Seniors' boost: Chief Executive Donald Tsang says the Government plans to raise the Old Age Allowance to $1,000 a month.

The proposal of introducing a means test mechanism to the Old Age Allowance Scheme will be shelved for now, Chief Executive Donald Tsang says, adding he plans to raise the allowance to $1,000 a month.

Speaking to reporters this afternoon, Mr Tsang said although he remains convinced the means test proposal does not necessarily go against the principle of respecting elderly, he decided to shelve the idea after assessing the latest situation.

"The reason why I believe we should shelve the proposal for the time being is the overwhelming negative comments on the proposal from the elderly and from people at large.

"This is to show the Government's respect for public opinion. If we continue this debate, the community will become even more divisive and we will not be able to focus all our energy and attention to solve a more important problem at hand, which is the financial tsunami that is affecting us.

Serious review needed

"The challenges ahead of us are daunting. Unity of purpose is what we need to weather this storm. In the interest of the community, I believe, it is only right to defer the debate on the Old Age Allowance policy," Mr Tsang said.

He hoped in time the community would embark on a serious review of the sustainability of the Old Age Allowance policy in the context of our aging population.

The Government also plans to raise the Old Age Allowance to $1,000 a month for those between the age of 65 and 69 years who have gone through means testing under the existing system, as well as people aged above 70.

Mr Tsang said the Government will also review whether the permissible limit on absence from Hong Kong under the Old Age Allowance Scheme can be relaxed.

Secretary for Labour & Welfare Matthew Cheung said the proposal to raise the Old Age Allowance will be put to the Legislative Council's Welfare Services Panel at its meeting on November 10, and to the Finance Committee afterwards for approval.

"We aim to issue the increased allowance of $1,000 early next year," Mr Cheung said.

"The existing criteria for admission to the scheme, including the means-testing requirement for applicants aged between 65 and 69, will remain unchanged," he said.