Thoughts on Hong Kong's latest fertility boosters
Hong Kong Chief Executive John Lee gave his 2026 Policy Address today. In it he announced a number of measures to encourage Hong Kongers to have more babies. I'm very interested in these policies because Hong Kong is my adopted home and I have an infant son who we plan to raise in the Special Administrative Region and I hope that his generation has a bright future. Also, in the near term, it would be great if he has lots of other kids to play with. It's also very natural once one is a parent to become a pro-natalist.
Below are my thoughts on the eleven announced measures:
The $20,000 newborn baby bonus to be extended for three years.
It's certainly a very nice gesture. Childbirth via the public health system along with basic antenatal checks is already essentially free. This can be looked at deferring the few fees that exist in the process and offsetting the one-time costs of buying things like a bed, stroller and other baby necessities. Not sure how much it moves the needle.
The newborn baby bonus for the second or subsequent child born on the day of or after the announcement of the Chief Executive's 2026 Policy Address to increase from $20,000 to $30,000 for a period of three years.
Same as above and a nice directional signal to people that having more than one child would be great.
The relevant tax allowance for the second or subsequent child born on the day of or after the announcement of the Chief Executive's 2026 Policy Address to increase from $140,000 to $160,000.
For the second and subsequent child mentioned above, the additional tax allowance for the first two years following childbirth to increase from $140,000 to $160,000.
Everyone that makes a salary loves a good salaries tax deduction. This fertility benefit is regressive in that it will benefit families with higher salaries more than ones that have lower salaries. But that's not necessarily a bad thing because people earning higher salaries are exactly those in the best position to have more kids.
Eligible families purchasing a residential property within the period of one year preceding or two years after the birth of the child to be granted a stamp duty waiver of up to $20,000.
Stamp duty on a HK$9,000,000 flat...which doesn't get you very much these days...is HK$270,000.
The maximum mortgage loan-to-value ratio for White Form family applicants with newborns to raise to 95% starting from the next sales exercise of the Home Ownership Scheme.
These are subsidized flats sold to lower-income families. I'm not very familiar with the program and how prices are set. If they're not set by the market, then a higher loan-to-value ratio might really help a family afford a place to live. If they're set by the market, the market prices will probably just increase to wipe out any benefits.
The Hospital Authority to increase the service quotas of in-vitro fertilisation treatment in phases over the next three years, to 1 900 treatment cycles per year.
This is great. I know a few friends who had trouble conceiving and help with this would be very much appreciated. If I recall correctly, there's also an upper age limit for the prospective mother of 39 years of age. Would be nice if they consider increasing that age limit a bit since many of people who are having trouble also waited too long.
The Primary Healthcare Commission to gradually extend its free pre-pregnancy, antenatal and postnatal classes to all District Health Centres (DHCs) and DHC Expresses across the territory; and the Family Planning Association of Hong Kong to launch a publicity campaign this year to promote healthy fertility.
Great. We paid for a class at a private hospital that was very helpful for prospective parents.
Set up three more aided standalone child care centres, expecting to provide around 1 800 additional day care service places for children between birth and three years old by the end of 2030.
Regularise the School-based After School Care Service Scheme starting from the 2027/28 school year with no quota imposed.
Strengthen professional support for the After School Care Programme for Pre-primary Children and provide escort services.
For families that cannot afford domestic help, this will be very helpful!
In my view, the most important takeaway from the fertility measures announced during today's policy address is that the fertility issues facing Hong Kong are top of mind for the government. I doubt anyone thinks that these incentives by themselves will cause a baby boom.
What really needs to happen is a cultural change that (re)elevates the importance of having children. Make being a parent a high-status endeavor.