Richest Households in Hong Kong Now Earning 80 Times More Than Poorest, According to Oxfam Report

Hong Kong’s wealthiest households now earn 80 times more than the poorest, a figure that has more than doubled in just five years, according to a report by Oxfam released on Wednesday. The report highlighted the city’s struggle with an aging population and widening income disparity.

Hong Kong, a major financial hub, has long been one of the most expensive cities in the world and has faced ongoing challenges in addressing wealth inequality. In response, city officials have pledged to pursue “targeted poverty alleviation” after Chinese President Xi Jinping urged Hong Kong to tackle livelihood issues and improve socio-economic mobility.

However, Oxfam’s Hong Kong branch reported that the wealth gap has continued to grow, particularly in the wake of the pandemic, with a notable increase in the number of elderly living in poverty. In the first quarter of this year, the poorest 10 percent of households earned just HK$1,600 ($206) per month, while the wealthiest 10 percent earned 81.9 times that amount.

Oxfam’s analysis, based on government data, showed that in 2019, the wealthiest households earned 34.3 times more than the poorest households, underscoring the sharp increase in inequality over the past five years. Additionally, the number of elderly people living in poverty has risen significantly, with 580,000 elderly residents now classified as poor in a city of 7.5 million.

As of the first quarter of this year, over 1.39 million people in Hong Kong were living in poverty, according to Oxfam.

Kalina Tsang, director of Oxfam Hong Kong, stated at a press conference that the data indicated worsening wealth inequality, exacerbated by the city’s aging population. Tsang expressed concern over the rising number of poor people and the increasing poverty rate, warning that these trends should serve as a wake-up call for society.

In response, Hong Kong’s labor and welfare chief announced that the city would no longer use median household income to measure poverty levels, effectively discontinuing the poverty line as a social indicator. A government spokesperson told AFP on Wednesday that officials are developing a new analytical framework, which will include “macro indicators for long-term monitoring and key performance indicators on a micro level.”

Oxfam’s Tsang called for policies to encourage retirees and women to return to the workforce, along with increased support for elderly care and child care services.

Have you read?
Impact of Titles on Your Executive Career – Negotiating Job Titles and more!
5 Reasons being dog friendly is very good for business.
Do you want to change things in your organization? Perhaps it begins with changing how you think.
Mastering Leadership- How Clear Expectations Drive Success.