Surviving the aftermaths of the Asian Financial Crisis and SARS in 2003, Hong Kong's economy has re-gained its momentum and its economic growth has been quite remarkable too in recent few years. Nevertheless, as reflected by the Social Development Index (SDI), economic growth in Hong Kong does not seem to have benefited the people of the city at large as we see social qualities such as cohesion, security, equity, and empowerment are gradually eroded. This paper aims to summarize the current state of social development in Hong Kong based on the SDI-2008 and identify the major social, political and economic challenges that are confronted by Hong Kong. Based on the findings, a range of policy options proposed for promoting a more balanced approach to social and economic development are discussed. The article illustrates the utility of social indicators research such as the SDI in assessing quality of life and assisting related social planning initiatives in Asian communities such as Hong Kong.