REACH MEDIA RELEASE. Retirement Adequacy, Healthcare and Cost of Living are Top Concerns for Budget 2015

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1 REACH MEDIA RELEASE Retirement Adequacy, Healthcare and Cost of Living are Top Concerns for Budget 2015 A Pre-Budget 2015 Feedback Exercise to gather the views of Singaporeans identified Retirement Adequacy, Healthcare and Cost of Living as their top concerns. These topics accounted for around one-third of all the feedback received. 2 The exercise, which ran from 26 November 2014 to 29 January 2015, collected a total of 2,900 inputs from Singaporeans. Jointly organised by REACH and the Ministry of Finance (MOF), the annual exercise sought views on areas that should be looked into for Budget About two-third of the feedback received were from the three REACH Pre- Budget Listening Points 1 held. Feedback from online platforms accounted for 32 per cent while s made up around five per cent of the total feedback received (see Annex A for the breakdown). REACH also held a Pre-Budget Conversation with the public on 27 November Retirement Adequacy 4 The key concern among Singaporeans in this area was on having enough funds after retirement to cope with daily expenses and the rising cost of living, particularly for those who have not fully paid up their housing loans. They called for more government support in old age. On the Silver Support Scheme, there was anticipation among some contributors that the scheme will help them cope with their daily living expenses and they asked for more details. Nevertheless, there were also views that individuals need to take responsibility by not overextending themselves when buying their homes, and preparing for their retirement. 5 While the Central Provident Fund (CPF) scheme was considered useful, some contributors asked for greater withdrawal flexibility upon retirement. A few called for the Government to allow early CPF withdrawal on a case-by-case basis to cater for unexpected needs 2. Others were also worried that the CPF Minimum Sum might increasingly be out of reach for lower-income and vulnerable Singaporeans. 1 The REACH Listening Point is an open-concept booth where people can obtain information and leave feedback on national policies and issues. 2 This feedback was received before the recommendations of the CPF Advisory Panel were announced on 4 February

2 6 Some suggested not cutting the employer CPF contribution rate for those 50 years and above. They argued that this would not only encourage more seniors to work, but also help them save more for their retirement. On the CPF Minimum Sum Topping-Up Scheme, some contributors suggested for the Government to match top-ups dollar-for-dollar to encourage more to contribute to the retirement accounts of their family members. In response, some countered that this scheme will only benefit the well-to-do who are cash-rich whereas the man-in-street would not stand to gain. Healthcare 7 Healthcare issues were also widely discussed among REACH contributors. Despite MediShield Life that will be implemented in end-2015, several remained concerned that medical and hospitalisation costs may become increasingly unmanageable, especially for patients with chronic and life-threatening conditions. Some also felt that the deductible for MediShield Life and private health insurance should be lowered to benefit more patients. Nonetheless, there was wide agreement with the Government s assurance that no Singaporean would be denied treatment because of affordability or inability to pay. 8 While several applauded the benefits of the Pioneer Generation Package (PGP) and Community Health Assist Scheme (CHAS), they also called for greater subsidies for vulnerable groups. Other suggestions included increased Medisave coverage, and review of the eligibility criteria for healthcare benefits. 9 Many contributors hoped that hospitals could shorten waiting time for treatment, increase manpower, and provide more beds to meet rising healthcare demands. They also recommended providing healthcare workers with more training on customer relations, and having translators in hospitals to overcome language barriers. Cost of Living 10 Cost of living issues were widely discussed, particularly among visitors at the REACH Listening Points. Many called for more financial assistance to subsidise every day goods and services such as utility bills and food costs. Some commented that daily necessities should be made more affordable especially for the unemployed, lower-income and the elderly. There were calls for the Government to distribute cash hand-outs, grocery vouchers, and regulate the prices of goods to keep them affordable. 11 Many felt that their salaries had not kept pace with rising inflation, there were comments that the Government should not just focus on helping the lowerincome as the middle-income were also feeling the pinch. Nevertheless, others felt that everyone should take responsibility for his or her own lives, and not rely on the Government for hand-outs. 2

3 12 Parents were concerned about increased education costs, such as for ipads, electronic devices and services mandated by schools. They suggested providing subsidised childcare fees for middle-income families, and providing free childcare to low-income families. Others: Lifelong Learning 13 Lifelong learning was raised by contributors, especially those who had been in the workforce for a number of years. Most contributors felt a mindset change amongst Singaporeans is necessary for the objectives of SkillsFuture and lifelong learning to succeed. There were calls for less emphasis on paper qualifications and greater focus on soft skills, artisan skills, and specialised technical skills. Some contributors also opined that Singaporeans have to be multi-skilled in order to move up the value chain at work. 14 Many hoped that the Government could introduce new initiatives to encourage Singaporeans to further their studies. Older participants, especially those in their senior years, felt the need for an attitude change in young Singaporeans entering the workforce so that they would not be so complacent. A few also hoped that there could be a more rigorous and robust accreditation process to ensure the quality of professional education in Singapore. 15 Some, however, argued that not all employers in Singapore were willing to provide workers with additional training or send them for courses to acquire more work-relevant skills. They suggested that the Government educate and nudge such employers. 16 Contributors, particularly those from the Pre-Budget Conversation, urged greater effort in developing skillsets in emerging industries, such as in the green technology, gaming, infocomm, and media industries. There were also calls for high-value artisan skills to be promoted under SkillsFuture. Quote from REACH Chairman 17 On the feedback exercise, Senior Minister of State for Health and Manpower, and REACH Chairman Dr Amy Khor said, Public feedback plays an integral role in shaping our national budget and policies. I am heartened to see so many lively and engaging discussions across all REACH platforms. This surely is a positive sign of an active citizenry among those who are passionate about improving our nation. 18 Many Singaporeans expressed their concerns about healthcare costs and premiums, and I would like to assure everyone that under MediShield Life, all Singaporeans will be covered for life with better benefits and premiums will be made affordable with premium subsidies. MediShield Life is an enhancement of the present MediShield and from the feedback received; we recognise that we will 3

4 need to step-up our communication efforts in helping citizens understand the scheme s coverage and benefits. Through such efforts, we want to give our people assurance over their healthcare costs. 19 Retirement adequacy was one of the top concerns amongst the public, and the recent recommendations from the CPF Advisory Panel will help to address some of them. We look forward to a second set of recommendations that will be due later this year and in totality, we hope that Singaporeans will have greater peace of mind about having enough for their old age. Singaporeans continue to worry about rising cost of living which the Government seeks to address through various measures. But a key way to help Singaporeans cope with the cost of living must be to enable and equip them with the relevant skills so that they can have better jobs and better pay. Feedback on Budget 2015 Initiatives 20 Following the delivery of the Budget 2015 statement on 23 February 2015 by Finance Minister Tharman Shanmugaratnam, the public are invited to submit their views on the Budget initiatives through REACH feedback channels (see Annex B for full list of platforms). Issued by REACH 16 February 2015 For media queries, please contact: Mr Febrin Low H/P: Febrin_LOW@mci.gov.sg About REACH REACH (reaching everyone for active citizenry@ home) was launched in October 2006 when the Feedback Unit was restructured to move beyond gathering public feedback, to become the lead agency for engaging and connecting with citizens. This signifies its renewed commitment to encourage and promote an active citizenry through citizen participation and involvement. The three key roles of REACH are to: Gather and Gauge Ground Sentiments; Reach Out and Engage Citizens; and Promote Active Citizenry through Citizen Participation and Involvement. 4

5 Annex A: REACH Pre-Budget Feedback Exercise Channels 5% Online Channels 32% Listening Points 63% 5

6 Annex B: REACH Feedback Channels for Budget 2015 The public can submit their views on the Budget initiatives through the following channels: Singapore Budget website ( REACH Budget microsite ( REACH Singapore Facebook ( REACH Singapore Twitter use the hashtag #SGBudget2015) REACH Toll-Free Hotline at (Mon to Fri, 8:30am 5:45pm) SMS to 9-SPEAK-UP ( ) Mail: REACH, 140 Hill Street, #01-01A, Old Hill Street Police Station, Singapore REACH will also be organising a series of engagement sessions on Budget 2015 and Singaporeans can reach@reach.gov.sg for more information. Event details are as follows: Event Public Forum REACH Listening Point REACH Listening Point Facebook Q&A PMET Dialogue Details Date: Thursday, 26 Feb Time: 7pm to 9pm Date: Saturday, 28 Feb Time: 11am to 7pm Venue: Tampines Central Blk 513 Date: Monday, 2 Mar Time: 11am to 7pm Venue: Toa Payoh Hub Mall (near Vincent Watch at Blk 500 #01-31) Date: Tuesday, 3 Mar Time: 7.30pm to 8.30pm Venue: REACH Facebook page Date: Thursday, 5 Mar Time: 7pm to 9pm 6