Affordable and Comprehensive Insurance Coverage for Foreign Workers

39 Mr Leon Perera asked the Minister for Manpower whether the Ministry will consider (i) mandating more comprehensive insurance coverage for migrant workers and (ii) providing a subsidy to help employers afford such additional coverage.

Mrs Josephine Teo: Employers are required to purchase and maintain a medical insurance of at least $15,000 per year for the inpatient and day surgery expenses of their Work Permit and S Pass holders. Over the past three years, about 95% of bills incurred by Work Permit and S Pass holders were below $15,000. MOM also encourages employers to consider higher coverage for their workers if they assess it to be desirable.

As outlined in MOM's Addendum to the President's Address, we intend to, among other things, develop an insurance programme to help employers manage unexpected large medical expenses of their migrant workers.

We are mindful of the cost impact of additional insurance on employers. Hence, we seek to strike a balance between reasonable coverage, and the cost of the associated premiums. This is a more sustainable approach, rather than depending on tax-financed subsidies.