SINGAPORE, Feb 28 — Singapore’s total fertility rate (TFR) continues to decline and is estimated to hit an all-time low of 0.97 in 2023, said Minister in the Prime Minister’s Office Indranee Rajah in Parliament today.

Singapore’s TFR has been on a downward trend since 2018, when it was 1.14. It continued to fall to 1.12 in 2021, followed by 1.05 in 2022.

“There are various reasons for Singapore’s low fertility. Some are temporal, for instance, couples that had their marriage plans disrupted by Covid-19, which may have in turn delayed their parenthood plans,” said Ms Indranee during a debate on the budget for the Prime Minister’s Office, which includes the National Population and Talent Division (NPTD).

“Others cite concerns about the financial costs of child-raising, pressures to be an excellent parent, or difficulties managing work and family commitments.”

Ms Indranee, who is also Second Minister for Finance and National Development, said that Singapore is confronted with “twin demographic challenges” of a persistently low fertility rate and an ageing population.

She pointed out that these challenges “are not unique to Singapore”, and other advanced societies, such as South Korea and ASEAN countries, such as Malaysia and Thailand, have also grappled with their fertility rates.

European countries, such as Italy and Spain, have also continued to see “record lows” in their birth rates yearly.

As such, Singapore’s falling TFR reflects a “global phenomenon where individual priorities and societal norms have shifted”.

A falling TFR and what this means for Singapore

A falling TFR has “serious implications” for Singapore’s future, she said, with sandwiched couples having to bear the brunt of caring for the young and old.

Additionally, with more Singaporeans remaining single, it would also result in “weaker familial support networks” when they are older.

Aside from the social impact of a declining TFR, Ms Indranee said that there would also be a significant impact on the economy, as a “vibrant economy” is ultimately driven by people, and with fewer births, Singapore’s workforce will be affected.

“A strong and vibrant economy is critical for Singapore, as it helps raise our standard of living and gives us resources to tackle challenges,” she said.

She gave the example of South Korea and Italy, where both countries faced economic slowdowns and declining wages, further compounded by low fertility and the resulting demographic changes.

“It will be increasingly challenging to maintain our dynamism, attract global businesses, and create opportunities for the next generation.”

“Fundamentally, we need more Singaporeans,” Ms Indranee said in response to questions raised by Member of Parliament (MP) Mr Patrick Tay of Pioneer Single Member Constituency (SMC) and Mr Yip Hon Weng of Yio Chu Kang SMC about key population outcomes.

Building a family-friendly singapore

Despite the declining TFR, Ms Indranee said many young Singaporeans still see marriage and parenthood as significant milestones, even though they might not be as proactive toward these goals.

“The bright side is that our young Singaporeans still aspire towards marriage and parenthood.”

To support marriage and parenthood, the government will provide “a conducive environment” for couples who wish to start a family.

Indranee noted how Budget 2023 has a number of announcements aligned with this, including enhancements to the Baby Bonus scheme, a Parenthood Provisional Housing Scheme (PPHS) (Open Market) voucher to help couples rent a flat on the open market before their Build-to-Order flat is ready and the lowering of the childcare fee cap for Anchor and Partner Operator pre-schools.

She added that the government is working to mandate two additional weeks of paternity leave, which was announced during last year’s budget, “as soon as possible, to benefit more fathers” in response to questions posed by Louis Ng of MP for Nee Soon Group Representation Constituency (GRC).

At the same time, Indranee noted that with additional leave provisions in place, there may be workplace adjustments and that employers may face challenges in making arrangements to cover employees’ extended absences.

To this, Indranee said: “We are therefore actively exploring how to increase paid parental leave.”

Granting citizenship to boost TFR

To moderate the impact of low birth rates and ageing trends, Singapore has been granting citizenship at “a measured and stable pace”, said Indranee.

In 2023, Singapore granted about 23,500 new citizenships, including about 1,300 to children born overseas to Singaporean parents. In the same year, Singapore also granted about 34,500 new Permanent Residencies (PRs).

In 2022, 23,082 individuals were granted citizenship, and 34,493 individuals were granted permanent residency.

In terms of maintaining the racial balance of Singapore’s citizen population, Indranee said in response to Workers’ Party MP for Aljunied GRC Faisal Manap that the inflow of immigrants is “carefully managed”.

“The pace and profile of our immigration intake has been and will continue to be managed to maintain the racial balance in Singapore’s citizen population,” she added.

She noted that Singapore is constantly looking ahead to its future population needs when it comes to granting citizenship. For example, Singapore granted a higher number of PRs to healthcare workers to support the country’s growing healthcare needs. — TODAY