‘Worst is yet to come’: Hong Kong’s early childhood sector hit hard by funding cuts
South China Morning Post
by William YiuFebruary 26, 2026
AI-Generated Deep Dive Summary
Hong Kong's early childhood education sector is grappling with unprecedented challenges as it faces its lowest government subsidy in over a decade. The financial year 2026–27 budget allocates HK$4.5 billion, marking a 6.6% decrease from the current year. This reduction coincides with a 13-year low in the number of preschools and the cancellation of two grants for kindergartens in the new school year.
The decline in preschools is attributed to several factors, including demographic shifts such as smaller family sizes and economic pressures that make running a kindergarten increasingly difficult. Many parents are struggling to afford childcare, while rising operational costs are further straining these institutions. The cancellation of government grants exacerbates this financial strain, potentially leading to closures or reduced services.
This funding crunch not only threatens the quality of early education but also impacts teachers' job security and benefits. Educators may face salary cuts or layoffs, affecting their livelihoods and the stability of the sector. Families reliant on these services are left grappling with
Verticals
worldasia
Originally published on South China Morning Post on 2/26/2026