Government to set aside $6.1 billion for Merdeka Generation Fund

Government to set aside $6.1 billion for Merdeka Generation Fund

By: 
Stanislaus Jude Chan
18/02/19, 05:21 pm

SINGAPORE (Feb 18): Singapore will set aside $6.1 billion for a new Merdeka Generation Fund to provide benefits for close to 500,000 Singaporeans born in the 1950s.

With interested accumulated over time, this amount is expected to cover the full projected costs of over $8 billion, which will last over the lifetimes of these Singaporeans currently aged 60 to 69.

“This is a significant commitment by the government,” says Finance Minister Heng Swee Keat in the Budget 2019 speech. “We hope that it will go some way in providing greater peace of mind for the Merdeka Generation and their families.”

The Merdeka Generation Package comprises five key benefits.

First, all Merdeka Generation seniors will receive a one-time $100 top-up to their Passion Silver cards, which can be used to pay for activities and facilities at Community Clubs, entry to public swimming pools, and public transport, among others.

Starting this year, Merdeka Generation seniors will also receive a MediSave top-up of $200 per year over five years up to 2023.

Third, they will receive lifelong additional subsidies for outpatient care, including special CHAS subsidies for common illnesses, chronic conditions, and dental procedures, as well as additional 25% subsidies off their bills at polyclinics and public specialist outpatient clinics.

Next, Merdeka Generation seniors will enjoy additional MediShield Life premium subsidies for life. The subsidies will start from 5% off their annual MediShield Life premiums, and increase to 10% after they reach 75 years of age.

Finally, the government will provide an additional participation incentive of $1,500 for Merdeka Generation seniors who join CareShield Life when it becomes available for existing cohorts in 2021, on top of the $2,500 previously announced.

An enhancement of the ElderShield scheme, CareShield Life will feature higher payouts that increase over time with no cap on payout duration. This is to provide better protection against the uncertainty of long-term care costs if an individual becomes severely disabled.

Right timing: STI’s upclimb supported by momentum and moving averages

SINGAPORE (Apr 20): There has been little change in the trend and chart pattern of the Straits Times Index. The index has been on a very glacial ascent towards 3,420, the target indicated when the index broke out of resistance at 3,190 in mid-Jan. Quarterly momentum eased during the past four trading sessions. The 100- and 200-day moving averages have turned positive. This coupled with positively placed DIs and rising ADX should continue to underpin the STI. The only cautionary signals are the somewhat overbought levels of short term stochastics and 21-day RSI, and stagnant vol....
Read More >>

SMI takes legal action against Hyflux; Maybank moves on Tuaspring

(Apr 20): SM Investments (SMI) has terminated its rescue agreement with Hyflux, it announced on Friday. Hyflux, on its part, had already on April 4 terminated the same agreement with SMI. SMI claims it has thus far abided by the agreement. “To clarify, SMI does not accept the purported termination of the Restructuring Agreement by Hyflux on 4 April 2019. This is because the termination was not in accordance with the terms of the Restructuring Agreement," said SMI. Under the agreement reached last October, SMI, led by Indonesian tycoon Anthoni Salim, was to have invested $530 million in....
Read More >>

CCT reports 3.8% higher 1Q DPU of 2.20 cents on higher property contributions

SINGAPORE (April 19): The manager of CapitaLand Commercial Trust (CCT) has reported a 1Q19 distribution per unit (DPU) of 2.20 cents, rising 3.8% y-o-y from 2.12 cents due to higher contributions from Gallileo and Asia Square Tower 2. Gross revenue and net property income (NPI) for the quarter increased by 3.5% and 3.4% to $99.8 million and $79.8 million, respectively. This comes after booking contributions from Gallileo – an office building in Frankfurt, Germany which the trust acquired a 94.9% stake in during June 2018 – as well as higher occupancy at Asia Square Tower 2, both of w....
Read More >>