CPF (Amendment) Bill 2026 Round Up Speech
Mr Dinesh Vasu Dash, Minister of State for Manpower, Parliament House
1. Mr Speaker Sir, I thank the Members for their support for the Bill.
The SDS scheme
2. I would also like to thank Members for affirming the benefits that the SDS scheme has brought to CPF members and the move to give shareholders greater control and management of their shares, given that the scheme has met its intent.
3. Now, Mr Saktiandi Supaat, Ms Gho Sze Kee, Mr Patrick Tay and Mr Shawn Loh asked whether there would be similar opportunities for younger cohorts. Mr Loh also asked whether the SDS scheme has achieved its original objectives. Also, in response to Mr Louis Chua’s comments, the SDS scheme is a legacy scheme rooted in a very specific context of its time and there are no plans to extend this scheme as of now.
a. In the 1990s, we took the decision to privatise the telecommunications portion of the Telecommunication Authority of Singapore into what is today called Singtel. Singtel’s subsequent IPO in 1993 allowed the Government to offer Singaporeans an entry point into share ownership, and to give them a stake in the nation’s growth. Over the two tranches in 1993 and 1996, over a million members chose to participate in this voluntary SDS scheme. SDS holders have also benefitted from returns of up to six times, not inclusive of interest earned on dividends. By these measures, the scheme achieved its intended objectives.
4. Since then, Singaporeans have become a lot more familiar with shareholding. Today, three in five SDS holders have CDP accounts. There is therefore less need for a scheme similar to SDS to serve as an entry point to share ownership. I want to highlight that beyond Singtel, there are other companies such as ST Engineering and Singpost that were also eventually listed on SGX and were subsequently owned by many Singaporeans.
5. The Government has continued to use a range of measures to allow Singaporeans to share in the benefits of our progress, such as the SG Bonus cash payout in 2018, and the SG60 Vouchers last year. Our CPF and housing policies have also enabled Singaporeans to build up assets over time.
Impetus and rationale for transfer
6. Mr Saktiandi asked about the rationale for the transfer of the shares from Singtel SDS to CDP. The CPF Board always operates with members’ best interests at heart and a strong duty of care. It is having assessed that it would benefit SDS holders that the Government decided to embark on this exercise.
7. The upcoming transfer will benefit SDS holders by giving them the flexibility to consolidate their shareholdings in their CDP accounts. They also have the option to sell and encash their SDS holdings anytime, if they wish.
8. The transfer will also give the Singtel Group the flexibility to carry out corporate actions in a timely fashion.
a. Under the trustee arrangement, currently, communications for Singtel’s corporate actions to SDS holders are made through the CPF Board. For example, during the scrip dividend exercise in 2020, notification letters to SDS holders were sent by CPF Board and time was required for CPF Board’s system changes to be made for scrip crediting. After the transfer, Singtel will be able to communicate with shareholders directly, and execute corporate actions, such as scrip dividends, in a more timely and cost-efficient manner.
b. SDS holders will also stand to benefit as they will be able to manage their shares seamlessly.
9. So indeed, as Mr Saktiandi and Mr Loh had mentioned, this Bill reflects good policy housekeeping by modernising a legacy arrangement. As demonstrated by this exercise, CPF Board regularly reviews and finds ways to update and streamline existing schemes and processes.
10. Mr Saktiandi, Ms Gho and Mr Melvin Yong also asked about the reason for allowing the SDS proceeds to be withdrawn in cash without having to meet the CPF withdrawal rules and if this sends out a signal to sell rather than to hold the Singtel SDS. Mr Yong also spoke about the need for sufficient financial literacy.
11. When the scheme was inaugurated, CPF members had a choice to be part of the Singtel SDS. Similarly, whether SDS holders should sell or keep their Singel SDS shares is a private decision that members must take. Just as they did when they came onboard the scheme in 1993 and 1996. If they prefer liquidity, they can choose to sell. If they prefer to stay invested, and to reap future gains, they can do so.
12. We decided that the SDS sale proceeds would not be subject to the CPF withdrawal rules given that the SDS scheme has met its intent of enhancing the assets of CPF members. This arrangement also gives SDS holders options, and ensures that those who do not have individual CDP accounts are not disadvantaged; in fact, they can receive their sale proceeds in cash without needing to even open one. As mentioned, those who prefer to keep their sale proceeds in their CPF Ordinary Accounts to earn higher interest can still continue do so. We also welcome Ms Gho’s tip to encourage eligible SDS holders to top up their CPF Retirement Account under the Matched Retirement Savings Scheme to receive a dollar-for-dollar matching grant from the Government. It is a safe and legal hack and I would encourage you to let your residents know about it too.
a. As of end April, around 83,000 SDS holders, or 13%, have sold their shares. Around 9 in 10 chose to receive their proceeds in cash.
b. SDS holders have the flexibility to decide when they would like to sell. As mentioned in my earlier speech, even after the transfer, those who sell their SDS held in designated CDP accounts will still be able to withdraw the proceeds in cash without being subject to CPF withdrawal rules.
13. We agree with the spirit of Members’ comments, that there needs to be safeguarded as we ensure and update this legacy arrangement so as not to disadvantage those who may be less financially savvy. With this transfer, we have sought to ensure that every SDS holder has access to resources that support them in making an informed decision about how best to manage their Singtel SDS.
a. For investors who already have individual CDP accounts, they will be able to consolidate shareholdings and manage them within the CDP framework that they are already very familiar with.
b. For the SDS holders who do not have individual CDP accounts and who may be less familiar with investing, their Singtel SDS will be transferred to designated CDP accounts. This means that these SDS holders will largely continue to receive similar treatment and support as they do today, even after their Singtel SDS is transferred to their designated CDP accounts.
c. Specifically on the sale process post-transfer, it will largely remain the same as today. Singtel SDS, including odd lots, can be sold through channels such as Phillip Securities at the same rates as today.
14. On Mr Fadli Fawzi’s question about charges, the sales process and charges during the period are the same as what they were prior to the exercise. SDS holders are not limited to selling via Singpost or Phillip Securities, as it is up to the SGX brokers whether or not they wish to facilitate the sale of SingTel SDS, which also includes cost. To add, about 95% of sales transactions are actually done online and therefore circumventing the need to even pay the $17 that was raised by Mr Fadli Fawzi.
15. On Mr. Fawzi’s point on why we chose to create designated CDP accounts, this is in recognition that not everyone needs an individual CDP account, especially some of the SDS holders who do not intend to trade or hold other shares. The government also cannot open individual CDP accounts on the SDS holder's behalf. Doing so requires the members to complete comprehensive compliance screenings, including tax residency declarations and risk appetite assessments to ensure adherence to regulatory requirements and international tax obligations are fulfilled. SDS holders without an individual CDP account can apply to open one if they wish to trade actively or transact in other products.
Targeted outreach efforts for specific segments of SDS holders
16. Mr Saktiandi, Mr Loh, Mr Fawzi and Mr Yong raised important questions about the special outreach efforts undertaken to ensure that SDS holders who may require greater assistance are not neglected. This is also an issue that is close to my heart.
17. To support different segments of SDS holders, we have a range of measures in place. I thank the Members for their suggestions, which would help further strengthen our outreach over the coming months.
18. For SDS holders who are less comfortable with digital platforms, there are accessible, physical touchpoints. SDS holders may go to more than 30 SingPost branches for assistance with the sale of their shares, or any of the five CPF Service Centres for general assistance. Staffing at these centres have been beefed up in anticipation of the higher load from walk-in queries. I would like to assure Mr Loh that the CPF Service Centres will continue to assist SDS holders even after the transfer. A dedicated hotline – 1713 – has also been set up for those who prefer to seek help over the phone. Information about the exercise is available in print and via broadcast media, ensuring that it reaches those who may not have easy digital access. Key publicity collaterals and notification letters to SDS holders have been translated into vernacular languages, ensuring that those who are comfortable in their mother tongue can also access important information clearly and easily.
19. Some SDS holders may face physical accessibility challenges. CPF Board and Singtel are partnering the Agency for Integrated Care, or AIC, to conduct door-to-door outreach and visits to nursing homes and care facilities. This ensures that even those who are homebound or residing in institutional care settings are personally reached, and are made aware of their options and channels for assistance. Caregivers and family members assisting SDS holders are also welcome to engage any of the service touchpoints on their behalf. I would like to take this opportunity to thank AIC, their staff and their volunteers for their invaluable support in this important initiative.
20. On Professor James Lim's question, following the transfer for SDS holders who have designated CDP pay accounts upon their passing, their Singtel SDS will be handled in accordance with CPF nomination rules. This is no different from today. For those who have individual CDP accounts, their Singtel SDS will be treated as any other CDP shares and will form part of their estate.
21. I would also like to highlight Professor Jamus Lim’s point on administrative complexity. I want to highlight that this is a one-off exercise, and the number of SDS to be transferred will be dependent on how many SDS holders have decided to sell prior to the cut-off point that we have in November. Hence, the complexity is something that we are to balance. We need to ensure that we are reasonable and prudent and to accept some degree of administrative complexity in the short run.
22. We would like to emphasise that no action is required for those who wish to retain their Singtel SDS. SDS holders who are uncertain or need assistance can approach the readily available service touchpoints I had mentioned earlier.
Safeguards in place to protect SDS holders from potential scams
23. Mr Saktiandi, Mr Yong, Professor Jamus Lim and Mr Tay have also raised concerns about the risk of scams during the exercise period. This is a legitimate and important concern today.
24. We have built in multiple layers of safeguards into this exercise to protect SDS holders from potential scams. Let me elaborate.
a. First, personalised notification letters containing each SDS holder's specific details will be sent only to their verified addresses on record. This ensures that individualised information is directed solely to the intended recipient.
b. Second, sale proceeds will be credited only to SDS holder’s bank account registered with the CPF Board or via their PayNow-NRIC registered bank account. This ensures that sale proceeds can only flow to a pre-verified account, and cannot be redirected to an unknown or unverified third-party account. We have also reiterated in our collaterals that CPF Board and Singtel will never request bank account details or any payment from SDS holders in connection with this exercise.
c. Finally, on scam awareness. CPF Board and Singtel have incorporated clear scam advisories across all communications to SDS holders. SDS holders are reminded to remain vigilant and refer only to official communications and touchpoints. When unsure, SDS holders can always call the SDS hotline – 1713 – or the 24-hour ScamShield anti-scam helpline for verification.
d. We are closely monitoring the post-implementation situation and will respond quickly if any situation arises.
Implementation Update
25. To add, implementation thus far has been smooth. The dedicated hotline and physical service touchpoints have been operating well, with queries being resolved promptly and efficiently. Perhaps due to the safeguards against scams, we have thankfully not received any complaints about residents being scammed thus far. However, we will continue to watch this.
26. Mr Loh also raised some other suggestions about the CPF system. We note and thank him for his suggestions. Some Members also called for more broad-based investment opportunities for CPF members to participate in. In fact, both Mr Loh and Mr Tay had mentioned the upcoming new investment scheme, which would also give Singaporeans another opportunity to benefit from investment schemes more broadly, in a structured manner. We are developing the scheme further and will share updates in due course.
27. There were several references to the discussion and policy thinking back in the day when this particular scheme was raised, and I thought I should flag some of the comments that were highlighted by the then-Prime Minister, Mr Goh Chok Tong on 9 March 1993. I quote, “The Government’s primary duty is to build the right conditions for Singaporeans to create wealth for themselves. These conditions include security, law and order, political stability, social discipline, a level playing field, the free market, meritocracy and reward in accordance with a person’s ability, performance and contribution.” Successive PAP governments have done so. The Singtel SDS exercise is but one example. We have since moved into other programs as well.
28. There was also a comment made about whether, was it because of the comments that were made in 1993 that we had a jump in terms of our shareholding culture in Singapore? It was precisely that, and I think Singaporeans had responded positively to Mr Goh’s clarion call back then. I am also happy to state that as far as the Singtel SDS is concerned, almost 70% of people who had SingTel SDS accounts were from a HDB background and dwelling, including myself, and 30% stayed in private housing. As such, the Singtel SDS had been a success, and successive PAP governments have built on this success to where we are today.
Conclusion
29. Mr Speaker, in conclusion, SDS holders have benefited from the SDS scheme since inception, and this Bill recognises that it is timely to update this legacy arrangement by enabling the transfer of Singtel SDS from the CPF Board to their CDP accounts.
30. This move reflects how far we have come since the scheme’s inception. With the transfer, SDS holders will benefit from greater control, and those who do not wish to participate in the transfer can also choose to realise their capital gains that they have made over the decades.
31. Mr Speaker Sir, I beg to move.