9 in 10 Singaporean SME employees wants medical benefits from employers

Singapore, 25 April 2022 – Coverage for in-patient and outpatient medical expenses (“medical benefits”)1 are an important consideration for most small-and-medium-sized enterprise (SME) employees, with nine in 10 saying that they want their employers to provide healthcare coverage. This is according to a poll commissioned by Prudential Singapore (“Prudential”) which explores the needs and challenges of SMEs in the area of medical and employee benefits.

Sixty per cent of the 1,029 respondents said that they are more willing to join an SME that provides medical benefits, while almost 40 per cent are more likely to stay in a company that provides the same benefits. Almost half of them see companies that provide medical benefits as a caring employer.

Thirteen per cent of respondents said their company does not offer any medical benefits, and this number doubled (27 per cent) for SMEs with 10 or less employees. SMEs account for 99 per cent of the businesses in Singapore, and they employ 70 per cent of the workforce.2

Mr Dennis Tan, CEO, Prudential Singapore, said that medical benefits are essential to employees’ overall wellbeing and success at work.

“Awareness of health and protection has gone up since the pandemic, so understandably, employees value medical benefits and appreciate investments in their wellbeing and future. An ageing workforce coupled with rising healthcare costs are also driving employees to want support in the area of medical protection so that they can focus on their work with greater peace of mind,” said Mr Tan.

Most respondents cited small company size and high cost of group insurance as reasons why their company does not provide medical benefits. When asked how much budget is set aside for their company’s medical benefits per year, almost two in five SME owners and Human Resource (HR) professionals said $10,000 and below.