The Palm Issue #13: Helping Singaporeans cope with the impact of war in Iran; MediSave changes; lowering BTO age
How to help Singaporeans live with the fallout of the war in Iran, how MediSave flexibility can be increased, and when there will be enough flats to reduce the eligibility age for singles.
Hello,
In this thirteenth issue of The Palm, we discuss how the Government can help Singaporeans live with the fallout of the war in Iran, how the Government can go beyond the recently announced MediSave changes to provide even more flexibility, and question when the supply of BTO flats will be enough for the eligibility age for singles to be reduced to 28.
Coping with the fallout of the Iran war
The Progress Singapore Party (PSP) deeply regrets the loss of life and escalating violence following the strikes by the United States and Israel on Iran, subsequent Israeli strikes on Lebanon, and retaliatory attacks by Iran across the Middle East since 28 February 2026. Our thoughts are with all civilians affected by the conflict.
We are also very concerned about the wider economic consequences should the war continue. Disruptions to shipping and aviation and rising energy prices could persist and trigger another round of inflation in Singapore similar to the global price shocks that followed Russia’s invasion of Ukraine.
Singapore is vulnerable in this crisis. Petrol prices have already spiked. More than 90% of our electricity is generated from liquefied natural gas (LNG) purchased from abroad, around half of which last year came from Qatar. Any sustained increase in energy prices or disruptions to shipments could therefore have significant effects on the broader economy.
If the crisis results in prolonged inflation, we hope the Government will not rely solely on CDC vouchers and Cost-of-Living payments to cushion the impact. Structural measures to reduce business costs should also be considered, such as national guidelines on rent increases. We can also consider measures to reduce energy demand that could also help families, such as encouraging work-from-home arrangements where possible, and shorter work weeks, similar to what has been adopted in our Southeast Asian neighbours Thailand and the Philippines.
MediSave changes welcome, but flexibility can still be increased
During the Committee of Supply debate for the Ministry of Health (MOH) on 5 March, Minister Ong Ye Kung announced that one of PSP’s policy suggestions in our election manifesto, which is to expand the use of MediSave, will be implemented.
In our manifesto, we called for withdrawal limits under the MediSave 500/700 scheme to be increased. These limits will now be increased to $700 and $1,000 respectively with effect from January 2027, and the scheme will be renamed the MediSave Chronic and Preventive Care scheme. MOH will also expand the Chronic Disease Management Programme (CDMP) to cover hypothyroidism and hyperthyroidism and will study whether the CDMP can cover other chronic diseases such as eczema.
PSP is heartened by these changes. However, we can still make it more flexible to use MediSave. Currently, only under 1% of MediSave balances are withdrawn for direct medical expenses. We can allow more outpatient treatments, such as preventative and non-aesthetic dental treatments, to be covered by MediSave. To reflect our commitment to encouraging family formation among Singaporeans, we should also allow maternity and child-bearing medical fees to be fully claimable from MediShield Life without limit. This will help Singaporeans deal with rising healthcare costs.
When will the supply of HDB flats be adequate to reduce the BTO eligibility age?
During the Committee of Supply debate for the Ministry of National Development (MND) on 4 March, Minister Chee Hong Tat said that MND would study ways to better support housing options for singles. However, we are disappointed that he declined to provide a timeline for lowering the eligibility age for singles to purchase Build-To-Order (BTO) flats.
The Minister claimed that he could not give a timing on when the eligibility age can be reviewed “because it really depends on when we feel confident about the supply being adequate”. But the Minister’s claim is a red herring, given that the Government has full control over the use of state land for HDB flats and the supply of HDB flats each year in Singapore.
The Government has in fact reduced the supply of BTO flats from about 23,000 in 2022 and 2023 to under 20,000 each year since 2024. Given that the expected number of BTO flats to be launched in 2027 will fall even further to 15,600, when will the supply of BTO flats be sufficiently adequate to allow singles under 35 to buy flats?
PSP urges the Government to commit to a timeline to reduce the eligibility age for singles to purchase BTO flats to 28, which we have advocated since the 14th Parliament, and increase the BTO flat supply if needed to meet the demand from this new group of buyers.
PSP On The Ground
Team PSP, led by CEC member Sani Ismail, continued his Ramadan porridge distributions to Yung Ping Road residents every Friday and Saturday.
On 14 March, Team PSP, led by CEC members Wendy Low, Lawrence Pek, Phang Yew Huat, and Dzulfadli Hassan, along with former candidate Harish Pillay, distributed dates and green packets to residents in Bukit Gombak SMC.
On 15 March, Team PSP, led by CEC members Sani Ismail, Stephanie Tan, and Dzulfadli Hassan, distributed Ramadan porridge to residents in Tengah.
