SINGAPORE — While he reiterated the Government’s stance that parenthood is a personal choice, Minister for Social and Family Development Tan Chuan-Jin said the new S$3,000 grant for newborns starting on Thursday (March 24) is aimed at creating “as conducive an environment as possible” for couples who want to start families.

In particular, the upfront top-up to the Child Development Account (CDA) announced in the Budget will give a leg-up to 5 per cent of parents who do not save into their children’s accounts at all, possibly because they cannot afford to.

Speaking to reporters during a visit to KK Women’s and Children’s Hospital on Friday, where he explained the new CDA First Step Grant to new parents, Mr Tan said: “We have found over the years that some families who are not able to put in any money, or (can put in only) a limited amount of money, are not really maximising the amount of grant or support that the government is able to provide.”

Asked if the CDA First Step grant would help improve birth rates, Mr Tan stressed that it was a personal choice for couples to want to have children.

Making various grants and schemes available for parents does not necessarily mean that couples will want to have children, he added.

“I would say that it’s really about creating as conducive an environment as possible ... we want to make it as easy as possible,” said Mr Tan.

He added that the Government recognises that there are different cost concerns, but the grant is to “create the best possible climate” for couples.

“This is just one amongst many steps, I think it would be helpful but, ultimately, individual couples must make their decision as well, but we hope it helps support their decision making,” said Mr Tan.

During his Budget statement on Thursday, Finance Minister Heng Swee Keat announced enhancements to the CDA, a special savings account for a child’s healthcare, educational and childcare needs.

All babies born from Thursday onwards will automatically get S$3,000 in their accounts, whereas previously, a parent would have to deposit money to get dollar-to-dollar matching contributions from the Government, up to a ceiling. Contribution caps are fixed at S$6,000 for the first and second child; S$12,000 for the third and fourth child and S$18,000 for the fifth and subsequent children.

With the grant, that means the account balance will show S$9,000 if a parent deposits S$3,000, for example — S$3,000 from the First Step grant and S$3,000 from the matched contribution by the Government. Contribution caps include the grant.

Housewife Seri Hirdayu, who just had her third child recently, said the grant will come in handy to offset infant care fees when she returns to the workforce, or to buy milk for her baby. The 25-year-old said she had used the CDA monies for childcare fees for her first two children, which cost about S$300 per month each.