Singapore has introduced a new package of financial incentives aimed at encouraging families to have more children, as the city-state faces a demographic challenge marked by a rapidly ageing population and one of the world’s lowest fertility rates.

Prime Minister Lawrence Wong announced the measures during his annual National Day Rally speech, emphasizing the government’s commitment to easing the financial and social burdens associated with childrearing. The initiative offers parents cash benefits exceeding S$75,000 (approximately US$55,000) per child, alongside revisions to child-related payments and parental leave policies.

Singapore’s population currently stands at just over six million. However, the nation recorded a record-low fertility rate of 0.87 children per woman in the previous year, placing it among the countries with the lowest birth rates globally. This figure is close to South Korea’s world-lowest rate of 0.8 children per woman, highlighting the severity of the demographic decline.

By offering significant monetary incentives, the government aims to counteract the trend of shrinking family sizes and promote a more sustainable population growth. The revised package includes enhancements to existing child benefit schemes and expanded parental leave entitlements, designed to support parents from childbirth through early childhood.

Singapore’s ageing population poses economic and social challenges, including pressures on healthcare, eldercare, and the national workforce. Officials have acknowledged that overcoming the low birth rate requires a comprehensive approach that addresses both the financial costs and broader lifestyle considerations associated with raising children in a high-cost urban environment.

The new measures reflect the government’s proactive stance in addressing demographic shifts, reinforcing its long-term goal of maintaining social stability and economic vitality amid changing population dynamics.