Model of how the baby bonus and foreign labor ratio affect Singapore working-age population
Different aspects affect the working-age population of different countries across the world. This essay’s country of interest is Singapore, whose working-age population is affected by the foreign labor ratio and the baby bonus. Before getting to understand how the two factors affect Singapore’s population, it is good to know their meaning. Baby bonus refers to the amount of money that the government gives to parents of newborns or adopted children. According to Zhang, it helps relieve the parent part of the financial burden of childrearing (Zhang et al. 2012). Foreign labor ratio refers to the comparison between the foreign costs and benefits of a country. The two factors greatly affect Singapore’s working population, as discussed below.
Baby bonus
A middle-income household in Singapore having two children receives different government incentives, which may total to $121,400. If the household gets subsequent children, the household receives $8,000 in addition. The parents get $20,000 parenthood tax rebate. The data below represents the breakdown of the benefits that the households receive. All the values are in US dollars.
Table 1: Parenthood and Marriage packages of Singapore
| The incentive types for the 1st and 2nd born | Types of assistances (USD) |
| A cash gift of the baby bonus | 12,000 |
| CDA co-savings for the baby bonus | 12,000 |
| Tax rebate for parenthood | 15,000 |
| Child care and infant care subsidies | 53,000 |
| Every child’s maternity leave | The mother gets 4 months leave and the father can get a share of one week |
| Paid paternity leave for every child | One week |
| Child care leave | 6 days up to the time when the child attains 7 years |
| The sum amount until the children attain 13 years | $166,000 |
(“Baby Bonus”, 2020)
The introduction of a baby bo9nus scheme in the country aimed at improving its fertility rate. This was through the provision of cash incentives and reduction of the financial burden for taking care of children. It encouraged parents to give birth to more children, which increased the country’s population. The increased population had a positive impact on the working population of the country. People know that they don’t have to spend a lot of money caring for their children (Han and Chai, 2012). Therefore, they end up giving birth, knowing that the government offers them baby bonuses.
It is worth noting that Singapore is among the list of countries that exhibit low birth rates. Different governments have tried to reverse the occurrence with little success. Singapore’s birth rate stands at 1.14 births for every woman. For a nation that looks forward to increasing its population, the average birth rate must be 2.1 children per woman. Low birth rates have a negative effect on the working population of the country. A low population means that there is limited availability of labor. Therefore, the production of the workforce has limitations, which affect the country’s productivity.
The baby bonus scheme has slightly helped increase the working population, which is evident from the statistics on waldometer. The population currently stands at 5,862,508 (“Singapore Population (2020) – Worldometer”, 2020). A better part of the population falls between 18 and 50years. It is worth noting that this part of the population has the ability to work and be productive for the country. Therefore, the baby bonus has helped improve the country’s working force by increasing its population. The table below shows the county’s age distribution and indicates the majority of the population that make up the workforce of Singapore.
(“Singapore Age Demographics | Singapore Healthcare”, 2020)
Foreign labor ratio
Singapore has a large foreign workforce. Different foreigners work in the various industries of the country, including construction and marine shipyards. The foreign labor ratio has affected the workforce of the country. It depends on foreign nationalities to perform the work they are unwilling to handle. The country is an open economy regarding direct investment and labor inflow. It is surprising that by 2010, the country’s citizens made up only 63.9% of the total population. The foreign nationals add up to 34.7% of the country’s working population. The high ratio depicts Singapore’s increased labor demand and the limited domestic labor supply because of the reduced fertility rate. It is good to know that the large ratio shows the absence of xenophobia in the country. Singapore depends on foreign nationals to grow its population and the Gross Domestic Product. The foreigners help in filling up the gap in skills and labor supply. Foreign dependence helps Singapore to maintain international competitiveness. However, the effect of the workforce is that it has led to delays in economic restructuring, which extensively affects performance productivity. The chart below gives a clear depiction of the foreign labor ratio in the country.
(“Singapore’s population grows to 5.7 million, boosted by an increase in foreign workers”, 2020)
The occurrence has a motivation of the dual-track labor policy that the country contains and the lack of restrictions of the foreign skilled people. The foreioghnat6ionals get work permits and levies depending on their skills and experience. They have led to the growth of productivity in the working population of the nation. An increased population ensures that there is increased consumption of the goods produced in the country. It provides a good market for products. Foreigners contribute to the country’s economic growth by getting involved in different sectors of the economy. However, there is a need for the country to minimize its foreign dependence. The reason is that it has to accelerate its productivity growth. There is a concern by Singapore’s citizens that there is overcrowding of jobs and public amenities. However, employers always complain of their inability to get Singapore nationals willing to work for the low pay they offer. This is why the Chinese are widely spread in industries like construction, which call for the incorporation of manual labor.
Another point to note is that the foreign nationals get low pay despite working for long hours. Research shows that some of them work in hazardous conditions and are subject to abuse by employers. The same foreign population contributes to the increased per capita income of the country. Therefore, Singapore is a good destination for any foreign national, aiming to work away from his country.
Conclusion
The factors discussed above have a direct effect on Singapore’s working population in different dimensions. The data is clear evidence of the situation in the nation. It is the country’s dream to have many of its citizens in the productive sectors of the economy. The dream shall help reduce foreign dominance and promote national inclusivity in the job market. It is worth appreciating that other factors affect the working population, which are not addressed in this essay.
References
Baby Bonus. (2020). Retrieved 12 November 2020, from https://www.madeforfamilies.gov.sg/raising-families/baby-bonus
Han, C. K., & Chia, A. (2012). A preliminary study on parents saving in the Child Development Account in Singapore. Children and Youth Services Review, 34(9), 1583-1589.
Singapore Age Demographics | Singapore Healthcare. (2020). Retrieved 12 November 2020, from https://platform.globig.co/knowledgebase/SG/landscape/demographics-on-aging-in-singapore
Singapore Population (2020) – Worldometer. (2020). Retrieved 12 November 2020, from https://www.worldometers.info/world-population/singapore-population/
Singapore’s population grows to 5.7 million, boosted by increase in foreign workers. (2020). Retrieved 12 November 2020, from https://www.channelnewsasia.com/news/singapore/population-number-singapore-foreign-workers-new-citizens-11941034
Zhang, Y., Yeung, W. J. J., & Sun, S. H. L. (2012). Care expectations, mismatched: state and family in contemporary Singapore. International journal of sociology and social policy.