Hong Kong is aging — fast. By 2043, more than a third of its population will be over 65, swelling the ranks of the city’s silverhaired citizens to nearly 2.7 million. This demographic shift is not merely a social challenge; it is a vast economic opportunity waiting to be harnessed. The question is whether Hong Kong can move beyond piecemeal efforts and seize the moment with a coherent, ambitious strategy that benefits both the elderly and the economy.
The Hong Kong Special Administrative Region government’s recent unveiling of 30 measures under the Working Group on Promoting Silver Economy marks a notable step forward. Overseen by Deputy Chief Secretary for Administration Cheuk Wing-hing, this initiative aims to coordinate across five key areas: boosting older people’s spending; developing gerontechnology products; promoting quality assurance of products for older people; enhancing financial and security arrangements for seniors; and unleashing the productivity of older workers.
At first glance, these sound like sensible, even obvious, categories. But what makes this approach promising is the recognition that the silver economy is not just about creating products for the elderly; it is about reshaping markets, workplaces, and social attitudes to better reflect the realities of modern aging.
Hong Kong’s seniors are not the frail, passive retirees of yesteryear. Many belong to the “post-war baby boom” generation, often dubbed the “wealthiest generation” due to benefiting from decades of economic growth. They hold significant financial assets and have consumption patterns distinct from younger cohorts. In 2024 alone, spending by people older than 60 reached HK$342 billion ($43.6 billion), a figure projected to rise to nearly HK$500 billion within a decade.
Yet, despite this purchasing power, the market often overlooks their needs. Take dining, for example: Many elderly people require “soft meals” tailored to swallowing difficulties and prefer more vegetable-based options. Yet fast-food chains and tea restaurants predominantly cater to younger, working-age customers with meat-heavy menus. Similarly, retail fashion largely ignores seniors, focusing instead on trends for young and middle-aged shoppers. This disconnect illustrates a broader problem: The silver market exists, but its potential remains largely untapped because businesses have yet to adapt their products and services thoughtfully.
Beyond economics, developing the silver economy is a social imperative. It signals respect for seniors as full participants in society rather than burdens to be managed. Providing tailored services — from healthcare to leisure, from financial products to employment opportunities — enhances seniors’ quality of life and social inclusion
Consumption is only one side of the silver-economy coin. The government’s plan rightly emphasizes “unleashing silver productivity” by encouraging seniors to remain active in the workforce. The labor participation rate among Hong Kong’s older residents has increased from 6.5 percent in 2011 to 13.6 percent in 2024, reflecting better health and longer life expectancy. Flexible, part-time, or gig-style employment opportunities can accommodate seniors’ preferences and capabilities, allowing them to contribute meaningfully while maintaining autonomy.
Financial security is another critical pillar. Hong Kong lacks a universal retirement protection system, leaving many low-income elderly dependent on government support. Meanwhile, middle-class retirees often seek ways to maintain a dignified lifestyle post-retirement. The government’s measures include developing cross-border annuity products, promoting reverse mortgages, and enhancing financial literacy and fraud prevention among seniors. These initiatives aim to empower seniors to better manage their wealth and sustain consumption, thereby fueling the silver economy.
Historically, Hong Kong’s efforts to promote the silver economy have been fragmented and sporadic, with different departments working in silos and limited strategic cohesion. The current working group’s cross-bureau coordination and comprehensive framework represent a welcome shift toward a more integrated approach.
However, critics argue that many of the measures are repackaged versions of existing policies rather than bold new initiatives. The “soft meal” campaigns, elderly discounts during shopping festivals, and promotion of “silver quality” labels are helpful but largely symbolic — akin to lighting fireworks rather than building infrastructure. To truly unlock the silver economy’s potential, Hong Kong must invest more heavily in innovation, particularly in gerontechnology, and create an ecosystem that encourages businesses to develop senior-friendly products and services at scale.
Hong Kong can draw lessons from aging societies like Japan, where the silver economy has become a major economic driver. Japan’s “silver currency” initiatives, combining policy reforms, digital currencies, and public-private partnerships, have successfully mobilized seniors as active consumers and contributors to the economy. Moreover, Japan’s emphasis on “age-friendly” workplaces and lifelong learning has helped older workers remain engaged and productive.
Similarly, Singapore’s approach integrates healthcare, technology, and employment policies to support an active aging population. Hong Kong’s policymakers would do well to study these models and adapt best practices to local conditions, especially given the city’s unique demographic and economic profile.
Beyond economics, developing the silver economy is a social imperative. It signals respect for seniors as full participants in society rather than burdens to be managed. Providing tailored services — from healthcare to leisure, from financial products to employment opportunities — enhances seniors’ quality of life and social inclusion.
This requires a mindset shift among businesses and policymakers alike. The silver economy is not a niche market; it is a mainstream market that will dominate Hong Kong’s future. Ignoring it risks economic stagnation and social discontent, while embracing it promises innovation, growth, and a more inclusive society.
The author is chairman of the Asia MarTech Society and sits on the advisory boards of several professional organizations, including two universities.
The views do not necessarily reflect those of China Daily.
