Budget 2015 : What's in it for You and Me?

The widely anticipated Jubilee Budget was finally out yesterday and will be subjected to parliamentary debate in early March 2015. So, what is the main thrust of the budget and what's in it for you and me?

This budget is one that is focused on preparing the nation for a challenging future while addressing the needs of the middle class and the poor. The "sandwiched class" of middle-income Singaporeans who have young children and have to support elderly parents stand to benefit the most from this budget as they are the main ones feeling the pinch from the rising costs of living. The continued efforts focusing on helping the poor and needy signifies a society that has matured.

BUDGET 2015 AT A GLANCE

Supporting the Middle Class
- 50% personal income tax rebate, capped at S$1,000 for Year of Assessment (YA) 2015
- Lower maid levy for more families with young children below age 16, up from age 12 and elderly parents, halved to $60 a month from 1 May; this translates to $720 savings a year
- Help with childcare and education costs with top-ups to the Child Development Accounts (up to S$600), Edusave Accounts (S$150) and Post-Secondary Education Accounts (up to S$500) of Singaporean children and
- Waiver of exam fees for Singaporeans sitting for national exams in Government-funded schools will be waived from 2015 and covers fees for PSLE, GCE N, O and A levels (savings of up to S$900). Exam fees for full-time ITE and polytechnic students will also be waived.

Strengthening Safety Nets
- Quarterly Silver Support cash payouts of S$300 to S$750 each for the low-income elderly for life
- One-off seniors' bonus of up to S$600 a year
- More cash for lower-income households

Boosting Retirement Savings
- CPF salary ceiling to be raised from S$5,000 to S$6,000
- Higher CPF contribution rates for workers aged 50 to 65
- 1% extra interest on first S$30,000 of CPF balances from age 55 next year, on top of the existing 1% extra interest on the first S$60,000 of savings. This means that the first S$30,000 in Special, Retirement or Medisave accounts can earn up to 6% interest risk-free
- Higher annual contribution cap for Supplementary Retirement Scheme

Encouraging Companies to Grow & Restructure
- More grants for companies to innovate and expand overseas
- Wage Credit Scheme (WCS) extended by 2 years, but at the half the current rate
- Corporate Income Tax Rebate of 30%, up to a cap of S$20,000 on their taxes payable, extended by 2 years
- Temporary Employment Credit extended by 2 years, increased to 1% of wages in 2015
- Planned hike in foreign worker levy to be deferred

Building Skills
- $500 SkillsFuture Credit for Singaporeans aged 25 and above to spend on further education and training from 2016; will be topped up regularly and will not expire. They can either choose to go for a short course with the S$500 or accumulate more credits for more substantial training in the future
- More study awards, course subisidies, internships and on-the-job training

More Progressive Taxes /  Tax Deductions
- Higher taxes for top 5% of income-earners from 2017, with those with chargeable income of more than S$320,000 paying 22% tax, up from 20%
- Tax deductions for donations made this year will rise from 250% to 300% to encourage
- Higher petrol duties; raised by 15 to 20 cents per litre; 1 year road tax rebate of 20% for cars, 60% for motorcycles and 100% for commercial vehicles using petrol to partially offset increase

Infrastructure
- Development expenditures to grow to S$30 billion by 2020, from S$12 billion in 2010
- Changi Airport's new Terminal 5 to be almost as large as Terminals 1 to 3 combined
- Increasing hospital beds and nursing home capacity

How will the budget benefit you and your family? Do you feel that the government should do more in certain areas? Which are these areas? Let us know.

SG50 MaxMaternity Care and OCBC Child Development Account Promotion

For those of us who are expecting a new baby this year, OCBC is celebrating Singapore's 50th birthday with a double bonus of S$216. Just sign up for MaxMaternity Care during the Promotion Period and subsequently open an OCBC Child Development Account by 31 July 2016 and be entitled to the following:

1) S$108 Cash Reward
credited into Child Development Account, matched dollar-for-dollar by the Government
                                 
2) S$108 Premium Voucher

for use on SupremeHealth Plan to give your child medical coverage. SupremeHealth is a Medisave-approved Integrated Shield Plan by The Great Eastern Life Assurance Company Limited.

The Promotion Period is from 1 January 2015 to 31 December 2015.

Please refer to the website for more details.

SG50 Jubilee Baby Perks

2015 is the year when Singapore celebrates its Golden Jubilee and for those of us who are welcoming new babies into this world, you have a lot to look forward to. What better way to celebrate the future of this nation?

Singapore Government
In conjunction with the SG50 celebrations to commemorate Singapore’s Golden Jubilee, every Singapore Citizen child born in 2015 will receive the SG50 Baby Jubilee Gift. It consists of a small set of meaningful items from all Singaporeans to welcome every Singapore Citizen baby born in 2015. It consists of a total of 8 items including a commemorative medallion, a diaper bag, a set of baby clothes, a multi-functional shawl, a baby sling, a scrapbook, a family photo frame and a set of baby books. Parents are encouraged to register for the Gift within two months of the child’s birth, as it includes items designed for newborn babies.

Please refer to the website for more details.

 



Babies born in 2015 are entitled to receive a commemorative Smiley Gift bag upon registration with POSB, the "people's bank". The limited edition gift comprises of 9 items which includes a diaper bag, a pair of mittens and booties, a plush toy, a coin bank, a height chart, a Bluetooth selfie stick, a 2R picture holder, a "baby on board" car sign and a pack of Zappy baby wipes.

In addition, 5 lucky babies born in 2015 are entitled to a S$10,000 Education Grant each for parents who register before 15 June 2015.

Please refer to the website for more details.

Great Eastern Life
Great Eastern Life celebrates Singapore's 50th birthday and the birth of your baby with the Great Eastern SG50 baby gift pack which includes free health coverage for a year, SG50 baby accessories and Live Great privileges.

Please refer to the website for more details.

AIA

Parents with babies born in 2015 have plenty to be cheerful about. Because AIA is giving each family free one year's worth of insurance cover and up to $200 worth of Robinsons Gift Card to begin your parenthood journey.

Please refer to the website for more details.

Thomson Medical Centre
If you choose to delivery your baby at Thomson Medical, you will receive the Thomson SG50 Jubilee Joy Pack.

• $50 Cordlife cord blood banking premium [FBI/SBI members will receive an additional $650 premium (total value of $700)]
• SG50 rates for Single and Two-Bedded rooms
• AXA 6 months medical coverage for newborn and premium vouchers up to $450 [FBI/SBI members will receive an additional $150 voucher (total value of $600)]
• OCBC bank exclusive (Receive up to $100 in your OCBC Child Development Account)
• 6 months online subscription to Mother & Baby and 8 Days magazines
• Huggies Newborn Diaper Pack (24 pcs), Huggies Gentle Care Wipes (10pcs) and $5 diaper voucher
• Thomson Medical 36^th Anniversary special edition Baby’s Health Booklet cover
• Education book made of fabric to aid child’s learning
• Baby latex bean pillow
• Diaper caddy
• Selfie stick
• Baby changing mat
• A copy of Thomson Mummies’ Pampering Treats on Dental/Aesthetic/Traditional Chinese Medicine (TCM) services
• Thomson SG50 Tote Bag

Please refer to the website for more details.

That's a whole lot of goodies in store for your new baby this year. Did I miss out anything that you might want to highlight?

Cord Blood Banking - Should You Spend the Money?

Storage of baby's umbilical cord blood in a private cord blood bank for family's own personal use in the future is a choice made by both parents and is typically very costly. Currently, it costs S$6,000 on average for storage up to age 21 of the baby. Some private banks also offer banking of the cord lining. If parents want to take both up as a form of "insurance" for the child or a sibling, you are looking at expenses of around S$12,000. Due to the costs involved, private cord blood banking is not financially feasible for many families.

In Singapore, we have 3 private banks, namely:
1. Cordlife - processed and stored over 45,000 cord blood units as of 21 Mar 2014 and 13 cases of successful release of cord blood units (over 250 including itsw associates)
2. Stemcord - processed and stored more than 35,000 cord blood units and 12 cases of successful release of cord blood units
3. Cryoviva - newly established in 2013.

Public banks accept donations to be used for anyone in need. The percentage of public bank donations discarded as medical waste is estimated to be between 60 to 80%. The registries impose very stringent criteria such as taking blood volume and cell count into account before storage, and only samples that meets international public cord blood banking guidelines can be stored.

In Singapore, we have the Singapore Cord Blood Bank (SCCB). Since inception in 2005, the SCCB has facilitated 162 transplants, both locally and internationally. As of 31 July 2013, it has a cord blood inventory of over 9,000 cord blood units available for Haematopoietic Stem Cell Transplants (HSCT).

Research has shown that there is an extremely low probability that the donor should ever need or benefit from his/her own cord blood unit as it may already carry the genetic abnormality that led to the blood disorder or immune system failure. In fact, the American Academy of Pediatrics strongly supports public over private cord blood banking because there is "no data to support the benefits of private cord blood banking at the current time".

Hence, choosing to bank your child's cord blood is an insurance against two highly improbable scenarios of either another family member needs the cord blood or the probability of new uses for cord blood in regenerative medicine or cell therapy.

Besides the research that I did online, I also consulted my obstetrician and a haematologist friend of my significant other who gave the same answer. "Donate it to a public cord blood bank." Hence, the decision was made and the money saved will go into baby's education fund instead.

Which one will you choose?

Preparing for the Arrival of Baby in 2015

I have not been writing my blogposts frequently due to the need to do research on baby stuff. Being a first-time mum, I have been reading up ferociously on things that I need to prepare for the arrival of our little one. Besides asking experienced mums for their useful tips, I have also read reviews on the online forums and resources on what to expect and prepare. 

 

There are numerous baby items to be purchased as a first-time parent and as I hope to get the best bang for my buck, I have done a lot of research online to get the best deal in terms of quality and price. Besides going down to the physical shops, I have also done my homework on the web at the many online stores operating locally to compare prices and look at the selections. I don't expect to have the luxury of doing shopping very often once the baby arrives and these online stores will provide the convenience that the modern mum needs by delivering the goods right to your doorstep and often free delivery is provided with a minimum purchase of $60 to $100. Amazon.com USA now provides free delivery to Singapore on many items with a minimum purchase of US$125. I also like to refer to the reviews left by those who have made purchases previously to see if they found the product useful or not. If you want to go to the trouble of using shipping consolidators, you can also have the choice of shopping on other US shopping sites in the comfort of your home. Baby fairs held from time to time at the Singapore Expo, Suntec City and Takashimaya also provide attractive discounts and promotions on baby products, if you have time to make your way there.

I have affirmed that it is indeed not cheap to have kids in Singapore, even when the Singapore government is trying to help to defray some of these costs by giving out baby bonuses, subsidies, allowing the usage of our CPF funds to pay for visits to the obstetrician and delivery, subject to certain caps, amongst others. No wonder Singaporeans are having children later and later in life and having fewer of them. Having said that, it is still a personal choice whether you want to keep things simple or want to splurge on the best for your child.

It can cost between $5,000 to $25,000 onwards to prepare for the arrival of your baby. Most people spend from $10,000 to $12,000 on average. Aspiring parents have to start tightening your belts in order to provide for your child.

Delivery
Normal (vaginal) delivery can range from $1,000 to $12,000 depending on whether you choose  Government subsidized hospitals or Private hospitals and the type of ward you stay in. Please refer to MOH website for more details.

 

Delivery via Caesarean section can range from $2,000 to $18,000. Please refer to MOH website for more details.

If you wish to make claims from CPF for your delivery, do note that there are certain caps to be adhered to:
Maximum Medisave Claimable (subject to CPF Board approval)
Antenatal $450
Normal Delivery $750
Caesarean Delivery $2,150
Hospital Stay $450 per day
Neonatal screening tests and vaccinations $400 per account per year
Please refer to the CPF website for more details.

Confinement Nanny or DIY Confinement

Whether you choose to observe the confinement month or not also determines how much you will be spending in the month after child birth. A 28-days confinement nanny can cost somewhere from $2,500 to $4,000 during the Chinese New Year period, not forgetting the obligatory ang pows that you have to dish out before they start work and after they complete the stint which will add another $100 to the cost. This is not including the herbs that you have to purchase so that the nanny can prepare nutritious tonic food to help you in your recuperation. This will add another $100 to $300 on top of the costs.

If you prefer to do-it-yourself or get your mum or mother-in-law to help you during the confinement period, you have the choice to cater confinement food from experienced establishments which will cost anywhere from $400 to $900 depending on how many meals you cater per day.

Baby Essentials

Well, baby essentials like clothing, bath/baby care products, diapers / reusable nappies, nursing and feeding items, nursery items like cots, playards and toys will come to mind. There is a wide array for us to choose from to suit our needs. We may also prefer certain brands to others and these may cost more.
 

Post Natal Massage
Some mothers consider this a luxury but for others, it is a necessity, so as to get back in shape quickly after delivery. After 10 months of pregnancy, this will be an affordable luxury for new mummies to relax and pamper themselves. Depending on the type of packages and the masseurs you choose, whether freelance or from massage centres, you can expect to pay at least $300 to $800 for this.

Others
There are also many optional items like cord blood banking, baby's full month celebration and cakes, newborn photography, geomancer consultation to determine the Chinese name of the baby (if you are Chinese and require such services), just to name a few. Expect to spend another $8,000 to $10,000 or so if you want them all.

Conclusion
What will you choose for your baby and yourself? Most of us have budgetary constraints, so we will have to weigh the pros and cons, in order to make the final decisions. We must not forget that, at the end of the day, it is our love for them that matters most rather than any material wants which are definitely secondary.

Government Co-funding for Assisted Reproduction

The Singapore Government has tried ways and means to increase Singapore's Total Fertility Rate by trying to defray the costs of having a baby from giving out Baby Bonuses to Tax Reliefs and Rebate for parents.

Couples seeking help to conceive can apply for government co-funding under the Enhanced Co-funding for Assisted Reproduction Technology (ART) at Restructured Hospitals Scheme. 

The scheme provides co-funding for up to 75% of the cost of their ART treatment for a maximum of 3 fresh and 3 frozen ART cycles taken at public hospitals. This covers costly ART treatments procedures such as in-vitro fertilisation (IVF) with or without intracytoplasmic sperm injection (ICIS) and gamete intra-fallopian transfer (GIFT). The scheme does not cover Assisted Conception Procedures (ACP) such as intra-uterine insemination (IUI). IUI treatments are relatively less costly, often less than $1,000 per treatment whereas an IVF Fresh Cycle treatment can range from $10,000 to $14,000 depending on the amount of stimulation medication required.

You can use up to $6,000 of your Medisave to defray both ACP expenses and ART bills (after co-funding).

Tip

Couples with children can also benefit from this scheme.

What are Fresh and Frozen ART Cycles?

Fresh ART Cycle	Frozen ART Cycle
Woman receives ovarian stimulation  Eggs are retrieved from ovaries and fertilised in lab to form embryos  Embryos are transferred to the uterus shortly  Note: You can freeze excess embryos for later use	Frozen embryos (excess embryos from a previous fresh ART cycle) are retrieved from storage  Frozen embryos are thawed and transferred to the uterus at an appropriate time

What does the Co-fund ART Scheme Cover?

Covered	Not Covered
Ovarian stimulation  Egg retrieval  Assisted fertilisation  Embryo transfer Freezing of embryos  Storage of frozen embryos for up to 10 years  Thawing of frozen embryos  Other standard ART procedures for both men and women  Note: You can freeze excess embryos for later use	Initial medical consultations and investigations (for treatment suitability)  Consumed ART treatments if you abort the cycle after ovarian stimulation unless the early termination is due to medical reasons as advised by the doctor

How much co-funding can I receive?

The scheme provides co-funding for each couple for a maximum of 3 fresh and 3 frozen ART cycles. The amount of co-funding you are entitled to depends on you and your partner's nationalities. At least one of you must be a Singapore Citizen to enjoy the scheme.

	SC-SC Couple*	SC-PR Couple*	SC-Foreigner Couple*
Per Fresh Cycle	75% ($6300 max)	55% ($4600 max)	35% ($3000 max)
Per Frozen Cycle	75% ($1200 max)	55% ($900 max)	35% ($600 max)

* SC – Singapore Citizen, PR – Permanent Resident

 

Tips

You can use your Medisave to offset remaining costs. Withdrawal limits are set at $6000 (for 1st cycle), $5000 (for 2nd cycle) and $4000 (for 3rd and subsequent cycle), up to a lifetime cap of $15000. These limits also apply to ACP.

Am I Eligible?

To qualify for the scheme, you must:

• Be under age 40 (for women) at the point of embryo transfer 
• Have started or are scheduled to start a treatment cycle at participating public hospitals on or after 1 January 2013, i.e. the date of ovarian simulation (for fresh cycles) or the thawing of the embryo (for frozen cycle) is on or after 1 January 2013. 
• The treatment is either a fresh or frozen ART cycle 
• Be a Singapore Citizen if your spouse is not at the start of the cycle 
• Have not already received co-funding for 3 fresh and 3 frozen cycles in the past 
• Be deemed fit for ART treatments by a medical doctor 

How Do I Apply?

No application is needed. You are only required to complete a declaration form to confirm your eligibility. The form is available at the assisted reproductive clinic of participating public hospitals.

Once the verified eligible, the subsidies will automatically apply to your hospital bill.

Participating Public Hospitals

• National University Hospital (NUH) - Clinic for Human Reproduction
• Singapore General Hospital (SGH) - Centre for Assisted Reproduction
• KK Women's and Children's Hospital (KKH) - KKIVF Centre

 For more details, please refer to the Ministry of Health website.

As a result of the co-funding given by the government, many gynaecologists from the private hospitals often advise patients who are Singapore Citizens and need to have ART treatments to transfer to one of the participating public hospitals in order to enjoy this benefit.  

As Singaporeans tend to marry late these days, by the time they decide to start a family and discover that they need treatment to conceive, they may be their mid-30s already. My advice is : Do start early if you can!

POSB Child Development Account (CDA) Launch Promotion

POSB CDA account will launch in 2015. Previously, parents can only open CDA accounts for their child with OCBC and Standard Chartered Bank. Please refer to an earlier post on this by clicking on the link.

To attract new sign-ups, POSB will pay a 6-month early bird bonus interest of 1% p.a.* on top of the POSB CDA interest rate. These rates are not defined yet.

Simply,
(1) Register your interest at www.posb.com.sg/cda before 31 Oct 2014.
(2) Open POSB CDA by 30 June 2015

* The first 10,000 customers who fulfil the eligibility criteria will qualify to earn 6 months early bird bonus of 1% p.a. on the ending balances (capped at S$12,000) in the POSBCDA account on 30 June 2015.

Child Development Account (CDA)

The Baby Bonus Child Development Account (CDA) is a special savings account that can be opened with OCBC or Standard Chartered Bank for each eligible newborn where the Singapore Government will match the savings amount dollar-for-dollar up to a cap of S$6,000 for 1st and 2nd child, S$12,000 for 3rd and 4th child and S$18,000 for 5th child and beyond for children born on or after 26 Aug 2012. The Government has been giving out such cash incentives to encourage procreation among the citizens ever since 2008.

OCBC is offering interest rates of 0.5% p.a. for the first S$20,000 deposit and 0.8% p.a. for amounts above S$20,000. If you can commit to saving at least S$50 per month, you can also sign up for CDA Extra account where you will earn 0.8% p.a. right from the beginning.

If you have a monthly family income of less than S$4,500 and deposit a minimum of S$50 into the CDA account over a period of 6 months, you will receive co-savings of S$250, that is S$100 from OCBC and $150 matching contribution from the Government, provided that the co-savings cap has not been met.

Over at StanChart, they are offering 0.5% p.a. on deposits in the CDA account and 0.3% p.a. above board rates for Singapore Dollar Time Deposits using CDA funds. Also, 0.3% p.a. interest on one designated family savings account under the name of the Trustee of the CDA account holder.

Please refer to the Singapore Government's Baby Bonus, OCBC and Standard Chartered Bank websites for more details.