Singapore Prime Minister Lawrence Wong announced the launch of a new family support initiative this week, with generous financial stipends meant to support families and encourage more births as the country experiences a plummeting birth rate.

Key Takeaways:

• Singapore Prime Minister Lawrence Wong announced a new financial program to support families and encourage births.

• The program will give S$70,000 (US $55,153) for each child 17 or younger along with increased paid child care leave and a reduction in monthly fees for subsidized day care.

• The move comes as the country experiences a plummeting birth rate of just 0.87 births per woman, far below the 2.1 replacement rate.

The Details:

Prime Minister Wong announced the new program during his recent National Day Rally Speech. The initiative will provide a total of S$70,000 (US $55,153) for each child through age 17, along with increased paid child care leave and a reduction in monthly fees for subsidized day care.

“Today, families everywhere are under growing pressure," Wong said. "We want to make a fundamental shift in how we support families.”

Additionally, families with children will be given preference when applying for their first subsidized public housing, which Bloomberg reports is "a key avenue for home ownership for most citizens."

“What we can do is make it easier for Singaporeans who want children to start and raise a family, and we want every family to know: If you choose to have children, the government will stand with you,” Wong stated.

Zoom In:

Like many other places around the world, Singapore has experienced a plummeting birth rate.

Last year, the rate was a record low 0.87 births per woman — far below the replacement level of 2.1. This translated to 27,500 resident births. Additionally, the nation is poised to become a "super-aged" society, as one-fifth of its population will soon be over age 65.

Because of this plummeting rate, the government indicated earlier this year that it will make family and marriage a priority. In April, Minister in the Prime Minister’s Office, Indranee Rajah, was tasked with leading a Marriage and Parenthood Reset Workgroup to boost marriage and births in the country. Rajah said that a "marriage and parenthood reset" is needed to combat the falling population.

The Bottom Line:

In his address, Wong indicated that while he hopes the financial package helps incentivize people to have children, he expects it may not be enough to reverse the downward trend, and the country will also encourage immigration “at a measured and steady pace.”