Measures to Ensure Childcare Operators are Financially Sound
- Ms Tin Pei Ling inquired about the number of childcare centres that faced financial issues over the past five years and suggested a student fee protection scheme similar to the Private Education Act.
- Mr Ang Hin Kee questioned whether licensing criteria are sufficient to ensure financial responsibility, if safeguards will be established to screen operators, and how many centres have defaulted on salaries or fees recently.
- Minister Desmond Lee explained that the Early Childhood Development Agency (ECDA) currently assesses centres on safety, staff quality, and applicant fitness, with low rates of abrupt closures.
- The new Early Childhood Development Centres Act will allow ECDA to consider financial capacity during licensing to reduce default risks, and a fee protection scheme is under study, though it may increase costs.
- Enforcement of salary payments falls under employment laws, with the Ministry of Manpower and CPF Board investigating defaults.