Singaporeans above 50 could see S$6,000 payout from long-held SingTel shares

SINGAPORE: A long-forgotten investment from the 1990s is resurfacing for hundreds of thousands of Singaporeans, after veteran journalist Bertha Henson brought renewed attention to it on social media this week.

Citizens aged 50 and above are being notified by the CPF Board about shares they acquired more than three decades ago under a national push to build a “share-owning society”. The initiative, introduced during Goh Chok Tong’s premiership, aimed to give ordinary Singaporeans a tangible stake in the country’s economic growth.

In 1993, over 600,000 Singaporeans became shareholders in Singapore Telecom (SingTel) when the company launched its public listing. Using funds from their CPF Ordinary Accounts, they purchased shares at a discounted price of $1.90. A second tranche followed in 1996 at $2.50, also below market rates.

For many, the process required little effort beyond consenting to the use of CPF savings. The shares were held in a CPF-managed account, and dividends generated over the years were credited back into CPF rather than paid out in cash.

While the initial outlay averaged about $2,000 per person, long-term returns have been significant. Dividends alone have accumulated to around $5,000 over time, though these gains remained locked within the CPF system.

Some investors, particularly those more financially active, had earlier opted to sell their holdings through SingPost or brokers. However, any proceeds from such sales were similarly channelled back into CPF accounts.

At age 55, shareholders previously faced restrictions: they could only transfer shares to their personal Central Depository (CDP) accounts if they had met the Full Retirement Sum. Otherwise, the holdings remained under CPF management.

That framework has now changed.

Since April 8, shareholders have been given direct control of their SingTel shares, regardless of whether they meet retirement sum requirements. They may now sell their holdings through brokers, SingPost, or online platforms, with proceeds credited directly to their personal bank accounts.

Those who choose not to act will see their shares automatically transferred to their CDP accounts from Nov 21. For individuals without an existing CDP account, one will be created on their behalf. After the transfer, the shares will no longer be tied to CPF.

Based on current market estimates, a typical shareholder holding about 1,360 shares could realise roughly $6,800 if they sell, assuming a share price of around $5. For many seniors, this represents a substantial and unexpected financial boost.

Despite the potential for widespread selling, the overall impact on SingTel is expected to be minimal. The shares held under this scheme account for less than 5 per cent of the company’s total share base.

The Government has indicated that the move reflects the success of its original objective. Share ownership among Singaporeans is now widespread, and participation in the stock market is no longer seen as niche.

Even so, the programme’s legacy is mixed. While it succeeded in bringing a large number of citizens into the market, many remained passive investors, holding onto their initial shares without further diversification or engagement.