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In a new attempt to address the sharp decline in birth rates, Singapore has announced an expanded family support package that provides direct assistance of up to approximately 70,000 Singapore dollars, equivalent to 55,200 US dollars, for each Singaporean child until they reach 17 years of age, at a time when the country's fertility rate has reached a record low of 0.87, according to the Financial Times.

Singapore's Prime Minister Lawrence Wong revealed the package during his annual speech at the National Day rally, confirming that the government wants to alleviate the financial and practical burdens associated with starting a family and raising children, after years of government incentives that have failed to stop the decline in birth rates.

The new package includes child credits, additional housing support, childcare subsidies, extended parental leave, along with a gift for newborns worth 10,000 Singapore dollars.

The government intends to spend nearly 7 billion Singapore dollars, or about 5.5 billion US dollars, during the current fiscal year on family support programs and encouraging childbirth.

Financial support extending until the age of 17

Under the new system, every Singaporean newborn will receive 2,000 Singapore dollars annually in the form of child-specific credits, while families will also receive a "first step" grant of 5,000 Singapore dollars, along with other forms of financial support as the child grows older.

These aids are added to the existing newborn gift of 10,000 Singapore dollars, bringing the total value of direct assistance to approximately 70,000 Singapore dollars for each child until the age of 17.

The government also plans to expand subsidies for all-day childcare, as well as increase parental leave, in an effort to reduce the costs and pressures associated with raising children.

Housing priority for families with children

The package is not limited to cash support, as the government also announced a new measure related to public housing.

Under the plan, families applying for residential apartments under the build-to-order program will receive an additional chance in the lottery for each child they have or are expecting, which is expected to improve families' chances of obtaining public housing that is in high demand.

Wong stated during his speech that what the government can do is make starting a family and raising children easier for Singaporeans who wish to have children, emphasizing that the government will stand by every family that chooses to have children.

Rising costs hinder childbirth decisions

The new measures come at a time when polls show that government support alone may not be enough to change Singaporeans' decisions regarding childbirth.

A survey conducted by YouGov shortly before Wong's speech revealed that about one-third of Singaporeans aged 18 to 44 said that no government policy would make them more willing to have children.

Reducing the costs of kindergartens and childcare was among the measures participants felt could encourage family formation and childbirth.

Eugene Tan, an associate professor of law at the Singapore Management University, described the new measures as possibly representing "Singapore's last chance to get it right."

He pointed out that the success of these policies will not only depend on the amount of financial support but also on the readiness of social norms and mindsets to accept marriage, family formation, and childbirth.

A shift in Singapore's policy

The new package reflects a shift in Singapore's approach to the declining birth crisis, after previous policies focused more on providing direct financial incentives for childbirth.

Wong had stated last June that the government would pay more attention to making family life easier rather than relying solely on financial incentives.

Singapore had previously launched programs and events to match university graduates and briefly adopted a policy that gave priority in primary school registration to children of more educated mothers if they had three or more children.

From "two children are enough" to encouraging childbirth

The population policy crisis in Singapore dates back decades, as the government in the early 1970s promoted a "two children are enough" campaign, viewing large families as a burden on development and the country's resources.

However, the government changed its population policy in 1987 after the birth rate continued to decline.

Since then, authorities have resorted to providing financial assistance, extending maternity leave, and other incentives aimed at encouraging couples to have children, yet the birth rate continued to decline, reaching its lowest level in nearly five decades in 2010 and 2011.

Singapore approaching a "super-aged" society

Last year, Singapore's fertility rate was 0.87 children per woman, a record low, while the country's population is approximately 6.1 million, with Singaporean citizens making up about 60% of that number.

The continued decline in birth rates has raised increasing concerns about the aging population and the country's future ability to provide a sufficient workforce to support its economy.

Singapore is heading towards becoming a society described as "super-aged," with an increasing proportion of elderly people and a declining number of working-age residents.

Wong stated that his country will also have to continue welcoming immigrants while ensuring that Singaporean citizens remain the majority of the population.

He added that these developments mean that Singapore's total population will grow at a slower pace in the coming years, and the growth rate of the workforce will also slow, increasing the importance of addressing the birth rate crisis and its long-term effects on society and the economy.