Many developed countries are ageing societies. When I raise this matter with people from developed countries, each one claims his country is ageing faster than others! Singapore, too, is becoming an ageing society. If it is slower than others, it is only because immigrants are adding to our stock of younger persons.
We should slow down the ageing process also by having more children. Several incentives have been provided by Government to encourage parents to have more children.
Nevertheless, in another 25 years time, i.e. by the year 2030, there will be 857,000 adults aged 65 and above.
Do we have the infrastructure to support care for children and for our senior citizens?
Today it is common for both husband and wife to work. The employment rate for women has risen over the years. Still, the employment rate for women is still low, compared to developed countries. Therefore, we should expect further increase in the employment rate for women.
When it is common-place for both husband and wife to work, then we need supporting infrastructure and programmes to help them look after their young children and aged parents.
Today childcare centres are well-developed. Since the late 1970s, NTUC Childcare has been the lead provider of childcare places. It has set the pace in quality of childcare in the HDB heartland. At the same time, it has also set the benchmark on affordability. But quality comes at a cost, and some families are not able to afford the fees. For this NTUC Childcare has set up a Financial Assistance Fund to give grants to parents in temporary hardship and cannot afford to pay the full childcare fees.
Support for senior citizens is not as well developed.
Most senior citizens are able to take care of themselves. There are many programmes at community clubs for senior citizens, so that they can lead active and interesting lives.
But for the senior citizens who become frail, they need to be taken care of. It is best if they can be taken care of at home, in a warm and loving environment. Studies have shown that when the elderly have regular interaction with their children and grandchildren, and have the regular companionship of friends, they live longer.
But if husbands and wives are both working, who will take care of the aged parents who need care? This is why NTUC Eldercare set up day-care centres. At present NTUC Eldercare operates 3 day-care centres – in Marsiling, in Taman Jurong and in Pasir Ris.
We take care of the elderly when their children are at work. Then they return to the warmth of their homes. Quality care comes at a cost also. The fees have to be kept low. So, at present the fees cover only 60% of the cost. 70% of our customers are dependents of union members. With experience, we know what we need to do to lower the operating costs. However, this will depend on the number of users of our day-care centres. The per capita cost will come down only if there is higher demand. Thus our day-care centres continue to operate only because of the generosity of our unions and supporters.
There will be a proportion of the frail elderly who will need assisted living. Others will need nursing homes. NTUC Eldercare is gradually building up its resources to embark on such services. Over the past two years we have studied the possibility of providing such services alone, or in partnership with others. I hope that some talks that we have recently had with prospective partners will result in our entering this area of service soon.
Tonight I want to thank you all for your generous support. The bulk of the funds raised will go to NTUC Eldercare, and part of it will go into NTUC Childcare’s Financial Assistance Fund.
In the light of recent focus on how public funds are being managed, let me share with you our thinking.
NTUC Childcare is operating professionally, and is charging moderate fees for its services, targeted at families of all income groups in the HDB heartland. Donations will not go into the operating income of NTUC Childcare. Instead, donations go into its Financial Assistance Fund. Grants are given to parents with financial difficulties from this fund. So, we do not mix up the funds from the business from the funds for charity.
Likewise we are restructuring NTUC Eldercare. Services should be provided professionally, and fees charged according to actual costs. We will place the donations in the Eldercare Trust Fund, and this fund will provide grants or subsidies. The grants can be for the construction of facilities and equipment. The subsidies can be for fees.
This way the staff providing the services will be clearly focused on their professional obligations, and behaviour will not be skewed by fundraising activities.
At the same time, it will be easier for us to account to the public how their donations have been used. The beneficiaries of the donation are families with children and elderly to care for, not the cooperatives that provide the services. The co-operatives will aim to provide quality services at as low a cost as possible.
In conclusion, let me thank all of you for your generous support.
