Gov’t to stop use of Child Dev’t Accounts at optical shops, retail pharmacies

This decision followed audit findings that showed a higher risk of misuse at these outlets.

The Ministry of Social and Family Development (MSF) will discontinue the use of Child Development Account (CDA) money at optical shops and retail pharmacies from January 2026.

This decision followed audit findings that showed a higher risk of misuse at these outlets.

The Auditor-General’s Office (AGO) flagged poor record keeping and unusual spending patterns, including multiple withdrawals within short periods and purchases that did not appear to benefit the child or their siblings.

MSF’s follow-up investigations also found cases where CDA money was used for adults’ purchases, as well as instances where shops allowed parents to withdraw cash from the accounts—something not permitted under the scheme.

The change will not affect pharmacy services in healthcare institutions, such as hospitals and polyclinics, where CDA funds can still be used for prescribed medications and consultation fees.

The accounts can also continue to be used at Baby Bonus-approved institutions, such as GP clinics and polyclinics.

The CDA is a special co-savings account with government co-matching and can be used for approved educational and healthcare expenses for the child or their siblings.

Separately, since May 2025, CDA usage has been expanded to cover incidental charges and enrichment programmes at preschools.