Friday, August 22, 2008

The failing Baby Bonus Scheme

Singapore first introduced The Baby Bonus Scheme in April 2001 and enhanced in August 2004, supports parents’ decision to have more children by helping to lighten the financial costs of raising children.

Again this year the government further enhanced it from 2009 onwards.

Does giving more money really encourage Singaporean to make more babies?

Or is it just a short-term plan by the government who are unwilling to solve the root cause of falling birth rates? (Higher cost of living, lousy education system, non pro families working environment, etc….)

Looking at the fertility rate of Singapore over the year, we don’t see a dramatic increase after April 2001 and Aug 2004.

Year Fertility
1997 1.61
2002 1.37
2003 1.27
2004 1.26
2005 1.26
2006 1.28
2007 1.29

Judging by the trend I will say the fertility rate will raise by 0.03 the most to 1.32. Failing to meet the healthy rate of 2.1.

Look like it is getting expensive to get Singaporean to make babies.

Cheaper to import foreigner?

But the government have to tackle this issue very carefully due to our National Services Act.

No comments: