The PAP government will be continuing the Child Development Accounts(CDA) Scheme for the next 6 years. Under the CDA Scheme, the government has to match dollar for dollar for the amount parents deposited in their child‘s account for up to $18,000. Savings co-funded by both the government and the parents accumulated in the CDAs can help to defray the child’s living expenses like school fees, childcare fees and even spectacles.
Although the PAP government doesn’t admit it, the policy is inherently designed to help rich families subsidize the costs of child-raising as the top ups of the CDAs is only allowed through cash. Low income families who have little or no cash savings are effectively excluded from such subsidies. It is baffling why children from rich families are getting government subsidies while children from low-income families get no help from the government.
The rich in Singapore gets to enjoy other privileges and subsidies in Singapore. There is no GST charged for buying gold in Singapore and the car-population control tax, the COE, remain at the same level for the rich who could afford 2 or more cars. Many rich foreigners like Facebook founder Eduardo Saverin have converted into Singapore citizenship without having to serve National Service to enjoy a lot more tax breaks than which they could enjoy in their own country. The US government has since openly declared Singapore as a tax haven to which the PAP government has no response to.