Chpt 2 Solutions to boost the Population

4. Population Policy

Q1. The key to sustainable population growth is by attracting foreign talent to Singapore. How far do you agree? Explain your answer.

Q2. The following are methods used by the government to increase Singapore’s population.

a) Pro-family measures (including financial incentives like the baby bonus scheme)

b) Foreign talent scheme

c) Use of Medisave for child-delivery related expenses

Which do you think is the most likely to help Singapore achieve sustainable population growth? Explain your answer.

Factor	Explain why this approach is effective/ineffective in increasing Singapore’s population
1.Graduate mother’s scheme	Ineffective: Graduate mothers were give incentives when they had children while non-graduate mothers were not given such incentives à The scheme assumed that graduates would produce more intelligent children and was meant to encourage more gradates to have children à However, this concept was not well-received by non-graduate Singaporeans and was viewed as elitists and discriminatory as non-graduates did not enjoy the same incentives as the graduate mothers when they had children à Hence, the scheme was scrapped after just 1 year. Thus the graduate mother’s scheme was not at all a success since it was not even given enough time for its effectiveness to be effected.
2. “Three or more if you can afford it” campaign	Ineffective : An advertising campaign meant to The have 3 or more if you can afford it campaign was merely a TV, print and radio advertisement series which did not address the root cause of why Singaporeans were not having children which was because of the lack of family time and the high financial costs. Hence, this approach did not work and was ineffective as it merely tried to encourage by showing the positive side of being a parent via advertisements.
3. Use of Medisave to pay for the a) delivery charges, b) pre-delivery charges and for c) assisted conception procedures	Effective The use of Medisave gave Singaporeans more financial options when it came to cover the cost of child-birth. This approach helps to make it more affordable for parents to have children. It could be that some Singaporeans avoid having children because of the high expenses linked with child-birth. Medisave is part of a person’s CPF savings and can only be used for medical expenses. Hence by having such medical expenses for child-bearing covered by Medisave, the parents would not have to come out with their own cash for child-bearing cost à with lesser direct financial cost in having children, parents may feel willing to have more children since they can afford to. Example: For example Medisave can be used include the delivery charges, pre-delivery charges and assisted conception procedures. This may make it more attractive for parents to have children since it is less of a financial burden now with the use of Medisave for these child-bearing procedures. Medisave can only be used for medical needs and thus being able to use it for child delivery expenses is of great financial help to parents. Although it is their own money, it is better to use this than use cash which can be used for other purposes.
4. Baby bonus Scheme – Please refer to Baby Bonus Scheme handout for details	Effective Explanation: The baby bonus scheme which was enhanced in 2004 provided cash handouts from the government for the 1st to the 4th child totaling $18,000 and dollar for dollar financing into the child’s CDA(Child development) account up to $30,000. This scheme is extremely helpful for all families as it helps families to cope with the cost of raising a child. Besides the cash handouts, the CDA accounts can also be used to pay for school fees and medical care for the child. Hence, this helps to reduce the financial burden of raising a child. Hence with less financial burden to raise a child, Singaporean parents might want to have more children. Explain the example: For example, a parent that contributes $12,000 into the 3rd child’s CDA will get another $12,000 deposited there by the government. This additional money in the CDA can be used to offset the cost of tertiary education which can be very high. Hence, this will assure parents that there will be some financial help for the children’s needs and thus this may encourage them to have more children.
5. Pro-family measures [In support of Family measures] a. 5 day work week for civil service	Effective Explanation: The 5-day work week may mean more time for the children as it means a complete weekend available to attend to family matters and this might make Singaporeans feel that they will have time to spend with their children if they have more children as they now have a free Saturday morning to spend with the family. This extra time available will give parents more time per child and allow for better child-parent relationship to be developed and this would encourage parents to have more children. This may encourage more parents to have more children.
b. Income tax relief of $3000 if a grandparent is helping a couple take care of their child.	Effective Explanation: The parents would be able to pay less in income tax because of the tax relief of $3000 if they stay with their grandparent. With grandparents living with them, parents may feel that they do not mind having more children as there are people whom they trust on hand to take care of their children. Hence, with more hands helping out, more parents will be encouraged to have children.
c. Extended maternity leave – from 2 months to 3 months.	Effective Explanation: Extended maternity leave would encourage child-bearing because mothers will feel they will have enough time for their children immediately after child-birth and during the crucial first few months. The mothers will also have enough time to recover from giving birth. This will cause parents to want to have more children and hence they will be able to increase Singapore’s population.
d. Equalized medical benefit such that both mothers and fathers could make medical claims for their children their from their employers	Effective Explanation: Equalized medical benefit mean both parents can use their employer’s insurance coverage to pay for their children’s medical bills.[ In the past, only the father could do this] This would help reduce the financial burden of medical bills for bringing up their children since both parents can use the medical insurance of their employers for their children’s medical bills. Hence, this would motivate parents to have more children since the cost of bringing up children is more manageable now.
6. Foreign talent scheme Population growth by encouraging immigration.	Effective Explanation: The foreign talent policy = Liberalized immigration policy à makes its easier for foreigners to work and live in Singapore à aims at increasing the population by having more foreigners work and live in Singapore by offering foreigners subsidized housing and attractive education package for their children. This method helps to increase the population immediately especially if these foreigners who are attracted to work here find the environment suitable to stay for the long-term and choose to become citizens. Some may even marry Singaporeans and have a family here and thus this will help increase the population of Singapore. However, the permanent success of this approach depends on how well the new immigrants who become Singaporeans integrate with other Singaporeans. Otherwise, they may feel left out or unable to gel with the rest of society and may well give up their citizenship and return to their place of birth.