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Hong Kong authorities plan to enhance incentives for consolidating struggling public schools, while addressing the city's declining birth rate in an upcoming policy address. The government is expected to provide additional support for public schools merging to ensure student enrollment survival amidst the shrinking student population.

Currently, schools can receive a one-off allowance of HK$1 million (US$127,500) to cover extra costs when merging with another institution. In March, the Education Bureau announced that 15 primary schools would not be allowed to operate subsidised Primary One classes for the upcoming academic year due to a lack of pupils, with eight opting to merge, four closing after three years, and two transitioning to private classes.

The source predicted the issue of under-enrolled schools would worsen due to the record low number of babies born between 2021 and 2025, leading to a projected 16% decrease in six-year-olds in 2029. The Education Bureau anticipates only 31,500 six-year-olds in 2029, a decline from 37,600 Primary One pupils last school year. In addition to school mergers, the policy address is anticipated to include housing measures and tax reductions to stimulate the birth rate.

Hong Kong recorded 29,700 births between mid-2025 and mid-2026, a 15.6% drop compared to the same period a year prior, marking a new record low. Despite the government's "baby bonus" scheme offering a one-off HK$20,000 cash incentive to new parents in 2023, birth rates remain persistently low. City leader Lee acknowledged that factors like delayed marriage, driven by career aspirations and higher education, and changing cultural values are contributing to the decline in birth rates.