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Following is the speech by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, at the Rotary Club of Hong Kong South Luncheon this afternoon (July 25):
Michael (Michael Chiu, Immediate Past President, Rotary Club of Hong Kong South), Nicholas (Nicholas Pirie, Rotary Club of Hong Kong South), Rotarians, ladies and gentlemen,
I feel honoured to have been invited to address your Thursday luncheon on the theme of "Ageing Population in Hong Kong: Challenges and Opportunities". This is an issue of paramount importance for Hong Kong's future.
It has been said that the rapid ageing of the world's population is the pride of the 20th century. Better nutrition, better health care brought about by rapid advances in the knowledge of medicine and discovery of better tools for the treatment of disease have enabled us to live longer. But increasing life expectancy and a steadily ageing population have also become a challenge of the 21st century.
Let us look at Hong Kong's demographic landscape. Nearly one in seven of our 7.1 million population is aged 65 and above. This figure is estimated to rise to 2.56 million in 2041, or one in three of the population then. As for the elderly dependency ratio, at present five persons of working age (people aged 15 to 64) support one dependent elderly person financially. In 20 years' time, this ratio will further drop to just two supporting one.
These figures speak volumes about the rapid pace of ageing in Hong Kong. The increase in the elderly population will result in a surge of expenditure on health care and welfare. Also, a dwindling workforce will reduce our economic vibrancy and productivity. However, will the increase in our ageing population, or will the increase in the ratio between the old and the young, invariably bring problems to our society?
As the United Nations Population Fund has rightly argued in its Report titled "Ageing in the 21st Century: A Celebration and A Challenge", a policy-maker should meet the demographic changes head-on by turning challenges into opportunities. Today I would like to share with you a few thoughts in this area.
Let me start with the financial assistance to our senior citizens who are in need. The World Health Organization defines active ageing as ageing with an adequate income, good health and active participation. Our social security system is designed to channel welfare resources to those most in need, including the elderly. At present, financial support for elderly persons is mainly provided through the Comprehensive Social Security Assistance, Old Age Allowance, Disability Allowance and the recently introduced Old Age Living Allowance (OALA). Nearly 80 per cent of the elderly aged 65 or above are receiving assistance or allowance of different types under the social security system. The percentage of elderly people aged 70 or above receiving assistance or allowance reaches a hefty 87 per cent.
I would like to draw your particular attention to the new Old Age Living Allowance, which was rolled out in April this year. This allowance is an additional financial support measure for the needy elderly and we expect it to benefit some 400 000 elderly citizens and improve their livelihood. Over 340 000 eligible seniors have received the allowance so far. With a rapidly ageing population, spending on OALA will undoubtedly rise further.
We will launch no later than November this year a new Guangdong Scheme to provide Old Age Allowance for eligible Hong Kong elderly people who choose to reside in Guangdong. They will be able to receive a full-year allowance in Guangdong without having to come back and live in Hong Kong for 60 days every year.
There has been heated debate on whether it is time for Hong Kong to reform our retirement protection and put in place the so-called universal retirement protection. This is a highly controversial and complicated issue as it entails financial commitment and contribution on the part of the individual employees, all employers and the Government. Academics also have different views on its economic impact and sustainability. Despite the complexities involved, the Commission on Poverty - chaired by the Chief Secretary - took the very important step in March this year by tasking a widely respected academic in retirement protection, that is Professor Nelson Chow of the University of Hong Kong, to undertake a comprehensive study on the future direction of retirement protection in Hong Kong. The study will examine the viability and sustainability of the current multi-pillar system of retirement protection of Hong Kong, which comprises the social security system, Mandatory Provident Fund, voluntary private savings and family support. It will also take full stock of all the views and opinions expressed in the community by various groups and academics. The study is expected to come up in the first half of next year with impartial, objective and evidence-based advice for the Government to consider the best way forward and to forge a community consensus.
Financial security is an important, but not the only, concern for an ageing society. The challenge of every government is this: How can we, whilst properly protecting our needy senior citizens, at the same time promote and facilitate active ageing, unleash the potential of our elderly population and enable them to age healthily and happily?
As the policy secretary responsible for welfare services, the second challenge posed by an ageing society to me is how to make our elderly citizens not only live longer, but live with dignity and happily. Obviously, the answer lies in enhancing our care and support services.
For elderly care, "ageing in place" is the cardinal principle of the Hong Kong Government's elderly policy. It is also the wish of most of our senior citizens. The Government has all along been encouraging and facilitating our seniors to lead an active and healthy life and continue to live at home, with the support of a familiar and well-established social network, in their golden years. We will continue to promote "ageing in place as the core, institutional care as backup" and enhance the subsidised community and residential care services for the elderly.
This ongoing effort has been matched by innovation. The Community Care Service Voucher Pilot Scheme highlighted in this year's Policy Address is one example. We will launch the first phase of the Pilot Scheme on Community Care Service Voucher for the Elderly in September this year, issuing a maximum of 1 200 vouchers in eight designated districts. The scheme adopts an innovative funding mode of "money follows the user" and enables more flexible choice of community care services by the elderly. This also helps attract more service providers and thus be conducive to the development of a more vibrant community care services market in Hong Kong.
This initiative, however, would not lessen our commitment in the provision of conventional community care services. Instead, we will continue to increase day care places in the conventional funding mode and extend the service hours of new day care centres for the elderly.
Apart from community care, residential care is also a key element of the elderly care services. At present, the Government provides about 26 000 subsidised residential care places, serving about 43 per cent of all elderly staying in residential care homes for the elderly throughout the territory. Noting the keen demand for residential care places of the frail ones, we will continue to increase the number of subsidised residential care places for the elderly through a multi-pronged approach, ranging from short to long-term. We will explore the feasibility of incorporating residential care home facilities into redevelopment projects, and convert vacant buildings into residential care homes for the elderly. We are also discussing with social welfare organisations on how to make better use of land owned by non-governmental organisations through redevelopment or expansion to provide diversified subvented and self-financing facilities. Meanwhile, we will continue to buy good-quality places from private elderly homes to augment our pool of subsidised places. From now to 2015-16, we will provide some 1 200 new subsidised places. We have also earmarked eight development projects for construction of new elderly homes.
This takes me to the important, though least discussed, page of ageing society - that is active ageing. Don't forget that a significant portion of the ageing population in the next decade will be healthier and more educated. They would expect to see modernised elderly centres equipped with new facilities such as computers and fitness equipment. These would enable them to bridge the digital divide and pursue continuous learning, exercise more to stay fit or take part in voluntary work.
To this end, with an allocation of $900 million from the Lotteries Fund, we rolled out the Improvement Programme of Elderly Centres in phases to enhance the physical setting and facilities of all elderly centres over the territory. A total of 237 centres have joined the programme and can make use of the grants to improve facilities such as air-conditioning, computer systems and health/gymnastics equipment. The centres may also enhance their barrier-free facilities, layout and design so as to provide a safer environment. More than 210 000 elderly users will benefit.
A further impetus to encourage our senior citizens to fuse into society, widen their social network, see more of their families and work as volunteers is the implementation of Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disability, or more commonly known as the "$2 Scheme". People aged 65 or above can now move around by MTR, franchised buses and ferries for just $2 per trip. The Scheme is designed to benefit more than 980 000 elderly people aged 65 or above and 130 000 eligible persons with disabilities. The daily average passenger trips using MTR, buses and ferries under the Scheme is around 660 000 and the estimated expenditure for the Scheme, which is borne by the Government, is around $600 million in 2013-14.
We have started the Elderly Academy Scheme since 2007 to encourage lifelong learning among elders. There are now some 110 elderly academies in primary and secondary schools and tertiary institutions offering a wide range of courses having regard to the interests and demands of the elderly in the local communities. The scheme serves also to bring the older and younger generations together and foster social inclusion and respect for the old.
Many who have retired or aged well beyond 65 are still active and craving for purposeful work to contribute to society. I gather that an increasing number of private organisations are eyeing these retirees by employing them in part-time mode to mentor new staff. I know that some welfare organisations have engaged retired teachers to design training materials or offer training sessions to demented elderly persons. There is clearly scope for us to do more to tap and make the best of this treasure trove of latent human resources.
The high-powered Steering Committee on Population Policy will discuss the feasibility of introducing flexible employment terms or plans to extend the retirement age. This would not only help replenish Hong Kong's dwindling workforce, but provide gainful work conducive to promoting the health and well-being of retirees. In the face of the likely fall in the workforce after 2018, the Committee will also focus on ways to attract more women and youth into the labour market through family-friendly and other measures. The Steering Committee will launch a public engagement exercise on these pertinent topics of population policy later this year. Meanwhile, the Elderly Commission, an important advisory body set up to advise the Government on the formulation of a comprehensive policy to care for the elderly, will also continue to explore ways to enable elderly persons to realise their potential.
So much for the challenge. Let us not forget that there is also a cause for celebration in an ageing society. Some people tend to take a dim and rather passive view towards ageing. Let me say that I do not subscribe to this school of thought. The silver hair generation is full of wisdom and possesses a wealth of experience. Some are, indeed, rather financially well off. The growing silver hair market will also generate considerable business and job opportunities. For instance, many financially sufficient baby-boomer retirees travel a lot. This silver hair segment is in fact an important source of customers for the leisure and travel industry.
Another example is the elderly care sector. Our fast ageing society will open up new opportunities for jobs and business. There would be substantial manpower requirements in community and personal care services for the elderly in the next 20 to 30 years.
Before I close, I must pay tribute to the Rotary Club of Hong Kong South for your sterling contribution in empowering the disadvantaged in our society. Two recent examples spring to my mind. First, you have set up a pilot breakfast fund to help schoolchildren without breakfast. Second, you have also initiated a thoughtful service for sick children in hospital. I am sure that, given the enthusiasm, commitment and civic spirit of the Rotarians, you will go from strength to strength in making Hong Kong a truly caring, compassionate and cohesive community.
Thank you.
Ends/Thursday, July 25, 2013
Issued at HKT 15:35
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