Singapore will provide parents with approximately S$70,000 (around £40,000) per child through a new financial support package designed to combat the nation's declining birth rate. Prime Minister Lawrence Wong announced the initiative on Sunday, stating that the funds will be disbursed automatically from birth until a child reaches 17 years old.
The country's fertility rate reached a record low of 0.87 children per woman last year, approaching South Korea's global low of 0.8. A fertility rate of 2.1 is considered necessary to maintain a stable population. This demographic trend, combined with increasing life expectancies, is projected to make Singapore a "super-aged" society this year, where over 21% of the population is 65 or older. Experts predict this demographic will reach that threshold by 2030.
The new support scheme represents a "fundamental shift in how [Singapore's government] support families," according to Wong. It includes an initial S$10,000 (£7,330) "baby gift" upon birth, with similar payments at age 17 to aid further education. Additional grants for health and child support, along with reduced nursery fees, are also part of the plan. The government will also cover childcare leave costs and increase parental leave allowances, with larger families receiving enhanced support. Furthermore, a subsidized housing scheme will assist families with children in purchasing their first homes.
During an address at the National Day Rally, Wong acknowledged the increasing pressures on families and stated, "if you choose to have children, the government will stand with you. We will provide more support, and over more years." These measures build upon existing government initiatives that have thus far failed to significantly increase birth rates.
Recent surveys indicate a growing number of young adults are opting to delay or forgo parenthood. A survey of 496 Singaporean adults aged 18-44 found that nearly a quarter either have no children or do not plan to have them in the future. Thirty percent of respondents in the same survey indicated that no government action could alter their decision regarding parenthood.
Wong cautioned that government efforts have limitations and that the total fertility rate is still expected to fall below replacement levels. He noted that relying solely on births would lead to a shrinking citizen population, accelerated aging, and fewer young people to support the elderly.
Consequently, immigration will continue to be a crucial component of Singapore's strategy to manage its population. The government aims to welcome newcomers at a "measured and sustainable pace" while ensuring Singaporeans remain the majority. However, this approach has faced local criticism, with some residents linking increased immigration to a more competitive job market and rising property costs. The number of foreigners granted permanent residency and citizenship has increased since the pandemic. Wong stated that these combined strategies would result in slower overall population and labor force growth in the coming years.