Pioneer Generation Fund (Amendment) Bill

Order for Second Reading read.

2.47 pm

The Second Minister for Finance (Mr Lawrence Wong): Mr Speaker, I beg to move, "That the Bill be now read a Second time.”

Mr Speaker, the Merdeka Generation refers to the group of Singaporeans born in the 1950s, who worked hard and contributed to building our nation through turbulent times. The Merdeka Generation Package is a way for us to show our appreciation for their contributions and to show care for them in their silver years. This Package not only provides the Merdeka Generation with greater peace of mind over their healthcare costs but also supports them in staying active and healthy.

Mr Speaker, over the past week, all eligible Merdeka Generation seniors, close to 500,000 of them, would have received their eligibility notification letters. They will soon start to enjoy benefits that will help them stay active and healthy.

From July this year, Merdeka Generation seniors can redeem their $100 PAssion Silver card top-ups at selected Community Clubs, MRT stations and bus interchanges. They can use these credits to pay for activities at their Community Clubs, entry to ActiveSG pools and gyms, public transport and more.

They will also receive their first MediSave top-ups in July, as well as additional subsidies for their MediShield Life premiums. From November onwards, they will enjoy subsidies for their bills at CHAS clinics, polyclinics and Specialist Outpatient Clinics. In addition, they can enjoy a $4,000 sign-up incentive if they join CareShield Life between 2021 and 2023. All of these items in the Merdeka Generation Package come on top of substantial healthcare subsidies that the Government already provides to all Singaporeans.

To reach out to our Merdeka Generation seniors, since April this year, the Silver Generation Office (SGO), part of the Agency for Integrated Care (AIC), has started the process of engaging our seniors through home visits and community events. As many of our Merdeka Generation seniors are still working, SGO will supplement their current residential-based outreach approach with engagements in workplaces and community spaces.

The Government is also putting out information on the Merdeka Generation Package to our seniors and their families through a wide range of platforms, such as TV interstitials, radio segments, online channels like YouTube and Facebook, and roadshows.

Let me now turn to the Amendment Bill itself in greater detail. The Bill provides for the establishment and administration of the Merdeka Generation Fund. As mentioned in this year's Budget, the Government will set aside $6.1 billion in this Fund. With accumulated interest over time, we estimate that this amount will be sufficient to cover the projected cost of the Package which is over $8 billion. The Government will continue to monitor healthcare costs and utilisation, as well as life expectancy, to ensure that we are able to fund these key healthcare benefits. This is our commitment to the Merdeka Generation.

As the Amendment Bill rides on the Pioneer Generation Fund Act to establish the Merdeka Generation Fund, we have proposed that the Act be renamed the "Pioneer Generation and Merdeka Generation Funds Act".

Amendments to Part 2 of the Act establishes the Merdeka Generation Fund as a separate Fund from the Pioneer Generation Fund and sets out the purposes for which moneys in the Merdeka Generation Fund may be used. The general responsibility for the management and administration of both Funds lies with the Minister for Finance and the amendments provide for the presentation of separate annual financial statements and Auditor’s report for each Fund to Parliament.

Amendments to Part 3 of the Act define the eligibility criteria for an individual to be considered a Merdeka Generation Senior and outline the benefits which Merdeka Generation Seniors receive as part of the Merdeka Generation Package.

Amendments to Part 3 also provide for the powers of the Appeals Panel and the process for appealing to be a Merdeka Generation Senior. The current Act already provides that the Appeals Panel will only consider appeals from Singapore citizens who meet the age criteria. So, they have to meet the age criteria and the Appeals Panel will consider other considerations, namely, the citizenship criterion. The Merdeka Generation Package applies to Singapore citizens born between 1 January 1950 and 31 December 1959. If a person is born before 31 December 1949 and did not receive the Pioneer Generation Package previously, the Appeals Panel may assess and determine that they are eligible for the Merdeka Generation Package.

Amendments to Parts 4 and 5 of the Act relate mainly to the power to make regulations for carrying out the purposes and provisions of the Act as amended by the Amendment Bill and the proper conduct of officers and entities exercising functions in relation to the Merdeka Generation Fund.

In conclusion, Mr Speaker, the changes in this Act will enable the Government to implement the Merdeka Generation Package. This is how we can honour our Merdeka Generation for their contributions and give them and their families greater peace of mind with their healthcare costs. Mr Speaker, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Mr Lawrence Wong].

Bill considered in Committee; reported without amendment; read a Third time and passed.