Speech For Moving A Motion To Increase The Limit Of Borrowing By The Issue Of Government Securities
24 Nov 2009Mr Speaker, Sir, I beg to move,
“That this Parliament, in accordance with Article 144(1)(a) of the Constitution of the Republic of Singapore and section 11(1) of the Government Securities Act (Chapter 121A of the 2002 Revised Edition), resolves that the Minister for Finance be authorised to borrow, by the issue of Government securities in Singapore under that Act, a further sum not exceeding Seventy Thousand Million Singapore Dollars (S$ 70,000,000,000), thereby in total a sum not exceeding Three Hundred and Twenty Thousand Million Singapore Dollars (S$ 320,000,000,000).”
2. Sir, on 21 September 2004, Parliament resolved that the Minister for Finance be authorised to borrow, by the issue of Government securities in Singapore an outstanding sum not exceeding Two Hundred and Fifty Thousand Million Singapore Dollars (S$ 250,000,000,000).
3. As at 31 October 2009, there are about Two Hundred and Thirty Five Thousand Million Singapore Dollars (S$ 234,700,000,000) worth of securities outstanding. The outstanding securities are estimated to reach about Three Hundred and Twenty Thousand Million Singapore Dollars (S$ 320,000,000,000) within the next five years. This is due to the expected increase in CPF Board members’ balances as a result of policy changes, such as CPF LIFE and the increase in Minimum Sum, to build up members’ retirement savings, as well as higher CPF interest payments and the corresponding interest compounding effect. Three quarters of the outstanding Government securities are expected to be used to absorb these higher members’ balances.
4. The remainder would be for the Monetary Authority of Singapore to grow the issuance of Singapore Government Securities so as to continue to enhance the efficiency and liquidity of Singapore’s debt capital markets.
5. I propose, therefore, that the ceiling for borrowing by Government securities of Two Hundred and Fifty Thousand Million Singapore Dollars (S$ 250,000,000,000) be raised by another Seventy Thousand Million Singapore Dollars (S$ 70,000,000,000) to a total of Three Hundred and Twenty Thousand Million Singapore Dollars (S$ 320,000,000,000). As before, this ceiling will apply to the outstanding amount of Government securities.
6. Sir, I beg to move.