SUPPLEMENTARY SUPPLY (FY 2002) BILL

Order for Second and Third Readings read.

The Deputy Prime Minister and Minister for Finance (Mr Lee Hsien Loong): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

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.

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 the 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 National Service. 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.

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.

Question put, and agreed to.

Bill accordingly read a Second time.

Third Reading

Mr Lee Hsien Loong: Sir, I beg to move, "That the Bill be now read a Third time."

Question put, and agreed to.

Bill accordingly read a Third time and passed.