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Minister for Health Ong Ye Kung said that even though Singapore's ageing population is a "unique challenge of this generation", Singapore is "in a position to cushion the impact" and "perhaps even reap dividends" due to Singapore's "strong foundation".

Ong was speaking in Parliament on Apr. 20, 2023, the fourth day of the debate on the Motion of Thanks to the President’s Address.

Profound impacts of an ageing population

Ong said that Singapore was classified as an "aged" population in 2017 and is estimated to reach "super-aged" in approximately nine years, by 2026, meaning 21 per cent of the population is 65 and above.

Ong pointed out that an ageing population will have a "profound impact" on Singapore, such as population dispersion, shrinking workforce, affecting the sustainability of social welfare systems and the need for increased healthcare spending.

However, Ong said Singapore has been "thinking about the problem of ageing for a long time", such as making changes to the retirement age and CPF system years ago, and even formalised a Ministerial Committee on Ageing in 2007, which has coordinated and launched "comprehensive action plans".

"Because of this strong foundation, we are in a position to cushion the impact of ageing, and perhaps even reap dividends from it."

He then shared how the government will continue to prepare for an ageing society.

Aged-Friendly Living Environment

Ong shared about Singapore's urban development plans for an ageing population.

He explained that population dispersion is not a challenge Singapore face as "we don't have many rural areas", Singapore still has to prepare its living environment for an "older society".

Ong said Singapore has a "significant advantage" in that 80 per cent of its population lives in public housing, and HDB can play an active central planning and development role in ensuring inclusive communities.

He cited HDB redeveloping old areas and launching new Build to Order (BTO) projects to inject a younger population into an old town, naming two BTO projects in Queenstown, SkyResidence@Dawson and QueenswayCanopy.

More inclusive towns

To create more inclusive towns, HDB incorporated a range of flat types that cater to singles and seniors.

In addition, the Proximity Housing Grant, priority schemes for parents and children to live with or near each other, and larger three-generation flats help encourage inter-generational mixing in housing estates.

Ong also highlighted the HDB's previous announcement of expanding the Enhancement for Active Seniors (EASE) programme to include more senior-friendly features such as customised ramps and wheelchair lifters.

"Our living environment is bending its form to suit society's shape. All these are deliberate efforts to help us prepare for an older society."

Adapting the economy

Ong explained how Singapore needs to adapt its economy to an ageing population.

He pointed out that Singapore's resident labour force's growth rate has already slowed, growing by 15 per cent between 2012 and 2022, compared to 30 per cent between 2002 and 2012.

However, he said Singapore's workforce still managed to grow for several reasons, such as Singaporeans being able to stay economically active for longer and Singapore's high female participation rate in the workforce.

Raising retirement age protects ageing workers

He said the Ministry of Manpower (MOM) aims to raise the retirement age from 63 to 65 and the re-employment age from 68 to 70 by 2030.

Ong reassured that the retirement and re-employment increase would not affect people's retirement savings in their CPF accounts.

"The main impact of raising these ages is that workers are protected from being dismissed due to their age by employers. Workers can choose to retire early if they want to. Hence raising this retirement age is an unmitigated good to workers."

Ensuring equal opportunities for women important for workforce

He emphasised that ensuring equal opportunities between men and women is important.

He cited the herCareer initiative to support women rejoining the workforce. This will be further pushed by introducing the Tripartite Guidelines on Flexible Work Arrangements in 2024.

Ong said to complement our ageing workforce, Singapore will also continue to need foreign manpower,

Singapore's economy will also need to continue to upgrade and evolve, to rely "rely more on brain than brawn", using technology such as AI to "augment the ability of the human worker" and "drive growth through productivity improvements".

"Singapore will become older, but it can remain economically dynamic and vibrant, as long as we continue to remake our economy and prepare our people for it. And employers must certainly do their part."

Retirement adequacy

Another significant aspect in preparing for an ageing society is assurance in retirement, and Ong shared that Singapore is fortunate to have the CPF system.

Ong said that with the CPF system, Singapore avoided major problems faced by pension systems worldwide.

While he acknowledges that the system has challenges, a specific challenge is that life expectancy differs. As a result, people who live longer may run out of their CPF savings.

Another challenge would be that some segments of society do not save enough in their CPF accounts.

"MOM will continue to look at ways and means to improve retirement adequacy of Singaporeans," Ong reassured.

Reforming the healthcare system

Ong also highlighted the need to reform Singapore's healthcare system.

Focusing on hospital care costly

He explained that most health systems in the world "are designed when life expectancy was much lower" and focused on hospital care.

However, he said it is the "most costly part of the whole healthcare ecosystem" with which a healthcare system can cope as long as the population is young — but as life expectancy rises, so is the burden on the system.

"The situation is also like an overflowing kitchen sink. We can keep mopping and soaking up the water on the floor. But the work is endless and the effort increasingly trying at some point we need to figure out how to turn down the tap. "

He added that what this meant for healthcare is to slow down the onset of severe diseases and make people healthier to prevent overloading the healthcare system and not "cripple the finances of governments".

Preventive care strategy & community support

Ong then talked about "Healthier SG", a preventive care strategy which will be launched in July 2023.

He said it aims to build up primary care like family physicians in communities and polyclinics.

Ong also pointed out that for most of the less serious cases or health residents, there is a need to devolve care downwards to community and family care.

He said studies show that 60 per cent of health is determined by social factors within communities and families, such as having a good family environment, living conditions and lifestyle etc.

"Where health interventions are needed, they are more social than medical, and often on common sense. Sleep well eat well reward have rewarding relationships, exercise, don't smoke, undergo periodic health screening and vaccinations."

Beyond Healthier SG, Ong stated that the next priority for the Ministry of Health is to build up community care and support ageing in communities.

"The government will provide the support and structure for individuals to take care of their own health. But then beyond the relationship between individual and state, the community is at the core of healthcare social compact."

Tackle ageing society with S'pore spirit

In conclusion, Ong said it is "ironic that the challenge of ageing came out of good things", with "people living longer due to medical advances and better quality of life" and "fertility rate coming down as aspirations changed".

He said he thinks Singapore has "a quiet unity and stout heartedness that help us overcome challenges."

"But perhaps the state of being a super aged society can ultimately and overall be a good thing to where people live long, fruitful lives, where there is health longevity, where there is warmth and care in every community, and we look out for each other.

And perhaps one day, after we tackle the challenges of a super aged society, with our Singapore spirit, we can reach the stage where society treats age as nothing but a number and 65 need not be that artificial line that divides the two sides of the dependency ratio."

Top photos via MCI YouTube