SINGAPORE TELECOM GROUP A SHARES (Reasons for non- application by eligible Singaporeans)

Mr Chia Shi Teck asked the Minister for Communications if he will state (i) the number of eligible Singaporeans who did not apply for the Singapore Telecom Group A shares and (ii) the reason(s) for their non-application.

The Minister for Communications (Mr Mah Bow Tan): Mr Speaker, Sir, out of a total of 1,694 million offer letters for Group A shares which were sent out to all eligible Singaporeans, 1.45 million returned their application forms to apply for Singapore Telecom Group A shares. In other words, about 244,000 Singaporeans or 14.4% of those eligible decided not to apply.

We can only guess as to why this group of Singaporeans decided not to apply for the Group A shares. Some may have had other priorities in the use of their CPF funds. Others may have been averse to the risks of share investment.

But whatever the case, the Government has left it to the individual to consider and decide, after making available all the relevant information. The fact that more than 85% of eligible Singaporeans did apply is a measure of the success of this exercise to enhance the assets of Singaporeans and make them members of a share-owning society.

Mr Chia Shi Teck: Sir, could it be that these people have no money to apply and they have missed out on the wealth, especially when the prices of ST shares rise? Or could the Government not give them the shares, as it gave them the $200 under the CPF Top-up Scheme? Out of 800,000, I think something like 600,000 did not even top up with $500. They could be the people who are poor and who do not have the money to top up. You need to have money to apply for the shares.

Mr Mah Bow Tan: Sir, first of all, it is not true that people who did not apply for the shares were the ones who did not have money in their CPF. A further breakdown of the numbers would indicate that not all the people who were active CPF account holders applied for the Group A shares. There were actually 10% of active CPF account holders, ie, people who are contributing regularly to their CPF accounts, who did not apply for the Group A shares. As I said, we can only guess as to why these people did not apply for the Group A shares. But the more important point really is that it is a conscious decision on the part of individuals to participate in this exercise. The Government gave $200 under the CPF Top-up Scheme and made the scheme as convenient as possible and it also made the Group A share application as simple as possible. But in spite of all this, 10% of active CPF account holders did not apply.

Dr S. Vasoo (Tanjong Pagar GRC): Sir, first of all, I would like to declare my pecuniary interest. Would Singaporeans who are away overseas, and their relatives have been asked to apply on their behalf for the Group A shares, be allocated such shares?

Mr Mah Bow Tan: Yes, there were special arrangements made for eligible Singaporeans who were overseas. These arrangements were made well in advance. Proxy forms were made available to those who were about to go overseas. These forms were also available to their friends and relatives here in Singapore so that they could be sent or faxed to them. The administrators of the scheme also accepted responses by fax. So it was made as convenient as possible and all those who responded accordingly were allocated the shares.

Mr Chiam See Tong (Potong Pasir): Sir, as regards the CPF Top-up Scheme, can the Minister tell the House how many new accounts were opened?

Mr Mah Bow Tan: Mr Speaker, Sir, I am afraid I do not have that number available. But if the Member wishes to address the question to the Minister for Labour, I am sure he will get the answer.