Singapore expands child support as fertility hits record low

Singapore is preparing to provide almost S$70,000, or nearly Dh200,000, in direct financial support for every citizen child as it confronts a record collapse in fertility and mounting pressure from an ageing population.

The new SG Child Support Package will extend government assistance from birth through age 17, replacing a system that concentrates much of its financial help around a child’s early years. Payments under the redesigned framework are scheduled to begin in April 2027.

Prime Minister Lawrence Wong unveiled the package at the National Day Rally on August 23, describing a broader shift towards supporting parents throughout the years of raising a family rather than relying mainly on incentives linked to childbirth.

Every Singapore citizen newborn covered by the new arrangements will receive a S$10,000 Baby Gift and a S$5,000 MediSave grant. A Child Development Account will receive an initial S$5,000 grant, with the government matching parental savings dollar for dollar up to another S$5,000.

Children will then receive S$2,000 in annual Child Credits from age one through 16. Government support will also include annual Edusave top-ups during primary and secondary education and a S$10,000 payment into the Post-Secondary Education Account at age 17.

Taken together, the measures will provide almost S$70,000 in direct financial assistance for each citizen child. Unlike the existing Baby Bonus and Large Families schemes, the basic level of support will no longer depend on birth order.

The overhaul comes after Singapore’s resident total fertility rate dropped to 0.87 births per woman in 2025, its lowest level on record and down sharply from 0.97 in 2024. The replacement rate required to maintain a population without migration is about 2.1.

Only 30,004 live births were recorded in 2025, an 11 per cent decline from 33,703 a year earlier. Resident births fell 10.6 per cent to 27,529, while citizen births declined 10.4 per cent to 26,201.

The figures have intensified concerns about the size of Singapore’s future workforce and the ability of a smaller working-age population to support growing numbers of elderly citizens. More than one-fifth of citizens are already aged 65 or above, placing Singapore among societies experiencing particularly rapid demographic ageing.

Financial incentives are only one part of the policy response. Wong acknowledged that decisions about having children are deeply personal and cannot be determined by government payments alone. The package therefore combines cash assistance with measures targeting childcare costs, parental leave, housing and workplace pressures.

Childcare leave will be expanded according to family size. Working parents will receive eight days each if they have one child aged 12 or below, 10 days with two children and 12 days with three or more children.

A working couple with three primary-school children would consequently have 24 days of childcare leave between them, compared with four days under the existing arrangements for parents whose youngest child is above six.

The government will also cover the financial cost of all statutory child-related leave up to the applicable reimbursement limit, reducing the expense borne by employers and seeking to limit any employment disadvantage associated with parenthood.

Preschool costs are another major target. Government-supported centres currently provide places for about 80 per cent of preschoolers, but full-day childcare can cost close to S$600 a month for some families, while infant care can exceed S$1,000.

Authorities aim eventually to bring full-day childcare fees at government-supported preschools down to S$150 a month and infant care fees to S$300. The lower fee structure is intended to apply regardless of household income, while lower-income households will continue to qualify for additional subsidies. Implementation will take several years as the network of supported operators expands.

Housing policy is being adjusted alongside the family package. The monthly household income ceiling for Build-To-Order public housing will rise from S$14,000 to S$16,000, while the ceiling for Executive Condominiums will increase from S$16,000 to S$18,000.

First-time families applying for a new flat will receive an additional ballot chance for every child they have or are expecting, giving larger households greater priority in securing subsidised housing. Further healthcare, transport and housing assistance for larger families is also under consideration.