Face Off: Will the HK$20,000 cash handout be enough to boost Hong Kong’s birth rate?
- Each week, two readers debate a hot topic in a showdown that does not necessarily reflect their personal viewpoints
- This week, they discuss whether the government’s cash handout for newborn babies will encourage people to have children or expand their families
Last month, Chief Executive John Lee Ka-chiu pledged in his policy speech to foster a better environment for new parents. Photo: Jelly TseIf you are interested in joining future Face Off debates, fill out this form to submit your application.
For: Financial support is crucial for families
Sophia Ling, 11, German Swiss International School
Hong Kong is suffering from a persistently low birth rate, which has plunged to a record low of 0.8 births per woman. This is far below the 2.1 that is required to ensure a stable population.
To address Hong Kong’s low birth rate, the government announced that they would hand out HK$20,000 for every newborn child. By providing financial incentives, the economic burden associated with starting or expanding a family can be alleviated, ultimately encouraging couples to have more children.
Economics plays a crucial role in family planning decisions as having a child is a significant responsibility that requires financial resources for childcare, education and healthcare, and this handout reduces the financial stress on couples. Hong Kong parents agree, and several young couples have told various news outlets that they are now contemplating a second child.
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Although the HK$20,000 cash handout only provides short-term financial stability, this fund can act as a catalyst for long-term positive changes. By alleviating the immediate financial burdens associated with childbirth, couples are more likely to feel empowered and confident in their ability to provide for their children’s future.
By providing financial support, the government has demonstrated its commitment to nurturing and supporting the next generation.
This shift in societal values can have a profound impact on individuals’ attitudes toward having children, creating a more positive and supportive environment for families and promoting stronger family bonds, intergenerational relationships and overall social cohesion.
Some argue that cash handouts may create a temporary spike in birth rates that eventually regresses to previous levels.
While this may be true, it is essential to recognise that the goal is not to maintain an artificially inflated birth rate indefinitely. The goal is to provide families with the necessary support during the critical period when they are contemplating having children or expanding their family.
By removing financial barriers, we empower individuals to make informed decisions based on their desires and circumstances.
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Against: Generous but ineffective in the long run
Heer Donda, 14, King George V School
In February this year, the Hong Kong government released a report that said the birth rate significantly fell between 2016 and 2021. Bringing the birth rate back to normal is crucial for the future of our city and a HK$20,000 subsidy may be one of the options, but it is not the most effective one.
With the kind of inflation that Hong Kong has experienced, a HK$20,000 handout would be used up quickly and account for only a small percentage of all the necessary expenses for a child.
In an interview with RTHK, one Hong Kong woman who already has a one-year-old shared that “even a baby bed or carriage is already over HK$3,000, so HK$20,000 will not help too much”.
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The implementation of this new policy is a good start, but Paul Yip, a scholar from the University of Hong Kong told RTHK that it would only slow the decreasing birth rate instead of boosting it. Instead, he suggested allowing new parents more flexible and interchangeable leave, which is a big factor young couples take into consideration before having children. Hong Kong’s maternity policy gives women a 14-week paid leave, and paternity leave is five days, while several countries around the world are more generous in their schemes.
It is also important to note that money is not the only factor that affects the birth rate of a place. There are a range of personal, cultural and social ideas which impact the decision to have children.
Couples are likely to consider the state of their health, and whether they will be able to provide their child with substantial care. Cultural factors also materially shape the decisions of individuals. In some cultures, having a child and continuing the family line may be of precious value while some cultures may hold more value for self-fulfilment and free-living.
While HK$20,000 per birth is a generous offer from the government, various factors indicate that it may not be successful as a stand-alone policy. We should begin to understand other factors that determine whether young couples have a family to pave the way for a brighter future.