'Is it really impossible to consider building such nursing homes here at comparable prices for Singaporeans?'

18 Feb 2009, The Straits Times

Question

Why nursing homes cost more to build and run in Singapore

'I refer to the suggestion made in Parliament by Health Minister Khaw Boon Wan after his recent visit to a site in Johor Baru, where a Singaporean investor is planning to build a 200-bed nursing home. I believe that Mr Khaw was being open, and alerting the public to one of the options available, when he said Singaporeans could save money by using JB nursing homes. His remarks give us a chance to reflect on the issue. Is it really impossible to consider building such nursing homes here at comparable prices for Singaporeans? I hope the Ministry of Health will not stop its effort to make nursing homes affordable in Singapore.'

Reply

Reply from MOH 

Mr Har Hoong Onn asked if it was possible to "Build nursing homes at comparable prices here" (ST, Feb 18) as in Johor Bahru (JB).

We should try, but it would be a challenge.  According to the Singapore investor in an upcoming nursing home in JB, his total cost for putting up the facility of 200 beds, including land, was estimated at S$10 million. This is less than the cost of putting up an outpatient polyclinic in Singapore, even excluding land cost.

And it is not just capital cost.  Nursing homes are labour intensive.  The wages of nurses here are more than double the wages in JB.  

These are the market realities.  By keeping the borders open, Singaporeans can, if they wish, take advantage of the cost differences across the causeway. Ultimately, what we want is good care for our loved ones. Some may find it a better option to seek professional nursing home care for their elderly while others prefer to do so at home.  This is something for families to decide.

Low income Singaporeans, however, do not need to worry as heavy Government subsidy ensures that subsidised nursing home care here remains affordable.  Each year, the Ministry subsidises more than $110 million for the intermediate and long-term care services and Medifund provides the safety net.  We will do more as the population ages further.