An average of 70 preschools in Singapore ceased operations each year from 2023 to 2025, even though childcare can still represent a substantial monthly expense for parents.
The Straits Times reported on 15 August that most of the affected centres were not supported by the Government.
Meanwhile, the number of preschool operators has fallen from 408 in 2023 to 296 in 2026.
So, if parents are paying hundreds or even more than a thousand dollars a month, why are some preschools struggling to survive?
High Fees Do Not Necessarily Mean High Profits
Running a preschool comes with high fixed costs, including rent, salaries and the staffing needed to meet teacher-child ratio requirements.
These expenses continue even when a centre has empty places.
According to the Early Childhood Development Agency (ECDA), around half of the centres that ceased operations in 2025 had filled less than 40% of their available capacity.
ECDA told ST that the main reasons for closures were a lack of financial viability and leases not being renewed. Operators also face manpower shortages, increasing expenses and changing business priorities.
Smaller independent operators can be especially vulnerable because they have fewer centres over which to spread their costs and less financial room to absorb a temporary fall in enrolment.
Some closures recorded in the figures also involved mergers, rather than operators simply disappearing altogether.
Private Centres Compete With Subsidised Operators
Government-supported preschools are run under the Anchor Operator and Partner Operator schemes. They receive government support but must comply with fee caps and other requirements.
The monthly fee cap for full-day childcare is currently S$610, excluding GST, at anchor operator centres. The corresponding cap at partner operator centres is S$650.
Private preschools outside these schemes may charge two or three times as much, according to ST. However, their higher fees must also cover their operating costs without the same government funding.
One Serangoon Gardens Preschool Was Taken Over by Parents
Pre-School By-The-Park @ Li Hwan in Serangoon Gardens illustrates how quickly low enrolment can threaten a small centre.
Its founder informed parents in November 2025 that the school could close if it failed to enrol another 40 children within six months. Its full-day programme charged S$1,655 a month.
Parents helped publicise the centre, including through social media and banners in the neighbourhood. In April 2026, two parents from the neighbourhood eventually took over the centre so that it could continue operating.
The preschool has since been renamed Wonder Yard Schoolhouse. ST reported that it currently has 23 pupils, with another five expected to join within the year.
Singapore Now Has More Places, But Fewer Children Are Being Born
Singapore previously focused on creating enough preschool capacity, particularly in areas where parents had difficulty finding places.
There are now more than 220,000 full-day preschool places, compared with around 135,000 in 2016.
The number of licensed preschools has also remained relatively steady in recent years. ECDA said there were approximately 1,753 centres as at May 2026, compared with 1,819 in 2025.
However, Singapore’s preliminary resident total fertility rate fell to a record low of 0.87 in 2025, down from 0.97 in 2024. Fewer births eventually mean fewer children available to fill preschool places.
The industry is also consolidating into larger centres. Between 2021 and May 2026, the number of centres able to accommodate no more than 100 children fell from 877 to 692. Over the same period, the number licensed for at least 251 children rose from 103 to 152.
In other words, the closure figure does not necessarily mean Singapore is suddenly running out of childcare places.
Instead, the preschool market is shifting towards larger and government-supported operators, while smaller independent centres face a much harder fight to remain viable.
