Singapore has decided to increase support for families with children. The authorities aim to reduce parents' childcare costs and make family life more comfortable. This was reported by Qazaqyia.kz citing Financial Times.
How much will be paid per child?
The state plans to allocate about 70,000 Singapore dollars (approximately 25.4 million tenge) for each child under 17.
Reasons for generosity
The main reasons for this generosity are a record low birth rate and rapid population aging. In recent years, Singapore has had fewer than one child per woman, and by 2030, one in four residents will be over 65.
How the new program works
Prime Minister Lawrence Wong announced the new measures on August 23 during his annual National Day speech. Under the new program, the government will no longer pay the entire amount at birth. Instead, payments will be made in stages. Part of the payments will be given in cash in the early years, part will be credited to a special account for kindergarten fees, and $10,000 will be paid at age 17 for college or university education.
Previously, more was paid for the second and third child than for the first. Now all children in a family receive the same maximum support.
Other measures
Fees for public kindergartens and nurseries will be almost halved. Parents will get increased paid childcare leave to 8-12 days per year. Additionally, young families with children will find it easier and cheaper to buy their first home.
Acknowledging limitations
Wong admitted that payments alone cannot solve the low birth rate problem. Young people often delay having children due to housing costs, work, and other expenses. Some couples forgo children altogether. Therefore, the state's goal is not just to "buy" births, but to reduce the financial burden on parents and help them raise and educate children over nearly 20 years.
Immigration policy
Singapore continues to accept migrants. The authorities believe that without an influx of new residents, the population will decline and the share of elderly people will grow even faster.
Comparison with Kazakhstan
Kazakhstani families are familiar with Singapore's problems, and no one would refuse such "start-up" money. However, it is clear that Kazakhstan does not need to stimulate birth rates — many families already have more than three children.
In Kazakhstan, young parents face similar challenges, but the level of support is still much lower. The fixed state allowance for the birth of the first, second, and third child is only about 164,000 tenge. Without good social insurance, it is difficult to buy even a basic set: a stroller, a crib, and clothes for the first months.
The maximum maternity benefit has a strict limit. Even if a woman had a high salary, she will receive around 2.2-2.5 million tenge. Non-working mothers have to rely on monthly allowances up to 1.5 years in the amount of 25,000 tenge. Also, the main obstacle for young couples is the housing issue. High rent in large cities eats up a large part of the budget, and saving for a mortgage down payment with a small child becomes almost impossible.
Earlier, Kursiv reported that Kazakhstan is changing the rules for distributing state and rental housing, as well as preferential mortgage loans. At least 70% of the available volume will be allocated to certain preferential categories.