Can Singapore Reverse Its TFR? A Financial Reality Check (And What It Means For Families Like Mine)

Singapore recently recorded a historic low total fertility rate (TFR) of 0.87 in 2025, meaning that, on average, less than one child is being born per woman. The government has repeatedly emphasized that money alone won’t reverse this trend, pointing instead to societal, lifestyle, and work-related factors.

But as a father of two, I have to say, I disagree. From my perspective, financial support is not just helpful, it’s key. Raising children in Singapore is expensive, and even motivated couples hesitate when the numbers don’t add up.

Why Money Matters to Families Like Mine

Raising children isn’t just about love and time, it’s about balancing real financial responsibilities:

  • Housing – Families often need larger flats or resale HDB units to accommodate children comfortably.

  • Education & Childcare – Preschool, enrichment programs, and tuition fees can quickly run into tens of thousands per child.

  • Daily Costs & Healthcare – Even routine expenses add up, especially for dual-income parents trying to maintain both work and family life.

  • Transportation – Traveling with young children is another hidden cost. With fewer taxis available and Grab family options limited, moving around with two kids and a helper often means relying on taxis. I could afford a car, but the monthly expenses, including COE, insurance, and fuel, eat significantly into the budget.

This is where government support makes a tangible difference. Programs like the baby bonus, Child Development Account (CDA), childcare subsidies, and tax reliefs directly offset these costs. For my family, these incentives made having a second child financially feasible, without them, we might have thought twice.

Government Says Money Isn’t Main Problem, But I Feel It Is

It’s true that cash alone cannot solve long working hours, career pressures, or societal trends that delay marriage and childbearing.

Yet from my perspective, financial support is foundational. It reduces stress, allows parents to focus on their children rather than constantly worrying about bills, and makes the choice to have more children feel possible rather than overwhelming.

In other words, while money isn’t the only factor, it is the key enabler that lets couples act on their desire to grow a family.

Policy Suggestions: Beyond Cash

Financial incentives help, but practical policy adjustments could further ease the burden for parents. One area that impacts daily life is transportation:

  • PHV (Private Hire Vehicle) Rules – Currently, PHV drivers cannot carry children without a car seat, unlike taxis. This limits options for parents who need to travel with kids and a helper. Allowing PHVs to carry children with proper safeguards could reduce reliance on expensive taxis.

  • COE or Car Rebates for Families – Offering a Certificate of Entitlement (COE) rebate or other car ownership incentives for families with two or more children could make car ownership more financially sustainable.

Such measures would directly address real-life challenges that parents face, complementing financial incentives and making the decision to expand a family more feasible.

Lessons From a Father of Two

For parents considering expanding their family, here are some practical takeaways:

  1. Plan Financially, Early – Savings, insurance, and education funds reduce stress and make costs predictable.

  2. Leverage Government Support Fully – Baby bonuses, CDAs, tax reliefs, and childcare subsidies are crucial.

  3. Consider Lifestyle & Transport Needs – Money helps, but practical support like transportation options can make a huge difference.

The Bottom Line

Singapore’s TFR of 0.87 is alarming, and government studies may emphasize structural or cultural reasons over cash incentives. But from a father’s viewpoint, money is not just helpful, it is essential. It transforms the decision to have children from a financial gamble into a manageable, realistic choice.

If Singapore wants more children, it must continue to invest in families financially, making parenthood a viable and supported choice. For families like mine, these measures are not optional, they are the difference between thinking “we can do this” and “we can’t afford it.”

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