CDA funds cannot be used at retail pharmacies, optical shops from 2026

From Jan 1, 2026, parents and trustees can no longer use Child Development Account (CDA) funds at optical shops and retail pharmacies, said the Ministry of Social and Family Development (MSF).

- Ian Cheng Correspondent

In a statement on Oct 1, MSF said findings from audits conducted by the Auditor-General’s Office on withdrawals made by parents and trustees from the CDA under the Baby Bonus Scheme showed poor record keeping and unusual patterns of withdrawals at optical shops and retail pharmacies.

Based on MSF’s test checks, these included frequent withdrawals within a short period and purchases that did not appear to be for the child, or his or her sibling(s), which were made at one optical shop and different pharmacies, said the ministry.

Retail pharmacies refer to licensed pharmacy stores that supply prescribed medication and health-related products, such as those in shopping centres.

MSF’s followup investigations revealed instances where CDA funds were spent on purchases for adults instead of benefiting the child, or his or her siblings. It added that there were also cases of these establishments allowing or facilitating parents/trustees to encash the CDA monies, even though this is not allowed.