MEDISAVE ACCOUNTS (Withdrawal for Third child delivery expenses)

Dr Koh Lam Son asked the Minister for Health whether he will consider allowing expectant mothers to withdraw moneys from Medisave accounts to defray hospital expenses for the delivery of a third or subsequent child.

The Minister of State for Health (Mr Yeo Cheow Tong) (for the Minister for Health): Mr Speaker, Sir, I will answer on behalf of my Minister.

Currently, Medisave accounts may be used in Government hospitals for the hospitalization expenses incurred in third or higher order births for highly educated mothers.

The Ministry is currently reviewing this Scheme with the objective of allowing the use of Medisave for high order births on the basis of the affordability of the parents to properly support and raise a large family, rather than on the educational qualification of the mother. This will be in line with Government's policy to help the lower-income group break out of the poverty trap by having smaller families.

The review will be completed within the next six months.

Mr Jeyaretnam: May I ask the the Minister for State by what right does his Ministry take it upon itself to consider the affordability of parents to have a third child or more?

Mr Yeo Cheow Tong: Mr Speaker, Sir, population policy is the responsibility of the Government as a whole. The Government has been analysing the procreation figures and the results of the lopsided procreation pattern have been well noted and well publicized. It is in the interest of the nation that this lopsided pattern be corrected and therefore the Medisave policy for higher order births was propounded and implemented as part of the national effort to remedy this lopsided policy. Based on the results to date, the Ministry has found that this policy of allowing Medisave only for the highly educated mothers has not produced the desired results. Therefore, we are in the process of reviewing it in order to broaden the policy but without jeopardizing the chances of people in the lower-income group of getting out of their present poverty trap.

Mr Jeyaretnam: Would the Minister of State concede quite frankly and candidly that this policy, like everything else, is a thoroughly discriminatory measure against the poor and the lower educated?

Mr Yeo Cheow Tong: It is not a discriminatory measure. If a family can afford to bring up their children, provide the children with proper education, proper upbringing -

Mr Jeyaretnam: What about children's allowances? Why do you not give them something?

Mr Yeo Cheow Tong: - to ensure that they will grow up with the proper training, proper education, so that they can contribute meaningfully to the growth of our country, they will be encouraged, in fact, to have larger families.

Dr Koh Lam Son: Sir, in what way does the Minister of State think that, by allowing the release of Medisave funds to defray hospital expenses for the delivery of the third child, this will actually help to correct the pattern of lopsided procreation ? Or does it make it worse?

Mr Yeo Cheow Tong: It will help to correct the pattern if the target group finds that it is a useful benefit. But at the same time, we have to be sure that those in the lower-income group are not enticed by this liberalization into having more children, thereby jeopardizing their own chances of helping the family get out of their present predicament.