Tag Archives: China

LCQ12: Reinforcing Hong Kong’s status as an offshore Renminbi business hub

     Following is a question by the Hon Adrian Ho and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (February 26):
 
Question:
 
     The Chief Executive has proposed in the 2024 Policy Address that the Government will continue to enhance the mutual market access regime and reinforce Hong Kong’s status as the world’s largest offshore Renminbi (RMB) business hub, contributing to the internationalisation of RMB. In this connection, will the Government inform this Council:
 
(1) given that the Hong Kong Exchanges and Clearing Limited (HKEX) launched the “Hong Kong Dollar-Renminbi Dual Counter Model” (dual-counter model) in June 2023 to provide investors with a variety of trading currency options and more investment opportunities, and investors’ holdings in Hong Kong Dollar and RMB counters of the same security can be seamlessly switched, of the total transaction amount recorded since the implementation of the dual-‍counter model and its proportion in the securities market;
 
(2) whether it has assessed the operation and effectiveness of the dual-‍counter model based on the figures in (1); of the policies to be implemented in the future to enhance promotion, so as to encourage more listed companies and investors to adopt the dual counter model;
 
(3) given that the HKEX has announced earlier the launch of a Single Tranche Multiple Counter this year to optimise the settlement procedures for Multi-‍counter Eligible Securities (including dual-‍counter securities) within the Central Clearing and Settlement System, of the progress of implementing such arrangement; and
 
(4) given that the Government has indicated that it, in co-ordination with the regulators and the HKEX, will continue to make efforts in promoting offshore RMB business and strengthening product ecosystem at various levels, of the policies and measures in place to further enrich the RMB investment product suite in Hong Kong (e.g. incentivising more institutions to issue RMB-denominated exchange-traded funds and other products), so as to consolidate Hong ‍Kong’s position as an offshore RMB hub?
 
Reply:
 
President,
 
     Hong Kong is a premier global offshore Renminbi (RMB) business hub which possesses the world’s largest offshore pool of RMB funds, and operates the largest offshore RMB foreign exchange and over-the-counter interest rate derivatives market. Hong Kong also provides a diversified range of RMB products and services. With the support of the Central People’s Government, the Government, regulators and Hong Kong Exchanges and Clearing Limited (HKEX) have all along been leveraging the unique advantages under “one country, two systems” to continuously enhance the mutual market access mechanism, further strengthening Hong Kong’s function as a global offshore RMB business hub while promoting the progress of RMB internationalisation.
 
     In consultation with the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC) and the HKEX, my reply to the four parts of the question is as follows:
 
(1) and (2) To meet the increasing demand from global investors for allocating RMB assets, the Government, regulators and the HKEX actively promote the issuance and trading of RMB securities in Hong Kong. To this end, the HKEX launched the “Hong Kong Dollar (HKD)-RMB Dual Counter Model” (dual-counter model) in 2023 to provide investors with more diversified trading options and flexibility to trade securities in HKD or RMB according to their needs. The HKEX also introduced the “Dual Counter Market Maker” (DCMM) regime, under which buy and sell quotes are offered through the RMB counter to promote liquidity of RMB-denominated stocks. To create favorable conditions for market makers to conduct market making and liquidity providing activities at lower transaction costs, the Government has made legislative amendments to exempt the stamp duty of specific transactions by DCMMs.
 
     Since implementation, the dual-counter model and the DCMM regime have been operating smoothly. Currently, a total of 24 issuers have adopted the dual-counter model to provide HKD and RMB securities trading. Meanwhile, 12 exchange participants have been designated as DCMMs to conduct market making and liquidity providing activities. Since the launch of the regime in June 2023 until mid-February 2025, the total trading volume of the HKD counter and RMB counter of dual-counter securities reached approximately HKD16.5 trillion and RMB42 billion respectively, accounting for about 31 per cent of the total turnover of the cash securities market in total. Under the dual-counter model, the HKEX and market participants (including listed companies, investors, brokers, banks and market makers) have accumulated considerable practical experience in issuing, trading, settling and converting the same stocks, especially the highly liquid ones, in different currencies. This helps consolidate readiness for further developing the RMB securities market.
 
     With the sustained growth of RMB cross-boundary payment and its share in global payment, we believe that the number of offshore investors holding RMB will gradually increase. Meanwhile, the China Securities Regulatory Commission announced in 2024 its support for the inclusion of RMB stock trading counter under Southbound trading of Stock Connect. The regulators and exchanges of the two places are conducting relevant technical preparations at full speed, so as to enable Mainland investors to trade Hong Kong stocks in RMB as soon as possible. The Government and the HKEX will also continue to expand and deepen the coverage of listed and potential issuers through various channels such as key promotional activities, roadshow events, thematic speeches and forum exchanges, and introduce in detail the advantages of the dual-counter model in Hong Kong with a view to gradually attracting more listed companies to adopt it.
 
(3) To improve the efficiency and scalability of trading and settlement of multi-counter securities (such as dual-counter securities and exchange-traded products), the HKEX has announced the upcoming launch of the single tranche multiple counter arrangement to optimise the settlement procedures for multi-counter eligible securities within the Central Clearing and Settlement System. Under the enhanced arrangement, trading under different trading counters of securities will be reflected under the domain settlement counter for clearing and settlement purposes. It will spare clearing participants from inter-counter transfer, obviating the need for separate clearing and settlement for individual trading counters. Moreover, a “same stock netting” procedure will be added to allow offsetting the position of one currency counter against the position with opposite direction of another currency counter of the same securities.
 
     The enhanced measures will better utilise the characteristics of multi-counter securities as a single security and improve settlement efficiency. Relevant information including launch arrangements, technical documents, sample reports and data files, and frequently asked questions have been uploaded to the HKEX’s dedicated website (Note). To facilitate market participants to familiarise with the operation of the single tranche multiple counter arrangement, the HKEX will hold practice sessions in the second quarter of this year. Relevant details will be announced in due course. Subject to technical preparations and regulatory approval, the enhanced arrangement is targeted for implementation by the end of June this year.
 
(4) The Government, in collaboration with the regulators and the HKEX, have been committed to promoting the development of Hong Kong’s offshore RMB business and enriching the RMB product ecosystem. Apart from stock trading, we have been supporting Mainland institutions to issue more offshore RMB bonds and promoting more institutions to issue RMB denominated exchange-traded funds (ETFs) and other products, etc.
 
     The Ministry of Finance has issued RMB sovereign bonds in Hong Kong for 17 consecutive years since 2009. The cumulative issuance amount reached RMB366 billion as of end-2024. Earlier this month, it further issued five series of RMB sovereign bonds totalling RMB12.5 billion.
 
     Over the past year, various measures have been introduced to enrich and support offshore RMB business. The eligible product scope of equity ETFs under Stock Connect was further expanded in July 2024, including 91 new ETFs in total. The Mainland-Hong Kong Mutual Recognition of Funds arrangement has been enhanced with effect from January this year. The measures, including relaxation of sales restriction, will significantly enhance the scale of funds. On the other hand, OTC Clearing Hong Kong Limited has allowed offshore investors to use Mainland Government Bonds and Policy Bank Bonds held through Bond Connect as margin collateral for Northbound Swap Connect, providing greater flexibility to international investors and enhancing their capital efficiency, which are conducive to further attracting participation of overseas investors.
 
     In addition, the Hong Kong and Mainland regulators announced in January new measures to deepen financial co-operation between the two places. Notably, the extension of settlement time under the Central Securities Depositories (CSDs) and supporting of settlement of multi-currency bonds through the CSDs linkage under Southbound Bond Connect were implemented in January this year, while expansion of the scope of eligible Mainland investors will be taken forward in due course. Offshore RMB repurchase business using Northbound Bond Connect bonds as collateral was also implemented smoothly on February 10, with multiple repurchase transactions completed on the first day of implementation. The RMB Trade Financing Liquidity Facility arrangement will be launched on February 28, with a view to facilitating banks in providing RMB trade finance services to corporates. The total facility size is RMB100 billion.
 
     In terms of insurance, the insurance industry has been developing RMB-denominated policies, and has recently introduced multi-currency insurance products including those in RMB to meet market needs.
 
     We will continue to spare no efforts in building the offshore RMB ecosystem, taking forward mutual market access measures that are supported by regulators of the two places, including the inclusion of real estate investment trusts under Stock Connect, and exploring new initiatives with the Mainland regulators. We will also continue to support Hong Kong financial institutions to further expand the suite of attractive investment products for providing more investment opportunities for domestic and overseas investors and consolidating Hong Kong’s status as an offshore RMB business centre.
 
Note: The HKEX’s dedicated website: www.hkex.com.hk/Services/Clearing/Securities/What_s-New/Enhancement-of-Settlement-Arrangement-for-Multi-counter-Eligible-Securities?sc_lang=en read more

LCQ21: Addressing the problem of manpower shortage

     Following is a question by the Hon Jimmy Ng and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (February 26):
 
Question:
 
     In the report on the 2023 Manpower Projection published by the Government in November last year, it was projected that the manpower shortage in Hong Kong would be widened to 180 000 by 2028. In particular, skilled technical workers, manual labourers and service industry workers would experience manpower shortage. It was projected that there would be a shortage of 147 000 to 162 000 workers in total by then. Some members of the industrial and commercial sectors are worried that the problem of manpower shortage will limit the development of relevant sectors, and they have urged the Government to introduce more targeted measures to address the problem. In this connection, will the Government inform this Council:
 
(1) of the respective numbers of quotas used under the various sector-‍specific labour importation schemes so far; whether the authorities will study increasing the quotas for such schemes to address the problem of manpower shortage, as well as expanding the relevant schemes to cover more sectors with manpower shortage; if so, of the details;
 
(2) as the Government launched the Enhanced Supplementary Labour Scheme (ESLS) in September 2023 under which the general exclusion of the 26 job categories as well as unskilled or low-skilled posts from labour importation would be suspended for two years, of the number of labour importation applications approved under the ESLS so far and the number of workers involved, together with a breakdown by 26 job categories; whether the authorities will extend the ESLS or even regularise it; if so, of the details; if not, the reasons for that;
 
(3) as it is learnt that applications under the ESLS and sector-specific labour importation schemes are in general required to be subject to a manning ratio of imported labour to full-time local staff (i.e. 1:2), but such a requirement may be waived under special circumstances, whether the authorities have waived the manning ratio requirement in respect of individual applications under such schemes in the past; if so, of the details; whether consideration will be given to relaxing the manning ratio requirement of such schemes; if so, of the details;
 
(4) whether consideration will be given to relaxing the requirement that wages of workers imported under the ESLS and sector-specific labour importation schemes should not be lower than the prevailing median monthly wage of a comparable position in the market; if so, of the details;
 
(5) as employers participating in the ESLS and sector-specific labour importation schemes are currently allowed to deduct up to 10 per cent of the wages of imported workers as the accommodation fee for the period that the imported workers occupy the accommodation provided by their employers, whether the authorities will consider raising the percentage; if so, of the details; and
 
(6) whether it will introduce more new measures to address the problem of manpower shortage in the future; if so, of the details?

Reply:
 
President,
 
     To cope with the challenges brought by manpower shortage and on the premise of ensuring employment priority for local workers, the Government has enhanced the mechanism for importation of labour. On June 19, 2023, the Labour and Welfare Bureau introduced the Special Scheme to Import Care Workers for Residential Care Homes (Care Workers Scheme) for the residential care home (RCH) sector. On July 17, 2023, the Development Bureau (DEVB) and the Transport and Logistics Bureau (TLB) respectively launched sector-specific labour importation schemes for the construction and transport sectors. In addition, the Labour Department (LD) has implemented the Enhanced Supplementary Labour Scheme (ESLS) since September 4, 2023 to enhance the coverage and operation of the Supplementary Labour Scheme (SLS) including suspending the general exclusion of the 26 job categories as well as unskilled or low-skilled posts from labour importation for two years.
 
     In consultation with the DEVB and the TLB, our reply to the Hon Jimmy Ng’s questions is as follows:
 
(1) Since the launch of the Care Workers Scheme and sector-specific labour importation schemes, a total of around 23 800 quotas for importation of workers were approved as at January 31, 2025. A breakdown by labour importation schemes is as follows:

Labour Importation Scheme Quota ceiling Quotas approved
Care Workers Scheme 15 000 Around 7 200 (Note 1)
Labour Importation Scheme for the Construction Sector
(Construction Sector Scheme)
12 000 9 109 (Note 2)
Labour Importation Scheme for the Aviation Sector
(Aviation Sector Scheme)
6 300 5 823
Labour Importation Scheme for the Transport Sector – Public Light Bus (PLB)/ Coach Trade
(Transport Sector Scheme)
1 700
(PLB: 900
Coach trade: 800)
1 700
Note 1: Including the new quotas approved since the implementation of the Scheme in June 2023 and the quotas for renewal in respect of care workers previously imported through SLS.
Note 2: Quota allocation is on a rolling basis, i.e. quotas will be released for new application after the completion of the relevant construction projects. As of end-2024, there were a total of 9 109 approved and active quotas under the Scheme.

     For the Care Workers Scheme, the Government reviewed the manpower situation of care workers in the RCH sector and in July 2024 announced that it would provide additional 8 000 quotas in the coming three years. Having regard to the overall demand for and supply of care workers in the RCH sector, the Secretary for Labour and Welfare will make timely adjustments to the number of overall quotas, as well as the number and pace of quotas allotted in each batch, with a view to responding flexibly and swiftly to changes in the manpower supply and demand in the RCH sector. Regarding the Construction Sector Scheme, on the premise of ensuring priority for local workers’ employment, the DEVB will carefully consider the allotment of the remaining quotas based on the labour market condition and construction project needs, and take note of the updates on manpower forecast to continuously monitor the use of quotas. In respect of the Aviation Sector Scheme, the TLB will make reference to a number of relevant factors such as the results of the latest airport manpower survey conducted by the Airport Authority Hong Kong, the implementation of the Scheme, stakeholders’ views, etc. to decide the future direction of the Scheme. Besides, TLB and the Transport Department are reviewing the implementation of the Transport Sector Scheme and assessing the manpower demand of the sector in the coming few years. We shall announce the way forward of the Schemes in good time subject to the review results.

(2) From September 4, 2023 to January 31, 2025, 6 762 applications involving 47 474 quotas of imported workers were approved under ESLS. A breakdown of the number of quotas of imported workers approved by the 26 job categories, unskilled/ low-skilled posts and other posts is at Annex.
 
The LD has been closely monitoring the implementation of ESLS and has commenced the review of ESLS. The LD will fully consider the views of stakeholders including employer associations and labour organisations in mapping out the way forward.
 
(3) According to the general requirements of the sector-specific labour importation schemes and ESLS, employers shall fulfill a manning ratio of 2:1 for full-time local employees to imported workers. Under the Construction Sector Scheme, individual applications with special circumstances, such as applications involving special trades/ disciplines with very limited local supply (e.g. overhead linesman (high voltage)), will be exempted. For ESLS, exceptions include farm workers for which the standard of manpower requirement is specified by the Agriculture, Fisheries and Conservation Department. On the Care Workers Scheme, subvented RCHs and contract RCHs may for every two full-time local employees apply to import a maximum of one care worker only (i.e. a 2:1 ratio), and private RCHs and self-financing RCHs may for every full-time local employee apply to import a maximum of one care worker only (i.e. a 1:1 ratio). The Government has no plan to further relax relevant requirements.
 
(4) to (6) To safeguard employment priority for local workers, applicant employers of respective labour importation schemes must undertake local open recruitment and give priority to employing suitable local workers to fill the vacancies at a salary not lower than the prevailing median monthly wage of a comparable position in the market. At the same time, employers approved to import workers are required to sign a Standard Employment Contract (SEC) with imported workers, and shall pay a salary not lower than the median monthly wage of a comparable position. Besides, in accordance with SEC, the employer may deduct the actual cost of accommodation in respect of a period that an imported worker occupies the accommodation from the wages payable to the worker for the corresponding period or 10 per cent of the amount of wages (excluding any overtime pay) payable to the worker for the corresponding period, whichever is the less.
 
     As explained in items (1) and (2) of the reply, the Government has been closely monitoring and reviewing the implementation of labour importation schemes. Relevant bureaux have been implementing appropriate measures in light of the situation to enhance the arrangement and operation of the Schemes. The LD has also commenced the review of ESLS. In addition, the Government will continue to adopt a multi-pronged strategy, including promoting training and retraining, providing appropriate employment support and driving technology adoption for productivity uplifting, to address the manpower shortage problem.
 
     The Government is also exploring the introduction of a new channel under the General Employment Policy and the Admission Scheme for Mainland Talents and Professionals to attract a specified number of young non-degree talents possessing relevant professional technical skills and experience to apply for entry into Hong Kong to join the skilled trades facing acute manpower shortage. read more

LCQ2: Cases of child maltreatment

     Following is a question by Dr the Hon Tik Chi-yuen and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (February 26):
 
Question:
 
     The Mandatory Reporting of Child Abuse Ordinance (the Ordinance) will take effect on January 20 next year. According to the data of the Child Protection Registry Statistical Report, the number of maltreatment cases involving children with disabilities is rising rapidly. For example, the number of children with disabilities who had been subjected to sexual abuse increased from 125 in 2022 to 175 in 2023. There are views pointing out that this trend attracts little media coverage or attention, and the actual situation of child maltreatment is not well-known. In this connection, will the Government inform this Council:
 
(1) as there are views pointing out that some victims of child maltreatment cases choose to cover up the incident and refrain from reporting to the Police or the Social Welfare Department’s Family and Child Protective Services Unit, given the “secondary damage” caused to them by the fact that they have to recall the course of the incident when facing judicial proceedings (e.g. taking statements and giving evidence in court proceedings), how the Government will deal with such situation upon commencement of the Ordinance; whether it will consider amending the legislation to mitigate the secondary damage caused to the victims; if so, of the timetable; if not, the reasons for that;
 
(2) given the increase in the number of child maltreatment cases (especially sexual abuse), whether the Government has conducted any in-depth investigation into this trend; if so, of the main reasons for such trend according to the findings of the investigation; whether it has formulated preventive measures targeting schools or youth groups;
 
(3) as it is learnt that children with mental and physical disabilities are the major group of victims of child abuse cases involving children with disabilities, whether the Government has provided additional resources or protective measures to address the special needs of this group of people;

(4) as the Secretary for Labour and Welfare has pointed out that the anticipated number of reported child abuse cases will increase substantially after the commencement of the Ordinance, whether the Government has sufficient resources to support child victims, such as enhancing the relevant psychological counselling, placement and rehabilitation mechanisms;
 
(5) whether it will consider setting up a dedicated committee or organization to monitor the effectiveness of the implementation of the Ordinance, coordinate the relevant policies and initiatives, and regularly disclose to the public the data on case reports and the effectiveness of its efforts in handling the cases; and
 
(6) as it has been reported that the Budget is going to propose a reduction in the funding for social welfare organisations, how the Government will tackle an increasing number of child maltreatment cases in the light of reduced funding and shortage of social workers, and whether it has estimated the average number of relevant cases that each social worker will need to handle after the reduction in funding?

Reply:
 
President,
 
     The Mandatory Reporting of Child Abuse Ordinance (the Ordinance) mandates specified professionals in the social welfare, education and healthcare sectors to report serious child abuse cases, creating a comprehensive and effective protection web for children and sending a strong deterrent message to potential perpetrators that their abuse behaviours will be easily exposed. The consolidated reply to the Member’s question, in consultation with Education Bureau (EDB) and Security Bureau (SB), is as follows:

(1) Various government departments and the Judiciary have been protecting child victims and witnesses through administrative procedures, guidelines and measures to encourage and facilitate them to report and give evidence in child harm/abuse cases and to lessen their trauma in the process. The Social Welfare Department (SWD), in collaboration with the Hong Kong Police Force (HKPF) and the Judiciary, has taken a number of measures to protect children. For example, during criminal investigations, the relevant departments may arrange children to give evidence through video-recorded interviews (VRI) in appropriate circumstances. These VRIs are conducted in a comfortable home-like environment by specially trained police officers, social workers, and/or clinical psychologists. The video-recorded evidence can be admitted as valid evidence at the trial, saving the children from recounting the incidents in the courtroom, thereby alleviating their embarrassment and trauma. During trials, the children can enter and exit court rooms through special access. In addition, they can also testify in another room by means of live television link in the company of trained witness-support persons to avoid facing the defendant and the public directly, thereby alleviating their psychological stress. In addition, the HKPF and the Department of Justice jointly established the Vulnerable Witness and Child Protection Task Force in 2022 to speed up and improve the evidence collection, prosecution and follow-up investigation work with collective efforts. The SWD and the HKPF will continue to organise training courses and review the procedures for handling sexual violence cases to enhance the skills and sensitivity of different professionals in order to effectively assist child victims and ensure that they receive appropriate protection and support.

(2) Through the Child Protection Registry, the SWD has been collecting and compiling statistics on information of registered cases involving children who have been harmed/abused or currently at risk of being harmed/abused. The annual statistics are uploaded onto the SWD’s website for public reference. There were 1 367 newly registered child protection cases in 2021 and 1 457 cases in 2023, representing an increase of about 6.6 per cent in three years. Among them, there were 448 sexual abuse cases in 2021 and 509 sexual abuse cases in 2023, representing an increase of about 13.6 per cent. According to the SWD’s analysis, possible reasons for the increase in registered cases include: growing public awareness on child protection and more proactive reporting of cases as a result of the legislative exercise of the Ordinance as well as publicity and public education on child protection in recent years; more children are using social media, messaging apps, chat applications, or online games in recent years; and children having more opportunities to interact with others in resumption of normalcy after the epidemic.
 
     On publicity and education in the community, the SWD has been launching the publicity campaign on “Strengthening Families and Combating Violence” to raise public awareness on child protection and prevention of domestic violence and encourage those in need to seek help early through large scale publicity events and district-based activities. In 2022, the SWD has produced a series of videos on “Heart and Hut Classroom: Online Sexual Abuse Pitfalls” and broadcasted on social media to remind young people and parents of the risk factors, prevention and handling of online sexual abuse. The HKPF has been organising the “Let’s T.A.L.K. Child Protection Campaign” every year since 2021 to raise public awareness of child protection through a series of publicity and promotional activities. In addition, the HKPF organised a multi-disciplinary seminar on “Child Sexual Abuse in the Cyber World” on March 21, 2024, together with experts and representatives from relevant sectors and discussed with more than 500 parents, principals, teachers, social workers, Police officers and child service workers online and offline on how to effectively protect children from online sexual crimes, thereby enhancing their understanding of children’s online safety and their awareness and response capabilities to protect children from such crimes, and promoting collaboration among different professions.
 
     In respect of preventive work targeting schools or youth groups, the EDB has all along been assisting schools in the prevention, early identification and appropriate intervention of suspected child abuse cases through various measures. These measures include issuance of circulars and guidelines requiring schools to devise relevant mechanisms, procedures and measures to handle such cases; strengthening school social work service to assist schools in the early identification of suspected abused students and potential issues in their families; encouraging schools to implement Comprehensive Student Guidance Service, under which all teachers collaborate with school social workers, other student guidance personnel or specialists to provide comprehensive and extensive guidance service to students in need; as well as supporting schools to adopt a whole school approach, through cross-sector collaboration among professionals from different disciplines in schools (including student guidance personnel, school social workers and school-based educational psychologists), to intervene and follow up as early as possible, and to provide students with appropriate support. At the same time, the EDB actively promotes the “Positive Parent Campaign” to foster parents’ positive attitude and understanding in nurturing their children, so as to enable students grow up healthily and prevent child abuse incidents. In addition, the EDB has been working closely with the SWD and the HKPF to organise various training activities with a view to strengthening school staff’s knowledge, skills and abilities in handling suspected child abuse cases.

(3), (4) and (6) The Government has allocated an additional provision in 2023-24 for enhancing the Government’s enforcement and support capacity, providing appropriate training to practitioners in the relevant professions and strengthening the promotion and public education work on child protection, with a view to supporting the implementation of the mandatory reporting regime (MRR) for child abuse cases.
 
     The Government has further allocated an additional provision in 2024-25 to increase emergency places for residential child care service and strengthen professional support for child abuse victims and their families to prepare for the potential increase in the reported child abuse cases upon the implementation of the MRR. Among which, two new residential child care centres will commence operation before the Ordinance comes into effect, offering a total of 96 additional service places each year and are expected to provide emergency placement for 384 children in need (in the estimation that each place of residential child care centre can take care of 4 children on average per year).
 
     The SWD will also strengthen the professional support to actual or suspected child abuse victims (including pre-primary children with special needs) and their families. Starting from March 2025, the SWD will subsidise non-governmental organisations to implement various child protection support services, including Home Visitation Support, therapeutic/psycho-social groups, educational and family enrichment activities, to complement the work of social workers of the Family and Child Protective Services Unit of the SWD or related casework service units in providing focused support services for children and families in need.
 
     Child protection (including pre-primary children with special needs) work and cases are being handled and followed up in a multi-disciplinary manner (including social welfare, education, law enforcement, healthcare). Professionals from different service units, including social workers, work together to provide professional support to children and families in need. The SWD does not maintain information on the average number of child protection cases handled by each social worker.

(5) The Labour and Welfare Bureau, the EDB, the Health Bureau and the SB have formed a Cross-bureaux Working Group to make preparations for the implementation of MRR in January next year. The SWD and the HKPF are jointly developing the internal work flow and mandatory reporting platform to facilitate mandated reporters in making reports and collecting relevant data, ensuring efficient and effective follow-up on reported cases. Relevant bureaux and departments will continue to monitor the operation of MRR and the trend of the number of reports after its implementation. The number of cases reported through the MRR will be incorporated into the statistics of the Child Protection Registry and disseminated to the public. read more

LCQ17: Unleashing elderly labour force

     â€‹Following is a question by the Hon Lee Chun-keung and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (February 26):

Question:
 
     â€‹According to the statistics of the Census and Statistics Department, the proportion of elderly persons aged 65 or above accounts for about 23 per cent of Hong Kong’s total population in 2023. There are views that while the silver-haired group is a huge potential labour force in society, it is learnt that at present, elderly persons aged between 65 and 70 living with their family in public rental housing (PRH) flats will have their income counted towards the PRH income limits, and the monthly income limit for the Old Age Living Allowance (OALA) is $10,770 for a single person, which in effect hinder elderly persons from engaging in employment. In this connection, will the Government inform this Council:
 
(1) of the number of elderly persons aged 65 or above in the labour force and their average monthly income over the past five years;
 
(2) whether it has plans to relax the PRH income limit requirements for households with elderly members, for example, excluding the income of elderly members aged between 65 and 70 when calculating the income limit for such households; if so, of the details; if not, the reasons for that;
 
(3) whether it has considered relaxing the monthly income limit requirements for OALA recipients, so as to increase the incentive for the elderly to rejoin the workforce; if so, of the details; if not, the reasons for that; and
 
(4) of the future plans to unleash the elderly labour force in Hong Kong and encourage employers to consider hiring more elderly persons?

Reply:
 
President,
 
     â€‹The Government is committed to encouraging and promoting the employment of older persons. In response to the Member’s question and after consulting the Housing Bureau and the Census and Statistics Department (C&SD), a consolidated reply is provided as follows:

(1) According to survey results of the General Household Survey of the C&SD, the statistical figures for the labour force and median monthly employment earnings of employed persons aged 65 and over in Hong Kong from 2019 to 2023 (excluding foreign domestic helpers) are listed at Annex.

(2) Under the “Well-off Tenants Policies” of the Hong Kong Housing Authority (HA), public rental housing (PRH) tenants who have been residing in PRH for ten years or more are required to declare their income, assets and whether they own any domestic property in Hong Kong biennially. The income and asset limits for ordinary households are set according to the household size. Under the existing policy, a PRH household will only be required to vacate their flat if their average monthly household income exceeds five times the prevailing income limit for PRH. For example, a four-person household with a monthly income limit of about $150,000 is required to vacate their flat. If all members of the same PRH flat are aged 60 or above, they are exempted from the “Well-off Tenants Policies” and are not required to declare their income and assets. The above exemption has been set up in recognition of the fact that retirees and near-retirees may need to rely on their savings and assets to support themselves in the future, and thus a more lenient standard has been adopted. We have no plan to further relax the existing arrangement for the time being.

(3) As part of Hong Kong’s social security system, the Old Age Living Allowance (OALA) aims to supplement the living expenses of elderly persons aged 65 or above in need of financial support. OALA recipients are not required to make any contributions, but must pass a means test by meeting income and asset limits. The Government adjusts the income and asset limits annually in accordance with an established mechanism. In addition, the Normal OALA and the Higher OALA have been merged since September 2022 with more lenient asset limits adopted across-the-board. This allows elderly recipients to retain more assets, while receiving the payment rate of Higher OALA. Mindful of targeting finite welfare resources at the needy elderly, the Government has no plan to relax the income limits of the means test for the OALA at this stage. 

(4) With a view to supporting the employment of older persons and encouraging employers to engage older employees, the Government will continue strengthening the provision of training and employment services as well as staging publicity and promotion, which include:

(i) The Employees Retraining Board (ERB) provides around 700 market oriented training courses straddling across 28 industries and generic skills for eligible persons including older persons. The ERB also provides training courses which gear towards the employment needs of older persons aged 50 or above to encourage the potential workforce to enter the labour market. Apart from general training courses, the ERB organises the Post-50 Internship Programme for older persons aged 50 or above to facilitate their understanding of the current employment market situation. Under the “Hire and Train” Scheme, the ERB encourages the participating employers to provide suitable job vacancies for trainees (including persons who have recently retired), adjust the working hours and leave arrangements to cater for trainees’ family and personal situations, and provide on-the-job training and other related support measures so as to encourage the potential workforce to enter the labour market. The ERB will continue to implement these measures, and explore the provision of more measures that meet the market demand to support older persons with training and employment needs.

(ii) The Labour Department (LD) provides diversified employment services to job seekers including older persons, and launched the three-year Re-employment Allowance Pilot Scheme (REA Scheme) on July 15 last year to encourage older or middle-aged persons aged 40 or above who have not been in paid employment for three consecutive months or more to re-join the labour market. The REA Scheme covers full-time jobs, part-time jobs, and qualified “casual work” promoting flexible employment for older and middle-aged persons. During the implementation period of the Scheme, each eligible participant who has worked for 12 consecutive months can receive a maximum re-employment allowance of $20,000. As at end-January 2025, the REA Scheme recorded over 32 000 participants and over 12 000 placements. Of which, about 23 per cent of participants and 24 per cent of placements are older persons aged 60 or above. The response is very favourable. The re-employment allowance is not counted as income under the means test for the OALA. 

     In tandem with the REA Scheme, the LD implements the Employment Programme for the Elderly and Middle-aged (EPEM) to encourage employers to hire persons aged 40 or above and provide them with on-the-job training (OJT). Employers engaging each job seeker aged 60 or above who has left the workforce can receive a maximum OJT allowance of $5,000 per month for six to 12 months, while engaging each unemployed job seeker aged 40 to 59 is entitled to a maximum OJT allowance of $4,000 per month for three to six months. EPEM covers all industries, as well as full-time and part-time jobs. The Government welcomes employers taking on participants of the REA Scheme to join the EPEM. 

(iii) The Government will continue to encourage employers, having regard to their individual circumstances, to adopt elderly-friendly employment practices to facilitate more older persons to stay in or re-join the labour market.  read more

LCQ13: After-school care and support services for students

     Following is a question by the Hon Kenneth Leung and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (February 26):
 
Question:
 
     In order to enable students in need to stay at school outside school hours for care and learning support and allow their parents to take up jobs, the Government has proposed in the 2024 Policy Address to extend the School-‍based After-School Care Service Scheme to cover over 110 primary schools in the 18 districts across the territory. In parallel, the Education Bureau has set up the School-based After-school Learning and Support Programmes to support schools in providing after-school learning activities for needy students. Alongside in the community, after-school care services run by non-governmental organisations (NGOs) provide homework guidance, skill development and social activities for primary school children. In this connection, will the Government inform this Council:
 
(1) of the respective numbers of (i) Primary One to Primary Six students and (ii) primary schools in various districts, as well as (I) ‍participating schools/centres (with the number of their service places) and (II) beneficiaries (with the utilisation rates) of (a) the School-based After-School Care Service Scheme, (b) the School-‍based After-school Learning and Support Programmes and (c) the after-school care services run by NGOs over the past two years (set out by District Council district in the following table);

District Council district (i) (ii) (a) (b) (c)
(I) (II) (I) (II) (I) (II)
……                
Total                
 
(2) in respect of the three types of after-school care and support service/scheme/programme mentioned in (1)(a) to (c), of the following information for each of them over the past two years: (i) ‍the overall expenditure, (ii) the average amount of government funding received by each school/centre in respect of the relevant service/scheme/programme and (iii) the amount of subsidy per student;
 
(3) in respect of the three types of after-school care and support service/scheme/programme mentioned in (1)(a) to (c), of the respective numbers of beneficiaries under each of them over the past two years who were from (i) single-parent families, (ii) families receiving Comprehensive Social Security Assistance and (iii) ‍families receiving full grant under the Student Financial Assistance Schemes for primary and secondary school students, as well as the respective percentages of students with special educational needs under each type of service/scheme/programme;
 
(4) of the current number of after-school care service units mentioned in (1)(c) which offer pick-up and drop-off arrangements for students so that students can be sent to such units after school for care services; whether the authorities have provided resources to assist these service units in offering pick-up and drop-off arrangements; if not, of the reasons for that;
 
(5) given that many dual working parents have indicated that one of the difficulties they encounter is bringing their children to and from schools, whether the authorities will, in the long run, consider developing student escort platforms or services in the community using different modes such as innovative technology and neighbourhood support, so as to facilitate dual working parents in picking up and dropping off their children; and
 
(6) as there are views pointing out that while the three types of after-‍school care and support service/scheme/programme mentioned in (1)(a) to (c) are mainly targeted at underprivileged families at present, dual working families in general have a need for such services too, whether the authorities will conduct a comprehensive review and consolidate such service/scheme/programme, so that they can be extended to cover dual working families; if so, of the details; if not, the reasons for that?

Reply:
 
President,
 
     The Labour and Welfare Bureau, the Education Bureau (EDB) and the Social Welfare Department (SWD) have implemented the School-based After School Care Service Scheme since the 2023/24 school year. Under the Scheme, participating schools will provide venues, and the Community Care Fund will provide funding for non-governmental organisations (NGOs) to provide services for students in need (particularly those from single-parent families) to stay at school after-school hours for care and learning support in a safe and familiar environment, thereby allowing their parents to take up jobs. In addition, the EDB implements the School-based After-school Learning and Support Programmes (SALSP) to support needy students to participate in after-school learning activities with a view to facilitating their whole-person and all-round development. The SWD provides the Fee-waiving Subsidy Scheme (FWSS) under After School Care Programme (ASCP) to support primary students from low-income families to receive the ASCP service operated by NGOs.
 
     After consulting the EDB, our consolidated reply to the Hon Kenneth Leung’s question is as follows:
 
(1) SALSP and ASCP, implemented by the EDB and the SWD respectively, are existing programmes, while the School-based After School Care Service Scheme is a new scheme implemented by the Government in the 2023/24 school year. The information on the utilisation of the aforementioned three types of scheme/programme is set out in Annex 1. The School-based After School Care Service Scheme was implemented at 59 primary schools located at seven districts offering some 3 000 service places in the 2023/24 school year, and expanded to cover more than 120 primary schools in all 18 districts across the territory offering about 6 000 service places in the 2024/25 school year. Subject to actual utilisation and outcome of the Scheme, the Government plans to encourage more schools to participate in the Scheme, without capping the number of places, in the 2025/26 school year.
 
     As regards SALSP, which has been implemented since the 2005/06 school year, its aim is to support needy students to participate in after-school learning activities with a view to facilitating their whole-person and all-round development. All public sector schools (including special schools) and schools under the Direct Subsidy Scheme can make application and there is no school quota. The main target beneficiaries of SALSP are Primary 1 to Secondary 6 students in receipt of Comprehensive Social Security Assistance (CSSA) or full grant under the Student Financial Assistance Schemes (SFAS). Participating schools could exercise discretion to benefit those students who are not in receipt of CSSA or full grant of SFAS but identified by schools as needy. The discretionary quota is capped at 25 per cent of the number of eligible students of the respective schools. Also under SALSP is the Community-based Projects, activities of which are organised in the respective districts by non-governmental organisations (NGOs) and collaborating schools. Eligible students may participate in various activities under the School-based Grant and Community-based Projects at the same time. As such, the actual number of beneficiaries and utilisation rate are not applicable to the School-based After-school Learning and Support Programmes. The EDB encourages schools to flexibly deploy the School-based Grant and other related funding to enhance synergy, thereby organising diversified after-school learning activities for needy students.
 
(2) In respect of the School-based After School Care Service Scheme and ASCP, (i) the overall expenditure, (ii) the average amount of funding allocated to each school/centre under the scheme/programme and (iii) the amount of subsidy for each student, over the past two years (2022-23 and 2023-24) are set out in Annex 2.
 
     As for SALSP, the amount of School-based Grant that a school receives is calculated based on its number of students in receipt of CSSA or full grant under the SFAS as at the end of March of the respective school year, as well as its number of approved classes in the following school year. When calculating the amount of the grant, the rate for each of the above student is $400. Should schools have an 80 per cent or above utilisation rate of the School-based Grant in the previous school year, the rate of $600 per eligible student will be adopted as an incentive. As for the Community-based Projects, the applications submitted by NGOs are assessed on the basis of the content and nature of the activities, as well as the number of students and sessions involved, etc, and therefore the amount of funding for each activity differs. Eligible students may participate in various activities based on their needs and interests. In the 2022/23 and 2023/24 school year, $140 million and $137 million were provided to primary schools and NGOs respectively.
 
(3) In respect of the aforementioned three types of scheme/programme, the respective numbers of beneficiaries that were (i) from single-parent families, (ii) receiving CSSA and (iii) receiving full level of assistance under the Student Financial Assistance Schemes, and the respective percentages of students with special educational needs (SEN) over the past two years (2022-23 and 2023-24) are set out in Annex 3.
 
(4) ASCP aims at providing care services for children whose parents are unable to give proper care to them during after-school hours because of work or other reasons. It is operated by NGOs on a self-financing and fee-charging basis, providing care and support services for primary school children, including homework guidance, parental guidance and education, skill learning and social activities. The SWD provides financial assistance for the low-income families in need through the Fee-waiving Subsidy Scheme. The SWD does not maintain information of the service unit providing escort service for children attending ASCP.
 
(5) and (6) The Government will complete the evaluation of the School-based After School Care Service Scheme in the 2025/26 school year to decide on the way forward.  read more