Use of Supplementary Retirement Scheme Monies for Purchase of Singapore Savings Bonds

3 Mr Patrick Tay Teck Guan asked 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.

Mr Tharman Shanmugaratnam (for the Prime Minister): 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 February 2018, more than 55,000 individuals hold over $1.8 billion of SSBs.

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.

The Monetary Authority of Singapore is making information technology system changes to bring this about and will make an announcement when it is ready.