http://www.atimes.com/atimes/Southeast_Asia/OB06Ae01.html

Feb 6, 2013 

Baby-making push in Singapore

By Simon Roughneen 

SINGAPORE - Although Singapore's population is on course to rise from around 5 
million to almost 7 million by 2030, an influx of foreign workers has spurred 
the government to prod its brood-shy citizens into having more children. 

Almost half the country's population could be made up of foreigners in 2030 if 
Singaporeans fail to boost their fertility rate, which by certain rankings is 
currently among the world's lowest at 0.7. 

Singaporeans have not had enough children to stave off population decline since 
1976, back when national founder and former prime minister Lee Kuan Yew told 
citizens to "stop at two". He feared that the country's one-time world-record 
birthrates would overcrowd the then-developing city-state. 

The situation has since come full circle with Singaporeans among the region's 
most reluctant to start families. The week before a closely watched January 26 
by-election, the government announced an upgrade to an existing baby-making 
incentive program, posting new goodies on offer on a policy-promoting website 
called "Hey Baby". 

Though the government pledged to boost its annual budget on marriage and 
parenthood to S$2 billion (US$1.6 billion) from S$1.6 billion - with more money 
for state-sponsored dating games, housing grants, subsidized childcare and cash 
gifts for babies - Singaporeans seem to be of two minds about the incentives. 

Speaking outside the count center in the Punggol East constituency on election 
day, 38-year-old mother of two Joy Koh said that "the focus on the one-time 
payments misses the point; raising a child is a long-term thing." 

The governing People's Action Party (PAP) lost the recent by-election, its 
second consecutive loss since sweeping a 2011 general election. Three days 
later, the government published a White Paper on Singapore's demographic 
outlook through 2030, predicting among other things that almost 7 million 
people could by then live in the 700 square kilometer archipelago. Singapore is 
already the world's second-most densely populated country, trailing only 
Monaco. 

In response, the government said on January 31 that it hopes to add nearly 8% 
to the current land area of the city-state by 2030, through land reclamation 
projects and conversion of some of the island's 18 golf courses into 
residential areas. But Singaporeans will need to get used to a more cramped 
country, as the government says that increased numbers are needed to drive 
hoped-for economic growth of 3% to 4% up to 2020, and 2% to 3% the decade 
after. 

"If we do too little to address the demographic challenge, we risk becoming a 
steadily graying society, losing vitality and verve, with our young people 
leaving for opportunities elsewhere," said the government statement on the 
White Paper's release. 

The government has other schemes in mind to support a hoped-for population 
boom, including plans to build 700,000 new homes and double the national rail 
network to 360 kilometers of track by 2030. Despite usually efficient and 
notably modern infrastructure, Singaporeans are swift to complain about waiting 
lists for public housing and overcrowded public transport. 

Still, the government's baby-making incentives are not expected to offset the 
falling birthrates any time soon. Mahdavi Manicka, a clerical staffer at 
Raffles Hospital and a mother of two boys, said the government's "Hey Baby" 
package, though useful, is incomplete. "They are thinking of money costs but 
there are other things they don't think of," she said. 

Singaporean Joy Koh gave birth to her second child ten months ago, five years 
after her first. She said many young couples - if they have more than one child 
- opt for a similar lagged timeframe. "It is difficult to have two children 
close together: it costs up to S$8,000 for good private care, for example. A 
lot of couples have a four- or five-year gap between kids." 

To keep the population from shrinking, Singapore will need 15,000 to 25,000 new 
citizens each year, assuming the current total fertility rate holds. 
Singapore's non-resident population jumped from 797,900 in 2005 to 1,494,200 in 
2012, as the country's economy grew over 6% on average each year. Overall, the 
population increased by 1.1 million in the last decade, reaching 5.3 million in 
2012. 

But the foreign influx has prompted resentment among many Singaporeans, some of 
whom say the newcomers depress wages while inflating the cost of living. 
Singapore does not have a minimum wage standard, which some fear could reduce 
competitiveness in Southeast Asia, where Singapore ranks as a costly place to 
live and work and where lower-cost markets are close by. 

Stung by two recent by-election losses that some have interpreted as a show of 
popular resentment over policies aimed at attracting foreign workers, the 
PAP-led government acknowledged as much in its new population paper. It said 
that "We must rely less on foreign labor, use our resources better, and 
redouble efforts to improve productivity." 

That assessment came with the caveat that foreign workers must "complement" the 
local workforce, particularly since the government does not expect an 
improvement in Singapore's birth rate anytime soon. 

In another dilemma, Singapore's trade-oriented economy has been hit by 
slackening global demand for electronics and been hampered by the strong 
Singapore dollar and government measures that have made it more difficult for 
companies to hire low-wage foreign workers. 

On January 31, the Singapore government said local employment growth rose by 
59,200 workers in 2012, up from a 37,900 increase in the previous year. In 
contrast, the growth in foreign employment dropped to 70,400 in 2012, down from 
84,800 in 2011. 

At a PAP party rally before the January 26 by-election, Prime Minister Lee 
Hsien Loong posed related questions to the crowd, telling them that they cannot 
have it both ways. "Do we want faster growth or fewer foreign workers? Do we 
want more leisure or do we [want to] work harder for more money?" he asked. 

To some, the premier's jeremiads had a ring of truth. One of those listening, 
Calvin Ang, believes that Singaporeans are too materialistic - another factor 
in why couples choose to have so few children. Singaporeans are lampooned, 
often by themselves, for an apparent fondness for the "Five C's " - cash, car, 
credit card, condo and country club membership - meaning that for many 
Singaporeans, B (for baby) doesn't come before C. 

"The scheme is generous but I am not sure it will work, " said Ang. "A lot of 
people like to live outside their means and spend on things they cannot 
afford." 

Similarly, hospital staffer Manicka said decisions about having children come 
down to lifestyle choices. "Nowadays young parents seem to want to have their 
old single life, not be burdened with kids. That's a big reason why the 
birthrate is low." 

But an October survey conducted by OCBC Bank could offer some hope yet for the 
government. Implying that the "Five C's" are fast-becoming a C of another sort 
- a cliche - the independent research showed that many Singaporeans find solace 
in family, travel and health - all of which were deemed more important than 
owning a flash car or hobnobbing in a country club. 

Simon Roughneen is a freelance journalist covering Southeast Asia. He's on 
twitter @simonroughneen 

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