Singapore Fact-File Part 7:
Business Owner Welfare and Lifestyle

7.4 Singapore Individual Business Healthcare

Singapore’s healthcare system provides a high standard, both in terms of facilities and services, and is funded primarily via a system of compulsory contributions known as Medisave.

Medisave was introduced in 1984 as a national medical savings account scheme; Singapore resident employees (and self-employed workers, about whom more later) are obliged to contribute between 6-8% of their monthly wages to a personal Medisave account, the contents of which can be used to pay for the medical expenses of the account holder, or their close family members.

The self-employed are required to contribute to Medisave if their net trade income is more than SGD6,000 per year, with contributions based on the previous year’s net trade income, and their age.

The Central Provident Fund provides information on the rates, from 2010 onwards, here.

Contributions can be made via the Central Provident Fund website, in monthly instalments through the GIRO system, by cheque, or using cash or cash cards at Singpost offices and dedicated payment machines, or by using the NETS (Network for Electronic Transfers) system.

In addition to Medisave, the government heavily subsidises acute treatment in public hospitals, and the Central Provident Fund also operates MediShield, which is a catastrophic illness insurance scheme (operating on a co-payment and deductible system, for further details see here), provided at a relatively low cost to Singapore residents, which is designed to help meet costs brought about by major illnesses which the person’s Medisave account might not be able to meet.

For Singapore residents unable to afford healthcare treatment despite the above safeguards and schemes, the government has establishment a medical endowment fund known as Medifund.

At the time of writing, there were 10 public hospitals, 13 private hospitals, and a number of specialist clinics in Singapore.

Non-residents are able to access healthcare services in Singapore, but must pay out of their own pockets; they are not permitted to contribute to Medisave accounts. Additionally, they may pay higher costs than Singapore residents if they opt to be treated in government hospitals.