Why are early intervention centres for disabled children at risk of closing?

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Early Intervention Centres Face Closure Due to Severe Financial Strain

Early intervention programmes (EIPs) for children with disabilities are facing an imminent risk of closure due to significant financial difficulties. These centres typically operate on narrow profit margins and possess limited cash reserves, rendering them highly vulnerable to revenue shortfalls. The financial precarity is further exacerbated by underpaid staff and a reliance on public donations for operational sustainability, with many centres barely breaking even even before the current crisis.
Impact of Movement Control Orders and Economic Downturn

The implementation of movement control orders (MCO) severely disrupted the financial stability of EIP centres. During MCO, a substantial number of parents were unable to pay their fees. Following the MCO period, approximately 25% of parents withdrew their children from these programmes due to job losses or salary reductions. Among those who continued, a significant 75% requested fee reductions, with some unable to afford any payment at all, leading centres to implement staff pay cuts.
Insufficient and Delayed Government Support

While some centres received temporary assistance through the Perkeso Wage Subsidy Assistance, this aid was insufficient to ensure long-term viability. Furthermore, support announced under the National Economic Recovery Plan (Penjana), intended to be disbursed by the Department of Social Welfare, has not reached the majority of EIP centres. This lack of timely and adequate financial support has left many centres without operational funds for extended periods.
Challenges with Online Service Delivery and Increased Operational Costs

Attempts to transition EIP services online, while useful to some extent, face considerable challenges and cannot fully replicate the essential face-to-face interactions crucial for children with disabilities. The pandemic has also driven up operational costs for these centres. Increased expenses are necessitated by the need for smaller child-to-staff ratios, extended staff hours, and the procurement of sanitisation supplies and personal protective equipment (PPE) for staff, particularly those involved in direct physical therapy. This rise in costs, coupled with parents' reduced ability to pay due to economic hardship, creates a significant financial gap.

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Why are early intervention centres for disabled children at risk of closing?

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