Singapore wants to pay parents over $55,000 per child to boost birth rate

Singapore has announced a new family support package that will provide almost S$70,000 (US$55,153) in direct assistance for every Singaporean child up to the age of 17. The move comes after the country’s total fertility rate fell to a record low of 0.87, despite years of government incentives to encourage parenthood.

Prime Minister Lawrence Wong unveiled the measures during his National Day Rally speech on Sunday. The package includes child credits, housing support, childcare subsidies, parental leave and a S$10,000 (US$7,879) baby gift.

The government is expected to spend close to S$7 billion (US$5.5 billion) on family and parenthood initiatives this financial year.

Support to cover childhood expenses

Under the new package, every Singaporean newborn will receive S$2,000 (US$1,576) in child credits each year. Families will also receive a S$5,000 (US$3,940) “first step” grant, along with other financial support as the child grows.

The measures are in addition to the existing S$10,000 (US$7,879) baby gift. Taken together, the direct assistance will amount to nearly S$70,000 (US$55,153) for each child until the age of 17.

The government will also expand full-day childcare subsidies and parental leave.

Families applying for build-to-order flats will receive an additional ballot for every child they have or are expecting. The measure is expected to improve their chances of securing high-demand public housing.

“What we can do is make it easier for Singaporeans who want children to start and raise a family, and we want every family to know: If you choose to have children, the government will stand with you,” Wong said during his speech.

Cost and work pressure affect decisions

A YouGov survey published shortly before Wong’s speech found that almost one-third of Singaporeans aged between 18 and 44 said no government policy would make them more willing to have children.

Lower-cost preschool and childcare ranked highest among the measures that could encourage parenthood.

Eugene Tan, an associate professor of law at Singapore Management University, described the latest measures as possibly “Singapore’s last opportunity to get it right”.

“Whether they will work will depend on social norms and mindsets being accommodative of marriage and parenthood,” he said.

Singapore changes its approach

Singapore’s latest policy is a shift from its earlier focus on direct baby incentives. In June, Wong said the government would focus more on making family life easier.

The country previously ran matchmaking events for university graduates and introduced a short-lived policy that gave children of highly educated mothers priority in primary-school registration if they had three or more children.

In the early 1970s, Singapore promoted the “Two Is Enough” campaign, when the government viewed larger families as a burden on the country’s development and resources. The government changed its population policy in 1987 after birth rates continued to fall.

Since then, Singapore has introduced financial handouts and longer maternity leave to encourage couples to have children. However, the birth rate fell to its lowest level in nearly five decades by 2010 and 2011.

Singapore’s fertility rate reached 0.87 last year. The country has a population of 6.1 million, but citizens account for about 60% of the total.

The falling birth rate has raised concerns about Singapore’s ageing population and future workforce. The country is on course to become a “super-aged” society.

Wong said Singapore would also have to continue accepting immigrants while ensuring that citizens remained the majority.

“All this means that in the coming years, our overall population will grow more slowly, and our labor force will grow more slowly too,” he said.