Singapore eyes increasing gov't securities issuance limit to $1.515t

This adjustment is intended to last until 2029.

Second Minister for Finance Chee Hong Tat has proposed raising the limit for issuing government securities to $1.515t, an increase of $450b. This adjustment is intended to last until 2029.

The proposal, which requires Parliament's approval in accordance with Article 144(1)(a) of the Constitution, aims to accommodate the growing financial needs of the Central Provident Fund (CPF) and the continued development of the country’s financial markets.

Over 60% of the additional funds will be allocated to Special Singapore Government Securities (SSGS), which are used to invest CPF monies and are fully guaranteed by the government.

“We expect CPF balances to continue increasing over the next five years due to growth in wages and CPF policy enhancements,” said Chee.

The remaining increase will be directed towards publicly-held debt instruments, including Singapore Government Securities (SGS), T-Bills, and Singapore Savings Bonds (SSB), to support market development and meet demand for high-quality liquid assets.

The current limit of $1.065t is expected to be reached by 2025. The proposed increase is the first adjustment since 2021.