Policy Address

270. The number of newborn babies has decreased for six consecutive years since 2017, but there was an upward trend in 2023 and 2024. In 2024, there was a significant increase in the number of newborns, a year-on-year increase of about 3 500 babies, or about 11%, adding up to 36 700 babies born in total.

271. We will implement further measures under the multi-pronged policy approach to promote fertility. They include:

  1. Extend the claim period of additional child allowance for newborns from one year to two years. Starting from the year of assessment 2026/27, a taxpayer may claim twice the allowance (i.e. $260,000) for each child in the first two years following childbirth. This measure is applicable to all children under the age of two by the end of the year of assessment.

  2. Further enhance infant and child day care service. Fifteen new aided child care centres (CCCs) will be set up over the next three years to provide about 1 500 day care service places for children between birth and three years old, almost doubling the existing supply. The SWD will also allocate more care-service places for infants and toddlers from birth to two years, as appropriate.

  3. Enhance the School-based After School Care Service Scheme within this school year by removing the cap on the number of places to make it easier for parents to take up jobs.