For an ageing nation like Singapore, the government offers cash bonuses of S$8,000– SG$10,000 or approximately RM30,000 for every baby a couple has. And that’s not all – there’s a matching grant of up to S$15,000 per baby.
By the way, many countries have become ageing nations, and it’s an issue that it is not limited to advanced nations.
Another country that just announced awesome deals for families with babies is Hungary, a country in Europe that is part of the European Union (EU).
According to an article by CNBC, any couple with a total of four babies will enjoy ZERO income tax for life.
Hungary’s prime minister announced a waiver on personal income tax for women raising at least four children for the rest of their lives and subsidies for large families to buy larger cars.
- A loan programme to help families with at least two children to buy homes.
- A preferential loan for every woman under 40 when she first gets married.
- The creation of 21,000 creches.
- Childcare fees for grandparents if they look after young children instead of the parents.
Hungary is worried about its declining birth rates that are below the EU average.
In Hungary the crude birth rate in 2017 was 9.7 per 1,000 residents, just below the EU average of 9.9 per 1,000 residents.
In 2017, 94,600 live births were registered in Hungary versus 131,900 deaths, equating it to a population decline of just over 37,000 people, according to Eurostat data.
Will the Malaysian government ever do something similar? Perhaps we have not reached that stage yet but by 2035, the government will have to get really serious about the issue of an ageing population.
But given the choice, how many women would opt to have four children just to enjoy zero tax on their incomes? Or would they rather pay the yearly income tax and be done with it?
This article first appeared in kopiandproperty.com
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.