I refer to the article "Govt reviewing Baby Bonus" (Feb 5).
I feel that the second part of the Baby Bonus scheme, whereby the Government matches dollar for dollar up to $6,000 for the first and second child each, is not practical. Most couples do not have $6,000 to deposit in the Children Development Account (CDA) to gain a matching contribution from the Government.
Besides, the money deposited in the account is a one-way deposit. The parents cannot withdraw the funds even to pay for things like school books, school uniforms or medical treatment.
There are many rules on the use of the CDA funds. Their use even for the child's, or his/her sibling's, education will only be allowed if the children attend approved educational institutions.
With all sorts of rules, terms and conditions, it is no wonder people are not even bothered with the scheme. The cash gift of $4,000 to $6,000 depending on birth order is not a big deal either. In today's context, how much can $4,000 benefit a child?
Each month, a child can chalk up $100 in formula milk, $200 in diapers, $200 in medical fees, if necessary. As such, $4,000 cannot even last one year.
The scheme can be considered a failure as the Total Fertility Rate (TFR) not only did not increase, it fell to an all-time low of 1.16, a far cry from the required 2.1.
One of the only few possible ways to increase TFR is to provide more incentives, instead of just funding.
The Government must look into the housing, transport, education and medical aspects of the issue.
Housing incentives include helping those with two or more children to afford five-room HDB flats by offering a huge discount and attractive interest rates from as low as 1 per cent. Transport to and from hospital for pre-natal checks, post-natal checks and childhood illnesses should be accorded to families.
Medical treatment/consultation should be provided, with assistance for consultation at private clinics. Larger discounts must be given at government clinics and hospitals. The child must be able to get such privileges till he/she turns 21.
As for education, we need to go beyond simply making the CDA funds available for the fees of approved schools. Their use should be approved for the purchase of items like school textbooks, stationery, uniforms and shoes.
All these will make raising a child less daunting for first-time parents and be a tremendous help to those who would like to have more than one child.
ORIGINAL SOURCE
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