Ex-finance chief John Tsang urges review for lowered age HK$2 fare scheme

Former financial secretary John Tsang Chun-wah has expressed concerns about lowering the age threshold for the HK$2 public transport fare subsidy scheme to cover citizens aged 60 or above, suggesting that it would exacerbate Hong Kong's budget deficit.

In a post on his Facebook page, Tsang remarked that the recent bus fare increases are burdensome for passengers who rely on long-distance buses, with fares rising by HK$1 to HK$2 per trip. 

Despite benefiting from the HK$2 fare subsidy scheme himself, Tsang highlighted the need to reassess the program.

He noted that the scheme had spurred a 'silver career market,' enabling many elderly individuals to take on delivery jobs due to lower transportation costs. It has also encouraged travel and exploration among seniors in Hong Kong, contributing to a decrease in the number of hidden elderly.

However, he expressed reservations about the decision made in 2022 to lower the eligibility age of the Scheme from 65 to 60. 

He argued that the adjustment has led to inconsistencies in the thresholds for elderly subsidies across Hong Kong and has significantly increased government expenditures.

Tsang noted that the government spending on the Scheme has escalated dramatically, from around HK$1 billion annually over the past five years to HK$4 billion last year. 

He anticipates the figure will rise to HK$6 billion in the current fiscal year, describing the increase as "astonishing."

With the average lifespan of Hong Kong residents now exceeding 80 years, Tsang noted that any modifications to the fare subsidy scheme could lead to significant public backlash. However, he stressed the importance of reviewing the program to prevent unsustainable increases in subsidy expenditures as public transport fares continue to rise.

The former finance chief also pondered whether Hong Kong should consider raising its retirement age, acknowledging the potential ripple effects of such changes but emphasizing the necessity of addressing them.