S’pore learns it takes more than money to raise fertility rates

S’pore learns it takes more than money to raise fertility rates

Factors such as career aspirations play a significant role in whether couples have children, says Singapore minister Indranee Rajah.

BABY HOSPITAL ROOM
Despite financial support, Singapore’s total fertility rate continued to decline, reaching a historic low of 0.97 in 2023. (Freepik pic)
SINGAPORE:
Financial incentives alone are not enough to reverse declining fertility rates, says Indranee Rajah, a minister who assists in overseeing the national population and talent division in the Singapore Prime Minister’s Office.

She said early government efforts had focused on financial solutions such as tax incentives, which were helpful but not the solution.

“Increasingly, we realised that it’s not only about the money,” she said, after having dialogues and conversations with young couples.

Speaking to Malaysian media who visited Singapore recently, she said the couples do take into account the cost of raising a child; while “that may not stop them from having the first child, they may think carefully before having a second child”.

Indranee Rajah.

Indranee had been asked about whether financial support still made a difference, given that Singapore’s total fertility rate has continued to decline despite such measures.

Since 2001, the Singapore government has encouraged Singaporeans to have children, through the Baby Bonus Scheme, made up of a Baby Bonus Cash Gift, and a Child Development Account.

However, this did not stop the fertility rate from falling from 1.12 in 2021 to 1.04 in 2022 and to a historic low of 0.97 in 2023. “Total fertility rate” refers to the total number of children born to a woman over her lifetime.

Indranee said other factors, such as career opportunities and work-life balance, must also be addressed.

If young people felt there was an opportunity cost, “once it becomes either-or – career or family, career or child – they may choose a career,” she said. “So, part of the strategy has to be, how do you make it easier for them to have both careers and children?”

In recent weeks, Malaysian couples who choose not to have children have come under criticism from politicians, but many argued that the government must deal with economic concerns and gaps in social welfare that hinder those wanting to start a family.

Malaysia’s fertility rate has fallen from 2.1 children per woman in 2010 to 1.6 in 2023.

Strategic measures

Indranee acknowledged that Singapore’s fertility rate was unlikely to return to previous levels.

However, the Singapore government is working on providing comprehensive support, such as flexible work arrangements and adequate parental leave.

“You don’t want the employers to penalise them for taking flexible work arrangements, and it shouldn’t be the case where you take maternity leave or paternity leave, but when you come back, suddenly your chances of advancement are gone,” she said.

The Singapore government’s Forward SG initiative, launched in June 2022, looks into mandating the currently voluntary additional two weeks of paid paternity leave and increasing the number of care centre places for infants by 70% by 2030.

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