City divided, poverty, housing: The challenges facing Hong Kong’s new leader

The city’s first female leader, sworn in by President Xi Jinping on the city's 20th anniversary of its handover to China, faces a series of unsolved political and social issues. How will Carrie Lam rise to the challenge?

Carrie Lam

Hong Kong's new Chief Executive Carrie Lam, right, will have to navigate the ongoing tensions between pro and anti-China supporters. Source: AAP

1. Political Reform

Hong’s Kong’s mini constitution, the 'Basic Law', states universal suffrage as the “ultimate aim.” But two decades since its establishment, the city still doesn’t have a 'one vote per person system.'

During her campaign Carrie Lam said that it was her “sincere hope” to restart the reform process.

In 2014 Beijing decided that only two or three candidates selected by a 1200-member nominating committee could be put forward as candidates for the role of chief executive.

The decision sparked upheaval and triggered the 79-day 'Occupy Central' movement, with thousands of citizens taking to the main streets demanding genuine universal suffrage.
Hong Kong Occupy Central Movement
Hong Kong Occupy Central Movement Source: AP
As a result political reform failed to be passed by the city’s legislative council, with many saying the proposal wasn’t good enough.

During President Xi’s last speech in Hong Kong he encouraged the territory  to “cherish and seize the opportunity” to restart political reform discussions.

Carrie Lam must now act as the bridge between Hong Kong and China. When it comes to political reform she will have to balance the will of the citizens and that of Beijing.

2. The divided city

Since the 2014 Occupy movement, Hong Kong has become more and more polarised. Radical protests and clashes between Beijing loyalist and pro-democracy camps are commonplace.

On July 1, pro-democracy protesters including Joshua Wong and ‘Long hair” Leung Kowk-hung faced off with pro-Beijing supported while they were protesting outside the flag-raising ceremony. 

In recent years new ideologies demanding different degrees of self-determination have also emerged. With some  voices, including the Hong Kong National party, calling for Hong Kong to be a sovereign country.

Hong Kong people on all sides hope Carrie Lam will work to unite the divided city.

3. Implementation of controversial security laws

During his visit President Xi stated Hong Kong must “improve its systems to uphold national sovereignty, security and development interests”, hinting at the legislation of controversial national security law, Article 23. 

Article 23 of Hong Kong’s Basic law requires the government to “enact laws on its own to prohibit any act of treason, secession, sedition, subversion” against the central government. 

An earlier attempt to change the security law was scrapped in 2003, after half a million people took to the streets opposing the law, worried it would curtail freedom of speech. 

Carrie Lam said that it’s her “constitutional responsibility” to legislate the controversial law, and her government would “create a condition” to do so. 

But satisfying the Communist Party and the outspoken people of Hong Kong won’t be easy.
Hong Kong chief executive Carrie Lam
An umbrella symbolising the Occupy Central movement is held up before Hong Kong chief executive-elect Carrie Lam (c) following her victory. Source: EPA

4. Solving Hong Kong’s Housing crisis

Private housing in Hong Kong is extremely unaffordable. It’s often referred to as one of the world’s most expensive property markets. Increasing housing supply and curbing property speculation will be on top of Carrie Lam’s to-do list.

Today an average urban apartment of about 55 square metres costs HK$7 million ($1.2 million AUD), while 20 years ago it was valued at  around HK$4 million ($670K AUD).

Citizens must save all their salary for 18 years, without spending on anything, in order to buy an average apartment in Hong Kong.

According to a 2016 survey, apartments in Hong Kong cost 18.1 times annual median household income, this is the world's highest price-to-income ratio.
Hong Kong housing has become virtually unaffordable for many families.
Hong Kong housing has become virtually unaffordable for many families. Source: SBS Small Business Secrets
There’s also a desperate public housing shortage. At end of March, about 147,300 general applications were waiting for public housing. Each applicant waits an average of 4.6 years before getting a place in public estates.  

Because of this many are forced to live in tiny spaces in subdivided flats. About 200,000 people were living in subdivided flats in 2015, where the resident would have to share the flat with at least 2.6 people in an average of 12-square-metre flat. This meant each person had an average living space of 5.5 square metres.

Carrie Lam has pledged to continue working on Hong Kong’s housing problem.

5. Poverty and long working hours

According to a 2015 survey 1.34 million people are living below the poverty line. The number is the highest since since 2009.  

On top of this the number of working hours for Hong Kong employees is the highest in the world, with an average of 50 hours in a week. That’s 38 percent more than the global average of 36.5 hours 

The government's recent proposal of "contracted working hours" in June stated that employers will be obliged by the government to specify working hours, rest and overtime payments in the contract for employees earning not more than HK$11,000 ($1800 AUD) a month.

But these guidelines are not legally binding, disappointing the vast majority of workers who are now calling for the government to implement standard working hours in order to protect workers' rights.

Share
5 min read
Published 3 July 2017 3:27pm
Updated 3 July 2017 5:57pm
By Katrina Yu


Share this with family and friends