Health Minister stresses that increasing spending does not always lead to better outcomes, as Singapore remains effective with just 4% of GDP spent on healthcare.
SINGAPORE: Health Minister Ong Ye Kung stressed that Singapore must ensure that healthcare spending does not increase excessively as a proportion of GDP. In Parliament on Wednesday (May 10), he warned against following the path of many OECD countries, where healthcare fiscal burdens have escalated out of control.
“In the coming years, our challenge is not to spend more, but to ensure we do not go the way of many OECD countries, with the healthcare fiscal burden spiralling and escalating out of control,” he said. He also pointed out that higher spending does not necessarily equate to better health outcomes.
Mr Ong referenced the US and UK, where healthcare spending accounts for 17% and 10% of GDP respectively, compared to just 4% in Singapore. Despite this higher spending, both countries continue to face a high incidence of chronic illnesses, obesity, and lower life expectancy. In contrast, Singapore has delivered good health outcomes with a much smaller share of GDP devoted to healthcare.
Government Healthcare Spending
The Health Minister was responding to comments made by Non-Constituency MP Leong Mun Wai (PSP) during a debate on healthcare issues. Mr Leong had cited World Health Organization data showing that the Singaporean government covered 43% of healthcare costs in 2019, a slight increase from 33% in 2011. However, he argued that this figure is still much lower than the 75% average for OECD countries and called on the government to provide more financial support to help Singaporeans cope with rising healthcare costs.
In his response, Mr Ong noted that Singapore has kept healthcare affordable for middle- to lower-income groups, with seven in 10 Singaporeans in subsidized wards not paying out-of-pocket expenses. The majority of others pay less than S$500 for healthcare. He further explained that if the government were to spend more to reduce out-of-pocket expenses for unsubsidized patients, it would push healthcare spending to the levels seen in OECD countries.
Healthcare Spending for an Aging Population
Mr Ong also acknowledged that healthcare spending is expected to rise significantly due to Singapore’s aging population. The health ministry’s budget has already tripled since 2010 and is projected to triple again in the next decade, driven by an older population who is becoming sicker.
Additionally, he addressed concerns raised by Mr Leong regarding the Pioneer Generation and Merdeka Generation funds, explaining that the size of these funds is based on the lifetime projected cost of benefits, accounting for inflation and interest accrued.
Interlinked Systems for Healthcare
The Health Minister also emphasized that Singapore’s healthcare system consists of three interlinked systems: acute care, population health, and aged care. He explained that the government’s focus is on preventive care through initiatives such as Healthier SG, set to launch in July. This strategy aims to prevent sickness and reduce the disease burden in the population.
For aged care, Mr Ong said the solution cannot solely rely on nursing homes or isolated seniors without social support. Loneliness and social isolation among the elderly have become pressing issues in many countries, including Singapore. He called for urgent action to improve aged care systems, ensuring seniors can live dignified, active lives surrounded by their families and communities.
In conclusion, Mr Ong reiterated that Singapore’s approach to healthcare should prioritize efficiency and sustainability while ensuring quality care for all, particularly as the population continues to age.
