5.25 We are investing heavily in healthcare. The Government is spending $900 million over the next five years to upgrade and expand facilities at NUH, SGH, and the National Heart Centre, and to build the new Khoo Teck Puat Hospital in Yishun. We will also spend another $1 billion over the next five years to recruit and train more healthcare professionals, including not only doctors, but also pharmacists, physiotherapists and other allied health professionals in the public sector. This is on top of the additional 40% more nurses that we had previously committed to bring into the public sector. It will mean more well-qualified staff to take care of each patient.

5.26 But as we spend more on healthcare, we must ensure that our commitment can be sustained not just for a few years, but over the long term. Means-testing has had a thorough debate over the past several weeks. It is the only realistic way to ensure that high quality healthcare can be delivered to all, including lower-income patients, without placing an unsustainable burden on taxpayers as a whole. Minister Khaw Boon Wan has assured Singaporeans that he is sensitive to the concerns of the middle-income group, who will continue to be subsidised at Class C and B2 wards, though at a reduced rate as compared to the low-income patients.

5.27 To protect retirement savings from being depleted by heavy expenses due to catastrophic illnesses, we must also ensure that our people are adequately covered by medical insurance.

1. MOH will be enhancing MediShield to provide better coverage for patients with large hospital bills, with some adjustment to MediShield premiums in tandem. To help older Singaporeans pay for their medical bills and their increased MediShield premiums, we will top up the Medisave accounts of all those aged 51 and above by up to $450 this year. This will cost the Government $220 million
   
   Table 3 -Structure of Medisave Top-ups
   
   

   Age in 2008	Medisave Top-up Amount
   51 to 60	$150
   61 to 70	$250
   71 to 75	$350
   76 and above	$450

   
   
2. To encourage employers to provide portable medical benefits through Medisave and MediShield, we will also relax the criteria for them to enjoy tax deductions up to the higher cap of 2% of their wage bill. Beyond regular Medisave contributions, employers will now be allowed tax deductions up to the higher cap if they make ad-hoc contributions to their employees' Medisave accounts, or if they purchase MediShield or Medisave-approved private integrated plans for their employees. Details of this are in Annex B-6.