If Malaysia plans to roll out a new long-term care insurance, what lessons can be learned from Singapore?

Malaysia may consider the Singapore experience as a reference when planning to implement a national long-term care insurance for its older population. Singapore’s CareShield Life, a mandatory scheme, offers lifelong monthly cash payouts to individuals who become severely disabled, requiring assistance with fundamental activities of daily living such as feeding, dressing, washing, toileting, walking, and transferring.

Premium payments are automatically deducted from Singaporeans’ MediSave account in the Central Provident Fund (CPF) once a year from the age of 30 until 67, ensuring coverage for life.

Singapore subsidizes up to 30% of the premiums for lower-income and middle-income Singaporeans, with additional support available for those who still cannot afford to pay premiums. The government assesses individuals to determine if they are severely disabled, with an initial assessment being free and subsequent assessments costing S$100 at a clinic or S$250 at home, with reimbursement only if deemed severely disabled.

Should the individual remain severely disabled, they receive monthly payouts for life, starting at S$689 in 2026, which increases annually until they turn 67 or make a claim. The payout amount is fixed once it begins.

In Malaysia, the Social Security Organisation (Socso) already offers a form of long-term care protection under its Invalidity Scheme. However, a mandatory national long-term care insurance could potentially better address the financial needs of the elderly in Malaysia, ensuring adequate support for their long-term care requirements while keeping premiums affordable.

It would also complement other government subsidies, personal savings, and support from family and the community, creating a robust safety net for those who cannot afford long-term care.