Luisa Tam

My Hong Kong | US$2,500 cash handout to new parents in Hong Kong will not truly foster a baby boom – it’s like a guilty mum or dad spoiling a child

The government needs to adopt a more comprehensive approach that goes far beyond cash handouts if Hong Kong is going to reverse its plummeting birth rate

The traditional Chinese family structure serves as a good model for establishing affordable childcare options that can effectively support working parents

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The government needs to adopt a more comprehensive approach that goes far beyond the promised US$2,500 cash handout to new parents if it wants to truly foster a baby boom in Hong Kong. Photo: Shutterstock

Luisa Tam

Published: 7:45am, 4 Nov 2023

Who wouldn’t want an extra HK$20,000 (US$2,555) in their pocket? However, when it comes to a recent offer made by the Hong Kong government, there is an umbilical cord attached.

Hong Kong aims to increase the number of babies born annually over the next three years through various measures, including a one-time cash handout and expedited access to public housing for families with new children.

Announcing the move in his policy speech in October, Chief Executive John Lee Ka-chiu also emphasised the importance of providing more support to families with newborns and creating a better environment for new parents, given the city’s record-low birth rate.

The current situation is concerning; the average number of children per woman fell from 1.3 in 2017 to just 0.9 in 2022, with about 32,000 births in a year. This is not a promising scenario for a city that aims to attract individuals from overseas to settle down and build families.

There were only about 32,000 births in Hong Kong – a city of 7.5 million – in 2022. Photo: Jelly Tse

People are naturally drawn to a city that is prosperous, vibrant, happy and healthy both for residents and in terms of the environment. While economic factors are significant in determining prosperity, other indicators such as birth rates and suicide rates can help measure overall quality of life.

A high birth rate indicates a favourable environment for raising children, while a low suicide rate can be seen as a positive indicator of the population’s mental health and well-being. It suggests that the city provides accessible education, healthcare, stable employment and a safe environment – all of which are attractive factors.