Singapore Tackles Soaring Healthcare Costs

Key Takeaways

• Healthcare spending to rise from $21 billion (2025) to over $30 billion by 2030.
• Enhanced subsidies for dental care, long-term care, and outpatient treatments.
• MediSave withdrawal limits for outpatient scans increased to $600 annually by 2026.
• Nursing home beds to expand from 20,000 (2025) to 31,000 (2030); hospital beds from 12,000 to 15,000.
• Preventive health initiatives, including Grow Well SG and Healthier SG, prioritized to reduce disease burden.

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Healthcare Spending Surge

Singapore’s healthcare expenditure is projected to soar from $21 billion allocated for 2025 to over $30 billion by 2030, driven by an ageing population and rising medical costs. Health Minister Ong Ye Kung emphasized the challenge of balancing affordability and sustainability, stating, “It is very difficult to rein in escalating healthcare expenditure, especially when it is a matter of life and death for ourselves and our loved ones.”

To alleviate financial burdens, the Government will expand subsidies for dental and long-term care while raising MediSave withdrawal limits. From January 2026, annual MediSave withdrawals for outpatient scans (e.g., MRIs) will double to $600. Flexi-MediSave, for seniors aged 60+, will increase from $300 to $400 annually starting October 2025. These changes aim to benefit over 500,000 patients using MediSave for scans and 700,000 relying on Flexi-MediSave.

Mr. Ong highlighted the S+3Ms framework (subsidies, MediShield Life, MediSave, MediFund) as critical to cost mitigation, noting, “Seven in 10 patients in subsidised hospital wards pay nothing out of pocket, while eight in 10 pay less than $100.”

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Addressing Long-Term Care Demands

With long-term care costs doubling to $3 billion in five years, the Ministry of Health (MOH) will raise subsidies to 80% for eligible seniors and expand income eligibility thresholds. Citizens born in 1969 or earlier will receive additional subsidies of up to 15 percentage points. Interim rebates will maintain fee stability until the revised subsidies take effect in July 2026.

Responding to concerns about fee caps, Mr. Ong confirmed nursing home providers face regulated fee increases for existing residents but acknowledged rising operational costs.

To meet growing demand, healthcare capacity will expand significantly: nursing home beds will increase by 11,000 (20,000 to 31,000) and hospital beds by 3,000 (12,000 to 15,000) by 2030. Medical schools have boosted student intake from 500 (2020) to 550 (2024), while nursing recruitment rose to 4,500 in 2023 and 3,800 in 2024.

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Preventive Health Initiatives

Highlighting the gap between lifespan (84 years) and healthy lifespan (74 years), Mr. Ong stressed preventive care. Dental health subsidies for restorative procedures (e.g., root canals) will increase for Pioneer/Merdeka generations and CHAS cardholders. The Grow Well SG program targets youth health, while Healthier SG, launched in 2023, has enrolled 1.2 million residents in personalized preventive care.

Mr. Ong warned against prioritizing one healthcare objective (affordability, quality, or accessibility) at the expense of others, citing examples from the UK and Switzerland. He reiterated, “With better health, we achieve all three at the same time – without trade-offs.”