Encouraging a Talent-Based Bonus in Hong Kong's Baby Incentive Program to Enhance Birth Rate?
In an effort to combat the declining birth rate, the Hong Kong government has introduced several financial incentives for new families, with the Newborn Baby Bonus Scheme being one of the key initiatives. Launched in 2023, this scheme offers a one-off cash allowance of HK$20,000 for children born in Hong Kong, with at least one parent being a permanent resident.
As of the end of June 2023, the scheme has distributed the allowance to 48,984 applicants, totalling HK$979 million. Beyond the baby bonus scheme, Hong Kong has also proposed and implemented measures such as the Working Family Allowance (WFA) Scheme, which provides additional financial support for childbearing families.
However, some professionals have expressed concerns about being left out of the potential extension of the baby bonus scheme. The scheme is currently under review, and authorities are considering extending it to families admitted to Hong Kong under various talent programs. No decision has been made regarding this extension, but it is being debated as a means to boost the birth rate.
The Secretary for Labour and Welfare, Chris Sun Yuk-han, has stated that suggestions, including extending the baby bonus scheme, are being carefully considered. Experts and lawmakers also emphasize the need for a broader set of incentives, including better childcare support, housing assistance, and employment policies, to meaningfully raise the birth rate beyond what the baby bonus alone can achieve.
To qualify for the Newborn Baby Bonus Scheme, the child must be born in Hong Kong between October 25, 2023, and October 24, 2026. The number of births in Hong Kong declined from 37,000 in 2021 to 32,500 in 2022, but then slightly rebounded to 33,200 in 2023 and 36,700 in 2024. This decline in birth rate is a concern, leading to discussions about measures to encourage childbearing.
Looking to nearby regions like Mainland China, the government is reviewing the scheme and considering broader measures, such as expanding eligibility and possibly enhancing child-rearing support. In Mainland China, national-level childcare subsidies, annual cash payments for young children, free preschool education rollout, and local subsidies including housing and job training have been introduced to tackle similar demographic challenges. These models might influence Hong Kong's future policy directions for a more comprehensive approach.
In conclusion, while Hong Kong currently relies primarily on the cash baby bonus and the WFA allowances, the government is actively reviewing and considering ways to expand and enhance these incentives to better support families and encourage childbearing. The extension of the baby bonus scheme to families admitted under talent programs is one of the suggestions being considered to boost the birth rate in Hong Kong.
- The Hong Kong government is evaluating the possibility of extending the Newborn Baby Bonus Scheme to families admitted under various talent programs, with this finance-related initiative being part of broader business discussions about combating the declining birth rate.
- To boost the birth rate in Hong Kong, experts and lawmakers advocate for a comprehensive approach that includes extending the Newborn Baby Bonus Scheme, along with better childcare support, housing assistance, and employment policies, which are integral aspects of the general-news discourse about family and population growth.
