Singapore scheme saved billions and built world-class system

The health care reforms being proposed for Hong Kong bear a startling resemblance to those which have helped transform Singapore's medical system into the envy of Asia.

Singapore has operated a compulsory health care savings scheme since the 1980s, which has not only saved the Government billions of dollars but also helped nurture world-class facilities.

Like the compulsory 'old age insurance' programme being proposed for Hong Kong, Singaporeans have six to eight per cent automatically deducted from their salaries each month and paid into a Medisave account.

Employers must contribute an equal amount.

Medisave savings can then be drawn on by members to help pay both their own hospital costs and those of their immediate family.

Ng Yeow Tong, a health care analyst at GK Goh Securities, said: 'The system works very smoothly.' Under the Singapore system, residents below the age of 55 are required to save up to S$21,000 (HK$93,765) in their Medisave Accounts. Upon reaching the age of 55, members are expected to keep a minimum S$16,000 in their accounts for their health care needs during retirement.

Singapore also operates Medishield, a catastrophic illness insurance scheme to cover medical expenses of major or prolonged illnesses.