Lee, in his first policy speech since being sworn in on August 12, said Sunday that maternity leave will be lengthened to three months from two while tax breaks and subsidies will be given up to the fourth child.

Opposition MP Steve Chia said he was "pretty satisfied with the broad policies introduced, although I have to wait for the minute details to be announced to have a better assessment."

The Straits Times newspaper said "demographic attrition" awaits Singapore if the shortage of babies is not addressed.

Singapore's low birth rate has become an urgent concern after the fertility rate hit an all-time low of 1.26 children per woman in 2003.

Only 36,000 babies were born last year, well below the 50,000 needed to replenish the local population of 3.4 million naturally and have enough manpower for long-term economic, defense and other needs.

Lee also announced that the civil service, one of the biggest employers, will cut its working week by half a day to five days to enhance family life.

Parents of young children will enjoy "child care leave" and the government will lower the cost of hiring foreign maids to help look after the kids.

Lee also promised to reform the educational system, whose competitive atmosphere and heavy work loads for children have long been the bane of families and a disincentive to have a large brood.

"His speech shows that he is a leader who listens to people's feedback and concerns," said Irene Ng, an MP from the ruling People's Action Party who has been working in parliament on women's issues.

"He is not only slaughtering what were once sacred cows but also signalling that, under his leadership, you can make a difference to policy," she added.

Dr Wei Siang Yu, a self-styled "sex guru" who advises couples finding it difficult to have babies in Singapore's high-stress environment, welcomed the measures but said an overhaul of social attitudes was needed.

"We need a generation of sophisticated and baby-smart parents, rather than parents who will have kids only because of financial incentives," he said.

Singapore needs to promote the "play factor" among its people, who are too preoccupied with material pursuits, he said.

"Are we going to deal with a generation of robotic parents who are simply looking at money?"

"Or are we going to look at a new breed of more sophisticated parents who will give birth to more babies and recognize their talents instead of just pushing them to be a doctor or lawyer?"

A married 25-year-old female graphics designer welcomed the reforms but said they will not make her change her plans to start a family only two years from now because she still has to look after her career.

A less stressful school system may also help convince Singaporeans to have more children, she said.

"I live in a neighborhood where sometimes I see primary school kids in school on Sundays. I find that a bit disturbing. I hope this will change. Kids are kids," she added.

Whether Lee's reforms will work is another matter.

A "baby bonus" cash subsidy scheme announced in 2000 by his predecessor Goh Chok Tong gave financial incentives for couples who will have a third child, but this failed to reverse the trend.

Singapore began waging a pro-baby campaign after a population control program urging people to "stop at two" children proved too successful in the 1980s. They are now encouraged to have "three or more" if they can afford to.

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