Singapore's Prime Minister Lawrence Wong has unveiled a significant overhaul of the nation's pro-family policies, introducing enhanced cash gifts and extended paternity leave to provide nearly S$70,000 (approximately US$55,000) in financial support for each child, in a bid to reverse the country's persistently falling fertility rate.
In his annual National Day Rally speech on August 24, Wong acknowledged the gravity of the situation, noting that with the fertility rate hitting a record low of 0.87 last year and the nation on the cusp of becoming a "super-aged" society, the government is committed to standing alongside families who choose to have children and to clearing the obstacles for those who wish to do so.
The newly announced policy package is designed to significantly boost direct financial aid, covering children up to the age of 17. This includes a S$10,000 birth gift and a S$10,000 education top-up. Unlike previous schemes that concentrated benefits at the moment of birth, the revamped structure disperses more support across the early years of a child's life.
Beyond the increased cash transfers, the government will also broaden paid parental leave provisions, particularly for families with multiple children, while agreeing to shoulder part of the associated costs for employers. Additionally, plans are in place to grant families with children greater priority in the city-state's public housing scheme when they are purchasing their first home.
The urgency of these measures is underscored by the latest data, which shows the total fertility rate fell to 0.87 in 2025, down from 0.97 in 2024, placing Singapore perilously close to South Korea's world-low figure of 0.8. Demographers note that a fertility rate of 2.1 is required to maintain a stable population without net migration.
With advances in healthcare extending lifespans, Singapore is projected to officially become a "super-aged" society this year, a UN designation meaning that over 21% of its population is aged 65 and above. By 2030, it is estimated that one in four Singaporeans will be 65 or older.
Prime Minister Wong conceded that government initiatives have their limits. Many young people are postponing marriage and parenthood or forgoing children altogether due to economic pressures, and he warned that even with policy support, the fertility rate is likely to remain well below the replacement level. He cautioned that if the nation relies solely on natural birth rates, the citizen population will shrink, aging will accelerate, and the shrinking workforce will struggle to support the growing elderly demographic.
To counter this, Wong affirmed that the government will persist with its long-standing strategy of bringing in new immigrants at a measured and sustainable pace to supplement the domestic population. However, immigration remains a sensitive issue in Singapore, often linked by citizens to rising property prices and heightened competition for jobs.
While the number of foreigners granted permanent residency and citizenship has been steadily climbing since the pandemic, the Prime Minister stressed that the government is committed to ensuring Singaporeans remain the majority in their own country, and he noted that overall population and workforce growth will decelerate in the coming years.
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