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Speech by DPM & The Minister for Finance Lee Hsien Loong for The Second Reading of The Supplementary Supply (FY 2002) Bill at The Parliament, 5 Dec 2002

04 Dec 2002

Mr Speaker, Sir, I beg to move, "That the Bill be now read a second time".

2 The purpose of this Bill is to make provision for additional expenditure of $1.2 billion to fund the first allocation of the Economic Restructuring Shares.

3 As announced in my Budget Speech in May this year, the government is giving out Economic Restructuring Shares to help Singaporeans adapt to the structural changes in the economy, especially the increase in GST rate. Depending on the annual value of a person's home, each eligible Singaporean will receive $400 or $200 worth of the Shares in 2003. Additional shares on a one-off basis will also be given to those serving or who have served NS. The Shares will earn tax-free dividends each year in the form of bonus shares, payable every year on 1st March from 2004 to 2008, when the Shares will mature. The dividends will be at a rate of 3% plus the real GDP growth rate for the previous year.

4 There will be three annual allocations of the Shares. The first will be on 1st January 2003. This Bill is required to provide the funds for this allocation.

Sir, I beg to move.

5 Dec 2002