Public Disclosure Authorized

TOWARD AVAILABLE, AFFORDABLE, AND QUALITY CHILDCARE IN EAST ASIA AND PACIFIC

Recognizing that childcare services can have a positive impact on

TABLE 1: COUNTRY COVERAGE AND KEY INDICATORS
women’s economic inclusion, Women, Business and the Law
presents a novel and comprehensive pilot dataset on regulatory Labor force Paid
participation Paid leave for
frameworks around the availability, affordability, and quality of rate, female leave for fathers
Public Disclosure Authorized

childcare services in 95 economies. In East Asia and Pacific, data (% of mothers (calendar
female (calendar days)
was collected in 10 countries: China; Fiji; Hong Kong SAR, China; Economy Income Main business population days)
Indonesia; Malaysia; Mongolia; Philippines; Singapore; Thailand; coverage group city ages 15+)
China UMI Shanghai 61.8 128 14
Vietnam (Table 1). The new data is a stepping-stone toward Fiji UMI Suva 38.0 98 1
informing policy dialogue around key demand and supply side Hong Kong 7
SAR,
avenues that limit or facilitate the formal provision of childcare China HI Hong Kong 54.2 98
services, their affordability, quality, and uptake by parents. Pilot Indonesia LMI Jakarta 53.2 90 2
data presents a framework that shows a range of options that Malaysia UMI Kuala Lumpur 51.5 60 0
Mongolia LMI Ulan Bator 51.5 1215 0
governments may support to meet the needs of working mothers Philippines LMI Quezon City 42.6 105 9
and families, although international best practice frameworks are Singapore HI Singapore 59.9 112 14
Thailand UMI Bangkok 59.2 90 0
yet to be established. Vietnam LMI Ho Chi Minh City 69.7 180 7

Even when available, the provision of formal childcare does not Sources: Women, Business and the Law 2022 and World Development
Public Disclosure Authorized

Indicators.
always guarantee its uptake because supply- and demand-side
constraints, including convenience of services, costs, quality, and The enactment of policies to make childcare available,
social and cultural norms, limit the potential benefits (Figure 1). affordable, and of decent quality is a priority due to their
potential to achieve better market outcomes for women,
FIGURE 1: KEY CONSTRAINTS IN THE CHILDCARE MARKET
children, and the economy overall (Figure 2).

FIGURE 2: THE THREE PILLARS OF CHILDCARE

Public Disclosure Authorized

Source: Women, Business and the Law 2022.

Sources: Devercelli and Beaton-Day 2020; Muller and Jaen 2020.

International law has long recognized that working parents need access to outside childcare
and called for making childcare facilities more readily available.

Source: Women, Business and the Law 2022.

SECTION TITLE GOES HERE 1

 AVAILABILITY
When it comes to the availability of childcare services in East FIGURE 3: LEGISLATION GOVERNING THE PROVISION OF
Asia and Pacific, in 8 out of 10 economies some form of CHILDCARE SERVICES* IN EAST ASIA AND PACIFIC
outside childcare services is provided for children below the
Earliest age
formal preprimary school starting age (Figure 3). These at which
Preprimary Employer
services can be accessed at the birth of the child in China; Economy school Public Private provided
childcare
starting provision* provision* or
Hong Kong SAR, China; Indonesia; Malaysia; and services are
age supported
available
Philippines. In Singapore, parents can enroll their children since birth
China 3
when they reach 18 months, while in Vietnam, as early as 3 Fiji 3
months of age. Legislative gaps exist in Mongolia and Fiji, Hong Kong since birth
with absent regulatory frameworks for children below the SAR, China 3
preprimary school age – 2 years and 5 years, respectively. Indonesia since birth 4
Malaysia 2 years 4
In 6 out of 10 economies in the region, options for both public Mongolia 2
Philippines since birth 5
and private childcare services are available for parents to
Singapore 18 months 5
choose from. In two high income economies in the region –
Thailand 3
Hong Kong SAR, China and Singapore – the provision of Vietnam 3 months 3
childcare services is regulated for the private sector only.
Source: Women, Business and the Law 2022. Note: *public and private provision
Vietnam is the only economy in the region where employers
includes care services provided in center-based settings.
are mandated to assist in building daycare facilities and
kindergartens or cover a part of childcare expenses incurred
by their employees after discussion with them. More could
be done to enable employer-provided childcare services in
the region to avoid losses in productivity that come with a FIGURE 4: REGULATION OF ADEQUATE OPERATING HOURS
price tag when parents miss work to fill gaps in childcare.
Minimum required
Economy hours Flexible options available
For outside childcare services to be useful, their provision China Not regulated Full-time, half-day, and
must be aligned with parents’ needs. Inconvenient operating services on demand.
Hong Kong SAR, 10 hours for private Extended hours of service are
hours that are not compatible with parents’ working China centers: Monday to provided by private centers
schedules may limit uptake and lead to more mothers taking Friday from 8am till 6pm from Monday to Friday*: 6pm
up work in the informal sector, with more flexible hours, or till 7pm or 8pm and from 1pm
to 2pm/3pm/8pm on
choosing to stay home to provide care, resulting in an inability Saturday.
to capitalize time over the working week or forgone Malaysia 10 hours for publicly run Not regulated
employment opportunities. As a result, labor input to the children’s nurseries
economy, the key contributing factor to economic growth (TASKAs)
Singapore Not regulated Full-day services: a
across East Asia and Pacific, is reduced. The legislative continuous period exceeding
frameworks of four East Asian economies provide for a range 6 hours in a day
of operating modalities, including minimum required full-time Half-day services: a
continuous period not
that is compatible with the at least 8-hour working day of exceeding 6 hours in a day
parents (Hong Kong SAR, China; and Malaysia), part-time, Source: Women, Business and the Law 2022.
extended, or on demand hours (Figure 4).

2 REGIONAL PROFILE: EAST ASIA AND PACIFIC

 AFFORDABILITY
Even when formal childcare is available, affordability of care
is a central concern that influences the demand of FIGURE 5: EXAMPLES OF FINANCIAL SUPPORT TO PARENTS
childcare services and the extent to which they are taken Type of
up by parents. Economies with regulatory frameworks Economy Policy example
measure
around the public provision of childcare, including China, Hong Special grants to cover fees for children under
Indonesia, Malaysia, Philippines, Thailand, and Vietnam, do Kong SAR, 3 years of age under Comprehensive Social
not mandate its free provision. China Security Assistance (CSSA)
Grants Singapore One-time startup grant for low-income families
to pay for initial costs of enrolling a child into a
The criteria for fee determination is explicitly laid out in the
care center conditioned on the work status of
laws of China, Malaysia, and Vietnam. In China, nursery parents
fees are laid out in the “parent notice,” with the nursery Malaysia Childcare fee subsidy based on parental
managed by market adjusted prices accounting for social income for children 2 to 4 years of age in
affordability and services costs. In Malaysia, rates for children's nurseries (taskas)
childcare centers (taskas) differ by the income of Subsidies Singapore Basic subsidy conditioned on the work status
households. In Vietnam, the fee rate is set at a provincial of parents and the type of program in which a
child is enrolled; Additional subsidy to low-
level. The rate is built on the principle of sharing between income parents
the state and families and depends on the socio-economic Vietnam Monthly allowance to parents working in
conditions of each population area, the actual contribution Allowances industrial parks for children in junior (age 3-36
capacity of the people, the consumer price index, and the months) and senior (age 3-6) kindergartens.
annual economic growth rate. Hong Fees are waived for children under the age of
Kong SAR, 3 in whole-day childcare services if their
Fee
China parents pass a “social needs” test
Governments in five economies in the region grant financial reduction or
Vietnam Fee exemptions or reductions to poor
support to parents under different conditions and forms to exemption
households with children in preschool
reduce costs and facilitate uptake (Figure 5). To ease education aged 3 months to 6 years
operating costs and encourage the supply of services, Philippines The state guarantees access and priority
Guarantee
governments in six economies in the region provides enrollment in childcare centers for children of
of access
financial support to childcare centers. In Singapore and low-income families aged 0 to 4 years
Vietnam, similar incentives are provided to employers. Source: Women, Business and the Law 2022.

Preferential taxation is another policy tool widely used to

TAX SUPPORT FOR PARENTS AND PROVIDERS
facilitate the provision of childcare services and their uptake
by parents. Such policies take the form of income tax ➢ In Malaysia, a tax deduction is allowed for childcare fees
credits, deductions, or exemptions to parents, childcare to a childcare center for children under 6 years. If
centers, or employers. spouses file taxes separately, only one parent can claim
the deduction.
➢ In Thailand, there is a legal obligation on the state to
No support options for parents or providers – financial or support a deduction and exemption of tax beneficial to
non-financial – could be located within the legal frameworks the early childhood education at a private
of China, Mongolia, or Fiji. Longer maternity or parental establishment or a center.
leave policies in Mongolia may be an effective way to ensure ➢ In Vietnam, the following expenses are excluded from
taxable income: salaries and allowances for teachers
parents have financial support while caring for children at
of nurseries and kindergartens organized and run by
home, as opposed to placing them in childcare. In Fiji, business establishments.
however, with minimum maternity leave of 98 days and no
laws around childcare services, the absence of support may
have repercussions on the demand and supply of services,
affecting women’s participation in the labor market.

3 REGIONAL PROFILE: EAST ASIA AND PACIFIC

 QUALITY
Quality may serve as a factor determining parental decisions to use
FIGURE 6: NUMBER OF CHILDREN PER EDUCATOR, BY AGE
formal childcare services. Quality childcare improves children’s
development outcomes, including school readiness, healthy nutrition,
and educational achievements, and leads to more promising
employment prospects and higher earnings in the long term. Given
wide variations in economic development, resource availability, and in
cultural and social norms, definitions of high quality vary across
contexts. Nevertheless, there is some agreement about the factors
that define high quality childcare regardless of circumstance.

Structural quality, for example, is a critical element for early childcare

services. With lower teacher-to-child ratios – typically 1:10 or 1:15 as
recommended by international institutions – and smaller group sizes
– typically no more than 20 children – children can receive individual Source: Women, Business and the Law 2022.
attention and teachers can more effectively cater to diverse learning
needs. In East Asia and Pacific, the number of children per educator FIGURE 7: QUALITY ASSURANCE IN CHILDCARE CENTERS
differs depending on the age of the child, with the lowest ratios not
exceeding 10 children per educator are established in China,
Indonesia, and Malaysia for children of 3 years and below (Figure 6).
The highest ratios of 15 or more are established for 2- and 3-year-olds
in Hong Kong SAR, China and Singapore. The maximum group sizes
in childcare centers in Hong Kong SAR, China and Indonesia are
established at 14 and 20, respectively. In China and Vietnam, group
sizes are linked to the age of the child but typically does not exceed
20 for children below 3 years of age. Structural quality gaps exist in
Philippines and Thailand, where such thresholds are yet to be
established.

Improving quality of care also means professionalizing services,

including investing in the professional development of the workforce.
In China, educators at nurseries must complete no less than 72 hours
of on-the-job training annually, while in Vietnam compulsory annual
training programs are administered to improve the level of response
of educators to the requirements of early childhood development and
education. More could be done to provide regular professional
training for educators in the rest of East Asia and Pacific.

By establishing quality assurance mechanisms through requiring Law mandates regular inspections or reporting of data by public or private centers
mandatory inspections of physical facilities or reporting of data and Law does not specify regularity of inspections or reporting of data by public or private centers

information by providers, governments can hold childcare providers

Source: Women, Business and the Law 2022.
accountable for any failure to comply with quality standards. In 6 out
of 10 examined economies in the region, physical inspections are
mandatory. Reporting of information is also required in six economies.
However, the regularity of these quality assurance mechanisms is not
always specified, increasing the risk of noncontinuous compliance
among providers (Figure 7).

4 REGIONAL PROFILE: EAST ASIA AND PACIFIC

 REGIONAL TRENDS BY DATA POINT
AVAILABILITY ANSWER (YES/NO)
Does the law regulate public provision of childcare services? 60% 40%
Does the law regulate private provision of childcare services? 80% 20%
Does the law mandate employers to provide or support childcare services? 10% 90%
Does the law establish adequate operating hours in public childcare centers? 20% 80%
Does the law establish adequate operating hours in private childcare centers? 30% 70%

AFFORDABILITY ANSWER (YES/NO)

Does the law establish free provision of public childcare? 100%
Does the law establish conditions based on which cost to parents is determined? 30% 70%
Are fees charged by public childcare centers regulated? 30% 70%
Are fees charged by private childcare centers regulated? 50% 50%
Does the government provide some form of financial or tax support to parents for childcare? 50% 50%
Is financial support to parents for the use of childcare is unconditional? 100%
Does the government provide some form of financial or tax support to private providers? 60% 40%
Does the government provide some type of support to low-income families for childcare? 50% 50%

QUALITY ANSWER (YES/NO)

Are public childcare centers required to obtain licenses or authorization of some form? 30% 70%
Are private childcare centers required to obtain licenses or authorization of some form? 80% 20%
Does the law mandate a teacher-to-child ratio for public childcare centers? 30% 70%
Does the law mandate a teacher-to-child ratio for private childcare centers? 60% 40%
Does the law mandate a maximum group size in public childcare centers? 30% 70%
Does the law mandate a maximum group size in private childcare centers? 40% 60%
Does the law require educators at public childcare centers to undergo periodic training? 20% 80%
Does the law require educators at private childcare centers to undergo periodic training? 20% 80%
Does the law require quality assurance at public childcare centers? 50% 50%
Does the law require quality assurance at private childcare centers? 80% 20%
Are penalties imposed for noncompliance with applicable laws by public childcare centers? 50% 50%
Are penalties imposed for noncompliance with applicable laws by private childcare centers? 80% 20%

HOW TO USE THIS DOCUMENT For more information, please visit

wbl.worldbank.org/en/childcare or
This document aims to improve understanding of legal and regulatory
contact [email protected].
systems around the availability, affordability, and quality of childcare services
for children below preprimary school starting age in East Asia and Pacific. It
also seeks to build awareness of laws and identify areas for reform and other
regulatory interventions. Support for the Women, Business and the Law
childcare regional profiles series is provided by the World Bank’s Knowledge
for Change Program and the Multi-Donor Trust Fund for Jobs.

5 REGIONAL PROFILE: EAST ASIA AND PACIFIC