Singapore cannot allow medical costs to spiral out of control, yet controlling these expenses is a significant challenge.
Minister of Health, Mr Ong Ye Kung, pointed out that achieving accessible, high-quality and affordable healthcare often requires trade-offs, but the most critical factor is keeping all citizens physically and mentally healthy.
On Friday (7 Mar 2025), during the Committee of Supply debate on the Ministry of Health’s budget, Mr Ong said the government’s healthcare budget was about $9 billion ten years ago, while this year it stands at $21 billion.
By 2030, this budget is expected to increase by at least another $10 billion, reaching over $30 billion.
In comparison, the two percentage point increase in GST brings about $5 billion in additional revenue for the country.
“We need the additional GST revenue, which is mainly paid by those who are better off financially, foreigners, and tourists, to continue providing affordable healthcare for all Singaporeans,” he said.
Budget Accuracy and GST Increase
Due to higher-than-expected government budget surpluses, opposition MPs questioned during this year’s fiscal policy debate whether it was necessary to raise the GST over the past two years.
They also criticized the Ministry of Finance for inaccurate surplus forecasts and called for improved budget accuracy.
In response, Mr Ong said: “We can discuss the best timing for increasing GST. However, if we don’t increase revenue in time as our population ages and medical costs continue to rise, we’ll eventually stop discussing budget accuracy. By then, serious fiscal deficits will make it impossible to expect a balanced budget.”
He stressed that Singapore cannot allow healthcare spending to rise uncontrolled, but controlling expenses is very difficult, especially when facing life-and-death situations for oneself or loved ones.
To ease the pressure of rising medical costs on patients, Singapore uses the “S+3M” framework: subsidies, Medisave, MediShield Life, and Medifund.
Currently, seven out of ten patients in subsidized wards don’t need to pay out of pocket; among those who do pay, eight out of ten pay less than $100.
Flexi-MediSave to Increase from $300 to $400 Starting October
The authorities will continuously adjust the “S+3M” framework, including raising the Medisave withdrawal limit for outpatient services.
Mr Ong announced that from 1 October 2025, those aged 60 and above can use up to $400 annually for outpatient services through Flexi-MediSave, up from $300, benefiting about 700,000 people.
From January next year, the Medisave withdrawal limit for scans such as CT and MRI will double from $300 to $600, benefiting over 500,000 people.
Additionally, the Ministry of Health will increase subsidies for dental services and long-term care services.
Ensuring people can access timely medical care when needed is one of the Ministry of Health’s goals.
Mr Ong said government hospitals have added over 6,300 beds in the past five years and plan to add another 13,600 between 2025 and 2030.
This will increase government hospital beds from 12,000 to 15,000, a 25% increase.
The authorities will also add about 10,600 beds in nursing homes.
Regarding maintaining high-quality healthcare services, the authorities will continue to focus on healthcare workers’ well-being and salaries, while exploring breakthrough technologies.
The Healthcare “Trilemma”
Ong pointed out that accessibility, high quality, and affordability represent the goals of Singapore’s healthcare system.
However, these three objectives create a competitive “trilemma.”
Nevertheless, if people maintain physical and mental health, all three goals can be achieved without compromise.
The government has developed policies to improve population health, including the Healthier SG program.
A year and a half after its launch, nearly 1.2 million Singaporeans have participated, representing half of the eligible population.
In the near future, Singapore will promote predictive preventive care through “Healthier SG 2.0,” using artificial intelligence to analyze medical and genetic data to predict people’s disease risks over the next ten years and take early preventive measures.
Mr Ong reiterated that maintaining a healthy lifestyle helps people avoid diseases and is the best way to contain rising medical costs while keeping them affordable.
“In ancient times, martial arts masters fought each other for secret manuals of supreme skills. Today, what we need is the secret to health, which is readily available to everyone: eat healthily, get enough sleep, exercise regularly, have regular check-ups, and visit active aging centers when you have time,” he said.
Parliament will reconvene on Monday (10 Mar 2025) to debate the expenditure budgets for the Ministry of Social and Family Development and the Ministry of Culture, Community and Youth.
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