Singapore is rolling out its most ambitious package yet to encourage citizens to have more children, promising over S$60,000 in support for every child from birth to age 17.
The city-state’s total fertility rate dropped sharply to 0.87 in 2025, down from 0.97 the previous year, making it the second lowest in the world behind South Korea’s 0.81.
A stable population typically requires a total fertility rate of 2.1, meaning Singapore’s figure sits at less than half the replacement level, creating serious long-term demographic pressure.
Prime Minister Lawrence Wong described the effort as “more than incremental improvements or changes to individual schemes,” adding that the government wants “a fundamental shift in how we support families.”
The incentive package includes lower childcare fees, expanded parental leave, and elevated priority access to public housing for first-time families starting out.
Wong used Singapore’s National Day Rally, widely regarded as the country’s most significant annual policy address, to outline the shift in how support will be delivered across a child’s upbringing rather than concentrated at birth.
Despite the scale of the announcement, experts caution that measurable results are unlikely to arrive quickly, with any meaningful demographic shift potentially taking decades to become visible.
“It is a very slow, slow iceberg to turn around. It will take time. It’ll take a few decades to see a little bit of change,” said Kalapana Vignehsa, senior research fellow at the Institute of Policy Studies.
Vignehsa acknowledged the package represents “a total departure from what we have had previously,” but warned that “starting to provide the financial support is the easiest of the many difficult things to do.”
Workplace culture, the burden of caregiving, and rising education costs remain significant barriers that financial incentives alone are unlikely to overcome for most families.
Chua Yeow Hwee, assistant professor of economics at Nanyang Technological University, said the approach is more promising than one-off bonuses because sustained support gives parents greater certainty as their children grow.
“This new approach recognised that the financial cost and time cost of raising the children continue for many years,” Chua told CNBC, expressing cautious optimism about the plan’s design.
However, Chua flagged that expanded parental leave creates operational difficulties for businesses, raising questions about who absorbs the additional burden when employees are absent.
“What’s challenging is operational cost,” Chua said. “If someone is absent, the work has to be done by someone else. So who is going to bear the cost?”
Case studies from elsewhere in Asia offer a sobering warning, with South Korea’s fertility rate remaining at just 0.81 despite years of investment in childcare and family support policies.
Japan’s fertility rate fell for a tenth consecutive year in 2025 to a record low of 1.14, underscoring how difficult it is for governments to reverse entrenched demographic trends through policy alone.