3-8-2024 (SINGAPORE) In a candid discussion with Malaysian media, Indranee Rajah, a minister assisting in the oversight of Singapore’s national population and talent division, has emphasised that financial incentives alone are insufficient to combat the city-state’s plummeting fertility rates.
The minister, who operates from the Prime Minister’s Office, revealed that early governmental efforts had heavily leaned on fiscal solutions, such as tax incentives. However, these measures, while helpful, have proven to be inadequate in addressing the complex issue of declining birth rates.
“We’ve come to realise that it’s not solely about monetary support,” Rajah stated, drawing from insights gained through numerous dialogues with young couples. She acknowledged that while financial considerations do play a role, particularly when contemplating a second child, they are far from the only factor influencing family planning decisions.
This revelation comes against the backdrop of Singapore’s persistently declining total fertility rate, which has continued its downward trajectory despite the implementation of various financial support schemes. The Baby Bonus Scheme, introduced in 2001 and comprising a Baby Bonus Cash Gift and a Child Development Account, has failed to stem the tide of falling birth rates.
Recent statistics paint a grim picture, with the fertility rate plummeting from 1.12 in 2021 to a historic low of 0.97 in 2023. This figure represents the average number of children born to a woman over her lifetime.
Rajah underscored the importance of addressing other crucial factors, such as career opportunities and work-life balance. “If young people perceive an opportunity cost, where it becomes a choice between career and family, they may opt for their careers,” she explained. “Our strategy must focus on making it feasible for them to pursue both careers and parenthood simultaneously.”
The Singaporean government is now adopting a more holistic approach, exploring comprehensive support measures including flexible work arrangements and improved parental leave policies. “We must ensure that employers do not penalise employees for opting for flexible work arrangements,” Rajah asserted. “Similarly, taking maternity or paternity leave should not hinder one’s career advancement prospects.”
As part of this broader strategy, the Forward SG initiative, launched in June 2022, proposes extending paid paternity leave to two weeks and aims to increase infant care centre places by 70% by 2030.
