Speech at Second Reading of CPF (Amendment) Bill 2026

Mr Dinesh Vasu Dash, Minister of State for Manpower , Parliament House

1. Mr Deputy Speaker, on behalf of the Minister for Manpower, I now beg to move that the bill be read a second time.

2. MOM has assessed that there is no conflict of interest for Members holding Singtel shares to participate in this debate and to vote on the Bill and in the interest of transparency, I declare that I am a holder of Singtel Special Discounted Shares as a CPF member. 

3. The CPF is a key pillar of Singapore’s social security system, and has been updated over the years to meet our members’ changing needs and ensure its continued effectiveness. 

4. This Bill is one such effort. It updates a legacy arrangement by enabling the transfer of Singtel Special Discounted Shares (or Singtel SDS) from the CPF Board to The Central Depository (or CDP) accounts of SDS holders. This will benefit SDS holders by enabling them to manage their shares directly.

Background of SDS Scheme 

5. The SDS scheme was introduced in 1993 to give Singaporeans a stake in Singapore’s economic success through share-ownership. During Singtel's IPO that year, where 11% of its total shares were traded for the first time, CPF members were offered the opportunity to buy Singtel shares at a discounted price using their CPF savings — first in 1993, and again in 1996. This was an option given to CPF members and though it was not compulsory, many chose to take this up.

6. At that time, many CPF members were unfamiliar with share ownership. Hence, to support them, the CPF Board was appointed as the trustee to facilitate these purchases. Since then, these Singtel SDS have been held in CDP accounts under CPF Board’s trusteeship.

7. The landscape has since evolved. Today, Singaporeans are more financially savvy and familiar with share-ownership; many have their own CDP accounts and are experienced in trading shares.

8. Over the years, the SDS scheme has benefited many CPF members, the youngest of whom are now above 50 years old.

a. In 1993 and 1996, SDS holders were able to buy their Singtel SDS with an upfront discount. Those who held on to their shares also received loyalty shares equal to 40% of their initial holdings, along with regular dividends.

b. Prior to the start of the exercise in April, there were around 615,000 SDS holders, whose SDS holdings collectively represented less than 5% of Singtel’s total shareholdings. The median SDS holder had around 1,360 shares that was worth about $6,800 in equity value.   

c. As such, every $100 invested back then, could have accumulated about $600 in dividends and equity value to date, and this does not include the interest earned on those dividends. In fact, their total dividends received alone would have exceeded both the CPF savings used to purchase the Singtel SDS, and the interest they would have otherwise received in their CPF Ordinary Account.

Transfer of Singtel SDS to give SDS holders greater control over their shares

9. Following Singtel Group’s proposal to transfer the Singtel SDS from CPF Board to SDS holders, MOM and the CPF Board consulted relevant agencies to assess the proposal’s impact on SDS holders and whether this would be beneficial to CPF members.

10. The SDS scheme has already achieved its intent of building up the assets of CPF members. The legacy arrangement where CPF Board is the trustee for members’ SDS is also no longer necessary, given that Singaporeans are more financially savvy and familiar with share-ownership. Amongst the current Singtel SDS holders, close to three in five now have their own individual CDP accounts.

11. With the transfer, SDS holders can hold and manage their shares directly. They will also benefit indirectly as the Singtel Group will have greater flexibility to carry out corporate actions in a timely manner for them.

12. We have worked and will continue working with the relevant parties including MAS and SGX to ensure a smooth transfer. This includes availing options to SDS holders to ensure that their interests are protected, and allowing them the flexibility to decide how they would want to manage their Singtel SDS moving forward.

13. Let me now outline the options available to SDS holders.

14. For those who prefer to keep their SDS Singtel shares, no action is required. This Bill amends the CPF Act to effect the automatic transfer of the shares to CDP accounts under the respective SDS holders’ name, thereby ensuring that the process is seamless for SDS holders. The transfer is planned for November 2026.

a. For the three in five who have their own individual CDP accounts, also known as “direct accounts” in the Bill, we will automatically transfer their Singtel SDS to their individual CDP accounts. This consolidates all the Singtel shares of an SDS holder into one account, making it easier for the holder to monitor and trade their shares.

b. For the remaining two in five who do not have individual CDP accounts, we will automatically transfer their Singtel SDS to designated CDP accounts under their respective names, also known as “designated shares account” in the Bill. This account will be created specifically to only hold Singtel SDS and its related entitlements. Singtel SDS in designated CDP accounts will remain under the SDS Scheme, which means these SDS holders will largely continue to receive similar treatment and support as they do today. They will continue to receive future dividends in their CPF Ordinary Accounts. If they sell their Singtel SDS at any point in the future, they can opt to receive the sale proceeds either in their CPF Ordinary Account or in cash. 

15. For SDS holders who prefer not to retain their Singtel SDS, they may sell their Singtel SDS and choose to receive the sale proceeds either in their CPF Ordinary Account or in cash.

a. Given that the SDS scheme has achieved its objective of allowing SDS holders to benefit and share in Singapore’s development, CPF Board has reviewed its rules and decided to allow those who sell their SDS to withdraw their proceeds in cash, if they wish to do so, without having to meet CPF withdrawal conditions. We have effected this from 8 April 2026 through subsidiary legislation amendments. Those who wish to keep their proceeds in their CPF Ordinary Accounts to earn higher interest may continue to do so.

b. SDS holders have ample time of around 7 months to decide if they want to sell their shares before the planned transfer in November. Those who do not wish to make a decision now will still have the option to sell at any one point in time in the future, including after the transfer exercise.  

Engagement and Outreach 

16. We have worked with the CPF Board and the Singtel Group to reach out to all SDS holders regarding the proposed transfer. All SDS holders would have received a hardcopy notification letter in April 2026, issued jointly by CPF Board and Singtel Group. It informs them of their Singtel SDS holdings, the options available to them, and where they can seek clarifications and assistance.

17. Dedicated touchpoints have been set up to assist SDS holders on enquiries and sales.  These span multiple channels — including a dedicated hotline, website, SingPost branches and CPF Service centres across Singapore. SDS holders who wish to sell can do so either online, in-person at SingPost branches or through selected SGX brokers.

18. In addition, we have identified over 20,000 SDS holders who may require greater assistance. We will conduct targeted outreach to help them understand their options. We have also put in place safeguards to help protect all SDS holders from potential scams.

19. Through these efforts, SDS holders will be able to make an informed decision as to which option best meets their needs, while ensuring that whichever option they choose – either to sell or to keep their shares – the process is kept simple and safe.

Conclusion

20. Allow me to conclude. The objective of the SDS scheme has already been achieved. CPF members who had purchased the discounted Singtel SDS have made significant gains over the years.

21. This Bill updates a legacy arrangement by transferring Singtel SDS from CPF Board to individual CDP accounts or designated CDP accounts of SDS holders, thus allowing those who prefer to keep their Singtel SDS, to hold and manage their shares directly.

22. Mr Deputy Speaker Sir, I beg to move.