Singaporeans belonging to the Merdeka Generation (born in the 1950s) will be receiving a package of healthcare benefits in appreciation for their nation-building efforts.

Called the Merdeka Generation Package (MGP), details of it was shared by Finance Minister Heng Swee Keat in his Budget speech on Feb. 18.

Why does the Merdeka Generation need a special package?

The Merdeka Generation are Singaporeans who were born between 1950 and 1959 and became Singapore citizens before 1997. Today, these Singaporeans are between 60 and 69.

This was the generation of Singaporeans who first served National Service, played a critical role in Singapore's economic development and worked to build a multi-cultural, multi-racial society, according to Heng.

According to Heng, the MGP is

"a gesture of our nation's gratitude for [the Merdeka seniors'] contributions and a way to show care for them in their silver years."

Heng said that the MGP aimed to help the Merdeka Generation stay active and healthy, and defray healthcare costs given that life expectancy is currently 84.8 years.

MGP will also given to Singaporeans who were born in or before 1949, became Singapore citizens before 1997, and did not receive the Pioneer Generation Package.

This package will benefit about 500,000 Singaporeans.

What is in the Merdeka Package?

The Merdeka Generation Package has five healthcare benefits:

First, a one-time S$100 PAssion Silver Card top-up which Merdeka seniors can use for entry to community clubs, public pools, public transport, and others.

Merdeka seniors will also receive a S$1,000 MediSave top-up which will be distributed over five years from 2019 to 2023 (S$200 annually).

MGP recipients will get lifetime GP, Dental, Polyclinic, Specialist Clinic subsidies. This takes the form of a special subsidy (higher than the highest Blue-tier CHAS subsidies) at CHAS GP and Dental clinics and an additional 25 per cent off their subsidised bills at polyclinics and public specialists clinics.

It was previously announced that seniors will get up to S$2,500 as incentive if they join CareShield Life. CareShield Life is optional for Singaporeans age 41 or older in 2010 when the scheme rolls out.

Heng announced that Merdeka seniors will get an additional S$1,500 financial incentive if they join CareShield Life, bringing the total CareShield Life incentive to S$4,000.

Lastly, Merdeka seniors will receive additional MediShield Life Premium subsidies for life. Depending on their age, seniors can receive either five percent or 10 per cent off their annual premiums. This is on top of the means-tested subsidies that lower to middle income Singaporeans are already receiving.

In total, they will receive between S$31.50 and S$918 in subsidies.

Funded by S$6.1 billion Merdeka Generation Fund

Heng added that the package was estimated to cost about S$8 billion over the Merdeka Generation's lifetime.

As such, the Finance Minister announced that the government will set aside S$6.1 billion for a new Merdeka Generation Fund which will pay for the package.

The additional projected S$1.9 billion will come from interest accumulated over time.

All eligible seniors will be notified by April 2019 and will start receiving their Merdeka Generation cards starting June 2019.

For more information, you can visit the Budget 2019 website here.

Top photo by Angela Lim.