Singapore is paying parents $55,000 to have babies; here's why

Singapore has a problem that money alone has not been able to solve. People there are having fewer children. Now the country is trying a bigger, longer-term approach. Singapore will provide almost S$70,000 (around US$55,000 or roughly Rs 47 lakh) in direct financial support for every Singaporean child, from birth until the child turns 17. The announcement was made by Prime Minister Lawrence Wong during Singapore's National Day Rally on August 23. But the headline figure needs some context. This is not a S$70,000 cheque that parents receive after having a baby. The amount is spread across different forms of support, including cash payments, healthcare-related grants, child credits and education support. The move comes as Singapore's fertility rate has fallen to its lowest recorded level. According to Singapore's Department of Statistics, the country's resident total fertility rate fell from 0.97 in 2024 to just 0.87 in 2025. There were 29,864 live births in 2025, down 11.4% from the previous year. The numbers explain why the government is trying something different. The money will follow the child, not just the birth AI representation/ChatGPT Singapore already has one of Asia's better-known fertility-support systems, including its Baby Bonus Scheme. But the new SG Child Support Package changes the way that assistance is structured. According to Channel NewsAsia and various media, the new package will replace the existing Baby Bonus Scheme and Large Families Scheme. Unlike the current system, the new package will provide the same baseline level of support for every Singaporean child, regardless of birth order. The support will also last longer. At present, much of the Baby Bonus support is concentrated in a child's early years. Under the new package, assistance will continue until the child turns 17. Starting April 1, 2027, each eligible newborn will receive a S$10,000 cash gift, paid in two installments within the first year. There will also be S$5,000 deposited into the child's Child Development Account, another S$5,000 in government co-matching of parents' CDA savings, S$2,000 in Child Credits every year for the first 16 years, a S$10,000 top-up to the Post-Secondary Education Account at age 17. Put together, these benefits bring the government's direct support to almost S$70,000 per child. Why Singapore is doing this now Singapore's fertility rate has been falling for years despite repeated government efforts to encourage marriage and parenthood. The latest number 0.87 children per woman in 2025 is far below the roughly 2.1 level generally associated with population replacement in the absence of migration. This is not just about the number of babies being born. Fewer births today mean a smaller working-age population in the future, while longer life expectancy means more older people needing care and support. That creates pressure on everything from the workforce and healthcare to pensions, housing and the tax base. Singapore's government has therefore been looking at parenthood as a long-term national issue rather than simply a personal choice. The government knows money cannot solve everything File photo Interestingly, Prime Minister Wong did not suggest that a bigger payment would automatically make people have more children. In a recent speech, Wong acknowledged that the decision to have children is deeply personal and that government policies alone cannot make it happen. The aim, he said, is to make it easier for people who already want children to start and raise a family. The new package is not only about money. Singapore is also expanding support for parents who need time away from work to look after their children. The government has said it will take on a greater share of the cost of expanded childcare leave, reducing the burden on employers. There is another notable change. Under the existing Baby Bonus structure, some benefits are linked to the parents being lawfully married. The new SG Child Support Package will extend its benefits to all Singaporean children, regardless of their parents' marital status or family circumstances. So will S$70,000 actually make people have more babies? The government can make childcare cheaper. It can provide cash. It can support education. It can offer parents more leave and make housing easier to access. What it cannot do is make people want children. And that may be the hardest part of the problem Singapore is trying to solve. For now, the country is betting that if the financial and practical burden becomes lighter, at least some couples who are already thinking about having children may decide that the time is right.