Healthcare costs not a problem during recession with S$42b in reserves
By Pearl Forss, Channel NewsAsia | Posted: 22 November 2008 1901 hrs

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SINGAPORE: Health Minister Khaw Boon Wan said healthcare costs will not be a problem during this recession.

Speaking at the NHC Time Capsule event on Saturday, he said most Singaporeans have sufficient savings in their Medisave accounts, and hospitals will be more generous with Medifund applications during these hard times.

The total reserves for healthcare stands at S$42 billion, 14 times the annual health expenditure. S$40 billion is parked in citizens' Medisave and it is growing at S$2 billion a year with contributions from workers.

Mr Khaw said: "I know Singaporeans worry about healthcare costs and are bound to worry even more during economic downturns, but the reality is that most Singaporeans have sufficient savings in their Medisave.

"But do remember that these are your hard-earned savings for your long-term healthcare needs, especially in old age, so please don't waste it. And that's why I always have to be the bad guy to set prudent Medisave withdrawal limits and have to say "no" to requests to allow Medisave to be used for non-essential needs or frills."

For the small number who do not have savings in their Medisave accounts, hospitals have been told to err on the generous side in disbursing Medifund, a government healthcare fund for the poor during this recession.

With the economic downturn, the Health Ministry plans to take advantage of falling prices to accelerate investments.

The Jurong General Hospital project will be brought forward and investments will also be made in the long-term care sector in areas such as palliative care.

Those retrenched may want to consider career conversion to nursing, and more training courses will be made available for that move.

The ministry is also looking for a site in eastern Singapore to build a second hospital there besides the current Changi General Hospital.

This will happen around 2020, when the baby boomers who will be in their seventies then would require more medical care. - CNA/vm