HOSPITALISATION FEE ASSISTANCE SCHEME

Mr Gan Kim Yong asked the Minister for Manpower if he could give an update on the number of Singaporeans who remain jobless and whether he expects the situation to improve by early next year.

Dr Lee Boon Yang: An estimated 84,300 residents (comprising Singaporeans and Singapore Permanent Residents) were unemployed in September 2002. (This figure is seasonally adjusted). Although the labour market had shown signs of recovery, job creation is still not sufficient to absorb this year's new entrants to the labour market. Consequently, the seasonally adjusted overall unemployment rate rose to a 15-year high of 4.8% in September 2002 from 4.1% in June and 4.5% in March this year. Among the resident labour force, the unemployment rate was 4.9% in September 2002.

Unemployment is expected to remain high until the end of this year. It is expected to be between 5.0% and 5.5%. If economic recovery is sustained, then unemployment would fall in 2003. But it is too soon to predict next year's unemployment rate.

Recent developments in the external environment would affect Singapore's economic recovery and employment growth. Nevertheless, there are still job vacancies. I would therefore urge unemployed Singaporeans to have a positive attitude, to be flexible and more willing to take up these jobs. It will not be easy to change, or to go into new areas, but those who keep on trying, will eventually succeed.

Mr Yeo Guat Kwang asked the Minister for Health, since the introduction from 1st1/2November 2001 of the one-year hospitalisation fee assistance scheme as part of the second off-Budget package to help lower income and retrenched Singaporeans (a) how many retrenched workers and their families have benefited from the scheme so far; (b) how much has it cost the Government; and (c) in view of the continued economic downturn, does his Ministry plan to extend the scheme.

Mr Lim Hng Kiang: There are two types of rebates that the Government has been giving to Singaporeans under the Hospitalisation Fee Assistance Scheme (HFAS) since 1st November 2001.

First, Singaporeans who are class B2/C inpatients or subsidised day surgery patients in the public sector hospitals and institutions would automatically receive a 10% fee rebate on their hospitalisation bills.

Second, retrenched Singaporeans and their non-working spouse and dependent children would be eligible for an additional 40% fee assistance. Thus, together with the 10% rebate, families of retrenched Singaporeans would effectively receive a 50% reduction in their hospital bills.

For the past 11 months since the implementation of the HFAS (from 1st November 2001 to 30th September 2002), some 265,712 Singaporean families have benefited from the scheme. Of these, 139 were retrenched Singaporeans and their families who received a 50% reduction in their hospital bills.

Altogether, the Government has paid out close to $20 million worth of rebates to Singaporeans and their families to help defray their medical expenses. Of this, $142,000 was given to retrenched Singaporeans and their families. The bulk of the rebates ($19.8 million) was given to Singaporeans who used the heavily subsidised class B2/C inpatient services or who underwent subsidised day surgery.

The HFAS was introduced for 1 year under the Government's 2nd off-budget measures to help Singaporeans tide through the economic downturn. The HFAS will terminate on 31st October 2002 as planned.

Singaporeans who face financial difficulties in paying their medical bills, including those who are retrenched, will continue to receive funding assistance from Medifund. They can ask to see the Medical Social Workers who will assist them accordingly. No Singaporean would be denied essential medical care because of their inability to pay.