KUALA LUMPUR, July 16 — Faced with a dwindling population, a city in Japan is dangling ¥2 million (RM76,419) cash rewards to encourage couples to have more than two children.

SoraNews 24 reported that the offer by the city of Sado, Niigata Prefecture, is valid from the third child on.

The payment will be staggered from when the child is born to when they turn six, 12 and 15 years old.

According to a survey conducted by authorities among families in the city, many would love to have more than two children but it was challenging economically.

Apart from promoting births among current residents, the city also hopes to convince people from other parts of Japan to move to the city and raise their children there.

Nikkei Asia reported last month that there are 126.22 million people living in Japan as of October 1, 2020, which is a drop of 868,177 from five years earlier.

Of the 47 prefectures, 38 prefectures recorded a drop in population, with Akita in the north recording the steepest loss of 6.2 per cent.

The final census results are due in November.