Hong Kong has no time to lose in harnessing the ‘silver economy'
For decades Hong Kong has put religious faith in a free economy that adapts quickly to change. Hence the concept that the market leads, and the government facilitates. Arguably the biggest change over the years is demographic, in the form of an ageing population. Fifty years ago about one in 12 Hongkongers was over 65. Now the ratio is more than one in five, predicted to become one in three by 2043.
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That is one change we have not adapted to. The need to do so is increasingly urgent. The government stepped in when Chief Executive John Lee Ka-chiu announced in his policy address last October the setting up of a working group to promote the 'silver economy'. The group, headed by Deputy Chief Secretary Warner Cheuk Wing-hing, reported back on Tuesday with proposals to tap into what is now the city's multibillion dollar sector.
Cheuk outlined key areas including boosting consumption by the over-65s, developing industries tied to the silver economy, enhancing financial arrangements for the demographic and unleashing the productivity of older residents. Analysts say the plan requires concrete measures to increase elderly participation in the workforce and give them more income, such as a flexible retirement age and better medical insurance.
These are practical issues, not a wish list. The demographic reality is that, proportionately, there will be ever fewer people to support ever more elderly, both physically and financially. They are also a force for consumption and productivity that Hong Kong must harness.
It offers rich rewards if our economy still has the capacity to adapt to change, which is key to its resilience. It is time for the government to show the way as well as smooth the path ahead.
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As the elderly have become healthier, wealthier and better educated, they have created a huge demand for products and services in medical and healthcare, leisure and recreation, and home and personal care. Spending by the over-60s was put at HK$342 billion in 2024, or about 11 per cent of the city's gross domestic product.
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