SINGAPORE, April 10 — By 2030, healthcare spending in Singapore is poised to become the government’s largest financial commitment, with projections pointing to an annual expenditure nearing S$30 billion (RM100 billion).

This marks a significant rise from the S$9 billion in 2015, Health Minister Ong Ye Kung told The Straits Times in an interview published today.

He added that in 2025, healthcare funding will reach S$20.9 billion, second only to the S$23.4 billion allocated to defence.

Ong also highlighted the steady increase in healthcare spending over the past decade, noting that in 2024, the government’s budget for health would rise to S$18 billion.

He said a substantial portion of this funding will be directed towards expanding healthcare infrastructure, including new hospitals, nursing homes, and community care centres, as well as addressing rising manpower costs.

However, a key focus will be maintaining affordable healthcare through subsidies for patients.

Ong acknowledged the challenges posed by an ageing population, which is expected to drive up national healthcare expenditure.

“We can make it affordable to the patient, but there’s no doubt that with an older population, healthcare expenditure, whether by the government or nationally, is going to go up,” he was quoted as saying.

Older individuals, Ong pointed out, tend to experience more frequent and severe illnesses, often requiring longer hospital stays.

“You’re seeing a lot more older patients coming in, not because of very severe diseases, but due to infections.

“Because they are old, there is underlying illness after Covid-19. They are more frail, and one infection is all it takes for them to be in the ICU,” he said.

In Singapore, this demographic shift has contributed to a rising average hospital stay, from 6.1 days in 2019 to seven days by 2022, reflecting a 15 per cent increase in patient load.

Despite this trend, Ong remains optimistic about the future of healthcare quality, ensuring that demand will not diminish standards.

In an effort to keep healthcare affordable, the government is enhancing the definition of basic healthcare, including expanding MediShield Life coverage. From April, MediShield Life will cover treatments involving cell, tissue, and gene therapy products — cutting-edge, personalised treatments that have the potential to address previously untreatable conditions.

Describing the move as an “inflection point” for basic healthcare, Ong explained, “We decided that this is the way to go... if there is an available treatment, people expect to have access to it.”

As these advances come with high costs, Ong highlighted that the government’s increased expenditure will largely go towards subsidies, with individuals contributing through insurance and MediSave.

Despite these rising costs, Ong assured that a tax hike is unlikely to be needed.

He attributed this to the expected growth in Singapore’s GDP, which will increase tax receipts, a significant portion of which will support healthcare.

“We expect our GDP to grow. So long as the Singapore economy grows, tax receipts will go up. And a big part of it, a significant part of it in future, will be for healthcare,” he concluded.