Hong Kong, Facing an Exodus, Offers Money for Babies

Hong Kong's government has announced a new scheme to encourage couples to have more children in response to the city's declining birthrate. Under the proposal, which is expected to be approved by the legislature in March, couples who have a third or subsequent child will receive a monthly allowance of HKD 6,000 (USD 775) for two years. The scheme is estimated to cost the government HKD 1.1 billion (USD 141 million) over three years.

The move comes as Hong Kong faces an aging population and a shrinking workforce. The city's birthrate has fallen to a record low, with just 95,000 babies born in 2020, down from 138,000 in 2016. Some experts have warned that Hong Kong's population could start declining by 2030 if current trends continue.

Critics of the scheme argue that it does not address the root causes of Hong Kong's low birthrate, such as high housing costs and long working hours. They also point out that the allowance may not be enough to offset the high cost of living in Hong Kong, where the average monthly rent for a three-bedroom apartment is around HKD 25,000 (USD 3,250).

Others have raised concerns about the potential impact on social inequality, as wealthier couples may be more likely to take advantage of the scheme. Some have suggested that the government should instead focus on measures to make it easier for families to afford housing and childcare.

Despite these criticisms, supporters of the scheme argue that it is a necessary step to address Hong Kong's demographic challenges. They point out that other countries, such as South Korea and Taiwan, have implemented similar measures with some success. They also note that Hong Kong's birthrate is lower than that of its neighbors in Southeast Asia and that the city risks falling behind in terms of population and economic growth if it fails to address its demographic challenges.