What to expect from 2026 Policy Address, from Northern Metropolis to new baby bonuses

Hong Kong can expect leader John Lee to announce policies ranging from childbirth incentives to the Northern Metropolis development in his administration’s final Policy Address and the city’s first Five-Year Plan, reports have indicated.

At a Tuesday press conference ahead of a meeting with his Executive Council, chief executive Lee said that people could expect “binding and anticipatory” indicators from the Five-Year Plan, as well as policies to implement the blueprint.

Wednesday’s speech, including both the Five-Year Plan and the Policy Address, contains more than 100,000 words and is expected to last two to three hours, Lee said.

Lee also emphasised that the half-decade policy blueprint does not seek to shift the city towards a “planned economy.”

“The Five-Year Plan is not a planned economy. It is a plan which tell us where the strategic directions are, where we are heading, and which are the priority areas. And then it is a blueprint for us to implement in five years’ time,” he said.

“The government will lead and […] coordinate resources and make the right policies, and everybody has to play their part,” said Lee, who had earlier maintained that the policy guide will adhere to the city’s “capitalist system.”

Lee is expected to deliver new policies for the development of the Northern Metropolis, a sprawling infrastructure project set to transform 30,000 hectares of land in rural Hong Kong near the border with mainland China into a tech hub, providing more homes and deepening the city’s integration with neighbouring Shenzhen.

The metropolis has been touted as a core facet of the city’s first Five-Year Plan, which Lee has described as a strategic blueprint functioning alongside the chief executive’s annual Policy Address.

In a Tuesday report, Sing Tao suggested that the government plans to massively increase the scale of a planned university town spanning three separate areas in the city’s north.

The report cited sources saying that the 52-hectare plot in Ngau Tam Mei and the 40 hectares in the New Territories North New Town earmarked for the development will have their combined areas doubled compared to initial plans.

The third area for the university town is located in the Hung Shui Kiu/Ha Tsuen New Development Area, set to be the first major land parcel to be developed under the Northern Metropolis project.

In tandem with the expansion, the loan quota of HK$10 billion the government had earlier set aside as seed capital to support university campus developments is also expected to be increased, according to Sing Tao.

Tim Cheng, vice-president for research and revelopment at the Hong Kong University of Science and Technology, told the newspaper that universities face financial constraints and urged the government to lead and allocate more early-stage resources to kickstart development.

Baby bonus

Reports on Monday suggested that Lee will be renewing a baby bonus scheme intended to boost the city’s fertility rate amid an ageing population.

Under the scheme announced at the 2023 Policy Address, families are eligible for a HK$20,000 payout for every newborn. Tax incentives and priority in the public rental housing queue are also part of the bonus.

The three-year programme is due to run out next month.

HK01 and Sing Tao reports cited sources saying that Lee will introduce a comprehensive set of measures to encourage childbirth but will not compete with Singapore’s cash handout approach. Larger tax breaks and housing measures may be on the table instead, making for a more “targeted and sustainable” approach.

A survey by the Hong Kong Public Opinion Research Institute (PORI) in October 2024 found that those who did not want children cited the city’s education system, political environment, and living space as among their reasons.

The number of births increased after the baby bonus was implemented, but has since fallen again.

Lawmaker Nixie Lam, who has pushed for the government to promote fertility, had earlier suggested the government look into the pressures faced by women aged between 25 and 45, and their considerations when thinking about whether to have a child, to formulate more targeted policies.

Oversight for renovation works

A HK$330 million renovation project was in progress at Wang Fuk Court when a fire broke out at the estate in November last year, killing 168 people and displacing thousands of residents.

The police, antigraft watchdog, and the Buildings Department have laid a slew of charges, including manslaughter, on the two firms that oversaw the works and the individuals who led those companies.

Almost nine months after the fire, the city will be watching to see whether Lee announces policies to prevent another tragedy.

According to an independent committee’s probe into the fire, substandard materials such as non-flame-retardant scaffolding nets were approved for use in the project and ultimately contributed to the rapid spread of the blaze.

In March, the committee heard that the disaster revealed “widespread systemic issues” ranging from potential collusive tendering to rubber-stamp inspections and unauthorised proxy votes.

At a consultation session for his Policy Address, Lee heard suggestions to set up a dedicated body overseeing large-scale renovation works for aging buildings.

It was “worth considering” having a professional body to handle procedures for arranging renovations, so residents who don’t have the relevant industry knowledge only have to consider the price tag, he said, according to another Sing Tao report.

Hostel licences

Local media sources have indicated that the government plans to cut the red tape around hostel licences on outlying islands in a bid to drive tourism. The measure would waive restrictions imposed by the deed of mutual covenant for buildings three storeys or less.

Tourism has been identified as a core part of the five-year blueprint and is expected to be on Lee’s agenda. Alongside the city’s “mega event” push, the blueprint’s consultation document also identifies cruises and island-hopping as tourism products the city has to offer.

Hostel operators in Cheung Chau have reportedly welcomed the move and said they hope authorities will provide subsidies so they can bring safety conditions up to standard.

Secretary for Culture, Sports and Tourism Rosanna Law earlier in June said she expects that the tourism sector can contribute 5 per cent of the city’s gross domestic product (GDP) by 2029.

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