Singapore’s Budget 2025 brings important changes to healthcare and insurance costs. With rising medical expenses and an aging population, the government is focusing on making healthcare more affordable and ensuring financial security for Singaporeans. Let’s take a closer look at how these changes might affect you.

Learn more: Health Insurance In Singapore

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More Government Spending on Healthcare

The government has set aside $21 billion for healthcare in 2025, and this amount is expected to go beyond $30 billion by 2030. This investment helps improve public hospitals, clinics, and medical facilities, ensuring that people continue to receive high-quality care.

More funding is also being allocated to healthcare subsidies, reducing costs for patients, especially older adults and lower-income individuals. 

Learn more: The Straits Times

Improved MediSave Provisions

From April 1, 2025, Singaporeans aged 60 and above can use the Flexi-MediSave scheme to pay for outpatient treatments. They can withdraw up to $300 per year from their MediSave accounts to cover medical bills at:

• Polyclinics
• Public hospitals
• Specialist outpatient clinics
• General practitioner clinics under the Community Health Assist Scheme (CHAS)

This helps reduce out-of-pocket costs for older Singaporeans who need regular medical care. Source: Ministry of Health (MOH)

Matched MediSave Scheme (MMSS)

The government is introducing a Matched MediSave Scheme (MMSS), which will run from 2026 to 2030. Under this scheme, if older adults voluntarily top up their MediSave accounts, the government will match the amount dollar-for-dollar, up to $1,000 per year.

This is great for older Singaporeans who want to save more for future healthcare costs, especially for treatments not covered by basic insurance. However, this scheme is only available to those who:

• Are Singapore citizens
• Are between 55 to 70 years old
• Meet certain income and property ownership criteria

CPF Contribution Rate Adjustments

To strengthen retirement savings, the government is raising CPF contribution rates for employees aged above 55 to 65. From 2026, contributions will increase by 1.5 percentage points.

This means older workers will save more for retirement, making it easier for them to afford medical and insurance costs later in life. Employers will have to contribute more, but this helps ensure financial stability for Singaporeans in their golden years. Source: CPF