Anisha Bhaduri says initiatives with the potential to put a smile on people’s faces are the ones that matter the most

Hong Kong’s two demographic challenges — a rapidly aging population and a steadily declining birth rate — found structural acknowledgment in the special administrative region’s first five-year plan, unveiled by Chief Executive John Lee Ka-chiu on Wednesday, with the problems mentioned in the opening paragraph of Part 5 of the plan, titled, Enhance Social Well-being and Refine the Social Protection Framework.

The administration’s decision to open Part 5 with a pledge to enhance both livelihood opportunities and population strategies, and then following up with announcement of alleviatory measures in the Policy Address delivered right after the five-year plan was tabled, indicates transition to a much-needed cohesive approach to population welfare. With the challenges formally recognized in the city’s first five-year plan, demographic issues not only gain the gravitas they are entitled to but also become largely insulated from the often short-term fixes deployed — a piecemeal approach without accepting first that a comprehensive plan must take into consideration not only all sections of society but also the unique, dominant challenges faced by each, however disparate.

The formal inclusion in the plan practically seals in a long-term alleviatory strategy for demographic challenges that does not view economic advancement in isolation from societal well-being. As Lee pointed out in an opinion piece published in the South China Morning Post published ahead of the plan’s release, “The plan’s proposals ... focus on the economy, but their ultimate goal is to enable Hong Kong people to flourish.”  

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It was widely speculated that there will be measures to boost birth rate in a city that recorded just 29,700 births between mid-2025 and mid-2026 — registering not only a 15.6 percent year-on-year decline but also dropping below 30,000 for the first time since 1962.

In keeping with the proclaimed complementarity of the five-year plan which offers a long-term blueprint and the implementation remit of the Policy Address, Lee said the one-time newborn baby bonus of HK$20,000 ($2,550) — announced in 2023 and set to expire — will be extended for three years through October, 2029. Additionally, the disbursal for second and subsequent children will be raised to HK$30,000. Tax deductions for the second and subsequent children have been raised to HK$160,000 from HK$140,000, while the additional allowance for the first two years after a child is born will also go up to HK$160,000. Apart from this, eligible families purchasing a home within the first two years after childbirth will be entitled to HK$20,000 in stamp duty relief. Priority allocation of subsidized housing and mortgage concessions can be enjoyed by families with newborns, with the maximum loan-to-value ratio for White Form applicants raised to 95 percent. Lee also pledged to increase in-vitro fertilization quotas to 1,900 per year over the next three years.

But what will likely bring smiles to the faces of most working parents of young children who cannot afford a carer, especially working mothers and mothers who had to give up their jobs to care for young children, is a major change regarding afterschool care. Lee pledged to regularize the School-based After School Care Service Scheme from the 2027-28 school year, abolishing quota limits for families of primary school students with caretaking needs.

Why is this example important? Because parts make up the whole.

Let us take a close look at the government data. Statistics tell us single mothers in Hong Kong far outnumber single fathers. In 2021, the number of single mothers was 56,249 — about 3.5 times of the number of single fathers. As per data released in August, the overall labor participation rate for women was 52.7 percent and 62.3 percent for men in 2025. Analyzed by age group, the labor force participation rate was lower for females than for males in each age group in 2025, except for those aged 20 to 24.

Retirement or old age was the most common reason cited for being economically inactive persons — 51.8 percent for all economically inactive females and 66.1 percent for their male counterparts. Interestingly, the second most common reason for females was the engagement in household duties — 29.5 percent.

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In a city where a high age dependency ratio entails a small number of working-age people supporting a much bigger population of elderly or the very young, it is essential that the labor force participation rate goes up, especially for Hong Kong women — which has been historically low.  

By setting the agenda for a unified policy approach in a modern city with a dwindling birth rate and a high age dependency ratio, where child care and higher productivity driving economic growth may seem unrelated policy objectives at a glance, it is carefully threading the needle of labor needs, labor rights, child rights, women’s emancipation (from household duties), among other factors, that may eventually move the needle for young people’s reproductive choices if done with sensitivity and gracious intent.  

Policy initiatives are certainly about deliverables. But policy initiatives with the potential to put a smile on the faces of people are the ones that matter the most.

The author is an award-winning English-language fiction writer and current affairs commentator.

The views do not necessarily reflect those of China Daily.