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CDA use to be discontinued at Optical Shops and Retail Pharmacies from Jan 2026

Type: Announcements,

Topic(s): Children & Families 

Published on 01 October 2025

               From 1 January 2026, the Ministry of Social and Family Development (MSF) will discontinue the use of Child Development Account (CDA)[1] moneys at optical shops and retail pharmacies. As a special co-savings account with government co-matching, CDA can be used to pay for approved expenses for the child or his/her sibling(s). Recent audits found a higher risk of misuse of CDA moneys at these establishments, which is why we have decided to discontinue such use.

2               Retail pharmacies refer to licensed pharmacy stores that supply prescribed medication and health-related products, such as those located in commercial spaces, such as shopping centres. This change does not affect pharmacy departments within healthcare institutions, such as hospitals and polyclinics. CDA moneys can continue to be used for prescribed medication and consultation fees at hospitals, polyclinics and GP clinics that are Baby Bonus Approved Institutions.

Audit Findings of CDA Uses at Optical Shops and Retail Pharmacies                                                           

3               MSF conducts periodic audits and checks to ensure that CDA moneys are used for authorised purposes only. In addition, the Auditor-General’s Office (AGO) audited selected parenthood schemes, including withdrawals made by parents/trustees from the CDA under the Baby Bonus Scheme, with findings published in the AGO’s FY2023/24 report. Key findings from these audits are as follows:

  • The AGO audit found poor record keeping and unusual patterns of CDA withdrawals at optical shops and retail pharmacies. Based on its test checks, this included frequent withdrawals within a short period and purchases that do not appear to be for the child or his/her sibling(s), which were made at one optical shop and different pharmacies.
  • MSF’s follow-up investigations revealed instances where CDA moneys were spent on purchases for adults instead of benefiting the child or his/her sibling(s). There were also cases of these establishments allowing or facilitating parents/trustees to encash the CDA monies, even though it is not allowed.
  • These findings were corroborated by MSF’s internal audit of 30 optical shops in 2024, which found that over 85% of outlets audited had similar unauthorised purchases.

4               These findings show that there is a significantly higher risk of misuse at optical shops and retail pharmacies. Such merchants have also provided feedback that it is challenging and onerous to implement the necessary point-of-sales checks on CDA transactions, given the retail nature of the business. Furthermore, CDA usage at optical shops and retail pharmacies has been very low, comprising 0.8% and 0.4% of total CDA spending in 2024 respectively.  CDA transactions have showed that most of the usage have been at preschools (including kindergartens) and healthcare institutions, which accounted for 97.1% of total CDA spending in 2024.

Support for Families 

5               The Government remains committed to supporting families with child-raising costs through measures such as the Baby Bonus Cash Gift, Child LifeSG Credits, and the new Large Families Scheme. Families in need of financial support may also approach Social Service Offices for assistance.

6               Earlier this year (from 1 May 2025), the scope of CDA use was expanded to cover incidental charges at preschools to better meet families’ needs and support the child’s participation in a broader range of developmental activities. The expanded use now includes enrichment programmes offered by preschools, such as speech and drama, allowing preschoolers, to fully tap on the learning opportunities offered by their preschools. The Government will continue to review the administration of the CDA to ensure that the scheme remains relevant and achieves its intended purpose to benefit the child and his/her sibling(s).

7               More information on the Baby Bonus Scheme and CDA uses can be found on the Baby Bonus website at go.gov.sg/bbo.


[1] The CDA was established in 2001 as a special co-savings account to be used for the child's development and education. The funds in the CDA can be used for approved expenses at Baby Bonus Approved Institutions for the benefit of the child or his/her sibling(s). For more information on approved CDA uses, parents may visit the Baby Bonus Parents Portal here.