times for mental health treatment were the longest of all public health services. This is partly because there aren't enough trained psychiatrists and psychologists in the public sector.

Exercise is a good way to relieve depression and stress

The economic downturn has made it harder for people in Hong Kong. There are constant fears of being made redundant because companies are concerned about their bottom line, and there are fewer opportunities for people because some may be holding onto whatever work they have even though they may not be happy in the position.

No wonder so many don't have time for exercise, but just some movement for 30 minutes a day would alleviate some of the stress and rush of endorphins could people feel a bit better about themselves and manage their stress better.

It's tense times in Hong Kong -- for pretty much this entire year. We can't feel sorry for ourselves, or commiserate -- there's no time really. We have to have that can-do attitude and keep pushing forward.

Government Proposes 12.4% Pay Rise

Senior Hong Kong government officials will be eyeing a double-digit pay rise

Hong Kong's top officials can expect a 12.4 percent pay rise next year, the first increase in 15 years.

The government added that it was getting harder to attract talent because of the city's political atmosphere.

This I find strange since I know a few people who have managed to get government positions, making it still a very sought-after job. Granted they are not senior positions, but if they do well they can get promoted and in turn get better pay.

Many are turning to civil servant positions because of the high salaries and this year it looks like employers are only going to give out 4 percent pay rises, if that.

Carrie Lam is the highest paid government official

Secretary for Constitutional and Mainland Affairs Raymond Tam Chi-yuen said the proposed double-digit pay rise was "very moderate and reasonable", and "only fair", given that salaries for top officials had remained frozen since 2002.

The pay rise factors in cumulative inflation since 2012, and there will be a new mechanism to adjust the top officials' pay annually in line with the consumer price index used for households in the relatively high expenditure range, similar to the renumeration for Legislative Council members.

How nice to have a salary that increases along with inflation...

So a political assistant will get around HK$104,000 a month, while a minister currently gets HK$298,000. The chief secretary is the highest paid minister at HK$330,000.

While the proposal will be debated in Legco next Monday, some lawmakers aren't convinced senior ministers deserve it.

Does the government know many of us won't get pay rises?

"Few ministers have been truly accountable to Hong Kong citizens," said Wu Chi-wai, the new chief of the Democratic Party said of the 12.4 percent pay rise. "The popularity of several ministers remains unacceptably low. We cannot make a decision just on the grounds that the growth in their pay lags behind inflation."

The independent commission that was tasked to come up with the pay recommendations noted there was no mechanism currently for annual pay adjustments and that ministers' salaries had fallen below the level of public sector pay, while remaining significantly lower than that of the private sector.

Seriously?

Do these people putting these recommendations not know how the average citizen in Hong Kong makes per month? It's hardly in the six digits.

If economic times are good, then maybe we can talk about pay rises. But the economy has been stagnant this past year, and will be in the next two years, and the government is not doing enough to clamp down on rising rents, getting developers to build more low-income housing, encouraging small businesses or helping the poor.

There needs to be some evidence to show the government has served the people well before getting a well-deserved pay rise.

Many would agree that the government seems even more out of touch as ever, as evidenced by this proposal for a double digit pay rise when many of us will be lucky to have one, if at all.

Uber Rich Still Bullish on Hong Kong

The property at 2 Headland Road in Stanley sold for over HK$1 billion

The uber rich don't seem to be affected at all by the bearish economic climate in Hong Kong. That's because one of the biggest property deals wrapped up recently, with the sale of a detached home at Headland Road in Stanley for a whopping HK$1.02 billion.

It doesn't eclipse the transaction six months ago when Alibaba executive chairman Jack Ma Yun bought a 9,890 sq ft three-storey house on Barker Road, The Peak for HK$1.5 billion.

The buyer of the home at 2 Headland Road is a company called Golden Sea, with Nicholas Chu Yuk-yui listed as director, and chairman of Hong Kong-listed Kingston Financial.

While Chu was not available to comment, his wife Pollyanna Chu Li Yuet-wah, Kingston Financial's chief executive and executive director, confirmed the transaction.

Apparently this is Jack Ma's home on Barker Road, The Peak

Speaking on behalf of her husband, she said, "the purchase is for investment purposes. The luxury housing market's outlook is not bad".

Easy for her to say...

The Headland Road home is a three-storey detached house with about 11,937 sq ft of saleable area on a 22,438 sq ft site. The price represents HK$85,448 per sq ft of saleable area.

Compare this to the 2015 average monthly salary at HK$14,877.

Analysts say the owner could easily redevelop the land to expand the maximum gross floor area at about 16,289 sq ft.

And with detached homes a highly sought-after commodity, the real estate prices in this niche market will only go higher.

Surely this massive wealth gap isn't healthy...

Toilet Relief for Women -- Coming Soon

"Dick and Jane" by Tim Yankosky at the washrooms in Nordstroms, Vancouver

Hong Kong women may not be making as much money as their male counterparts, but hey at least newer buildings in the city will have more bathroom stalls for them.

Yesterday Secretary for Development Paul Chan Mo-po wrote on his blog that there was an amendment to the law last week to increase the ratio of male to female toilets in Hong Kong.

There will be a change in the building regulations which will come into effect next week specifying there should be 1.6 female toilets for every male toilet. Currently it's one-to-one.

Excuse me -- how did they come up with the ratio of 1.6? Doesn't seem to make much sense. Why not make it two-to-one?

"It is not uncommon to see long queues of women waiting for their turn to use the toilets in public places," wrote Chan. "Even men might sometimes have to wait for their other half to use the toilet."

No, really?! Maybe because he has had to wait for his wife that prompted Chan to make this observation. Why couldn't this regulation of more female toilets been in place earlier? It's not like long lines for the loo is a recent phenomenon.

And if one looks at the population statistics, Hong Kong has slightly more women than men, so that alone should mean we should have more toilets for them...

This new regulation only applies to new buildings and not expect existing buildings and venues to retrofit more stalls.

Chung Yuen-yi is not that impressed. She's an advocate for women's rights for the past 20 years.

"It's better than nothing," she said. "But I think the ratio of male to female toilets should be one to three. Anatomy differences between men and women mean women have to spend longer in toilets than men.

"Also, women often have the responsibility of accompanying children and the elderly to the toilets. So the demand for female toilets is far greater than for male toilets."

Another advocate, Luk Kit-ling, chairwoman of the Association for the Advancement of Feminism, thought the law reform "had come a bit late".

She said the government should have encouraged owners to add more toilets to existing buildings.

That would be admittedly difficult, but in the meantime we're still puzzled by the 1.6 ratio...

Quote of the Day: Tung Chee-hwa

Tung Chee-hwa was "shocked" to hear a woman's housing plight - really?

Hong Kong elites are really out of touch with reality.

We have the Financial Secretary claiming that paying HK$12,000 a month for a dishwasher is outrageous, when in reality no one is willing to do this tough job and so the wage has to be that high or even higher.

And now we have our former chief executive, Tung Chee-hwa very surprised at how expensive housing is in Hong Kong.

Hello? Do we not live in the same city?

Grandpa Tung now runs Our Hong Kong Foundation, a think tank. And he said he was "shocked" when a woman told him she planned to buy a 170-square foot home for more than HK$3 million for her family of three.

"It was shocking to me -- a small flat to live in does have a negative effect on a person's dignity," he said, recalling the encounter with her when he was strolling around The Peak.

"I think people in Hong Kong are facing a difficult choice," he said. "Should we make sacrifices to have a more decent life?"

Uh yeah, but that's the reality of the situation.

These government officials (and former ones) are working for us, the taxpayers, and yet these bureaucrats are completely clueless about how difficult it is to buy a decent-sized flat.

They obviously don't visit the everyday man to see what challenges they are going through, let alone care.

And they wonder why the Umbrella Movement exploded impromptu last October?

Instead they are condescending towards young Hong Kong people, telling them to temper their rebelliousness, and that more Communist doctrine will keep them in line.

Being completely out of touch with what's really going on is going to be the Hong Kong government's downfall -- its arrogance and preference for the rich and powerful will further increase the wealth gap.

The government can very easily impose regulations on the minimum size of flats, or that developers must build a certain number of low-income flats, but it doesn't, citing Hong Kong is a capitalist society.

But we need more low-income housing for people. They need decent places to live in. Cramped quarters like what Tung said, is a detriment to one's psychological outlook.

For Tung to realize this now is sad and pathetic.

We need help now and fast.

More Falling Below Poverty Line

Hong Kong's working poor are barely making ends meet due to inflation

Oxfam Hong Kong has released a report saying the number of working poor families -- households living under the poverty line with at least one family member working -- has increased by 10 percent in five years to 190,000 families.

During this period another 18,100 families have fallen into poverty so that the total number of working poor households is 647,500, accounting for half of Hong Kong people living below the poverty line.

Meanwhile Hong Kong's richest 1 percent owned half the city's wealth last year.

Twenty-five richest people in the city amassed HK$1.513 trillion -- yes TRILLION -- which is incidentally more than the Hong Kong government's own reserves at HK$1.5 trillion.

"Since [the government] was supposedly dealing with the poverty issue in the past few years, the number should be on the decrease. To have a double-digit rise is quite a lot, and means that what we've done so far is not enough," said Oxfam program manager Wong Shek-hung.

Wong said this was because minimum wage was not high enough to meet people's basic needs as well as inflation, and that the mandatory provident fund was hardly enough, nor did it benefit employees.

From next year the government will hand out low-income family assistance to working poor families with children, but Wong said while it was welcome, it wasn't enough to adequately deal with the situation.

Associate professor of social work at Chinese University Wong Hung said the 10 percent increase was an obvious surge and evidence that Hong Kong had changed. He noted that having a job did not necessarily mean a person let alone a family could make enough to cover basic needs.

"In the past five years, our economy hasn't been bad and the unemployment rate has been low, but the jobs available do not pay well, and there is low labour protection," he said. "Most are contract or part-time jobs. This explains why there are more working poor."

Of the number of working poor, only 7.5 percent are on welfare, called Comprehensive Social Security Assistance (CSSA), while 53.6 percent live on a monthly income of less than the average welfare payment.

Some people do not qualify for CSSA because their income may be a bit more than the requirement, or some are too proud to take handouts.

There are around 1.34 million Hong Kong people who live below the poverty line. While Leung Chun-ying's administration has finally tackled the issue of defining poverty line, how about actually doing something to help these people? They are going to fall further behind, especially the children when it comes to education and opportunities for them to learn.

Everyone deserves a chance at a decent education, and that also means good health so decent food to eat too. There are NGOs who are trying to fill in the gaps, but really, with a government so rich, and 1 percent of the population outrageously wealthy, how can nothing be done for those who need help the most?

10 Chinese Cities to Watch

Of all the Chinese cities, Chengdu is considered to have a booming economy

It's interesting to discover Chengdu is considered to have the most successful economy in China, according to a US-based think tank, considering such factors as job growth, foreign investment and high value-added industries.

Shanghai and Tianjin were second and third respectively, while the Chinese capital was 13th in the Milken Institute study.

Shanghai is in second place in the Milken Institute study

Chengdu, the capital of Sichuan province was praised for its "human capital, central government support, established industries in high-end aerospace and aircraft design, and a more recently developed electronics manufacturing sector".

The study said mainland cities were developing in two ways: For Shanghai and Tianjin it is about urbanization, industrial clustering and infrastructure investment bolstering larger regional economies.

The other way, due to the slowdown in economic growth, was the focus on technology, private investment and consumption.

This is the first time the institute has ranked mainland cities, assessing 266 at the prefecture level and above, and divided them into two categories -- 34 first and second-tier cities, and the rest as third-tier cities.

Tianjin comes in third with lots of potential for growth

The study didn't just look at economic growth, but also job and wage growth, gross regional production, foreign direct investment and the strength of high value-added industries.

Chengdu may have done well in the study due to having several respected universities and has lower labour costs.

Interestingly Shenzhen just made number 10 on the list, and seven of the top 10 third-tier cities were in Jiangsu province, which has a strong transportation network of airports, highways and high-speed rail links.

The top 10 cities are:

1. Chengdu

2. Shanghai

3. Tianjin

4. Dalian

5. Nanjing

6. Hefei

7. Xiamen

8. Changchun

9. Chongqing

10. Shenzhen

There should be lots of information to be gleaned from this study and potential investors and entrepreneurs should take note.

Generational Divide

Many fresh graduates have high hopes, then see the reality of the job market

Government figures show that fresh graduates in Hong Kong are only earning HK$1,800 more than those who finished tertiary education 20 years ago. That means today's university graduates aged 20-24 are earning a median income of HK$10,800 ($1,393) in 2014 compared to HK$9,000 in 1994.

Data from the Census and Statistics Department show a 20 percent rise in median income, which compares to a 45 percent increase in the Composite Consumer Price Index, 75 percent in tuition fees, and nearly triple of property prices.

Simon Lee Siu-po, assistant dean of undergraduate studies at Chinese University's Business School says employers could be less willing to make attractive job offers because he believes there are so many more university graduates each year.

All families want their children to do better than the previous generation, and many believe education is the way out. However the sheer numbers of graduates each year means a flood in the labour market, thus lowering the value of a university degree.

Some employers prefer to hire graduates from the mainland

Lee then took a dig at young people today, saying, "Youngsters nowadays, compared to the last generation, are less skillful and are reluctant to learn. Many employers are disappointed by the young generation."

He even went so far as to say employers would rather hire mainland graduates because their English and Putonghua skills were much better than locals.

Ouch.

This touched of a maelstrom of comments, at first illustrating how wages have not kept up with inflation at all, but also how it was practically impossible for young people to save with salaries that are so low.

Then the issue of young people not as hardworking as the previous generation is a perennial comment older people like to say. While many of us may have come across students or young people we don't think are as diligent as they should be, there are many others who maybe putting in more hours than we know of.

Nevertheless, many employers are frustrated that a lot of young people believe they are not being paid what they are worth and so they decide their own work output. It's an interesting perspective that employers haven't encountered before, but it is kind of a chicken-and-egg conundrum -- bosses don't think they can give pay raises unless the employee can demonstrate their worthiness, while employees think, pay me better and then I'll do more work.

But perhaps the last problem of employers looking to expand overseas are choosing to hire more mainland graduates than local ones hits a sensitive spot, particularly with the Occupy movement last year, as well as nativism that is ongoing.

Part of the problem is that students have been screwed around by the Education Department, using them as guinea pigs to see which language is the best medium of instruction. Before 1997 it was English, and then it was Cantonese and now it's becoming more Putonghua in the classroom.

If you keep changing the regulations, students get very confused and don't really learn much of anything effectively. Is it surprising that this has impacted graduates' skill sets to help them land a job?

I would hazard to guess that the majority of fresh graduates are keen to make a good start on their careers, and like us before, will find it's not that easy to find a job, or discover there's no such thing as a dream job.

They just want to be given a chance to prove themselves and from there it's how determined they are to make something of their lives and to contribute to society.

Granted the economy is slow these days, we should at least give young people the opportunity to demonstrate their Lion Rock spirit. They may not have the exact skills needed, but if they have the right attitude, then why not give them a chance? They are our future, the city's future.

Will There be Justice?

DSC boss Hui Ming-shun returned to Hong Kong was arrested yesterday

We are glad to hear the boss of defunct furniture and home electronics retailer DSC and his wife were arrested yesterday from arriving from Macau, a week after they disappeared. They conveniently covered themselves up with face masks, baseball caps and hoods.

One wonders what they were doing in Macau -- perhaps trying to double down to win back more money?

Hui Ming-shun, 61, and his wife and co-founder Lin Wai-yin, 55, were arrested on suspicion of conspiracy to defraud and still remain in police custody.

Meanwhile the staff are still waiting for their unpaid salaries and marched to Hong Kong government headquarters at Tamar to demand the authorities speed up the process of getting their money.

Secretary for Labour and Welfare Matthew Cheung Kin-chung came out to speak to the 70 or so DSC employees, but he didn't give them much good news.

"This morning we contacted the lawyer of Mr Hui to demand him to sign a declaration of insolvency and to determine as soon as possible the amount of money he owed to his employees," Cheung said.

"Once we receive Mr Hui's declaration, the Labour Department will help the employees to apply for legal aid to petition to wind up the company."

What happens if Hui doesn't care to declare bankruptcy? Does that mean he doesn't have to pay the staff what they are entitled to?

In the meantime the government says it will start determining how much money each employee is entitled to receive from the Protection of Wages on Insolvency Fund, with a maximum of HK$289,000 per person.

It seems Hui and Lin owe some HK$10 million in wages, and another HK$10 million to landlords and suppliers. They recently sold their Kowloon Tong flat, but who knows what other debts they have, or if they have squirreled their money away elsewhere.

The Labour Tribunal hearing on this case will be on August 21. It will be interesting to hear what Hui has to say in his defense...

Apple's China Expansion

Staff standing in front of the Apple Store in Shanghai's IFC mall

A few days ago Apple announced it had beat analysts' expectations with profits of a record $18 billion in the last quarter of 2014, selling 74.5 million iPhones, while sales in China rose a staggering 70 percent.

This indicates China is the right place for Apple to further grow its business and plans are already underway to open a number of stores on the mainland, with five opening just before Chinese New Year.

Not only is Apple hiring local employees, but its senior vice president of retail sales Angela Ahrendts has already put out a call in video messages to US-based staff asking if anyone would be interested in relocating to China.

Within a few days there are reports about 200 Apple retail staff have expressed interest in making the big leap to the Chinese mainland. Ahrendts notes the offer to move to China "has no expiration date because as the business grows, our needs will only become greater, so as your personal and professional life changes, just always keep China at the top of your mind, because we're going to need you..."

But how would all-American staff be able to help with sales in China when the vast majority of the customers don't speak English? Or does the "white man card" give Apple greater prestige, even though the retail staff currently don't make that much in salary?

How would having American employees in China benefit retail operations other than standing around and saying "hi" to customers? And how would this experience help advance (if at all) the career of a lowly retail staffer?

While I would like to think the experience being in China would be invaluable to these young Americans, they could provide priceless information to management about Chinese consumer habits as well as preferences in how they use Apple products. But is that Apple's main intention?

Perhaps I'm jaded, but it seems like the highly sought-after brand is chasing the 1 billion customer market and enhancing stockholder value than really looking at the reason why they should be having more American retail employees in China.

Another hurdle would be convincing the Chinese government that Apple needs so many foreign staff in their mainland stores to grant them work visas when the mainland economy is slowing down and more young people need jobs...

Backtracking Promises

Leung Chun-ying gave himself and his cabinet a pay rise on Friday night

At 11.06pm on Friday, the Hong Kong government disseminated a press release that said Chief Executive Leung Chun-ying was giving himself and politically appointed officials and executive councillors at pay rise that would make their salaries consistent with 2009 levels.

That means Leung would be making HK$371,885 ($47,975) per month compared to HK$351,880.

Legislators raised a stink about this because it was done in a "stealth" manner, quietly announcing it just before midnight at the start of the weekend, but government officials defended the move, saying it did not need lawmakers' approval because they were reinstating the salaries to 2009 levels.

However, Secretary for Food and Health Dr Ko Wing-man said the decision to undo the pay freeze was due to an improved economic situation.

Really? What planet is he on?

Back in 2009, then chief executive Donald Tsang Yam-kuen and his cabinet took a voluntary 5.38 percent pay cut to "stand shoulder to shoulder" with the people during the financial crisis.

Then in 2012 a month before Leung took office, he bowed to public pressure and scrapped his proposal to raise his salary once in office. At the time he said: "the entire political team of the next-term government will have their pay frozen" at the 2009 level.

It might be interesting to note here that Hong Kong's politicians are some of the best paid in the world.

Civic Party lawmaker Kenneth Chan Ka-lok says Legco should be debating Leung's pay raise because it involves taxpayer money.

Others said the increase in salary was fine, but objected to the way in which it was done, and that Leung should defend his actions.

Secretary for Labour and Welfare Matthew Cheung Kin-chung said some cabinet members felt higher wages would help recruit talent. He also added the government waited until Legco approved civil servants' pay rise -- voted on Friday evening -- before

the press release was issued.

So Cheung says the restoration of their salaries to 2009 levels is going to help the government recruit better people? How is that optically even possible?

After all the government has been through, particularly its silence during the Umbrella Movement and just executing whatever Beijing tells it to do, why would you even need to hire people with brains to do that?

How about explaining their pay rise to the impoverished elderly who are trying to survive on government handouts, or the 200 employees of Standard Chartered to who unceremoniously sacked, as well as other workers, whose companies shed some staff just before Chinese New Year.

So much for buying into Leung's election platform slogan, "One heart, One vision".

Hui's Fall from Grace

Rafael Hui was found guilty of bribery thanks to his materialistic longings

It seems former chief secretary Rafael Hui Si-yan was addicted to the high life and thought of himself as a discerning consumer even though his salary wasn't enough to pay for his lavish tastes.

The 131-day trial of Hui, and Sun Hung Kai Properties co-chairmen and brothers Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen is over, with Hui and Thomas Kwok found guilty of bribery.

Somehow Raymond Kwok was acquitted on all four charges against him and walked free.

It basically boils down to Hui acquiring hyper materialistic tastes and not being able to live on a budget, and supposedly succumbed to bribes from the Kwok brothers to maintain his lavish lifestyle.

Thomas Kwok was also convicted of bribery

In court it was revealed Hui liked to spend money traveling to Europe and Japan to attend exclusive operatic performances, once dropping HK$150,000 to stay in London's Dorchester Hotel.

He also spent HK$2 million at one music store for several years, and had no qualms going on a HK$200,000 shopping spree in one store on CDs and vinyl records. At that time his annual income was HK$4.6 million.

But after then chief executive Donald Tsang Yam-kuen was re-elected in 2007, Hui became a non-official executive council member and his salary dropped to HK$105,000 a month. However he continued to withdraw HK$1 million a month using overdraft facilities, and on his credit card bills he would only pay the minimum amount.

"Basically I did not have any savings. I spent almost everything I had," Hui said on the first day of his testimony.

Is that supposed to be considered a badge of honour? For a financial secretary to not pay off his credit card bills every month is shocking not to mention spending way beyond his means.

The writing was on the wall for Hui when the ICAC charged him with bribery and misconduct in office in July 2012; then creditors came calling, including Hang Seng Bank, Standard Chartered, and even Honour Finance, a subsidiary of SHKP.

As a result, Hui declared bankruptcy in November last year, not being able to repay Bank of East Asia. There were media reports he racked up debts of up to almost HK$75 million.

Not only was he a carefree spender, but also apparently a philanderer, cheating on his wife of more than 40 years.

"In 2008, I gave some money to a female friend in Shanghai," he confessed in court. "I do not recall the exact amount -- but I think at least HK$7 million or HK$8 million... some of which for purchasing properties, some for investments."

If this isn't a massive fall from grace, I don't know what is.

It will be interesting to see what sentence the judge metes out for Hui, as he will hardly be able to pay off his debts. What punishment would be suitable for someone like this?

While this trial is over, all eyes are now on Tsang, who has been very low key in the last few years. After he was caught on a yacht hanging out with tycoons, the former chief executive may be the next one in the dock.

How many other senior civil servants took advantage of their positions too? If the Hong Kong government wants to regain any kind of credibility, especially post-Occupy, surely it needs to clean up house too...