Grants of $55,000 until age 17: Singapore tries to encourage birth rates
The Singaporean government has unveiled a series of financial support measures for families to combat record-low birth rates. Authorities plan to provide up to $55,000 for each child until the age of 17.
Singapore's low birth rate has led the government to unveil a series of measures to provide financial support to families. However, given that a survey published this month by the organization YouGov found that one in four residents is not interested in having children, the success of these measures is in doubt.
Prime Minister Lawrence Wong announced that the government will provide direct financial assistance of $55,000 ($70,000 Singapore dollars) for each child until they turn 17. The policy begins at birth with a baby bonus of 10,000 Singapore dollars, and two additional separate grants of 5,000 dollars each are planned later to cover medical and educational expenses. The incentive measures also include 2,000 dollars in tax relief, lowering the price of subsidized kindergartens to 150 Singapore dollars per month, and extending maternity leave.
"Singapore's future will only be as strong as the families that build it," declared Wong.
The measures are being launched after the birth rate of women of childbearing age in the country fell to a low of 0.87, lower than the "replacement rate," which stands at 2.1. A low birth rate poses risks to the economy, as it leaves a smaller percentage of the adult population to support the elderly. According to estimates, this year Singapore will reach a situation where more than 21% of the population is 65 or older.
The financial measures are intended to help in light of the high cost of living in Singapore. Other factors affecting the low birth rate include a highly competitive education system, demanding workplaces, and the need for early childhood care facilities.
"We are happy with our lives at the moment, so adding a child would complicate it," concluded a 34-year-old resident of the city-state who lives with his wife and two cats. "To raise a child properly, my partner and I would need to set aside a lot of time, and that is something we cannot provide at this stage."
