Baby Bonus to increase by S$2,000 to give families a boost

SINGAPORE — As part of the Government’s plans to distribute more cash to parents to help defray child-rearing costs, every child born from this year onwards will now get at least S$8,000 — S$2,000 more than before.

The extra sum, termed Baby Bonus Plus, will be paid out between the baby’s 12th and 18th months.

The Baby Bonus cash will also be extended to cover all children, instead of just the first four.

The Medisave Grant for Newborns will also be increased by S$1,000 to S$4,000, to help pay for MediShield Life premiums until a child reaches the age of 21, as well as other healthcare expenses.

Prime Minister Lee Hsien Loong first announced these measures during his National Day Rally speech on Sunday.

The aim is to encourage families to have more children, as well as improve support to families during the child’s first 18 months, said the National Population and Talent Division today (Aug 25).

Previously, parents were given S$6,000 per baby for their first and second child, and S$8,000 per baby for their third and fourth child.

With Baby Bonus Plus, parents will get S$8,000 per baby for their first and second child, as well as S$10,000 per baby for their third child and beyond.

Ms Grace Fu, Minister in the Prime Minister’s Office, today said the Government decided to pay out the extra sum between a baby’s 12th and 18th months because it had received feedback from parents that child-rearing expenses from a baby’s birth to its 18th month are high.

“So, looking at what’s already available in the Baby Bonus cash portion, we thought having this staggered into the 12th-to-18th month (period) will really be more meaningful to the couples,” said Ms Fu on the sidelines of her visit to MY World Preschool @ Compassvale Ancilla in Sengkang.

She acknowledged that the increased cash sum would not push more people into having children, saying the motivation to have them “must come from within”.

Ms Fu said: “The package is really to support them, to in a way defray their expenses and make it easier for them to look after their children ... but it’s not the reason to have children.”

The Baby Bonus currently applies to Singaporean children born to parents who are lawfully married.

Asked if the cash gift would be extended to single or unmarried mothers, Ms Fu said the Government would review the scheme and make adjustments over time.

But she added that the value of an intact family is “still very strong in the community”.

Civil servant Pearlyn Lee, 30, who gave birth to a son two months ago, said the money would go towards hiring a helper or his future education. However, she said the cash would not affect her decision on how many children she wants to have.

“Taking care of a child involves far more than what money can buy. There’s the component of physical well-being, whether you have energy and stamina to take care of them, whether you like having a big family, to start with,” she said.

Graphic designer Carol Gan, 32, said a baby might have different needs after six months, so the staggered payment would ensure that she does not overspend.

The mother of a 13-month-old daughter is planning to have a second child in two or three years, but she said the money would not entice her to have the baby sooner. “The extra money would be useful and would lighten the load. But it’s not easy working and looking after babies. It’s exhausting,” said Ms Gan.

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