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Singapore Budget 2018: Singapore to inject initial S$5b into new Rail Infrastructure Fund

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Finance Minister Heng Swee Keat said the government's initial injection of S$5 billion could be topped up in the future when the government's fiscal position allows.

SINGAPORE will inject an initial S$5 billion in FY2018 into a new Rail Infrastructure Fund, which will be set up to save up for major rail lines in the future.

Finance Minister Heng Swee Keat said the government's initial injection of S$5 billion could be topped up in the future when the government's fiscal position allows.

Back in 2015, the government set up the Changi Airport Development Fund to start saving for Changi Terminal 5. It now has S$4 billion in the fund.

Mr Heng revealed that the government is looking at borrowing by Statutory Boards and government-owned companies which build infrastructure.

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"This will help spread the cost of certain larger investments over more years. These infrastructure projects, once completed, will generate economic returns over many years. The borrowing arrangements for these project will hence help distribute the share of funding more equitably across generations," Mr Heng said.

He added that besides spreading out the costs to better match when the benefits of the investments accrue, such long term borrowing will also help to develop Singapore's bond market.

Mr Heng said the National Environment Agency will look at borrowing to finance the upcoming Integrated Waste Management Facility.

The LTA will look at borrowing for the upcoming projects like the KL-Singapore High Speed Rail and the JB-Singapore Rapid Transit System Link. The Changi Airport Group will look at borrowing for Changi T5.

For more Budget 2018 stories visit bt.sg/budget18

SINGAPORE BUDGET 2018

For more stories, visit bt.sg/budget18
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