Deputy Prime Minister Lee Hsien Loong told parliament the New Singapore Shares, worth one dollar each, are part of a broader stimulus package totalling $11.3 billion to help boost the economy.

The novel wealth redistribution scheme was announced by Prime Minister Goh Chok Tong during the National Day rally in August, but no details were given at the time.

Citizens would earn dividends for five years from 2002 to 2007 at a guaranteed minimum rate of three percent per annum on top of bonus dividends depending on gross domestic product growth.

Lee said distribution to qualified recipients from November 1 will be "specially weighted in favour" of poorer Singaporeans. The elderly and national servicemen will receive bonus shares.

Lee gave details of the scheme in a speech announcing the multi-billion dollar package to help the trade-dependent country cope with its worst ever recession spawned by the United States-led global economic slump.

"The New Singapore Shares scheme is a new initiative to give Singaporeans a share in our future growth and prosperity," said Lee, who is also chairman of the Monetary Authority of Singapore, the de facto central bank.

Holders can sell to the government up to half their shares within a year from November 1, after which no limit will be imposed.

Those who keep their shares until maturity will earn the maximum amount of dividends. Upon maturity on March 1, 2007, the government will redeem in cash all shares still outsanding at one dollar per share.

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