25% Hongkongers Can't Afford Basic Needs

One-quarter of Hongkongers are considered deprived of basic necessities

The Hong Kong government acknowledges there are poor people in Hong Kong, but it's the number that it can't seem to decide on because it can't determine the exact definition of poverty.

It prefers to just look at income levels, but critics say this is not enough, as some people may own flats, but have no income and have run out of savings, or they barely make enough to make ends meet and live in squalid conditions. Some don't want to bother reaching out for social services or they don't qualify for certain subsidies.

Chinese University researchers have come up with another way to determine if someone is poor by seeing if they can afford 23 essential items or services. These include three meals a day, a dental check-up once a year, afford new clothes or go out with family or friends once a month.

Researchers say poverty should be calculated by deprivation

If they were not able to afford at least two or more of these items they were considered deprived.

They interviewed 1,476 people in 2014 and the same participants again last year. They found that one in four of them were deprived last year, 24.7 percent, which compares to 28.8 percent in 2014.

Researchers say the city's economic growth, historically low unemployment ration and higher salaries attributed to fewer deprived people, but it doesn't mean poverty has been eliminated at all.

Of those who took part in the study, 26.7 percent were unable to afford to get a regular dental check-up, though it was down from 38.7 percent three years earlier.

The study also showed that those who were defined as deprived were 1.5 times more likely to be less physically healthy, and 1.3 times more likely to be less mentally healthy compared to those who could afford all 23 items and services.

Chinese University associate professor Wong Hung who conducted the study said the research showed the government's official definition of poverty underestimated those who were socially disadvantaged in Hong Kong.

Handouts don't solve the poverty issue, researchers say

The government makes its calculations based solely on income and household size, and so the poverty line is at half the median monthly household income according to household size. Those who live below the poverty line are considered poor.

With that calculation, one in five people were living below the poverty line last year, a record high.

Wong said, "Handing out money or cash vouchers to people might not necessarily solve the city's deprivation problem. The government should implement more specific community programs so people can directly benefit from them."

This is not a new suggestion and the government doesn't really do anything, instead depending on NGOs and charities to fill the need.

Wong and his colleagues are suggesting to the government that it include deprivation as part of its determination of who is in poverty or not. It would probably increase the numbers which the authorities wouldn't be happy about, but these people are in desperate need of services and resources to keep their heads above water.

With Hong Kong being such a wealthy city, there is no excuse not to help the neediest.

Picture of the Day: Nanjing Massacre at 80

People gathered at the Cenotaph in Central... are they allowed there?

This morning I took our company shuttle bus to work and on the way we passed by the Cenotaph in Central.

I was shocked to see a bunch of people standing there and holding large Chinese flags.

Then I remembered it was the 80th anniversary of the Nanjing Massacre, but why were these people standing there?

The Cenotaph is a war memorial that commemorates the dead in the two world wars who served in Hong Kong in the Royal Navy, British Army and the Royal Air Force.

What does it have to do with Nanjing?

If they want to commemorate the Nanjing Massacre they need to find their own cenotaph!

Nano Flat Prices Keep Rising

The nano flats are being built in Yuen Long at HK$15,000 per square foot

The prices of flats in Hong Kong keep going higher.

Now nano flats that are 192 square feet are being sold for HK$2.99 million -- in Yuen Long.

Yes Yuen Long, along the West Rail line in the New Territories.

It's part of a development called Park Reach that has 63 units and the average price of a flat there is more than HK$15,000 per square foot. After a maximum discount of 5 percent, the average selling price is HK$14,975. Whoohoo -- a HK$25 savings per square foot. You can get a McDonald's set lunch for that.

The HK$14,975 per square foot price is 10.5 percent higher than the average price of a flat at 50 major housing estates in the city tracked by Ricacorp Properties.

Despite the tiny size, property agents believe buyers will be keen for the units because they can get a loan of up to 85 percent of the flat's value from the developers.

So now developers are also the bankers. Guess the government doesn't think that's a conflict of interest...

By the way the smallest flat is 192 square feet. The largest? 310 square feet.

Talk about real minimalist living...

Taxi Association's U-Turn on Uber

Will taxis finally stop protesting and finally cooperate with Uber?

Just the other day two Hong Kong taxi groups were threatening to sue the government if it followed recommendations by the Consumer Council to relax regulations to allow Uber to operate in the city.

But now there seems to be a complete 180-degree turn, as Uber is interested in working with taxis to share the market.

"... the taxi industry may not have the technology platform like ours to provide tailor-made services," explained Kenneth She Chun-chi, Uber Hong Kong's general manager. "If we cooperate together, they can also make use of our backup customer service and even capitalize on our good image to regain consumer confidence as they are now having an image problem."

Uber's Kenneth She says taxis can benefit from its technology

Wow dragging the Hong Kong taxi industry into the 21st century. How novel!

And the vice-chairman of the Association of Taxi Industry Development Ng Kam-wah is open to the idea of working with the ride-hailing company.

"We think that there is room for the taxi trade to cooperate with Uber as this will be a win-win situation for us," he said. "The taxi industry could benefit form the ride-hailing platform, effective marketing and good customer image of Uber, while Uber can operate legally with the taxi vehicles," he added.

They sound like they are practically singing the same tune.

However, Ng points out that Uber charges a certain percentage of the drivers' income, but he would prefer the charge goes to the customer to pay rather than the driver. He doesn't want drivers' incomes to be affected.

Why is Ng Kam-wah suddenly keen on working with Uber?

But that's the whole point -- Uber helps drivers get customers through its technology so it is only fair that drivers get charged for that. It's just like taxi drivers having to pay for their licenses. Something's gotta give.

And are those crusty taxi drivers in their 60s really going to know how to use the app and deal with these new ways of charging customers and collecting money online?

We find this sudden about face very interesting and wonder what made the taxi association change its mind about Uber.

However here at The Fragrant Harbour we're all about action, not words. If Ng really does get his association moving in adopting Uber's technology and the culture of ride-hailing apps, then transportation in Hong Kong is going to get significantly better.

The ball's in your court, Ng.