By REUTERS
Singapore plans to sell as much as US$2.8 billion (RM12 billion) in savings bonds in 2016, a programme aimed to help individual investors higher returns than available on bank deposits, the central bank said on Tuesday.
The Monetary Authority of Singapore (MAS) said in a statement that up to S$4 billion (RM12 billion) of savings bonds will be offered next year. The first bonds for 2016 will be sold on Jan 4, when a maximum S$300 million will be available, the MAS said.
The tenure of the bonds will be about 10 years.
The city-state launched the bond programme this year to help individuals get more returns than banks offer, while giving them the option to invest lower amounts and the flexibility to redeem at any time without penalty.
Bond sales began in October and S$711.5 million have been issued this year, the central bank said.
Singapore had planned to issue S$2 billion to S$4 billion of savings bonds this year, according to the MAS.
Some economists have expressed feared the bonds may push interest rates up and suck cash out from the sluggish economy.
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