In order to build
a share owning society, the Government will from
time to time offer Singaporeans stocks of blue-chip
Singapore companies at a discount. This will give
Singaporeans a more direct stake in the growth
and prosperity of Singapore.
The first offering of ST shares
to Singaporeans in November 1993 was a resounding
success. The Group A share scheme increased the
number of Singaporeans owning shares from 250,000
to 1.4 million. The scheme has also succeeded
in getting Singaporeans to hold on to the shares
as long term investments, instead of stagging
them for a quick profit. 95 per cent of Group
A ST shareholders still own their ST shares. Those
who bought 600 Group A ST shares in November 1993
for $1.90 each and have kept them now have 720
ST shares, worth about $3.50 each. Their initial
investment of $1,140 is now worth $2,520 - more
than double in less than three years.
The Government has decided to
make a second offering of Singapore Telecom shares
to Singaporeans. The offering will be packaged
like the Group A scheme in the initial ST flotation.
The shares will be offered at a discount to the
market price to CPF members. They will come with
a loyalty bonus package to encourage Singaporeans
to hold on to the shares as a long-term investment.
This is expected to take place in the second half
of 1996. The details are being worked out and
will be announced at a later date.