Wave of kindergarten closures expected to stretch for three years

The wave of kindergartens shutting down is expected to continue for another three years, with about 20 likely to close down in the current school year due to difficulties in enrollment blamed on Hong Kong's low birth rate.

In the past week alone, three kindergartens announced they will shut down.

Hong Kong Federation of Education Workers vice chair Lam Chui-ling urged the government to increase subsidies to kindergartens and offer more incentives to encourage young couples to give birth.

Yiu Wing Anglo-Chinese Kindergarten, sponsored by To Kwong Christian Educational Organization, in Ma On Shan, announced on Thursday it will shut down in August 2025.

The school, which has been in business for 35 years, informed parents in a letter that the number of enrollments shrank sharply due to factors such as dropping birth rates and fewer cross-border students, coupled with the emigration wave.

The school faces financial loss and operation have been hard to maintain, it said.

Another center under the same sponsoring body, Sha Tin's Mei Lam Estate To Kwong Kindergarten, announced it will close in August next year.

Privately run Rightmind International Nursery and Kindergarten in Ap Lei Chau will cease operation in July this year.

From September 2023 to last month, another 14 kindergartens announced their closure, while at least 17 have decided to cease operation this school year.

The main reason blamed for the closures is the birth rate, which dropped from over 50,000 in 2019 to 33,000 last year and led to fewer schoolchildren going to kindergarten, causing difficulties in operation, Lam told The Standard.

In addition, the Education Bureau predicted that the number of three-year-olds who will start Kindergarten 1 is set to fall 34 percent from 44,000 last year to 29,000 in 2026.

"As a result, the closure wave will continue," Lam said.

"There will be kindergartens closing every school year for the coming three years, and I expect about 20 will close in the current school year."

Calling for support for kindergartens, Lam's federation has suggested that the government increase subsidies in overcoming challenges related to declining student enrollment.

"It may be more difficult to operate due to rental costs, and we urge major landlords and property developers not to raise rents too much," she said.

"With a serious decline in population, changes should also be made to the system to facilitate the smooth transition of kindergartens."

Lam suggested that the government increase the subsidy per child for nonprofit kindergartens.

She also hoped the government would put more effort into encouraging young couples to have children, saying the current HK$20,000 one-off cash allowance for newborns is not attractive enough.