A financially sound step in right direction

IN the Year of the galloping Horse, there is a market sense that the macroeconomic environment has turned more benign and big tail risks in the US and Europe have largely faded. With the Singapore economy having expanded a better-than-expected 4.1 per cent in 2013 and households enjoying real income growth and easing inflation, Singapore policymakers can stay the course and focus more strategically on the medium-term structural challenges of economic restructuring and cultivating an equitable and inclusive society.

Given the bumper Budget surplus, it is no surprise that one of the fiscal priorities has been to address the issue of healthcare affordability - one which is closest to the hearts of Singaporeans, especially the elderly generation.

The key highlight of the FY2014 Budget is clearly the Pioneer Generation Package (PGP). Targeted at Singapore citizens who were 16 years or older in 1965 and who had received citizenship by Dec 31, 1986, the PGP comprises healthcare subsidies, Medisave top-ups and other benefits. This PGP is strategically important on three points, in my opinion.