The World Bank signed a Memorandum of Understanding (MOU) with Singapore on Thursday at the foreign affairs ministry to formalise the agreement, which will see the set up of the World Bank-Singapore Urban Hub.

With rural-urban migration becoming a growing problem for many developing countries, the World Bank wants to tap the Republic's strength in dealing with urban issues as well as in education and public administration and training and combine it with its own knowledge in global development and operational experience to help these developing countries around the world.

This will occur though joint research, training, capacity-building initiatives and project development.

The new partnership will help facilitate the exchange of advice and technical assistance for challenges such as urban management, water utility and resource management, city financing and urban design.

'Countries across the world are struggling with the sheer scale of the urban challenge before them,' said Robert Zoellick, the World Bank's president.

With hundreds of millions of people moving from rural areas to the cities every year, the challenge is for government leaders to find 'sensible solutions' to managing the increased demand for land, water, and jobs while ensuring that the cities remain 'livable and socially cohesive'.

'Through its unique development experience, Singapore has built a vast knowledge base on meeting these challenges.

'Connecting this knowledge with the World Bank Group's development operations in East Asia and around the world creates a vital source of relevant and tested expertise that can benefit many countries,' he said.

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