Singapore’s birth rate hit a record low in 2022, with recent figures showing a 7.9 per cent drop in the number of live births. - PHOTO: ST FILE
SINGAPORE (The Straits Times/ANN): Parents will receive more funds in their newborns’ Child Development Account (CDA) earlier, with the increased Baby Bonus benefits being given out ahead of schedule.
Minister in the Prime Minister’s Office Indranee Rajah said on Friday that parents of babies born on or after Feb 14 can expect to get the funds from August, earlier than in early 2024 as initially planned.
“For parents who have children between Feb 14 and July 31, there are about 12,000 of them who are going to benefit from the bringing forward of the CDA First Step Grant. And of course, there’ll be those who have children born after July 31, those numbers we don’t know,” she said on the sidelines of a visit to local start-up Go!Mama at LaunchPad @ one-north in Ayer Rajah.
Deputy Prime Minister and Minister for Finance Lawrence Wong had announced in February during Budget 2023 that the CDA First Step Grant will be increased from $3,000 to $5,000 for newborns.
It is automatically credited into the CDA, which parents can use to directly offset pre-school and healthcare expenses.
The Government will also increase the co-matching cap for the CDA by $1,000 for couples’ first and second children.
Under the scheme, savings deposited by parents into the account are matched dollar for dollar by the Government up to a cap of $3,000 for first-born children, and $6,000 for second-born ones. This will go up to $4,000 and $7,000, respectively.
In a joint statement, the Ministry of Social and Family Development (MSF) and the National Population and Talent Division said that agencies were able to expedite legislation and system updates to bring forward the implementation timeline to Aug 1.
Speaking to the media, Ms Indranee said the record number of marriages in 2022 is likely a reflection of delays in wedding plans that couples faced earlier during the Covid-19 pandemic.
“I think what we’re seeing now is a catch up... (I’m) hopeful that when the rises (in marriages) take place, the birth rates are going to increase,” she said.
A total of 29,389 couples tied the knot in 2022, a 3.7 per cent increase from the 28,329 marriages in 2021.
Singapore’s birth rate hit a record low in 2022, with recent figures showing a 7.9 per cent drop in the number of live births, from 38,672 in 2021 to 35,605 in 2022.
“I think everybody’s happy to receive grants... but we are also cognizant of the fact that it’s not just about grants. It is also about how you make Singapore family-friendly and mum-friendly as a whole,” said Ms Indranee, adding that Go!Mama’s provision of nursing pods is a solution for offices or public spaces that do not have such amenities yet.
“If you want to increase our birth rate, you really have to pay attention to what the parents are facing,” she said.
Madam Tharani R, 27, who gave birth to her son in April, said any amount of financial support would be helpful. Her son was born pre-term at 30 weeks old, and has been in hospital since. “Any extra subsidies would go towards his medical expenses and clinic visits,” said the lab technician.
But beyond finances, Madam Tharani also hopes that mothers’ well-being can be supported.
“When I gave birth, I wasn’t quite prepared, and I didn’t expect my life to suddenly change so fast,” she said. “But I’m coping, and looking forward to my son being discharged and coming home.” - The Straits Times/ANN
