20140729 Huge 30-year Medisave M S increase to support privatisation of public hospitals, GIC

The CPF Medisave Account Minimum Sum (MA MS) has increased at an insane rate since it was introduced in 1984. The government says that the yearly increase is to adjust for ”healthcare inflation”. But the “healthcare inflation” was clearly government-induced through the privatisation (corporatisation) of our public hospitals.

Our highest consumer price index (CPI) since MA MS was introduced was only 6.6% recorded in 2008. However, the MA MS increased more than the highest inflation rate in 22 years!

The increase in MA MS has nothing to do with the increase in the cost of living. If fact, there is no yardstick and the PAP can suka suka increase MA MS by any amount. (see table and chart below)

1 – The MA MS increase hit double digit in 1985, 1991, 1992, 1993, 2000 and 2001. (inflation nowhere near its increase)
2 – The difference between the CPI and MA MS increase during these 6 years ranged between 7.7% and 10.5%.
3 – In 3 years when the CPI was negative, the MA MS continued to increased.
4 – The largest increase when the CPI was negative was in 1986 – the MA MS increased by 9.1%, CPI minus 1.4%.

1984 5000 2000 19000 11.8 1.3
1985 5500 10 0.5 2001 21000 10.5 1.0
1986 6000 9.1 -1.4 2002 23000 9.5 -0.4
1987 6500 8.3 0.5 2003 25000 8.7 0.5
1988 7000 7.7 1.5 2004 25500 2 1.7
1989 7500 7.1 2.4 2005 27500 7.8 0.5
1990 8000 6.7 3.4 2006 28000 1.8 1.0
1991 9000 12.5 3.4 2007 28500 1.8 2.1
1992 10000 11.1 2.3 2008 29500 3.6 6.6
1993 11000 10 2.3 2009 32000 8.5 0.6
1994 12000 9.1 3.1 2010 34500 7.8 2.8
1995 13000 8.3 1.7 2011 36000 4.4 5.2
1996 14000 7.7 1.4 2012 38500 6.9 4.6
1997 15000 7.1 2.0 2013 40500 5.2 2.4
1998 16000 6.6 -0.3 2014 43500 7.4
1999 17000 5.9 0.0

From the chart below, there is obviously no correlation between the upsized MA MS and inflation.

Corporatisation of public hospitals

The only reason for the double digit MA MS increase in the 1980’s appears to be in anticipation of the ‘restructuring’ (privatisation) of all public hospitals in the 1990’s. When public hospitals are operated as government-owned corporations, costs always escalate and the government must have already factored this into the MA MS increase. (see chart above)

It is a fact the PAP government makes money off its citizens whenever possible. Public housing, public transportation, community club tuition, etc

The PAP’s MO has remained unchanged:

1 Increase prices at its whim because there are no checks in Parliament.
2 Offer some subsidies but ensure the system is complicated.
3 The subsidies are splashed across the mainstream media to gain political mileage. (eg Medishield Life)
4 Citizens will resign to their fate after some time and adjust to the system.

Channel CPF into GIC

As is evident, there is no logic for the huge increase in healthcare savings. The MA MS doubled thrice:
– 6 years from 1984
– 8 years from 1990
-11 years from 1998

And why did the government also increased the total CPF Medisave balance by $19 billion during the last 4 years?

The actions of the government do not make any sense. If healthcare inflation needs to be checked, the solution is to bring down costs and not make citizens pay. And pay.


The MA MS initial huge increases were meant to support the privatisation of our public hospitals. The annual increase has no correlation with inflation, no yardstick and is based on the whims of the government. Subsequent increases appear to channel billions into GIC for state investment.

No democratic government is able to pull a fast one on its citizens in such a manner. The insane increases in the MA MS, coupled with the OA MS, have already robbed Singaporeans of our retirement savings. The government has to be a limit of tolerance has been breached.

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6 Responses to 20140729 Huge 30-year Medisave M S increase to support privatisation of public hospitals, GIC

  1. Isupportyou says:

    This is in line with the introduction of the MOHH, ministry of health holding company with the minister of health as the shareholder holding 600 over millions of shares which I saw in one of the posting. In private practice, a holding company is set up to make money and I don’t know if we can say the same for this? What do you think?
    If always increasing cost is a way to go without considering affordability of the people, then, any tom, dick and Harry can manage as well as any of them, if not better. We don’t need to pay millions for shit jobs.
    Maybe the MIW has already designed systems in such a way that they know very well that their “income ” will increase by millions or billions by just tweaking the systems as and when they feel like it?
    Only they know best? In the absence of transparency, the people can just continue to deduce, infer from all available information. Are they wrong in doing so when the money involved is in the billions and billions? Can you blame them?

    • phillip ang says:

      With more transparency, the PAP will be exposed for its incompetence. Although we are not paying ministers/civil servants peanuts, we do still get monkeys. Observe and you will notice their profit motive.
      Another reason for corporatisation of healthcare is the creation of highly-paid positions. Welcome to crony capitalism. CEOs, senior management and directors are all appointed by the PAP. This is wrong because they are using tax dollars.
      Want money, no problem. Just turn on the Medisave tap. Increase Medishield premiums? Get companies to pay by increasing 1% in contribution. Parents no CPF Medisave? Just allow their children’s to be used and if their children have shortfalls, think about this later.
      When you look at our more expensive is better “public” housing, COE-ERP revenue generating transportation, etc it is clear the PAP is out to profit from the citizens it is supposed to serve.

  2. Isupportyou says:

    This information is very useful. The MAMS is basically increased based on inconsistent increment basis the same way the MS has been increased over the years.

    The same “logic” must flow, I supposed.

    Well done.

  3. wongcheokwan says:

    Medishield Life ? Its the biggest con job. Present Medishield pays out only 63% of premium collected.They have to spent hundreds of millions to feed the chairman,president,ceo,board of directors,and a regiment of overhead staff just to disburse payment.Its easier to squeeze blood from a stone then to get a cent from insurance companies.For profit,insurance companies will contest,withhold,or delay payments.How many people have the money or time to take an insurance company to court over a claim?

    • phillip ang says:

      With Medishield Life, the PAP decides on the premiums and legislates all citizens to be on board. It’s also up to them to retain any huge surplus with ridiculous reasons. At least there is a choice in the private sector. It’s the same with town council surpluses which is transferred into the sinking fund. They simply increase our S & CC and we must accept all their stupid reasons. 😦
      The PAP has already calculated the amount they can make from us through Medishield. Every business that is profitable, there will be PAP. Even casket business, NTUC also want to do. 🙂
      Individually, we have to accept our limitation against an oppressive government. But no government has ever triumphed when it comes to people’s power. 🙂

  4. Pingback: Daily SG: 30 Jul 2014 | The Singapore Daily

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