Why the key shift in Singapore’s baby policy: From incentivising births to supporting parenthood
By providing more support in areas parents say they need, raising children may be seen as less daunting.
In June, Prime Minister Lawrence Wong revealed a change in Singapore's approach to addressing the country's low birth rates. Previously, the focus had been on providing incentives for couples to have more children. However, Wong said that the government would now concentrate on creating a family-friendly environment, addressing concerns such as education, childcare, and housing for young parents. Wong emphasized that these efforts would continue even if they do not directly lead to more babies.
The shift in strategy was highlighted in Wong's National Day Rally speech on August 23, where he mentioned that the government would take steps to not only help couples start but also raise families. These measures include increasing childcare leave, lowering childcare fees, and providing additional financial support for parents, which are among the recommendations from the Marriage and Parenthood Reset Workgroup.
Wong stated that they aim for a fundamental shift in how they support families, going beyond incremental improvements or changes to individual schemes.
The distinction between incentivising births and supporting parenthood lies in the former relying on rewards or benefits to encourage couples to have more children, while the latter provides ongoing support to parents throughout their children's upbringing. Incentives are transactional and tied to results, whereas the new approach aims to make parenthood more appealing by addressing the long-term journey of raising children.
The shift also acknowledges that incentives alone cannot overcome deep social, cultural, and structural factors that make some couples hesitant to have additional children.
This change in approach is evident in the latest parenthood measures announced. Unlike previous enhancements that applied only to children born after a specific date, such as the Baby Bonus cash gift that was increased from $8,000 to $11,000 for the first and second child starting February 14, 2023, the new SG Child Support Package will benefit all Singaporean children born in 2026 or those turning one to 17 in 2026.
This package will provide each child with a $10,000 cash gift and $2,000 of child credits annually over 16 years, among other benefits. Additionally, the new measures ensure that each eligible child receives the same amount of support, unlike the Baby Bonus, which currently provides more money for higher-order births.
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