The announcement by the Chairman of the Samoa National Provident Fund that it intends to launch a compulsory national health care scheme to be funded through the contribution of its members and employers is raising a lot of questions.

Why is the scheme suddenly launched at this time?

Has the government decided to cut off further medical assistance, including funds for the overseas referral of patients for specialized treatments? 

Prior and meaningful consultations with the contributors and employers affected is a fundamental ingredient of good governance which Prime Minister Fiame Naomi Mata’afa had so often prescribed as a guardian star for every project of her government.

This proposal to fund a health insurance scheme through SNPF contributions will reduce the monthly benefits of members’ and will further limit access to emergency loans for their children’s education, home repairs and the many family fa’alavelaves.

To impose an extra 6% charge on the contributions of SNPF members and employers at a time when the ordinary Samoan is struggling to meet the high cost of living is both high handed and arrogant.

And to describe public consultations with contributors and beneficiaries that were poorly attended as a “success,” is further evidence of this high handedness.

The fact that no electronic or printed detailed information was circulated for members to review, lacks all accountability and transparency. 

Who will benefit from the scheme? 

How will members access it? 

What insurance or Management Company will manage such a scheme? 

Which hospitals will be paid under the scheme to provide the services? 

Based on what we have already experienced with the million-tala district project scheme, we won’t be surprised if daylight discriminatory treatment will again show its ugly head!

The scheme, which was introduced by the current Chairman of the SNPF Board in 2005, was abandoned by the HRPP administration because of the impact that it would have on both the contributors and businesses. 

It now seems that he is back at it.

The Chairman doesn’t seem to care that the public has no more confidence in the Fund’s management.

Under the current SNPF leadership, we have witnessed the non-transparent approval of high-risk loans. 

SNPF members are experiencing difficulties and delays in accessing short term loans for family emergencies. 

This was a dependable protection system, initiated by HRPP administrations that benefited both civil servants and private sector employees.

There has been interference with the daily management and operations of the Fund, which has always been entrusted to competent CEOs and professional staff. 

Last week, we read of SNPF cheques bouncing, the first time this has happened in the 52-year history of the Fund.

This is yet another example of poorly informed and misguided investment schemes.

As taxpayers and contributors to the SNPF, we want to spend wisely our taxpayers’ money and contributions on national hospital infrastructure and services instead of sham projects.

For the past forty years, these health services have been provided by previous administrations without having to touch the SNPF hard-earned contributors’ funds.

That is the difference between visionary leadership and the blind leading the blind.

Tuilaepa Sailele Malielegaoi

Leader of HRPP

At its meeting on the 12^th ofDecember 2024, the Central Bank of Samoa (CBS) Board of Directors approved the continuation of the current Central Bank’s monetary policy for FY2024/2025. This involves continued efforts to bring down the persistent high level of excess liquidity in the financial system as well as raising or normalising its official interest rate upwards without tightening monetary policy. 

The monetary policy stance will support the Samoan economy, which is now projected to grow by 6.5 percent (in real terms) in the year ending June 2025, following a 9.4 percent real GDP growth in financial year 2023/2024. This economic outlook reflects the further positive business activities associated with high tourism, remittances, and the hosting of the CHOGM meeting in October 2024. On the other hand, the Bank acknowledges that several downside risks remain, from ongoing international geopolitical tensions, expected slowdown in visitor numbers and our vulnerability to adverse weather conditions, which could adversely impact this outlook.

The headline inflation rate to date is at 2.8 percent in October 2024, declining from 3.6 percent in June 2024 and is expected to moderate to around 3.2 percent by June 2025. This reflects the global market expectations that international oil and meat prices will fluctuate slightly on the upside in Q1 2025 and decline modestly over the next 2 years. Our vulnerability, however, to natural disasters, any adverse and unexpected global developments in the international commodity markets and potential effects from the increase in the minimum wage, are potential upside risks to our inflation projections.

The country’s external sector is expected to remain strong in the remaining months of FY2024/2025, with official foreign reserves projected to be above $1.4 billion (at an equivalent of 13.8 months of import of goods only). This is more than sufficient to meet the country’s international commitments. Increased inflows from tourism and private remittances together with further inflow of capital aid funds will drive this strong position over the coming year.

The financial system continues to be sound and stable, with ample banking system liquidity currently at $619.4 million at end October 2024. The CBS official interest rate is currently around 0.72 percent, up from its level at end June 2024 and earlier in the year. 

With this positive outlook and consistent with its objectives of achieving price stability, safeguarding the soundness of the financial system and in support of economic growth in the year ahead, the Central Bank of Samoa will continue to scale up its open market operations, to absorb some of the large excess liquidity in the financial system and normalise its official interest rate to a neutral target range of 2-3 percent over the next 2 years. 

The Central Bank will continue to monitor and revisit its monetary policy decision should economic and financial conditions change over the next six months.