Singapore Government Securities

  • singapore-government-securitiesingapore-government-securitie

    Your sound investment choice

Overview

Singapore Government Securities are sound investment choices with its triple A credit rating. They are interest-earning debt instruments issued by the Monetary Authority of Singapore on behalf of the Singapore Government.

 

At a Glance

You'll enjoy:

  • Timely payment of interest on the bond and the principal payment on maturity as SGS are guaranteed by the Singapore Government
  • A safe and secure alternative to stocks or equities
  • Diversification of your investment portfolio
  • Opportunities for capital gains when prices of securities rise in response to a fall in interest rates. (Conversely, there may be capital losses if interest rates rise)
  • Liquidity as SGS can be readily sold for cash before their maturity date


Singapore Government Securities or SGS come in two forms:

  • They are short-term securities with original maturities of 3 and 12 months
  • They are issued at a discount from the face value and redeemed at the full face value upon maturity. The return on your investment is therefore the difference between the purchase price and the face value of the Treasury Bill, i.e. the discount given
  • They are longer-term securities with original maturities of 2, 5, 7, 10 and 15 years
  • They pay a fixed interest rate (coupon) every six months for the entire life of the securities
  • The coupon or interest rate is guaranteed for the entire life of the bond, thus assuring the investor of a steady source of income

Features

On maturity

  • On maturity, the full face (par) value of the Government Bond and Treasury Bill is paid to the investor

 

Taxation for residents1

  • Interest and discount income derived from SGS on or after 1st January 2004 by a resident individual, except where such income is derived through a partnership in Singapore or derived from the carrying on of a trade, business or profession, is exempt from tax.
  • Interest and discount derived from SGS issued on or after 28th February 1998 by Financial Institutions, Corporations and Bodies of Persons1 is subject to Singapore tax at a concessionary rate of 10%.

    1 Residents, body of persons, and permanent establishments are as defined in the Income Tax Act (Chapter 134)

 

Taxation for non-residents

  • Interest and discount income payable to non-residents (without any permanent establishments1 in Singapore) on Qualifying Debt Securities, which include SGS issued during the period from 28 February 1998 to 31 December 2013, is exempted from withholding tax. For non-residents with permanent establishments1 in Singapore, the withholding tax exemption is subject to the conditions that the debt securities issued during the period from 27 February 1999 to 31 December 2013 and are not purchased using funds from Singapore operations.

    1 Residents, body of persons, and permanent establishments are as defined in the Income Tax Act (Chapter 134)

 

Capital gains

  • Capital gains are not taxed in Singapore

 

Custody

  • The scriptless SGS will be credited to your Central Depository (CDP) Securities Account and reflected in your CDP statement.

 

Eligibility

Requirements

  • You must be at least 18 years old and not an undischarged bankrupt.
  • There are no restrictions on foreign investors
  • A minimum investment sum of S$1,000.
  • You need to open a Central Depository (CDP) Securities Account.
  • Funds from Central Provident Fund (CPF) and Supplementary retirement Scheme (SRS) account can be used to purchase Government bonds and Treasury bills. In order to transact, you need to open a CPF Investment Account / SRS Account with UOB or any other agent bank.
  • You may either transact SGS on a secondary market through us directly, or tender for new and re-opened SGS issues through our Automated Teller Machines (ATM).

 

Apply Now

Via Online

Tender for new or re-opened SGS issues online at UOB Personal Internet Banking or at any UOB ATM

More Information

For a no-obligation consultation today, please:

 Call us 24-hour, toll-free at 1800 222 2121

 

 

Click here to download the Consolidated Terms for Sale and Purchase of Singapore Government Securities (SGS)

 

This product is not a deposit and is not covered under the Singapore Government's guarantee on all Singapore Dollar and foreign currency deposits of individuals and non-bank customers in banks, finance companies and merchant banks licensed by the MAS (which is in effect until 31 December 2010).

This advertisement has not been reviewed by the Monetary Authority of Singapore.