In a bid to address the significant decline in Hong Kong’s birth rate, Chief Executive John Lee has unveiled a groundbreaking policy during his second Policy Address. Hong Kong is set to provide a one-time HK$20,000 cash bonus to parents as an incentive to expand their families, which is expected to counter the city’s dwindling birth rates.
Chief Executive John Lee addressed lawmakers on Wednesday, stating, “We will provide a one-time cash bonus of HK$20,000 for each baby born today or after in Hong Kong to a parent who is a Hong Kong permanent resident.” This measure will remain in place for at least three years before undergoing a comprehensive review.
The announcement comes in response to mounting concerns and calls from pro-establishment lawmakers who have been advocating for policies aimed at promoting childbirth. The Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) previously urged the government to provide a HK$10,000 subsidy to families to encourage them to have more children. Additionally, they called for parents to receive tax breaks when hiring domestic workers and greater support for egg freezing and in vitro fertilization.
Last year, the pro-establishment New People’s Party suggested offering a HK$20,000 bonus to new parents as a means to bolster birth rates. In February, the party’s chairperson, Regina Ip, expressed support for attracting professionals to Hong Kong through the Top Talent Pass Scheme, encouraging them to give birth in the city.
Hong Kong’s fertility rate has plummeted to a record low in recent years, with the 2021 fertility rate standing at 0.77, down from 1.29 in 2012, according to official figures. Moreover, the population has been marrying at later stages of life, contributing to the decline. In a survey conducted in August, it was revealed that the number of childless couples had surpassed one-child families in Hong Kong.
In a separate move, the Housing Authority of the city will prioritize families with children to assist them in purchasing subsidized flats under home ownership schemes. Presently, about 10 percent of applicants are families with children.
Additionally, families with newborns who are in the public housing queue will have their wait times reduced by one year, effective from April next year. Out of the 133,000 public rental housing applications in the previous year, approximately 4 percent were from families with children aged under one.
Lee also announced tax breaks for new parents, stating, “We will raise the deduction ceiling for home loan interests or domestic rents from the current $100,000 to $120,000… for taxpayers who live with their first child born today or after until the child reaches the age of 18.”
Furthermore, the Hospital Authority (HA) is set to increase the quota for IVF treatment from 1,100 treatment cycles per year to 1,800 cycles. This expansion will be accompanied by enhanced training for related personnel.
To support working families, the government will increase the Working Family Allowance, a subsidy scheme for low-income families, by 15 percent. The city is also planning to establish more subsidized childcare centers, with around 900 additional childcare service places expected by 2027.
Additionally, the Social Welfare Department’s After-School Care Programme for Pre-primary Children will be expanded to double the number of service places, reaching nearly 1,200, as revealed by Chief Executive John Lee.
Hong Kong has witnessed a substantial population decline in recent years, experiencing its most significant mid-year population decrease in 2022, according to official statistics. This population exodus has impacted various sectors, from banking to education, prompting Lee’s administration to announce a series of measures in last year’s Policy Address aimed at attracting professionals back to the city.
However, some young women in Hong Kong have expressed concerns about raising children in the city due to recent changes in the education system, and they are considering relocating their families overseas.
In a surprising turn of events, local media reported a “baby boom” among Hong Kong couples who had emigrated to the UK under a citizenship route launched in response to Beijing’s implementation of a national security law.
The Education Bureau emphasized the declining school-age population in a document submitted to the Legislative Council in March. Internationally, financial incentives have had limited success in reversing declining birth rates without the presence of generous parental leave and childcare policies. In the case of Hong Kong, critics argue that prospective parents require more comprehensive fertility support. The city’s falling fertility rate could exert undue pressure on the public healthcare system, given an aging population, and may potentially result
