Deep Dive: How is Hong Kong trying to boost its birth rate? HK$20,000 cash handouts, faster access to housing and more

Hong Kong will introduce new measures to increase the city’s fertility rate by a fifth on average over the next three years. These measures include a HK$20,000 cash handout for each new child born in Hong Kong to a parent who is a permanent resident.

In his policy speech on October 25, Chief Executive John Lee Ka-chiu promised to help families with newborns and create a better environment for new parents. This is because the city is facing a record-low birth rate, as not enough children are being born.

“It is imperative that the government set a firm policy direction to encourage childbearing amid our persistently low birth rate,” Lee said.

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A source said the administration planned to get legislative approval for HK$800 million every year for this scheme. The amount would support as many as 40,000 newborns each year, according to SCMP’s calculation.

Families with babies born from October 25 will enjoy a better chance to purchase subsidised flats. Ten per cent of flats for balloting will be reserved for them. They can also join the normal balloting with other applicants to purchase a flat. They will also be given priority to select homes. Eligible families can enjoy the benefits until their children reach the age of three.

Starting from next April, another new scheme will cut the waiting time for public housing flats by one year for applicants with babies born from October 25.

For couples having difficulties getting pregnant, the government will increase the assisted reproductive service quota for in vitro fertilisation treatment provided by the Hospital Authority. They will gradually raise this quota from 1,100 treatment cycles per year to 1,800 over the next five years. Couples can deduct these costs from their salary for tax assessment.

Other support measures include raising the working family allowance by 15 per cent, adding 900 places at daytime childcare services, and extending an after-school care programme for pre-primary pupils.

Starting from next April, payment for home-based child carers under a neighbourhood support project will also be increased from HK$25 per hour to between HK$40 and HK$60. The number of service places in the project will double to about 2,000; this will benefit 20,000 people, twice as many as before.
Staff writer

Question prompts

1. According to News, which of the following statements are true about the government’s latest measures?
(1) HK$20,000 will be given to parents for each newborn baby.
(2) Families with babies can have a better chance of purchasing subsidised flats.
(3) The working family allowance will be increased.
(4) The birth rate is expected to rise by 50 per cent.

A. (1), (2) and (3) only
B. (1), (2) and (4) only
C. (1), (3) and (4) only
D. (2), (3) and (4) only

2. Why is the government introducing the measures mentioned in News?

3. To what extent do you agree that the government should give parents a cash handout? Use News and your own knowledge to answer.

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Question prompts

1. Which country or city in the chart has the highest fertility rate?

2. Based on your own knowledge and News, which place on this list offers the best incentives for giving birth in Asia? Explain your answer.

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• An expert says these measures reflects the government’s wish to see quick results, but it lacks long-term vision

• Newlyweds say “a comprehensive policy package” is needed to address different issues leading to low fertility rate

Experts, advocacy groups and lawmakers have welcomed the government’s fresh efforts to boost the city’s birth rate but called for more to be done.

Lawmaker Frankie Ngan Man-yu said cash alone was not enough to address this issue.

“Many reasons factor into the decision of Hongkongers not wanting children,” he said. “It’s not only because of the economic pressure but also the responsibility of raising a child, the desire to enjoy life, education stress, housing problems and health issues.”

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Au Yeung Tat-chor is an assistant professor at the department of sociology and social policy at Lingnan University. He said the measure reflected the government’s wish to see quick results, but it lacked long-term vision.

Au Yeung said the cash handout would be helpful to expecting parents, but long-term moves – including family-friendly policies at workplaces, more parental leave, and comprehensive public childcare services – were important for promoting childbirth.

“Putting forward family-friendly policies can mean changing statutory leave, and that will generate more costs for corporates, which is way more complicated for the government,” he said.

Wing Tang Wing-yi, 28, is a charity officer expecting her second child. She said the HK$20,000 handout was small, given the “substantial” child-raising expenses.

“The one-off cash subsidy is a bonus. But whether couples decide to have children has nothing to do with government subsidies,” she said. Since Tang did not secure a place at a childcare centre due to the limited quota, Tang had to opt for private pre-nursery for her one-year-old son.

Insurance agent Marco Tse Wah-ho and primary teacher Michelle Lee Oi-yee, who married in July, were not impressed by the measures and still preferred to wait a few years before having a child.

“They are only sweeteners that will last for a short time ... They will not help me with a responsibility I will have for the rest of my life,” Lee said. The couple said they needed a comprehensive policy package that addressed issues such as unaffordable housing, a stressful education environment and a demanding work culture.
Staff writers

Question prompts

1. According to the experts, advocacy groups, and lawmakers in Issue, what are their views on the government’s measures to boost the birth rate?
(1) The cash handout would not be helpful to expecting parents.
(2) These measures may only have a limited effect on boosting the birth rate.
(3) The cash handout alone is insufficient to address the issue.
(4) These measures could ease the financial stress of those who want to have children.

A. (1), (2) and (3) only
B. (1), (2) and (4) only
C. (1), (3) and (4) only
D. (2), (3) and (4) only

2. Other than cash handouts, name TWO factors that influence Hong Kong’s fertility rates. Explain using Issue and your own knowledge.

3. “The measure reflected the government’s wish to see quick results, but it lacked long-term vision.” How far do you agree with Au Yeung Tat-chor’s comment? Explain based on News, Issue and your own knowledge.

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Question prompts

1. What does the question from the person on the left imply about Hong Kong’s incentives to boost the birth rate?

2. What is another “real incentive to boost the birth rate” that Hong Kong should consider? Support your answer using News, Issue, and your own knowledge.

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• fertility rate: also known as birth rate. This refers to the number of children a woman is expected to have over her lifetime. Hong Kong’s total fertility rate has plunged to 0.8, which is the lowest in the world. The city has seen a 40 per cent decline over four years, with the number of babies dropping to 32,500 in 2022 from 52,900 in 2019.

• HK$20,000 cash handout: will be disbursed in the first quarter of 2024 for each new child born in Hong Kong on October 25 or after to a parent who is a permanent resident. The policy will remain in place for three years, after which it will be reviewed. Parents, including mainland Chinese one-way permit holders, can register for the baby bonus when applying for birth certificates for their children at the Immigration Department. The deadline is six months after the child is born.

• in vitro fertilisation treatment: also known as IVF. This refers to a series of medical procedures to retrieve an egg from a woman’s ovaries, fertilise it with sperm in a laboratory and transfer the embryo back to the woman’s uterus. Only three public hospitals in the city offer subsidised IVF services to married women under 40 who have to be referred, but only three cycles of ovarian stimulation are subsidised, costing about HK$10,000 each. Patients have to wait up to 12 months for subfertility assessments after referral, and another four to seven months to start their treatment. Those who prefer not to wait, or are not eligible for public IVF services, may turn to the private sector and pay at least HK$80,000 for each treatment.

• parental leave: also called maternity leave for new mothers and paternity leave for new fathers. This is the paid time off work that new parents can take to care for their newborn children. In Hong Kong, maternity leave is 14 weeks, and paternity leave is five days.

• working family allowance: is given to applicants on a household basis. A household meeting the working hour requirements, income and asset limits may apply for an allowance. Each eligible child may also receive a child allowance under this scheme.

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News
1. A
2. One reason for the government to introduce the measures is to address Hong Kong’s record-low or declining birth rate (and to encourage childbearing).
3. I disagree with the government’s decision to give parents HK$20,000 as it may be too expensive for the government, and it might cause people to have babies just to get money. (accept all reasonable answers)

Chart
1. Japan
2. Japan seems to offer the best incentives because the payouts continue even as the child gets older. This also seems to be paying off as Japan’s fertility rate is higher than the other places on this list. (accept other reasonable answers)

Issue
1. D
2. High housing costs and property prices can create a financial burden on couples and make it more difficult for them to afford the expenses associated with raising a child. Limited availability of affordable housing options can also discourage couples from expanding or even starting their families. Another factor is the stressful education environment in Hong Kong. With a highly competitive education system, there may be increased pressure on parents to provide their children with the best educational opportunities, which may influence their decision to have children. (accept all reasonable answers)
3. I fully agree with his comment as short-term measures like a childbearing subsidy or cash handout may provide immediate benefits to expecting parents, but they might not address the underlying factors that contribute to the declining birth rate in the city in the long run. Focusing only on immediate incentives, the government may not be able to see a bigger picture or consider broader societal aspects to create an environment conducive to raising children. (accept all reasonable answers)

Cartoon
1. The lady’s question implies that the existing incentives to boost the birth rate are insufficient or ineffective. It also implies that there is a need for more impactful measures that can truly motivate individuals or couples to have children. (accept all reasonable answers)
2. The government should consider imposing rules around the demanding work culture that Lee mentioned in Issue. It should be stricter about overtime hours, raising the minimum wage and creating other programmes to incentivise companies to provide more work-life balance. This way, people will have the time and energy to raise children. (accept other reasonable answers)