WORKPLACE CHILDCARE CENTRES

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WORKPLACE CHILDCARE CENTRES: * * *

7.

Ms Irene Ng Phek Hoong asked the Minister for Community Development, Youth and Sports (a) how many childcare centres are currently located at workplaces such as office buildings; (b) what is the percentage of this figure compared to childcare centres islandwide; and (c) what incentives are available for childcare operators to set up centres at workplaces.

Dr Vivian Balakrishnan: As at end June 2008, there are 37 workplace childcare centres, of which 21 are located in Government office premises. These 37 centres constitute 5% of all centres, providing more than 4,300 childcare places or about 7% of total childcare places.

To promote a family-friendly working environment, the Government encourages organisations to set up workplace childcare centres by providing various funding and tax incentives.

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For non-commercial and Government organisations, the Government provides funding for up to 20% of the cost of converting part of the work-premises for childcare use, subject to a cap of 500 square metres. The capital grant is given directly to the workplace organisation which will choose the service provider to run the childcare centre. Such non-commercial organisations will further receive a grant to help defray the cost of furnishings and equipment for the workplace childcare centres. They will also receive funding for cyclical maintenance of the childcare centre after every five years.

As for commercial companies, instead of a capital grant, the employer may, subject to conditions, claim industrial building allowance on the capital expenditure for such conversion. Similarly, for non-commercial organisations, commercial companies are also eligible for the grant for furnishings and equipment. Furthermore, subsidies given to employees to help them defray the cost of childcare are regarded as deductible expenses to the employer.