10.7% Bonus Shares For Economic Restructuring Shares (ERS)

Singaporeans who hold Economic Restructuring Shares (ERS) will receive 10.7% of bonus shares on 1 March 2008. This is the final dividend payment for ERS. All remaining shares will automatically be exchanged for cash thereafter.

2. The ERS was a major part of the FY2002 GST Offset Package to help offset the increase in GST from 3% to 5%. It was given out in three lots. Eligible Singaporeans received their first, second and third lots in 2003, 2004 and 2005 respectively. Each share was worth $1 and bonus shares were to be paid on the 1st of March every year from 2004 to 2008.

HIGH ERS BONUS RATE

3. The ERS bonus rate is set at real GDP growth rate plus 3%, subject to a minimum of 3%. The real GDP growth rate for 2007 was 7.7%. Singaporeans who have not exchanged their ERS for cash would have received up to $672 worth of bonus shares over the 5 years.

ERS CLOSURE ? BENEFICIARIES WILL RECEIVE THEIR ERS PAYMENTS AUTOMATICALLY; NO ACTION REQUIRED ON THEIR PART

4. About 800,000 Singaporeans have yet to fully exchange their ERS for cash. CPFB will send a letter to these Singaporeans by 10 March 2008 informing them of how they will receive their ERS payment.

5. Singaporeans who have previously received their GST Credits or encashed part of their ERS through their bank accounts will receive their ERS payments automatically through the same bank accounts by 7 April 2008.

6. The remaining Singaporeans will receive a cheque from CPFB by 7 April 2008. However, if they prefer to have their ERS paid into a bank account, they can provide their bank account details by 24 March 2008 at www.ers.org.sg or return a completed form (available at all Community Centres/Clubs, Community Development Councils and CPF Service Centres) to the CPFB.

7. All cheques have to be encashed by 7 July 2008, after which the cheques will be void and the ERS payments will be credited directly into the individuals' CPF Ordinary Accounts. The ERS will close on 1 September 2008. (See Annex for key dates.)

PUBLIC ENQUIRIES

8. Members can check their ERS balance and bonus shares at the website www.ers.org.sg. For any queries, they can call 1800-5-377-377 (1800-5-ERS-ERS) or email ers@cpf.gov.sg.

MINISTRY OF FINANCE