Parliament approves transfer of Singtel discounted shares to CDP accounts

The median holder owns 1,360 shares worth $6,800.

Parliament has approved amendments to the CPF Act, allowing Singtel Special Discounted Shares (SDS) held under the CPF Board to be transferred to shareholders’ own Central Depository (CDP) accounts.

The changes update a legacy arrangement created during the telco’s privatisation in the 1990s, when CPF members were allowed to buy discounted shares using their CPF savings, said Minister of State for Manpower Dinesh Vasu Dash.

The transfer, planned for November, allows SDS holders to hold and manage their shares directly, Dash said during the second reading of the CPF (Amendment) Bill 2026 on 7 May.

“They also have the option to sell and encash their SDS holdings anytime, if they wish,” he added.

Meanwhile, holders without CDP accounts will have their shares transferred into designated CDP accounts created specifically for SDS holdings.

Before the exercise in April, there were around 615,000 SDS holders, with the median holder owning about 1,360 shares valued at around $6,800.

Holders who prefer not to retain their Singtel shares may sell them and choose to receive the proceeds either in their CPF Ordinary Account or in cash.

To facilitate this, the Bill allows SDS sale proceeds to be withdrawn in cash without being subject to CPF withdrawal rules.

“As of April, around 83,000 SDS holders, or 13%, have sold their shares,” Dinesh said.

He added that safeguards would be implemented to protect SDS holders from scams during the transfer process.

Measures include personalised notification letters, limiting payments only to verified bank accounts, and public advisories reminding holders to rely only on official communication channels.