They have reviewed the rules and you can now apply for suspension and refund of the medishield life premiums.
https://www.moh.gov.sg/content/moh_web/medishield-life/resources---faqs/faqs.html#16
See under "Medishield Life coverage for overseas Singaporeans"
It is interesting because the review now allows people to suspend the premium payments, even get refunds on what had been paid, but also allowing them to be eligible for Medishield Life if they returned to Singapore and paid the premiums that were due.
I find this very strange. It is like allowing the overseas Singaporeans their cake and eat it. In other words, you have Medishield Life coverage period. All you need to do to activate it is to pay premiums that are due. But you DO NOT need to pay regular premiums. Only when and if you need the insurance plan. And if you never need the insurance plan, you get to keep the premiums you would have paid. I have never heard of such an insurance scheme.
Amazing isn't it?
1. Under what circumstances would I be required to pay the accumulated sum of premiums suspended from collection with compound interest?
You would only have to pay the accumulated sum of premiums suspended from collection with compound interest if (a) you choose to relocate back to Singapore, (b) no longer meet the eligibility criteria for suspension of premium collection, or (c) choose to claim and benefit from MediShield Life payouts. Once this happens, your suspension of MediShield Life premium collection will cease and you will have to pay the full sum of premiums suspended from collection, with compound interest.