SINGAPORE, April 10 — Healthcare spending in Singapore is expected to reach as high as S$30 billion (RM100 billion) annually by 2030, making it potentially the biggest budgetary allocation for the government.
This represents a substantial increase from the S$9 billion in 2015, as stated by Health Minister Ong Ye Kung.
The Straits Times
as featured in today’s interview.
He mentioned that by 2025, healthcare financing is expected to hit S$20.9 billion, coming in just behind the S$23.4 billion set aside for defense.
Ong pointed out the consistent growth in healthcare expenditures over the last ten years, mentioning that the nation’s budget allocated for health would climb to S$18 billion in 2024.
He mentioned that a significant part of this financial support will go toward enhancing healthcare facilities, such as building additional hospitals, nursing homes, and community health centers, along with tackling increasing personnel expenses.
Nevertheless, a primary emphasis will be placed on keeping healthcare costs manageable via patient subsidies.
Ong recognized the difficulties presented by a graying society, anticipating this will increase the country’s healthcare costs.
“We can ensure it remains affordable for patients, but there’s no question that with our aging population, healthcare spending—whether from the government or at a national level—is bound to increase,” he reportedly stated.
Ong highlighted that older people generally face more frequent and serious health issues, which frequently necessitate extended hospitalizations.
You’re noticing many more elderly patients being admitted, primarily due to infections rather than serious illnesses.
“Since they are elderly, there tends to be an underlying illness following COVID-19. They have become more fragile, and even a single infection can land them in the intensive care unit,” he explained.
In Singapore, this change in population demographics has led to an extended average hospital stay, increasing from 6.1 days in 2019 to about seven days by 2022, indicating a 15 percent rise in patient volume.
Even with this tendency, Ong stays hopeful regarding the future of healthcare quality, assuring that increased demand will not lower the standards.
To maintain affordability in healthcare, the government is broadening the scope of basic medical services, which includes extending MediShield Life coverage. Starting from April, MediShield Life will encompass therapies related to cells, tissues, and genes—advanced personalized treatments capable of tackling formerly incurable ailments.
Characterizing the shift as a pivotal moment for fundamental health services, Ong stated, “We concluded that this is the direction we should take… if there’s a possible remedy, individuals anticipate being able to obtain it.”
Ong pointed out that as these advancements entail significant expenses, the government’s higher spending will mostly be directed toward subsidies, while individuals would contribute via insurance schemes and MediSave.
Even with these increasing expenses, Ong guaranteed that a rise in taxes is not expected to be necessary.
He linked this to the anticipated rise in Singapore’s GDP, predicting higher tax revenues, with a substantial part of these funds going towards supporting healthcare initiatives.
“We anticipate an increase in our GDP. As long as the Singapore economy expands, tax revenues will rise. A substantial portion of this growth in the future will be allocated to healthcare,” he stated.
