5th January 2025 – (Hong Kong) Former Financial Secretary John Tsang has voiced significant concerns regarding the decision to lower the age threshold for the HK$2 public transport fare subsidy scheme to include citizens aged 60 and above. He warns that this change could further exacerbate Hong Kong’s budget deficit.
In a recent Facebook post, Tsang commented on the burden of rising bus fares, which have increased by HK$1 to HK$2 per trip, particularly affecting passengers reliant on long-distance buses. While he himself benefits from the fare subsidy scheme, Tsang emphasised the necessity of reassessing its current structure.
He acknowledged the scheme’s positive impact on the elderly, noting that it has fostered a ‘silver career market’ by enabling seniors to take on delivery jobs thanks to reduced transportation costs. Additionally, the subsidy has encouraged seniors to explore Hong Kong, contributing to a decline in the number of isolated elderly individuals.
However, Tsang raised concerns about the decision made in 2022 to lower the eligibility age from 65 to 60, arguing that this adjustment has created inconsistencies in the thresholds for elderly subsidies across the region and significantly increased government spending.
He revealed that the expenditure on the scheme has surged from approximately HK$1 billion annually over the past five years to HK$4 billion last year, with expectations that it will reach HK$6 billion in the current fiscal year—an increase he described as “astonishing.”
With the average life expectancy in Hong Kong now exceeding 80 years, Tsang cautioned that any changes to the fare subsidy scheme could provoke considerable public backlash. Nonetheless, he stressed the importance of reviewing the program to prevent unsustainable rises in subsidy costs as public transport fares continue to escalate.
