Beijing offers childcare subsidies to boost fertility
The high cost of childcare and education as well as job uncertainty and a slowing economy are among the concerns that have discouraged many young Chinese from getting married and starting a family.
Subsidies will start from this year, with partial subsidies for children under three born prior to 2025, in a policy expected to benefit more than 20 million families of toddlers and infants, the official Xinhua news agency said on Monday.
The plan is an 'important national livelihood policy' and direct cash subsidies would help 'reduce the cost of family childbirth and parenting', the National Health Commission said.
Demographers and economists said while the move was positive, the amount was likely too small to incentivise people to have children.
The country's population fell for a third consecutive year in 2024, with experts warning of a worsening downturn, after decades of falling birth rates following a one-child policy adopted from 1980 to 2015, coupled with rapid urbanisation.
In the past two years, provinces nationwide have started handing out childcare subsidies in amounts that vary considerably, from 1,000 yuan (RM589) a child to up to 100,000 yuan (RM58,940), including housing subsidies.
The government will fund the new national policy instead of local authorities, Xinhua said.
Zichun Huang, China Economist at Capital Economics, said the sums involved were too small to have a near-term impact on the birth rate or consumption.
'But the policy does mark a major milestone in terms of direct handouts to households and could lay the groundwork for more fiscal transfers in future.'
A nationwide scheme may offer some coordination and signal greater central commitment, said demographer Emma Zang, a professor at Yale University, but called for greater efforts.
'Without sustained structural investment in areas like affordable childcare, parental leave, and job protections for women, the effect on fertility is likely to remain minimal,' she added. — Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysiakini
2 hours ago
- Malaysiakini
13MP: Bumi agenda to continue, low-income Chinese, Indians to be uplifted
PARLIAMENT | The 13th Malaysia Plan (13MP) tabled by Prime Minister Anwar Ibrahim today sees the government continuing bumiputera economic agenda while introducing initiatives to uplift the socio-economic status of low-income Chinese and Indians. Parked under the plan's ninth initiative, Anwar said his Madani government is going with an inclusive approach to make sure the rakyat from every level can enjoy the benefits from Malaysia's development.
The Star
4 hours ago
- The Star
India vows to protect farmers as Trump's 25% tariff threat sparks opposition fury
FILE PHOTO: U.S. President Donald Trump and Indian Prime Minister Narendra Modi shake hands as they attend a joint press conference at the White House in Washington, D.C., U.S., February 13, 2025. REUTERS/Kevin Lamarque//File Photo NEW DELHI (Reuters) -India vowed on Thursday to protect its labour-intensive agriculture sector, a central sticking point in bogged-down trade talks with the U.S., as Washington threatened 25% tariffs, triggering outrage from the opposition and a slump in the rupee. Without a deal, the rate will go into effect from Friday and single out India for harsher trade conditions than its major peers, potentially damaging the economy of a strategic U.S. partner in Asia seen as a counterbalance to Chinese influence. Though negotiations are continuing, they have hit a wall due to the United States' insistence that India open its agricultural markets. New Delhi has long shielded the sector, which - with over 40% of the workforce engaged in farming activities - constitutes the most influential voting bloc in the world's most populous nation. "The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and (medium and small businesses)," India's trade minister Piyush Goyal said in a statement in the parliament. U.S. Treasury Secretary Scott Bessent said in a CNBC interview on Thursday that the U.S. trade team was frustrated with India, adding that the future of trade deal between the two nations was now up to India. U.S. President Donald Trump had said on Wednesday that, in addition to the 25% tariff on imports from India, the country would face an unspecified penalty for its dealings with Russia and its membership in the BRICS grouping of nations. "I don't care what India does with Russia," Trump wrote in a Truth Social post on Thursday. "They can take their dead economies down together, for all I care." India's benchmark equity indices, the Nifty 50 and BSE Sensex, fell as much as 0.9% in early trade before paring losses and both closing around 0.4% lower. The rupee closed 0.2% down at 87.5950 to the dollar after touching its lowest level in more than five months earlier in the day. COOLING RELATIONS The government's failure to clinch an agreement with Trump, even as other major world economies like the European Union, Japan and South Korea have struck deals in recent days, sparked anger among India's political opposition. "The government has destroyed our economic policy, has destroyed our defence policy, has destroyed our foreign policy," opposition leader Rahul Gandhi told reporters on Thursday. Economists warned the steep tariff could hurt India's manufacturing ambitions and trim up to 40 basis points off economic growth in the financial year to March 2026. Some doubted whether further negotiations would lead to improved conditions. "While further trade talks may bring the tariff rate down, it appears unlikely that India will secure a significantly better outcome than its eastern neighbours," said Priyanka Kishore, an economist at Asia Decoded. Other countries have negotiated better U.S. tariff rates, with Vietnam agreeing to 20%, Indonesia to 19% and Japan and the EU both facing levies of 15%. On Wednesday, Trump said Washington had reached a trade deal with India's arch-rival Pakistan that Islamabad said would lead to lower tariffs on its exports, though neither side has yet revealed the agreed rate. Since India's short but deadly conflict with Pakistan in May, New Delhi has been unhappy about Trump's closeness with Islamabad and has protested, casting a shadow over trade talks. Despite previous public displays of bonhomie between Trump and Prime Minister Narendra Modi, India has hardened its stance towards the United States in recent weeks. Trump has repeatedly taken credit for the India-Pakistan ceasefire he announced on social media on May 10, but India disputes his claim that it resulted from his intervention and trade threats. The U.S., the world's largest economy, currently has a trade deficit of $45.7 billion with fifth-largest economy India. (Additional reporting by Jaspreet Kalra in Mumbai; Writing by Sudipto Ganguly in Mumbai; Editing by Clarence Fernandez, Ros Russell and Joe Bavier)
Rakyat Post
4 hours ago
- Rakyat Post
Firefly to Move Jet Operations From Subang Airport To KLIA Effective 19 August 2025
Subscribe to our FREE Malaysia Aviation Group (MAG) today announced the relocation of its regional airline Firefly's jet operations from Sultan Abdul Aziz Shah Airport (SZB) to Kuala Lumpur International Airport (KUL) Terminal 1, effective 19 August 2025. The airline will continue to operate its turboprop services from SZB, ensuring ongoing connectivity to key regional destinations. This strategic move is part of MAG's long-term network optimisation plan to enhance operational efficiency and ensure sustainable operations for Firefly's jet services. Relocating to KUL allows greater scalability for jet operations to operate and reflects MAG's intent to strengthen network connectivity across the Group. Datuk Captain Izham Ismail, Group Managing Director of MAG, said, 'The move to KUL allows Firefly to scale its jet operations more efficiently, improve passenger connectivity and better leverage MAG's shared capabilities in engineering, ground handling and catering. SZB will continue to play an important role in Firefly's network through its turboprop operations, which provide essential connectivity across key domestic and regional routes. This decision reinforces our commitment to strengthening KUL as the main aviation hub, while continuing to offer accessible air travel options across the country.' Firefly will commence the jet services from KUL beginning 19 August 2025 with its first flight to Tawau (TWU), followed by a phased rollout to key domestic and regional destinations. Flights to Kuching (KCH) and Kota Kinabalu (BKI) will commence on 21 August; Singapore (SIN) on 22 August; Johor Bahru (JHB) on 23 August; Kota Bharu (KBR) and Terengganu (TGG) on 30 August; and Sibu (SBW) on 3 September. The airline will also increase its existing services from KUL to PEN from two (2) times weekly to six (6) times weekly beginning 23 August 2025, before increasing to 10 times weekly in November 2025. The routes will be operated by Firefly's Boeing 737-800 aircraft, designed for both comfort and convenience. Travellers can enjoy complimentary 10kg checked baggage, a 7kg carry-on allowance, and in-flight refreshments – all included as part of the Firefly experience. In celebration of this milestone, Firefly is offering exclusive all-in, one-way promotional fares, with tickets now open for booking and fares starting from just RM58. Passengers affected by the transition will be contacted directly, with options for alternative travel arrangements or full refunds provided in line with the Malaysian Aviation Consumer Protection Code 2016. For more information and to book your flights, visit the official Firefly website at Share your thoughts with us via TRP's . Get more stories like this to your inbox by signing up for our newsletter.
