More than a million Singaporeans have opted to cash in their state-issued shares, in a move which analysts see as reflecting the severity of the economic crunch hitting the tiny republic.
The shares, doled out a year ago as part of a relief package, do not mature for another five years, but hard-up Singaporeans cannot wait that long as the city-state teeters on the edge of a double-dip recession.
As of today, the government had received 1.13 million applications to sell back the so-called New Singapore Shares, and paid out S$1.25 billion (US$710,000).
The state pension agency, the Central Provident Fund Board, said it was unable to comment on whether Singaporeans were selling up because of the harsh economic climate, but the opposition Democratic Progressive Party is in no doubt.
"Whatever shares the government is giving out, they [people] prefer to cash in," party chairman Mansor Rahman said.
"That means the vast majority of Singaporeans are facing financial difficulty. That is a clear cut issue."
The 2.7 billion dollar share scheme was introduced last November as part of a novel economic stimulus plan to give less well-off Singaporeans a share in the island's wealth.
People were given between 200 and 1,700 of the shares, with lower income earners receiving the higher number.
The shares are guaranteed to earn a minimum three percent a year, with bonuses if the economy performs well, and will be redeemed by the government at a dollar each on maturity.
People were limited to selling up to half their shares in the first 12 months before all restrictions were lifted, and those who have cashed in their allotment said they needed the money to meet daily expenses.
"It's not worth waiting for the dividends," said Cheryl Chan, a financial planner who applied to exchange her full allotment of 300 shares to pay her mobile phone bills.
Singapore sank into its worst ever downturn last year when GDP shrank 2 percent.
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