What economics predicts about pre-school fees after subsidies

Contrary to popular belief, a subsidy given to parents will benefit childcare centres too because of how the market works

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Last month, the Early Childhood Development Agency (ECDA) announced that 330 childcare centres - or about one-fifth of childcare centres in Singapore - would be raising their fees for full-day childcare for Singapore citizens come 2020.

This comes on the back of government announcements made earlier in August that subsidies for pre-school would be enhanced to ensure affordability - with higher subsidies given out per child, and more households qualifying.

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A version of this article appeared in the print edition of The Straits Times on October 03, 2019, with the headline What economics predicts about pre-school fees after subsidies. Subscribe