$70,000 per child: Singapore's plan to combat the birth rate crisis

How much would you be willing to pay for a baby? The Singaporean government is willing to pay a great deal. In an effort to deal with the low birth rate, the government is offering young families up to 70,000 Singapore dollars in financial support for each child. The program, presented by Prime Minister Lawrence Wong, includes cash grants, subsidies for childcare facilities, and the expansion of parental leave.

According to the details of the program, the financial aid will begin at the child's birth, when parents will receive a grant of 10,000 Singapore dollars, along with two additional grants of 5,000 dollars for medical expenses and education. Subsequently, families will receive "child credits" of 2,000 dollars until the child reaches the age of 17. In addition, tuition fees in subsidized kindergartens will be reduced to just 150 Singapore dollars per month.

The proposal comes against the backdrop of a severe demographic crisis. The fertility rate in the country is at a historic low, standing at 0.87 children per woman — far from the desired average of 2.1. In doing so, the country joins South Korea and Taiwan, which are dealing with some of the lowest birth rates in the world.

Singapore is expected to become a "super-aged" society this year — a UN definition for a society where more than 21% of the population is 65 or older. For the government, this is not only a demographic problem but also an economic challenge: in the future, a smaller portion of the population will be of working age and will be required to support a growing elderly population.

"The future of the country will be only as strong as the families that build it," said Prime Minister Wong.

But will the financial grant really encourage the country's youth to start families? A survey published this month found that one in four citizens does not plan to have children. The cost of living is only part of the reason: the competitive education system, demanding workplaces, and the difficulty of balancing a career with raising children also influence the decision.

"The cost of living in Singapore is insanely high," 27-year-old Yukber Hisham told The Guardian. Hisham, who works as a coordinator in the construction industry, said that despite financial concerns, the new program gave her and her fiancé hope regarding starting a family. "These supports do encourage me to have children as soon as possible after I get married," she said.

But not everyone is excited about the grants. 34-year-old Lee, who works in finance, lives with his wife and their two cats. Despite his parents' desire for grandchildren, the couple does not plan to have children at this stage. "We are happy with our lives right now, so adding a child would complicate it a bit," he said. Among other things, he fears the need to give up travel and entertainment and dedicate a large part of their time to raising the child.