ERS

To help Singaporeans to cope with the GST hike from 3% to 5% in year 2003, the government gave out Economic Restructuring Shares (ERS) based on the annual value of your home. In addition, the government promised an interest rate of of minimum guaranteed 3% + real GDP growth rate of the previous year.

For years 2003, 2004, 2005 and 2006, the dividend rates were 4.1%, 11.4%, 9.4% and 10.9% respectively. This was one of the best investments I ever had because the yields were risk-free and high.

The ERS will close in this year 2008. All shares alloted will be converted to cash. A letter from CPF Board can be expected somewhere in March 2008.

For more info, please visit www.ers.gov.sg or www.nss.gov.sg