Chief Executive John Lee on Wednesday said the government is giving parents of newborn babies a HK$20,000 handout to encourage childbirth.

Lee said the one-off bonus, which is among a raft of Policy Address proposals to boost fertility in the city, will apply to all babies born from Wednesday as long as one of their parents is a permanent Hong Kong resident.

The measure will last for three years and the administration will review the policy then.

Lee's announcement came after the SAR's birth rate dropped to a record low of 0.9 in 2022.

"As experience and research worldwide make clear, government policies alone cannot boost fertility substantially. Nevertheless, it is imperative that the government set a firm policy direction to encourage childbearing amid our persistently low birth rate," he said.

Lee also announced that from 2024, parents will enjoy a maximum of HK$20,000 extra housing tax deduction every year until their first child reaches 18 under the scheme, with a cap of 15 years.

And authorities will reserve 10 percent of the subsidised flats for families with newborns. Those families who have applied for public housing will also see their waiting time shortened by a year.

The CE said they are also setting up 10 more child care centres from next year, providing about 900 additional places for daycare services. Parents will be able to apply for a HK$1,000 monthly subsidy.

To better support couples who use assisted reproductive services, Lee said the Hospital Authority will increase the quota for in-vitro fertilisation (IVF) treatment, adding that the couples will get a maximum of HK$100,000 tax deduction per year.