Singapore Signs Asian Infrastructure Investment Bank Articles of Agreement

1. Singapore and 49 other countries^[1] signed the Asian Infrastructure Investment Bank (AIIB) Articles of Agreement (AoA) on 29 June 2015 in Beijing. Singapore was represented by Senior Minister of State for Finance and Transport, Mrs Josephine Teo.

2. The AIIB will be a multilateral financial institution focused on infrastructure development in Asia. Singapore plans to subscribe to US$250 million or 0.25% of the AIIB’s total authorised capital of US$100 billion. Of the subscribed capital, 20% or US$50 million will be paid in over five years (US$10 million for each annual instalment). The remaining 80% 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.

3. Mrs Josephine Teo said, "During the early years of our development, Singapore benefited from the assistance of multilateral financial institutions such as the World Bank and the Asian Development Bank. 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. This will provide new opportunities for our businesses and also promote sustainable growth in Asia."

4. The AoA is a governing document that outlines the Bank’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.

5. The AIIB is expected to begin operations by 2016.

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^[1]Australia, Austria, Azerbaijan, Bangladesh, Brazil, Brunei Darussalam, Cambodia, China, Egypt, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Iran, Israel, Italy, Jordan, Kazakhstan, Kyrgyz Republic, Lao People’s Democratic Republic, Luxembourg, Maldives, Malta, Mongolia, Myanmar, Nepal, Netherlands, New Zealand, Norway, Oman, Pakistan, Portugal, Qatar, Russia, Sri Lanka, Tajikistan, Turkey, Republic of Korea, Saudi Arabia, Spain, Sweden, Switzerland, the UK, United Arab Emirates (UAE), Uzbekistan, and Vietnam.