Singapore will commit US$186 million (S$252 million) more to the World Bank to help promote growth in developing countries.
Parliament yesterday approved an increase in the country's subscription threshold to the International Bank for Reconstruction and Development (IBRD), an organisation under the World Bank Group, from US$672 million to US$858 million.
But Singapore is required to disburse only US$21 million, said Second Minister for Finance Indranee Rajah.
The remaining 89 per cent, known as callable capital, will not be drawn by the IBRD except in extreme circumstances when it cannot meet its obligations on borrowings or guarantees. This has never happened, Ms Indranee said.
The IBRD plans to use the capital increase to support the United Nations Sustainable Development Goals (SDGs) through infrastructure investment and crisis prevention.
This is the second time Singapore's capital subscription threshold to the IBRD has been raised since 1966. The first time was in 2014 when it was raised from US$38.6 million to US$672 million.
The increase will be charged to the government Budget.
In another move, Parliament also approved an increase in Singapore's subscription threshold to the International Development Association (IDA), from US$1.1 million to US$1.3 million.
The World Bank offers concessional loans and grants through the IDA to its least developed member countries, to reduce poverty and promote social and economic development. The IDA, set up in 1960, is replenished every three years.
Ms Indranee said Singapore joined the IBRD in 1966 and received 12 loans for infrastructure projects such as ports, telecommunications and the building of the National University of Singapore campus. The final loan was signed in 1975.
As a responsible member of the international community, Singapore can contribute to the efforts of development institutions to alleviate poverty and boost shared prosperity, Ms Indranee added.
"We are supportive of the World Bank Group's strategic directions for achieving the 2030 SDGs, and are keen to join the international efforts to supplement its resources to generate more targeted assistance to those in the region and beyond."
