14 December 2021
Decreasing birth rates are shining a light on Asia’s economic sustainability. In response, many governments are considering incentives to encourage larger families. These evolving policies will be vitally important, as the region looks to sustain a fast-greying population. Asia’s demographic trends may be broadly consistent, but different factors are in play depending on the birth rates and population goals in individual countries or markets.
Here are some interesting demographic numbers.
 -0.5 Japan
The need to reverse Japan’s falling fertility rate
In 2020, there was another dip in Japan’s fertility rate to 1.34 (around 0.5 below the government’s target of 1.8 by 2025), which is among the lowest in the world. This ongoing weakness only adds to existing concerns about the damage this decline is having on the economy.
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 13% Thailand
Thailand’s shrinking workforce
Thailand’s population is ageing rapidly, and the trend shows no sign of abating. The number of people aged 65 or older is projected to rise from 13% at present to 31% in 2060. Should this increase prove accurate, it could cut 0.86% from the country’s economic growth in the 2020s.
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Keeping an eye on income and spending is not easy. However, working to a budget can simplify matters. Once you have established a reliable system that tracks your money, you’ll find it easier to take control of your finances.
 2=SGD 31,000 Singapore
Improved baby bonus in Singapore
Among the steps being taken in Singapore to halt a decreasing fertility rate is an increase in the baby bonus paid by the government on the birth of a second child. Eligible couples receive a cash gift and a development account that parents can match dollar for dollar. This account can be used to fund the child’s education and healthcare expenses. The terms of these payments were enhanced to as much as SGD 31,000 in 2021 as an incentive for families to have two children.
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 12 million China
China now allows three-children families
Census data in China showed that around 12 million babies were born in 2020, a notable fall from 18 million in 2016. Of greater concern is the fact that it was the lowest number of births recorded since the 1960s. Some observers believe that the main deterrent is the high cost of raising children in cities. Nevertheless, some people have decided to give birth a second time, and a further policy change targets this group. In May 2021, China increased the permitted number of children to three.
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 2 India
India looking to limit childbirth rates
India’s two most populous states have taken steps to ensure that families have no more than two children. In its largest state, Uttar Pradesh, where population density is more than double the country’s average, the state government is proposing legislation that would mean couples with more than two children would be denied benefits or subsidies. What’s more, they would be prevented from working for the local authority. A range of incentives is available to couples who sign up for sterilisation, including financial assistance to help buy or build a home.
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 3 Indonesia
Indonesia seeks birth reductions
Similarly, Indonesia also sees growth in its population. At present, the fertility rate is three children per woman. The government wants to bring that number down to an average of 2.1 by 2025. In response, the authorities are looking at measures that will reduce current numbers. These include family planning initiatives and improved contraception, as well as encouraging people to delay marriage until later in life.
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14 December 2021
Decreasing birth rates are shining a light on Asia’s economic sustainability. In response, many governments are considering incentives to encourage larger families. These evolving policies will be vitally important, as the region looks to sustain a fast-greying population. Asia’s demographic trends may be broadly consistent, but different factors are in play depending on the birth rates and population goals in individual countries or markets.
Here are some interesting demographic numbers.
|
-0.5 Japan The need to reverse Japan’s falling fertility rate
|
|
13% ThailandThailand’s shrinking workforce
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| 2=SGD 31,000 Singapore
Improved baby bonus in Singapore
|
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| 12 million China
China now allows three-children families
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| 2 India
India looking to limit childbirth rates
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| 3 Indonesia
Indonesia seeks birth reductions
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