In his hard sell of the mandatory disability insurance CareShield Life, Health Minister Gan Kim Yong openly lied that 50% of the population, or 2.9 million people of the 5.8 million population, will become “severely disabled”:
“Some are surprised by our ‘one-in-two’ statistic, and ask why is it that we do not see half of our elderly in severe disability. This is mainly because they do not all become severely disabled at the same time. They occur over a period of time, through their lifespan after 65.”
The Health Minister’s inflated figures contradicts with the official statistic released by the Ministry of Social and Family Affairs in 2017, which put the disability population at only 11.5%, or 660,960. According to the 2017’s official statistics, only 13.3% of the resident population aged 50 and above are disabled.
In Singapore, insurance agents who fake disability statistics are charged for fraud and intentional mislead.
Minister Gan Kim Yong also denied that the government is making a profit from the two compulsory insurance schemes, CareShield Life and MediShield Life, and lied that “returns from investments” will return to the CPF:
“The Government will set up an insurance fund, administered by the Central Provident Fund Board, which will be ringfenced for CareShield Life. All premiums collected and any returns from investments will remain entirely within the fund and used solely for the benefit of policyholders, and will be audited annually to ensure that all the monies are accounted for.”
However, the funds in CPF are sold as Special Singapore Government Securities (SSGS) to sovereign wealth fund company GIC, at the prevailing CPF interest rate of 2.5%. Minister Gan Kim Yong lied that the GIC’s nominal investment returns would go to the CPF, when the CPF fund gets only 2.5% in return.