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Singapore signs AIIB Articles of Agreement

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Singapore, represented by Senior Minister of State for Finance and Transport Josephine Teo (pictured), along with 49 other countries, on Monday signed the Asian Infrastructure Investment Bank (AIIB) Articles of Agreement (AoA) in Beijing.

SINGAPORE, represented by Senior Minister of State for Finance and Transport Josephine Teo, along with 49 other countries, on Monday signed the Asian Infrastructure Investment Bank (AIIB) Articles of Agreement (AoA) in Beijing, the Ministry of Finance (MOF) said in a statement on Monday.

The AIIB will be a multilateral financial institution focused on infrastructure development in Asia and Singapore plans to subscribe to US$250 million, or 0.25 per cent of AIIB's total authorised capital of US$100 billion.

Of the subscribed capital, 20 per cent, or US$50 million, will be paid in over five years, with US$10 million for each annual instalment. The remaining 80 per cent, or US$200 million of callable capital, does not need to be paid in, except when decided by AIIB members in extraordinary circumstances. This is similar to the practice in other multilateral financial institutions, MOF said.

AoA is a governing document that outlines AIIB's objectives and general principles for its management and operations. Following the signing of the AoA, Singapore will seek parliamentary approval to ratify the AoA.

As provided for in the AoA, countries become official members of the AIIB upon ratification of the AoA.

Other countries that have signed the AoA include Australia, Cambodia, China, India, Indonesia, Mongolia, Myanmar and Vietnam.

AIIB is expected to begin operations by 2016.

Mrs Teo said that Singapore benefited from the assistance of multilateral financial institutions such as the World Bank and the Asian Development Bank during the early years of its development.

"We are keen to support further economic development in the region, by working with all founding members to build up the AIIB as a first-class multilateral financial institution," she said. "This will provide new opportunities for our businesses and also promote sustainable growth in Asia."