Press Releases
11.4% Bonus for ERS
17 February 2005
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Holders of Economic Restructuring Shares (ERS) will receive 11.4% of bonus shares based on their ERS balances on 31 December 2004. This is 3% above the real GDP growth rate of 8.4% for 2004. The ERS bonus shares will be paid on 1 March 2005.
HIGHER ERS BONUS RATE
2 The 2005 bonus rate of 11.4% is much higher than the 4.1% in 2004. It is set at real GDP growth rate plus 3%, subject to a minimum of 3%. Singaporeans who have not exchanged their ERS for cash can expect to receive up to $94 worth of ERS bonus shares (see Table 1 below).
Table 1: Quantum of ERS Bonus Shares
Year ERS | ERS Allotment | Total ERS | Bonus Rate | Bonus ERS |
|---|---|---|---|---|
2003 | 400* | 400 | 4.1% | 17 |
2004 | 400* | 817 | 11.4% | 94 |
* About 90% of Singaporeans receive 400 ERS
LARGEST NUMBER EVER TO QUALIFY FOR ERS
3 A total of 2.2 million Singaporeans recently received their third and final lot of ERS on 1 January or 1 February 2005, amounting to $825m. Outreach efforts by the media, grassroots and voluntary welfa
4 The ERS is a major part of the 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 and second lots in early 2003 and 2004 respectively.
PUBLIC EN
MINISTRY OF FINANCE