The Minister of Community Development, Youth and Sports (MCYS) disclosed that 132, or 18 per cent, of centres have increased their fees or signalled their intention to do so since last August.

The Government had announced then a $150 increase in childcare subsidy as part of its procreation package to boost Singapore's fertility rate.

However, the average fee increase was $78, the minister said.

Still, he feels they ought to hold off any increase as these centres benefit from the Government's Jobs Credit scheme, which gives them a cash grant to help lower the cost of hiring local workers. They get up to $300 a month for each worker.

'Given this benefit and the economic downturn, childcare centres should play their part in ensuring the affordability of childcare services for our families and children,' he said during the debate on his ministry's budget in Parliament.

Another reason he gave for keeping their fees affordable is that competition is set to stiffen, with 200 new childcare centres opening in the next few years.

Dr Balakrishnan was responding to Mr Yeo Guat Kwang (Aljunied GRC) who was worried that rising fees eroded the benefits of a higher childcare subsidy.

Mr Yeo had also asked about the quality of pre-school education, prompting the Minister to map out how the Government is investing in this sector.

Currently, there are 482 kindergartens and 749 childcare centres. They cater to 97.5 per cent of children aged 5 and 6 years old, as well as 30.6 per cent of children aged 18 months to 6 years.

Another 200 centres will open by 2013, as part of the Government's plan to develop the childcare sector.

Read the full report in Thursday's edition of The Straits Times.