Mr Speaker Sir, I rise to support the Bill. The transfer of Singtel Special Discounted Shares (SDS) from CPF Board to SDS holders’ Central Depository (CDP) accounts closes a chapter of a scheme that helped ordinary working Singaporeans build up assets, not just get by. I declare my interest as an SDS holder. I welcome the move to waive CPF withdrawal conditions for sale proceeds, so SDS holders especially those who may need the money for daily needs or healthcare have more flexibility.
About 615,000 SDS holders will be affected by this transfer. The median SDS holder paid about $2,000 for the shares; they are worth about $6,800 as at April and have received about $5,000 in cumulative dividends. These are not abstract numbers. This is real money that can help a worker’s family and make retirement a bit more secure. That is why we must make this transition safe, simple, and supportive.
SDS was a simple but powerful idea: give Singaporeans a stake in our economy through share ownership. In other words, it helped workers turn wages into wealth, step by step, over time.
In the 1990s, Singapore was in a period of rapid growth and optimism. Today, the pressures are different: job insecurity, higher costs, and longer retirements. For many workers, the worry is straightforward, can I still make ends meet today, and have enough for tomorrow? As SDS comes to an end, we should renew a worker-first promise: growth must translate into security, and no Singaporean should be left behind simply because they are less financially confident.
SDS worked because CPF Board served as trustee, putting guardrails in place for first-generation retail investors, many of whom were workers with little experience in the markets. Today, more Singaporeans invest. But a worker-first approach means we must still ask: who may be left behind, especially older workers and those with lower financial literacy? We cannot build a “me-first” economy where only the savvy benefit.
Looking ahead, are there plans to refresh broad-based ownership models like SDS so that as Singapore invests heavily in AI and new technologies, workers can benefit not just through wages, but also by sharing in the upside? I welcome the earlier Budget announcement on enabling long-term investment and potentially stronger returns for CPF members.
On the transfer exercise, I have three practical points to raise
First, on selling: after the shares are moved into CDP accounts, some holders may end up with odd lots. Will this make it harder for them to sell without topping up? What guidance will CPF Board provide to help SDS holders transact smoothly and avoid unnecessary costs? I believe there will be sales charges if they want to sell their shares now or in the future when it is ported over to their CDP account. Will these sale charges be higher than what they enjoy today when held via CPF Board?
Second, on safeguards: scams will follow wherever money is involved. Many SDS holders are older, indeed, the youngest are in their fifties, and about half are 65 and above. A worker-first approach must also be a senior-safe approach. What measures are in place to protect them from scammers who may exploit this transfer exercise? Does CPF Board expect an uptick in related scams, and how will it pre-empt them?
Third, on communications: I note CPF Board has sent notification letters, set up a dedicated hotline, and conducted door-to-door visits for vulnerable SDS holders. Will CPF Board also notify SDS holders with clear anti-scam advisories (whether via SMS or any other means especially with emerging modus operandi by scammers)? This is so that the message reaches them promptly and reduces confusion.
Mr Speaker Sir, with these questions, I support the Bill. Thank you.
