Cash alone not enough

The economics professor starts the argument from the perspective of behavioral economics, saying sometimes young married couples may place more emphasis on short-term factors in deciding whether to raise children. These factors include having an adequate child care center and recreational space, the quality of education, the living environment and the cost of school fees.

Our Hong Kong Foundation Senior Researcher Pascal Siu Yat-kui suggests the government prioritize some family-friendly policies such as flexible work hours, parental leave, and more childcare facilities because these exert less of a financial burden on the administration. It can also establish itself as an exemplary model for private companies to consider programs to reduce long work hours and overtime, to encourage working parents.

In Singapore, employees by December will have the right to formally request more flexible work arrangements such as a four-day work, more work-from-home days, staggered work times and flexible work locations, under the guidelines laid down by the Ministry of Manpower, the National Trades Union Congress, and the Singapore National Employers Federation.

While the guidelines are not legally enforceable, employers in Singapore have to establish a formal process for employees to request flexible work arrangements.

Providing access to flexible work arrangements addresses specific challenges of Singapore, such as a tight labor market, an aging workforce, and the need to empower a diverse workforce for future economic growth.

Enhancing the participation of the elderly and women in the workforce is the second policy dimension in population policy planning.

US-based credit agency Moody’s Investors Service expects Hong Kong to make material gains in workforce participation to achieve potential growth rates of about 2 percent between 2021 and 2030. It says Hong Kong should further ramp up technological adoption in automation and robotics technology to strengthen labor productivity.

The labor force participation rate in Hong Kong has declined since 2019, primarily driven by post-war baby boomers retiring, along with other significant demographic changes. The labor force participation rate declined rapidly from 61.3 percent in 2018 to 57.3 percent in 2023. By 2046, the government expects this ratio will plummet to 51.6 percent.

Both lawmaker Yung and economist Tang reckon the administration can do more to boost elder workforce participation. Tang suggests the government establish an exemplary model by introducing a phase-out period for recruiting retired civil servants, encouraging private companies and public organizations to have more policy flexibility to recruit retirees. Yung suggests that the government assist elders or retirees over 65 years of age in obtaining labor insurance and remove employment barriers, as many are willing to work.

To enhance female workforce participation, Yung says the government and the private sector should provide more facilities to encourage child-rearing, such as childcare center functions for female workers in offices, and increase the overall number of childcare facilities. Such measures would encourage more female workers to take more part-time employment, or receive training to enhance their flexibility.