In October 2008, then-President S R Nathan gave his approval for a S$150 billion guarantee on all bank deposits in Singapore to be backed by Past Reserves. This was against the backdrop of the Global Financial Crisis where other jurisdictions were guaranteeing bank deposits as well. If Singapore had not provided a guarantee, we would have run the risk of funds flowing out of Singapore to other jurisdictions that had guarantees, even though our financial system was sound. The guarantee lapsed on 31 December 2010, without being triggered.

In January 2009, the Government obtained then-President S R Nathan's approval to draw S$4.9 billion from the Past Reserves for the first time to fund special schemes in light of Singapore's worst recession then since Independence. The two measures were the Jobs Credit Scheme which subsidised employers' wage bills and the Special Risk-Sharing Initiative which helped viable companies gain access to credit. The actual amount drawn for these two measures was S$4.0 billion, less than expected. This was the first time that Past Reserves were drawn.

In February 2011, the Government decided to return the S$4.0 billion that it had drawn from the Past Reserves. This is because the economy had recovered well from the recession, putting our fiscal position on a stronger footing. While there is no legal or constitutional obligation for the Government to return any amount drawn from the Past Reserves, it is the responsible and prudent thing to do, once a Government has secured a stable fiscal position within its term.

In response to the COVID-19 crisis, the Government had to protect lives through public health measures, as well as protect livelihoods through economic and social support measures. The Government obtained President Halimah Yacob's approval to draw from Past Reserves up to $52 billion in FY2020, $11 billion in FY2021, and $6 billion in FY2022. The total draw on Past Reserves from FY2020 to FY2022 is $40 billion.

Find out more about how are Past Reserves protected.