SINGAPORE — Around 35,000 individuals have invested S$970 million in Singapore Savings Bonds (SSB) since the programme was launched in September last year, said Education Minister (Higher Education & Skills) Ong Ye Kung yesterday.

While the Monetary Authority of Singapore (MAS) was encouraged by this take-up rate, more can be done to raise public awareness and understanding of SSB, he added, in response to a parliamentary question from Mr Saktiandi Supaat (Bishan-Toa Payoh GRC).

Mr Ong was speaking on behalf of Deputy Prime Minister Tharman Shanmugaratnam, who is also Minister in charge of the MAS.

The first SSB issue on Oct 1 last year saw only about one-third of the S$1.2 billion available taken up despite its attractive features. Reasons cited then include a lack of knowledge on the new investment product, and volatile market conditions.

By the fourth tranche, the maximum was capped at S$300 million.

The SSB was launched as a low-entry, risk-free vehicle to help Singaporeans meet their long-term financial goals and to save up for retirement.

Interest rates increase the longer the investment is kept, and individuals can choose to cash out the bond before the 10-year tenure is up, without suffering any penalty.