Published August 19, 2008

Longer maternity leave to battle baby blues

It will be raised by another 4 weeks and govt will pay for the difference: PM Lee

By LEE U-WEN
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(SINGAPORE) Workplaces here will become more family-friendly than ever before as Singapore pulls out all the stops to encourage its citizens to have more children. Most significantly, maternity leave will been upped yet again, from the current 12 weeks to 16 weeks.

Also, the two days of childcare leave that parents now enjoy will be tripled to six days, while each parent can now claim up to a week of unpaid infant-care leave until the child turns two.

These plans were spelt out in Prime Minister Lee Hsien Loong's wide-ranging National Day Rally speech in English on Sunday. His key message to Singaporeans was: get married, preferably earlier; and have children, more than one if you can afford it.

The government will smooth the way for this.

For one, it will foot the bill for the extra four weeks of maternity leave that Singapore's workplaces will now offer. Said Mr Lee: 'Maternity leave was extended by four weeks in 2004 (paid for by government), to 12 weeks. This was welcomed by many mothers. We will extend this by another four weeks to 16 weeks, also paid for by government. Mothers can claim (these extra four weeks) any time in the year from the birth of the child.'

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Click here for the NDR speech: Part 1

Part 2

Part 3

Part 4

The measures Mr Lee announced will cost the government $700 million a year, bringing to almost $1.6 billion it spends a year to boost Singapore's falling birth rate.

Mr Lee also promised to enhance the baby bonus scheme for first-time parents and provide greater tax incentives to encourage more mothers to work.

The current total fertility rate is just 1.29 - just a shade above the historical low of 1.26 recorded in 2004 and well below the replacement level of 2.1.

'This is a deep problem, which we will have to revisit periodically. It's about mindsets, personal choices and values. Please put emphasis on marriage and family, and make these your priorities in life,' he urged.

While he went on at length to stress the severity of the fertility rate problem, Mr Lee took time to give his outlook on the state of Singapore's economy, and the picture was not a rosy one.

Just a week after the government downgraded this year's growth forecast to between 4 and 5 per cent, Mr Lee warned that 2009 would be a year of 'slow growth and more uncertainties', although this was not expected to reach crisis levels.

He described the revised 2008 forecast as 'not bad', stressing the fact that the Republic has remained competitive and able to attract investors who still want to come here. He was also confident that Singapore would be ready to bounce straight back up when the global economy recovers.

Singapore, however, is 'starting to feel the impact' of the global economic woes faced by the US and Europe. The 'hottest topic' among Singaporeans is the rising cost of living, with inflation now a worldwide problem, he said.

He reminded Singaporeans that they have already received many handouts from the government as part of the Budget surpluses, adding that 'most people have forgotten how much they are getting'.

Still, with inflation turning out 'higher than expected', Mr Lee said that he had studied the Budget position and decided to do more to help citizens cope with the rising cost of living.

To cheers from his 1,700-strong audience at the University Cultural Centre, he announced a further $256 million in handouts and rebates to be given out this year, which means that the average household can expect to receive an additional $250 to $330 on top of the benefits they are already entitled to.

This will be done in two ways: First, when the second instalment of Growth Dividends is paid out on Oct 1 this year, the amount will be 50 per cent higher. Most Singaporeans living in HDB flats will get between $75 and $150 more, said the Finance Ministry in a statement yesterday.

Second, the total amount of Utilities-Save (U-Save) rebates this year will be increased, also by 50 per cent. A family living in a one- or two-room flat, for instance, will now get $330 worth of such rebates, instead of $220. Those living in a four-room flat would get $285 in total, up from $190 previously.

Mr Lee, however, had a word of caution for Singaporeans: 'Please don't think hongbaos will solve the problem. We can't give hongbaos all the time. The best solution is still to keep the economy competitive, become more productive and earn more for ourselves. Then, we can raise our standard of living, despite the increase in oil and food prices.'

Besides the hot potato of inflation, Mr Lee touched on the recent hike in Electronic Road Pricing (ERP), which he acknowledged has upset many people but the decision was taken regardless in order to keep traffic flowing smoothly.

Before closing his two-hour address, Mr Lee had a message for those who have criticised the government for overemphasising economic performance. 'In fact, growth is critical. It gives us the resources to solve our problems,' he said.