Singapore medical inflation to hit 16.9% in 2026

Key drivers of rising healthcare costs in Singapore include an ageing population and a higher incidence.

Singapore’s medical cost inflation is projected to reach 16.9% in 2026, rising from 15.5% in 2025 and 12.3% in 2024, according to the 2026 Global Medical Trends Survey by WTW.

The rate remains significantly higher than the Asia Pacific (APAC) regional average of 14.0% for 2026.

Insurers expect elevated trends to persist over the medium term, with 57% in APAC anticipating further increases over the next three years and 42% expecting high levels to hold beyond that.

Key drivers of rising healthcare costs in Singapore include an ageing population and a higher incidence—as well as earlier detection—of chronic conditions such as cancer, diabetes, and obesity.

The adoption of costly medical technologies and treatments, rising pharmaceutical expenses, and high operating costs—particularly in real estate and staffing amid healthcare workforce shortages—are also contributing to the trend.

In response, insurers in Singapore are increasingly turning to higher co-pays and deductibles to instill shared responsibility and moderate excessive claims.

Regionally, new medical technologies (77%), pharmaceutical advances (63%), and limited cost-sharing (51%) were cited as the top medical cost drivers, all of which are relevant in the Singapore context.

Disease-specific cost pressures remain significant. Cancer continues to be the fastest-growing and most expensive diagnosis, with over 80% of APAC insurers reporting increased incidence among individuals under 40.

Other major contributors include cardiovascular conditions (53%), musculoskeletal disorders (34%), and diabetes (27%).

To manage long-term cost pressures, WTW recommended that employers in Singapore focus on preventive care and employee health education, offer flexible benefits, and implement co-pay or co-insurance models to encourage more considered utilisation of healthcare services.