Reply to Parliamentary Question on using Supplementary Retirement Scheme monies for the purchase of Singapore Savings Bonds
QUESTION NO 745
NOTICE PAPER 1024 OF 2018
FOR WRITTEN ANSWER
Date: For Parliament Sitting on 5 February 2018
Name and Constituency of Member of Parliament
Mr Patrick Tay Teck Guan, MP, West Coast GRC
To ask the Prime Minister whether the Government can review and allow the use of Supplementary Retirement Scheme (SRS) monies for the purchase of Singapore Savings Bonds.
Answer by Mr Tharman Shanmugaratnam, Deputy Prime Minister and Minister in charge of MAS:
1. Singapore Savings Bonds (SSBs) were introduced to provide Singaporeans with a safe and flexible way to invest for the long-term. For those wanting a low-risk retirement savings instrument, SSBs are a good alternative to cash held in savings accounts. As of 1 Feb 2018, more than 55,000 individuals hold over $1.8 billion of SSBs.
2. Given the objectives of SSBs, we intend to allow the use of Supplementary Retirement Scheme (SRS) monies for the purchase of these bonds. It will enhance the range of low-cost products available on the SRS platform. However, the allocation mechanism for SSBs will continue to ensure that small savers amongst the public get preference in the event of over-subscription.
3. MAS is making IT system changes to bring this about, and will make an announcement when it is ready.