Investing in Hong Kong’s mental health makes good economic sense

Chief Executive John Lee Ka-chiu's recent policy speech unveiled a bold plan to revitalize Hong Kong's economy and bolster citizens' well-being. As we observe Mental Health Awareness Month, it is essential to consider how mental wellness can fuel the city's growth. Lee's proposal outlined 11 initiatives to improve mental health, such as expanding the Three-Tier School-based Emergency Mechanism, broadening the Healthy Mind Pilot Project to all District Health Centres, and encouraging participation in the Mental Health Workplace Charter.

While these measures are commendable, the discourse on mental health lacks a crucial perspective. Mental well-being should be considered a fundamental pillar of economic infrastructure. A prosperous economy reliant on high-value human capital, professional services, and innovation must also be equipped to manage psychological distress.

The World Health Organization estimates that depression and anxiety cost the global economy $12 billion in lost workdays and $1 trillion annually due to reduced productivity, making untreated mental health issues a significant economic challenge. In Japan, the phenomenon of "karoshi," or death from overwork, exemplifies the detrimental effects of excessive workloads and long hours on workers' physical and mental health, along with the broader organizational and social repercussions.

In Hong Kong, researchers from the University of Hong Kong have projected that depression will incur approximately HK$2.4 billion (US$305.9 million) in healthcare expenditures by 2032 if current trends persist. However, this figure only represents a fraction of the overall financial impact. Larger losses silently accumulate within workplaces through absenteeism and more significantly, presenteeism, where employees attend work while unwell, leading to diminished focus, cognitive stamina, and productivity.

A 2024 Deloitte report estimated that poor mental health among the workforce cost UK employers around £51 billion (US$67.5 billion) annually, with presenteeism contributing £23.8 billion, surpassing turnover costs of £19.5 billion and sickness absence costs of £7.3 billion. In addition, working parents' anxiety over their children's mental health concerns incurs an estimated £8 billion in annual costs.

Companies operating in high-pressure industries in Hong Kong face comparable risks. When chronic workplace stress remains unaddressed, output can decline, operational errors can escalate, and valuable employees may depart prematurely, resulting in a talent drain. Some business professionals may be apprehensive about the additional financial strain that comprehensive mental health programs could impose on employers, particularly small and medium-sized enterprises already operating with limited resources.

There may also be concerns that expanding workplace charter programs and counseling services represent unfunded overheads that inflate operating costs without a clear return on investment. Given the current economic climate, it is understandable to question the short-term justification for investing in employee wellness. However, the evidence paints a more optimistic picture.

Deloitte's cost-benefit analysis revealed that, on average, employers can achieve a £4.7 return for every £1 invested in workforce mental health and well-being, with well-rounded, proactive approaches yielding the highest returns. Local evidence from Hong Kong's digital intervention ecosystem supports this finding. A health economics evaluation conducted by the Hong Kong Jockey Club Centre for Suicide Research and Prevention on Open Up, the city's 24/7 text-based emotional support platform for young people launched in 2018, estimated that a HK$47.7 million investment generated HK$226.1 million in total social value, or a return on investment of HK$4.74 for each dollar spent.

Productivity gains resulting from reduced suicide risk accounted for 75.4% of the estimated social value. Although these estimates should be approached with caution, as they rely on modelling and proxy valuation, they nonetheless demonstrate the substantial economic potential of digital support. Early prevention and wellness promotion can yield substantial societal benefits over time.

Timely mental health intervention can serve as an economic multiplier, preserving present labor productivity and safeguarding future fiscal capacity. To convert the policy blueprint into tangible economic gains, both the government and businesses should transition from reactive crisis management to proactive institutional investment.

Policymakers should also enhance access to evidence-based early-intervention digital platforms like Open Up, integrating them into schools, tertiary institutions, and entry-level employment services to overcome barriers to access and stigma among young workers. The administration should adopt the endorsed stepped-care model, incorporating specific competency benchmarks and targeted subsidies for small firms implementing accredited workplace wellness schemes.

Lastly, corporate leaders must move beyond sporadic awareness days and gestures. Psychological safety in the workforce should be treated as a genuine board-level operational metric, with quarterly tracking of burnout risk and presenteeism alongside financial performance. By treating mental health as foundational economic capital rather than a peripheral concern, Hong Kong can foster a healthier, more productive, and sustainably competitive workforce for generations to come.