ONE OF THE DIRTY little secrets of Hong Kong's freewheeling capitalist system is that it has spawned one of Asia's most expensive social security systems, including public housing for up to half the population - the current figure is more than 52 per cent - and support payments for the poor that began in the 1970s.
Payments are handed out under the Comprehensive Social Security Assistance (CSSA) programme and as the number of unemployed increases, so has the number of CSSA payouts, exacerbating Hong Kong's growing fiscal deficit.
Critics say it fails to target the neediest and is creating a culture of dependency that goes against the character of Hong Kong.
Those favouring CSSA argue that providing a basic social safety net is necessary, especially as the economy restructures.
Critics against are also focusing on the sharp increase in the number of people seeking CSSA assistance. In less than a decade, the number of people receiving unemployment benefits has grown from 3,280 in 1993 to 39,375 last month. The department's total claims - dominated by the elderly, who claim up to half the CSSA's budget - have tripled in the past 10 years, to 262,987 recipients.
But the most heated part of the debate involves benefits for the unemployed, and whether the programme is creating disincentives for workers to return to the job market because they get more under CSSA than some low-paid workers.