Andrew Loh
Fees for childcare services have been in the news lately. And it is no wonder why. Operators have either increased their charges or are thinking of doing so. These centres include not only privately-run ones but also those run by the PAP Community Foundation (PCF).
The Today newspaper reported in July 2008 that “some 1,500 students attending the seven PAP Community Foundation (PCF) kindergartens in Woodlands will see their fees shoot up by 30 to 100 per cent from July.” Minister for Community Development, Youth and Sports, Dr Vivian Balakrishnan, defended the increase. He said, “If you want better services, you want more convenient services, there will be inevitably some increase in cost, which the operators will also have to cope with.” (Straits Times)
The Today report also said:
Woodlands kindergartens in Blk 601 and Blk 875 will hike monthly fees from $50.90 to $110 per child because they will be air-conditioned. Air-conditioned kindergartens in blocks 899B, 652 and 824 will increase fees from $86.60 to $110, while non-air-conditioned ones in blocks 624B and 853 will hike theirs from $50.90 to $95.
Nurseries run by PCF Woodlands will also see a $20 to $30 monthly fee increase from July.
This year, many parents have been informed that their childcare centres are upping their fees again. This prompted Dr Balakrishnan to urge operators to keep fees “affordable”. “Given this benefit and the economic downturn, childcare centres should play their part in ensuring the affordability of childcare services for our families and children,” he said in Parliament on February 2009.
The first question one would ask is: Why did the minister defend the PCF’s raising fees while urging private operators to “refrain from increasing their fees”? (Straits Times)
Perhaps the reason is that the Jobs Credit Scheme (JCS) has since been introduced. The JCS gives cash grants to employers to help lower the cost of hiring local workers. They get up to $300 a month for each worker. This, however, does not seem to stop employers from raising their charges. One school is reported to be increasing its fees by $70 in April.
With Singaporeans trying to cope with the economic downturn, it would seem that subsidies by the government may be the excuse businesses use to raise fees. After all, with all these generous subsidies, parents should be able to afford the charges. Indeed, this was what Dr Balakrishnan seemed to have said in September last year, that the significant increases in subsidies should be enough to offset any fee hike.
Prime Minister Lee Hsien Loong had announced, in his National Day Rally speech in August 2008, a doubling of monthly subsidies for working mothers from $150 to $300 a child. Infant-care subsidies went up from $400 to $600. This was part of the Enhanced Marriage and Parenthood Package (EMPP).
The EMPP “seeks to foster an overall pro-family environment in Singapore through a broader range of measures that offers greater support in both financial and non-financial areas,” according to the Ministry of Manpower website.
On 20 March 2009, the New Paper reported:
Last September, The Sunday Times reported that a month after higher childcare subsidies were announced, 17 of the 20 childcare centres it contacted indicated their intention to raise fees by $30 to $120 a month.
According to an MCYS spokesman contacted by the New Paper, since childcare centres are private businesses, they can increase fees at their own discretion. They need only inform MCYS and the parents of a fee revision at least two months before the implementation.
One wonders what the purpose of informing MCYS is, if the ministry is not able to do more than keep track of the increases in fees.
Prime Minister Lee Hsien Loong’s announcement of the Enhanced Marriage and Parenthood Package last year was aimed at getting Singaporeans to get married and have children. It was welcome by many parents who saw it as the government shouldering part of the financial burden of raising children.
However, the seemingly indiscriminate raising of fees by childcare centres may be discouraging would-be parents from having children. It also may be a sign that businesses are exploiting the government’s well-intentioned subsidy schemes aimed at helping businesses stay afloat during these bad times.
It is hard for one to understand how with the EMPP and the JCS in place, childcare centres would still need to increase their charges, some by very significant amounts.
Obviously, something is wrong somewhere.
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Picture from Straits Times.
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Perhaps the PAP Community Foundation made substantial losses from the global financial crisis. The only way to recover that sum loss is over-charge parents at their expense.
This is typical MIW style……give you $1 now, but take back $10 shortly!!
I am a father to be in 1.5 months time. Infant care services charges ranges from S$1300 to S$1700 per month.(excluding the pamper, foods, etc costs) And each centre only has vacancy for about 10 to 15 infant.
The official ratio permitted is 1 “teacher” to 5 infant ( most claimed that they r working on a 1:3 ratio. And most worker except the principals/supervisors are FT or FW (i really dun know how to differiential them now because whole s’pore is flooded with them!)
There is a clear shortage of infant care centre to cater for the population !!
Yes, subsidary has increased from $400 to $600 but guess wht ? do a search & it will not be surprising that infant care cost has went up more substaintially too.
I am not say here that our govt shld help us to raise our children. What I am advocating that COST of Living has to be moderated !
These are issues that directy affect the decision whether we Singaporean (those born and grow here) will decide whether we want to have kid;
Answer these questions and the problem
1) Job Security – Any? I doubt , even you upgrade that doesn’t mean u will get a job. Even you get a job, that doen’t mean you will get a reasonable pay because you are always competing with FT !
2) Cost of living – even raising. It is near immpossible now to raise a family within both partners working! Anyone of the partner lost their job, the family will be in “trouble”
3) Medical cost – means testing tell it all !
4) Don’t forget about your parents you have to take care of too!
Unless and util all these basic questions can be answered , otherwise I guess the ’short-cut” way to increase population is thru “import” of FT.
That why it reallly puzzled me when i heard questio n like why s’poren choose not to have babies! To me, that is a no brainer question.
costs is going up everywhere…it is inevitable that childcare centres up their fees…everyone wants high wages, landlords want high rentals etc…because of what?..because things are getting more and more ex in Singapore. $2 in the past can get one a decent meal at a hawker centre. Now it is $3 or more. HDB flats are getting more expensive, condos are beyond the reach of many singaporeans. I have to agree that something is really wrong somewhere…do we really aspire to be the most expensive city to live in?..
At a time when parents are faced with possibility of salary freezes, job losses
how can childcare centres still raise their fees if their service standards remain
the same. Especially those premium childcare centres whose fees are
already high and they had already raised their fees mid last year when the
economy is still good.
And government agency like the MCYS have a social responsibility to regulate and provide a guideline for childcare operators as pre-school education is something that cannot be interrupted by a fee revision and most of the time, parents are only informed about the fee revision probably 2-3 months before they implement the fees increase. At this state of the economy,
fees revision should be hold back till the economy gets better.
The government should play an active role by looking into lowering the rentals of childcare premises so that childcare operators do not have to always turn to parents to cope with rising costs. Dr Balakrishnan explanation that fees increase due to air-conditioned premises for PAP education centres that I can understand.
But it doesn’t apply to other cases which I see not much changes after fee revision, the service level remains, i.e. my son is in the Little Skool House,
a premiun childcare managed by NTUC Childcare. They had a fee increase
last July and now I heard they are going to have another fee increase this July.
I felt they must be kidding, we are in a recession, can’t they ask the landlord for a decrease in rental instead of taxing the parents all the time?
“Dr Balakrishnan explanation that fees increase due to air-conditioned premises for PAP education centres that I can understand.”
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That’s bullshit……it’s just a convenient excuse. We don’t need aircon, so remove them. In fact, it is better for a childcare centre not to have aircon
Air-con– it seems each child is incurring a cost of $30 to $50 in electricity. –must be some hot babies
When things are getting worst–prices should be going down but only in sweet SG –SOME prices go up. Economist call it elasticity–SG govt knows how to work very well around this concept.
Further Singaporeans–Do they have a choice…nope….so they should suffer.
I for one feel that more people need to suffer like this so that they realise that things aren’t excatly right here. Perhaps more oppositions in parliment will get some things changed….till then i hope more suffers..I am bad..i know …for the greater good…..
Guess what, the govt will come out to prove their case with mighty economics…it’s all bull…mostly tough….not all…there are ways other countries are making a fantastic way of living…look at Sweden…doesn’t squezze it’s people…..
this is happening in Singapore becaue people like it…i belief …in fact most people enjoy it… Stokholm syndrome….they claw their way up somehow..not realising their powers….and some do break….and at times when the strain gets too tough the govt loosens it with a gift…wah lah…everything is forgotten…then back on the treadmill….that’s why I say more should suffer…..untl the noose breaks….
They need the FT’s lah..they are buying all your houses and HDB flats…do you know how much of credit creation is taking place and how do you expect the govt to keep prices as high and steady…if they are not invited…then who or how is the property prices going to remain steady. You think it’s just jobs …arh arhhh…nope…govt doesn’t care who gets the job…or even if you are under employed..as long as you work..you can pay..mmmm. FT works they pay…
With Jobs Credit, cost of operations should have come down so childcare operators who intend to raise their fees must justify and provide valid reasons,
especially now when our country is in the midst of the worst recession.
Costs must be contain, rentals must come down, otherwise things
will remain expensive. The government must help to contain costs and regulate,
otherwise how do you expect people to cope, with lower salaries and job uncertainty?
The childcare subsidy given to both working and non-working
mothers should be the same. In the current job climate, working mothers
can become non-working mothers due to job loss. It makes their situation worse by making them pay higher childcare fees due to lower subsidy which is both unhelpful and unfair.
For non-working mothers, it is even harder for them to find appropriate employment in the current job climate and having to cope with higher childcare fees with only single family income.
How can our social policy be so discriminative and insensitive? It is meant to encourage more women back to work but surely it needs to be reviewed and changed effectively taking into consideration the current state of economy and job climate where there are so few jobs available.
Prettyplace #7;
it is time to stop participating in all charity activities. If the citizenry helps to solve much of the financial problems of other fellow countrymen, the Government will never get to understand the severity of the problems the people face.
There is a need to let the situation develops without the interventions of self-helps within the population for those in the Ivory Towers to come out with solutions to the problems they created.
Think about it, neither Prettyplace or me are having hearts of stones, it is the Leadership that lacks conscience.
Just to let those dont know abt this, the doubling of monthly subsidies for working mothers from $150 to $300 a child. Infant-care subsidies went up from $400 to $600. These are only applicable to Singapore CITIZEN. PRs are NOT granted any subsidy !
As a Singapore Permanent Residence, we (my family and I) are treated like any other foreigners, despite we paying the same amt of taxes, contributing same amt of CPF, etc, as the citizens. When it comes to benefits, PRs are not getting any. Even if there are, they have been taken away. Maybe the government thinks that the PRs are not important. Or maybe not. They know that PRs and foreigners are important to Singapore. It is just that, they think the PRs are foreigners are stupid and dumb to realize that. But they are wrong
I have 2 kids attending childcare center. I am paying $570++ for each child. The citizens are paying ($570 – $300) = $270 ! This is cheaper than hiring a maid.