I refer to the article “ND Rally: New MediShield Life for universal coverage” (Channel NewsAsia, Aug 18).

Increase Medishield premiums?

It states that “This means patients can expect to pay less cash out-of-pocket. But with better benefits and coverage, the premiums for MediShield Life will be higher too. The government will, however, subsidise MediShield Life premiums for those who cannot afford them. Another group that needs special care is from the pioneer generation, who are now mostly retired and are in their late sixties, or older.

They will get help to pay for their MediShield Life premiums, under a new Pioneer Generation Package. Mr Lee said: “We are going to spend more on healthcare, year by year. The goverment subsidies are going up and will go up some more. But some part of it has to be paid by ourselves and each of us must save enough to pay for our share.

Increase Medisave contributions?

“Therefore, I think you can guess what my next line will be — Medisave rates have to go up. It has to be. We will increase these contribution rates over time, as and when our economic conditions permit. “How? How much? We will have to discuss carefully, but the direction is quite clear. We need to save more and that will stand us in good stead because one day we will all grow old, if we are lucky.””

So, the bottom line may be that everyone will have to pay more by way of higher Medishield premiums and higher Medisave contributions. And this is so soon after Medishield premiums and deductibles were raised from 1 March this year!

We can afford it?

The question that we have to ask may be that with healthy Budget surpluses in about 9 out of every 10 years, $3.9 billion in the last year ($36 billion if IMF reporting standards are used) and estimated Reserves of over $900 billion, why are we increasing Medishield premiums and Medisave contributions?

Moreover, it was last replied in Parliament that the sum of Medishield premiums collected exceed the claims paid by about $850 million. If we include the annual interest on the accumulated Medishield surplus, will Medishield’s annual loss ratio become an operating surplus?

In this connection, I would like also to refer to the article “Asia spending too little on poor: Report” (Straits Times, Jul 12).

Only 3.5% of GDP social spending?

It states that “Singapore spent 3.5 per cent of GDP on social protection, which includes the Central Providend Fund (CPF) This was far below the 19.2 per cent by Japan and 8 per cent spent by South Korea, the only other high-income countries in the Asian Development Bank (ADB) study.

If exclude CPF, even lower spending?

As CPF is not spending by the Government, but essentially the people’s own savings – Singapore’s social spending may actually be even much lower than that cited in the subject report. (“Singapore spends the least (relatively) on social spending?“, Jul 12)

As to “But instead of bringing down the prices of Build-To-Order (BTO) flats, which will hurt all home owners, the prime minister said more help will be given to households to own a home. Mr Lee added that the government has moved decisively in the last two years to help more Singaporeans own their homes.

For example, a record number of new flats have been built, and prices of BTO flats have stabilised since they were de-linked from resale market prices” (“ND Rally: More grants to help low, middle-income families own homes“) – since a $170,000 3-room BTO flat in Sengkang was cited as an example in the NDR speech –

Sengkang BTO increased 101%? 

In the July 2006 Sengkang Fernvale Vista BTO, 3 and 4-room prices ranged from $94,000 to $123,000 and $131,000 to $182,000, respectively.

In the recent March 2013 Sengkang Compassvale Cape  BTO, 3 and 4-room prices have skyrocketed to $189,000 to $227,000 and $284,000 to $361,000, respectively.

So, even if we give them the benefited of the doubt by analysing the cheapest 3-room flat – the increase is $95,000 or 101 per cent or an annualised increase of 10.5 per cent.

Didn’t somebody say that BTO prices have stabilised since taking over the job?

Hence, even if you get the maximum grant of $40,000 for families with household income below $1,500 a month – is your grant really a subsidy when your price could have gone up by $94,000 (and I’m using the cheapest flat to illustrate this point)?

Let’s say you were also able to get the Special Housing Grant (SHG) of another $20,000 to make it a total of $60,000 – it may still be well below the $94,000 increase in the price.

Whilst we are on the subject of the SHG – “The HDB said 1,238 households had taken advantage of the $13.15 million given out by the scheme (since its implementation in 2011). Divide $13.15 million by 1,238 households, and you get $10,622.

How many got how much?

So, the obvious question that must be in your mind now – is how many families got the maximum AHG and SHG grants of $60,000. And similarly, how many got more than $50,000, $40,000 and so on?

Looking at the average grant calculated above – most households may have gotten rather low grants compared to the super increase in prices. Then, what about those who don’t qualify for any grants, like 2nd-timers, household income above $5,000, etc?

They still have to suffer the skyrocketed prices.

By the way, if your household income is say $4,501 – you qualify for the grant, but only $5,000. A pitance compared to the increase in prices!

BTO prices increase more than Resale Price Index?

Also, why is it that some BTO flats’ prices have risen at an even higher rate of increase than the HDB Resale Price Index (“The Singapore Public Housing Success Story? Lose $ on every flat sold?“, Jun 19),

“Significant shift”?

In the final analysis, this so called “new policies on healthcare, education and housing mark a “significant shift” in the government’s approach towards nation building” (“ND Rally: Singapore makes strategic shifts to nation building”) – may essentially mean some more of “Pay and pay” – increase Medishield premiums, Medisave contributions, won’t bring down the prices of BTO flats which will hurt all home owners, singles have to pay $15,000 more, etc.

Leong Sze Hian .