The new Large Families Scheme announced by Prime Minister Lawrence Wong in his Budget speech on Feb 18 is neither an incentive nor a reward, said Minister in the Prime Minister's Office Indranee Rajah.

Rather, it provides financial support for parents who "would like three or more children", with the Government providing additional assistance. 

"Incentive is like, 'if I give you money, out pops the kid'," said Indranee in a podcast with CNA shared on Monday (Feb 24). "It cannot work like that."

And to think of the scheme as a "reward" is also the wrong kind of signal to send to Singaporeans, she added. 

As part of new measures to encourage Singaporeans to have more children, parents will receive a $5,000 Large Family MediSave grant for each third and subsequent child born from Feb 18.

Parents will also receive $1,000 each year in LifeSG credits for each third and subsequent child between the ages of one and six, or a total of $6,000 over six years.

Meanwhile, all third and subsequent Singapore citizen children born from Feb 18 will receive $10,000 in their Child Development Accounts (CDA) under the First Step grant.

"It's designed such that the third kid is the charm," said Indranee. "It unlocks additional CDA First Step Grant, which can be used not only for that child, but for the other children as well.

"Most families already have one to two children. What we're trying to do is try to get people over that next step."

The National Population and Talent Division said in a press release on Feb 18 that families which already have three or more children aged six or below - born between Jan 1, 2019 and Feb 17 this year - will also receive $1,000 each year for each child until they turn six.

More childcare leave?

In the 25-minute podcast, Indranee also addressed concerns from Singaporean couples who are hoping for more childcare leave.

She pointed out PM Wong's announcement during his National Day Rally speech last year that parents will get an additional 10 weeks of shared leave.

This will bring up the total paid leave to 30 weeks when fully implemented on Apr 1, 2026.

Indranee said that this "major move" is a huge step for employers, and they would need time to make adjustments in their operational and manpower arrangements.

When asked about the possibility of introducing more childcare options, she said that the Government isn't ruling that out, but it is something they need to consider carefully.

In his National Day Rally speech then, PM Wong said that the new shared parental leave scheme will be rolled out in two phases, starting with six weeks from April 1, 2025, and increasing to 10 weeks from April 1 next year. 

He also announced that the the two extra weeks of voluntary paternity leave currently will also be made mandatory from April 1. 

chingshijie@asiaone.com

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