I have advised consumers to invest in the STI ETF. This is an index fund that is invested in the top 30 shares in Singapore. It is well diversified and is relatively safe for long term investors. It should give an attractive yield compared to bonds and term deposits.
Currently, MAS regulations do not allow ordinary investors to invest in ETF, as it is classified as a complex products. Investors in this ETF has to be knowledgeable and to pass a test. Most investors find this requirement to be a big hurdle and hassle.
There was an announcement earlier that MAS would reclassify the STI ETF to remove the need to pass the test. There seem to be a delay in this re-classification. Investors have to wait a while longer.
As an alternative, investors can invest in the high yielding blue chip shares, such as Singapore Press Holdings, Singapore Telecoms and Starhub or other blue chips that offer a yield that is better than 3%. Do invest in as many shares as possible, to enjoy the benefit of diversification. More details can be found here: