Ensuring Child Development Account Funds Are Used to Meet Children's Legitimate Needs

Ms Hany Soh asked the Minister for Social and Family Development in view of the Ministry's decision to disallow the use of Child Development Account (CDA) funds at optical shops and retail pharmacies from 1 January 2026, how will the Ministry ensure that children with legitimate needs will not consequently be deprived of the benefit of the CDA.

The discontinuation of Child Development Account (CDA) usage at retail pharmacies and optical shops follows audits that found a higher risk of misuse of CDA monies at these establishments.

Although CDA usage will be discontinued at retail pharmacies, this change does not affect pharmacy departments within healthcare institutions, such as hospitals and polyclinics. The CDA can still be used for medication, surgical products and supplements that are dispensed at healthcare institutions and general practitioners (GP) clinics that are registered as Baby Bonus Approved Institutions.​

We will regularly review the CDA usage to ensure that it is relevant and can meet parents' needs for their child's development. In May this year, the Ministry of Social and Family Development expanded the scope of CDA use to cover preschool incidental charges to support the child’s participation in a broader range of developmental activities. This includes enrichment programmes, such as speech and drama, allowing preschoolers to fully tap on the learning opportunities offered by their preschools.

In addition to the CDA, parents can tap on other Government support schemes, such as the Baby Bonus Cash Gift and Child LifeSG Credits, to defray their child-raising costs. Lower-income families who require financial support can approach the Social Service Offices for assistance.