Singapore is throwing money at a problem that has defeated it for the past four decades: convincing women to have more than one child.
Singapore's low fertility rate - 1.14 children - remains a national security issue and a threat to its existence and prosperity. Singapore's birth rate is one of the five lowest in the world, according to the World Bank.
Deputy Prime Minister Heng Swee Keat said the incentive would help reassure people facing financial difficulties and are worried about their jobs. The unspecified payment will help parents with expenses, he said.
"We have received feedback that COVID-19 has caused some aspiring parents to postpone their parenthood plans," said Heng. "This is fully understandable, especially when they face uncertainty with their income."
The hesitance to have children has increased with COVID-19. Now, Singapore is offering what is being panned as a "pandemic baby bonus" - or a one-time payment to parents.
The bonus is going to be a tough sell in Singapore which continues to suffer more than expected from the health and economic fallout caused by the pandemic. It also fails to solve the main cause of the low fertility rate: fewer women wanting to get married.
Singapore's fertility rate reached what was then the new seven-year low of 1.16 in 2017 - down from 1.20 in 2016. For a population to replace itself without immigration, women need to have an average of 2.1 babies.
"Singleness rate is the most important reason fertility rate in Singapore is low because among those who get married, only 10 percent do not have any children," said Prof. Jean Yeung, director of the Center for Family and Population Research, in 2017.
The bonus will also do nothing to assuage fears among prospective parents their baby might contract COVID-19. On Wednesday, the Ministry of Health confirmed 10 new COVID-19 cases, taking the country's total to 57,840.
Singapore has failed to boost its flagging birth rate since the 1980s. It is resorted to public campaigns encouraging childbirth and a host of financial and tax incentives.
"Like many developed countries, Singapore's key population challenges are our low fertility and an ageing population," said a government report in 2011.
"Our aim is to achieve a sustainable population that supports both economic growth and social cohesion, so that Singapore remains vibrant and livable."
