GST hike needed to take care of rapidly ageing population

The impending goods and services tax (GST) increase is necessary as Singapore’s population is ageing rapidly, said Prime Minister Lee Hsien Loong in his Mandarin speech at the National Day Rally yesterday.

- Chin Soo Fang

Singapore must be prepared to take better care of the elderly, including providing more medication subsidies to reduce the burden of healthcare costs on older Singaporeans and their families.

More hospitals, polyclinics and other facilities also have to be built so that they can access medical services.

All these mean that Singapore’s healthcare and social spending is increasing sharply.

“Not raising the GST would be a politically expedient move. However, it would be irresponsible,” he said.

“While the people worry about not having enough money to spend, the Government also worries about not having enough money,” he added.

He said that it is concerned about not having enough resources to take care of low-income families and the healthcare needs of the elderly.

One in six Singaporeans is aged 65 and above. By 2030, this number will increase to one in four, with mature estates seeing their population grey earlier.

PM Lee said many of his Teck Ghee residents were young married couples when he was first elected as an MP in the 1980s. More and more of them now need walking sticks and wheelchairs.

“While I am happy that they continue attending community activities, I am also worried for them, as their healthcare needs will definitely increase over the years,” he said.

“Therefore, we must be prepared to take better care of the elderly.”