Hong Kong’s Talent Scheme: Early Success, but Sustainability Concerns Remain

Hong Kong’s “Top Talent Pass Scheme” is attracting high-skilled professionals with lucrative salaries, but questions linger about its long-term sustainability. Launched in December 2022 to counter emigration and bolster growth, the scheme boasts impressive initial results.

The program has attracted over 70,000 applications, with nearly 79% approved and 73% already arriving in the city. These newcomers are primarily filling high-skilled service and management roles, contributing significantly to the local economy. The median monthly income for scheme participants stands at HK$50,000, double the local median, with a quarter earning over HK$100,000. This translates to an estimated 1.2% contribution to Hong Kong’s GDP, amounting to HK$34 billion in its first year.

While these numbers are encouraging, concerns about sustainability remain. Lawmaker Shang Hailong, chairman of the Hong Kong Top Talent Services Association, expresses cautious optimism, questioning whether the high salary figures can be maintained without sustained economic growth. He suggests encouraging participants to establish businesses in Hong Kong, potentially creating more jobs and sustaining salary levels.

The Hong Kong government is actively addressing these concerns. They offer “one-stop support” for newcomers, including assistance with housing, education, entrepreneurship, and Cantonese language learning. Additionally, they’ve bolstered existing talent schemes, attracting over 240,000 applications and 140,000 approvals since 2022. With roughly 90,000 professionals arriving in 2023, exceeding annual targets, the scheme appears to be achieving its initial goals.

Looking ahead, Hong Kong’s economic growth forecast of 3.2% in 2024 and 3% in 2023, fueled by tourism resumption, provides a positive outlook. Furthermore, Fitch Ratings reaffirmed Hong Kong’s credit rating with a stable outlook. While the scheme has shown early success, addressing concerns about sustainability and competitiveness will be crucial for its long-term impact.