Spend prudently, help those in need

I refer to the article “Singapore must spend prudently, but continue to help those in need: Heng Swee Keat” (Channel NewsAsia, Jan 22).

It states that “emphasised the need for prudent, sustainable financial policies amid a challenging economic environment – but reiterated that the country will continue to invest in subsidies for those in need.”

In this connection, according to the article “S’pore can afford to be more open in sharing data” (Straits Times, Dec 11) – “Singapore ranks 63rd (34 per cent open), having the same score as Bangladesh, Bermuda, Nepal, Senegal and Tunisia. For a highly developed country, this is not good company.

Least transparent for govt spending?

Singapore ranks lowest on government spending: 0 per cent transparency, 86th and tied for last place with 11 countries that otherwise have little in common with the 20th century’s greatest economic miracle.

Singapore joins the likes of Cambodia, Indonesia, China, Zimbabwe, Cyprus and Saudi Arabia in being among the 12 least open for government spending.

This is strange company for Singapore indeed. Given its global openness and pragmatic attitude, Singapore should strive to do much better than the above countries in any aspect of governance, including transparency.”

$25b a year cash Budget surplus?

It may also be interesting to note that according to the Department of Statistics Monthly Digest of Statistics October 2015 – we had a cash Budget surplus under IMF fiscal reporting guidelines of $25.3 billion in FY2013 as well as FY2012. We also have an estimated $900 billion in the Reserves.

Spending on welfare, healthcare & retirement?

As to “Among the targeted spending: Ensuring every child has access to quality pre-school; enhancing support for families; building healthcare and retirement adequacy systems for the elderly” – according to the Community Care Endowment Fund annual report for FY2014 – ComCare disbursed $116 million to 91,093 overall unique beneficiaries assisted.

ComCare – $106 assistance per beneficiary?

Does this mean that the average assistance per beneficiary was only about $106 monthly ($116 million divided by 91,093 beneficiaries divided by 12 months)?

Doesn’t this amount seem kind of little?

Patients choosing subsidised wards increase to 80%?

According to the Straits Times article on 18 July 2015 –  “Combined with B2 class, the proportion of public hospital patients choosing subsidised care went up from 70 per cent of the total number in 2000, or 194,000 patients, to 80 per cent last year, or 272,000 patients”.

Review healthcare financing model?

The above may underscore the need to review our healthcare financing model which from a cashflow perspective – means that the Government is not spending any money on healthcare, as annual Medisave contributions plus account balances’ interest exceed public healthcare spending and Medisave withdrawals for expenses and premiums.

This healthcare financing model may be pushing people’s “fears of healthcare affordability” to the limits of the capacity of the subsidised wards and treatment clinics in our public hospitals.

CPF?

It may be interesting to note that, arguably CPF may be like an implicit tax – with annual contributions always exceeding withdrawals.

In 2014, contributions ($29.7 billion) exceeded withdrawals ($17.3 billion) by $12.4 billion.

The total CPF accounts’ balance was $275.4 billion.                      

Moreover, the real rate of return on the CPF Ordinary Account may be the lowest since 1999, of all national pension funds in the world.

Our contribution rate of 38 per cent is also the highest in the world.

Govt not spending a single cent on CPF?

Is the Government not spending a single cent on CPF from a cashflow perspective?

Leong Sze Hian