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by Alimat Aliyeva

Singapore has unveiled a new package of measures aimed at encouraging families to have more children, offering parents more than $55,000 in financial support for each child. The city-state is facing a serious demographic challenge, with a declining birth rate and a rapidly aging population.

Prime Minister Lawrence Wong announced a review of the country’s child benefits and parental leave system during his annual address on August 23. The government wants to make it easier for Singaporeans who wish to have children to start families and raise them, he said.

Singapore has a population of more than 6 million people. In 2025, the country recorded a record-low fertility rate of 0.87 children per woman, down from 0.97 in 2024. For comparison, South Korea recorded an even lower rate of around 0.8, one of the lowest in the world.

Demographers generally consider a fertility rate of 2.1 children per woman necessary to maintain a stable population without net immigration. Singapore’s falling birth rate, combined with longer life expectancy and advances in healthcare, is pushing the country toward becoming a “super-aged” society. According to the UN definition, this means that more than 21% of the population is aged 65 or older. By 2030, experts expect roughly one in four Singaporeans to be over 65.

“We want every family to know: if you decide to have children, the government will be with you,” Wong said, promising more substantial support over a longer period of time.

According to the prime minister, families will receive nearly 70,000 Singapore dollars (about $55,000) in direct financial support for each child up to the age of 17. The package includes a 10,000 Singapore dollar payment at birth as well as additional support for education.

Childcare subsidies will also be expanded, particularly for larger families. The government plans to cover a greater share of childcare costs and provide additional support to working parents. Families with children will also have easier access to schemes designed to help them purchase their first home.

However, the government admits that financial incentives alone may not be enough to reverse the demographic trend. Wong said Singapore’s fertility rate will likely remain well below the replacement level even with the new measures. If the country relied entirely on births, its population would eventually decline.

For this reason, Singapore will continue its long-standing policy of carefully managed immigration. Wong said the country would welcome new arrivals “at a measured and steady pace” while ensuring that Singaporeans remain the majority of the population.

Singapore has been trying to boost its birth rate for decades, using everything from financial bonuses and tax benefits to childcare subsidies and parental leave. Yet the fertility rate continues to fall, showing just how difficult it is for governments to reverse demographic trends once they become deeply rooted in society.

The situation is not unique to Singapore. Many wealthy Asian economies, including Japan, South Korea and China, are also struggling with low birth rates, making population decline one of the biggest long-term economic challenges facing the region.