Singapore has announced a major package of financial support for families, with Prime Minister Lawrence Wong revealing that each child will receive nearly S$70,000 (£40,000) in direct assistance up to age 17, in an effort to counter the city-state's record-low birth rate.
During his National Day Rally Speech on Sunday, Wong said the support will start with a S$10,000 (£7,331) "baby gift" and continue with instalments until the child turns 17, with a similar amount earmarked for higher education at that age. The government will also significantly increase paid childcare leave and aims to cut monthly fees for subsidised full-day childcare to S$150.
"Today, families everywhere are under growing pressure," Wong said. "We want to make a fundamental shift in how we support families."
Singapore's total fertility rate fell to a record low of 87 last year, according to official figures. The rate has dropped from 41 in 2001, and Singapore now has one of the lowest birth rates in the world, trailing only Taiwan, South Korea and the Chinese territories of Hong Kong and Macau.
In addition to the cash payments and childcare subsidies, the government will provide grants covering education, health and child support, as well as discounted nursery care for pre-school children. Childcare leave will be increased and fully paid by the government rather than employers, a change from the current system where companies pay and are only partially reimbursed.
Families applying for government-subsidised flats will also see their chances of winning allocation ballots boosted for every additional child, according to the announcement.
The measures are part of what Wong described as a "fundamental shift" in how Singapore supports families, acknowledging the growing pressures parents face in terms of cost and time. The package was announced in the annual address, which typically sets out the government's key policy priorities.
The new benefits are expected to provide significant relief to families, though analysts note that financial incentives alone may not be enough to reverse long-term demographic trends. Singapore's fertility rate has been declining for decades, and similar measures in other developed countries have had mixed results.
Wong's announcement comes amid broader concerns across Asia about declining birth rates, with several governments introducing incentives to encourage couples to have more children. In Singapore, the government has previously tried various measures, including baby bonuses and housing priority, but the latest package is among the most extensive.
The policy will be rolled out in stages, with the baby gift available immediately and other benefits introduced over time. The government said it remains committed to supporting families and will continue to review and adjust its policies as needed.