Forum: Consider raising individual limit of Singapore Savings Bonds
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Given the current interest rate environment, many financial experts have advised people to invest more in bonds.
However, there is a lack of retail bonds available for retail investors in Singapore. Most Singapore corporate bonds, including those of statutory boards, are launched for the wholesale market accessible to only high-net-worth individuals like private banking clients.
Bond options for most retail investors are mainly Singapore Savings Bonds (SSBs), Singapore Government Securities bonds and Treasury bills. The 10-year SSBs are a safe and flexible (with easy redemption) fixed-income instrument, but they have an individual limit of $200,000.
Perhaps it is time for the Monetary Authority of Singapore to consider raising the SSB individual limit to, say, $300,000.
It is unlikely to have much impact on demand and would help people, especially retirees, who just want to park more money in a safe instrument and not in riskier investments.
Goh Yong Chua
