The aging population problem is becoming more grave in Hong Kong, Chief Secretary for Administration Carrie Lam warns.

There are nearly 1 million people aged 65 or above, with the population of senior citizens expected to accelerate quickly. By 2041, one person in three in Hong Kong will be over 65.

As projected by the Census and Statistics Department, the city's labor force may start to shrink as early as 2018. If the rate of participation in the labor force declines, it will affect economic growth and domestic consumption in Hong Kong.

The Steering Committee on Population Policy, which Lam chairs, will release a report by the end of October. Previous steering committees have highlighted the aging population, but there has been very little in-depth discussion.

Lam believes it necessary to foster a climate to identify the problem and then to find ways to solve it.

"The report will not include concrete solutions," she told China Daily. "The government will neither encourage people to give birth to more babies nor import foreign labor. Knowing these are controversial, we need to have some kind of fermentation or else we will be heading into troubles."

Lam reckons there are only two ways to increase the young population and dilute the aging population.

"The first is a higher birth rate and the second is an imported population," she suggested. "With the single entry permit system operating as a permanent scheme, it provides a new population of over 54,000 people (150 daily) from the mainland annually but this scheme is mainly for the purpose of family reunion."

Talent admission schemes can help to attract people to come here, but she concedes that Hong Kong is less aggressive than its neighbors such as Singapore in recruiting fresh talents.

On the subject of non-resident children (ie children born in Hong Kong but both their parents are not permanent Hong Kong residents), she notes there are few cases of mainland women giving birth in the emergency wards of local hospitals. Chief Executive Leung Chun-ying told hospitals last year, even before his inauguration, not to admit non-resident mothers-to-be effective 2013.

The 200,000 children of non-resident parents born here in previous years present a huge challenge, she acknowledged, as can be seen from the scramble for hospital beds and most recently for baby formula and kindergarten places in Hong Kong's North District.

The government finds it difficult in terms of planning for healthcare, education, welfare and housing because it is not known if these babies will leave Hong Kong or will return when they are older.

"There are always pros and cons," she commented.

"They seem to be a big liability. But from a positive view, given they were born here and have right of abode in Hong Kong, they may become new blood for our population to ease the problem of the aging population if we can help them integrate into society earlier."

(HK Edition 10/11/2013 page8)