SUBSCRIPTION TO ASIAN DEVELOPMENT BANK

SUBSCRIPTION TO ASIAN DEVELOPMENT BANK:

(Motion):

The Minister for Finance (Mr Tharman Shanmugaratnam): Mr Deputy Speaker, Sir, I beg to move,

"That this Parliament, in accordance with section 4 of the Asian Development Bank Act (Chapter 15), resolves that the Minister for Finance be authorised to increase, on behalf of the Government, the total subscription of Singapore to the authorised capital stock of the Asian Development Bank by a sum not exceeding two hundred and ninety million and four hundred thousand United States dollars."

Sir, the Board of Governors of the Asian Development Bank has adopted a Resolution to increase the capital stock of the Bank by 200%. This is the fifth general increase in the Bank's capital stock. The last increase was in 1995 by 100%.

At present, Singapore's subscription to the authorised capital of the Asian Development Bank totals 12,040 shares. Under the proposed increase, we have been allotted a further 24,080 shares amounting to US$290.4 million. Parliament is requested to authorise the Government to increase the total subscription of Singapore to the allotted amount. Four percent of this amount would be paid-in as capital contribution of US$11.6 million, or US$2.32 million annually over the next five years.

As of 25th March 2011, 60 out of 67 member countries have subscribed to the capital increase. Subscribing to the capital increase will reflect Singapore's continued support for ADB's efforts to help developing countries in the region. Singapore-based companies would also benefit from partnering ADB in projects such as those related to public governance, economic development and urban planning.

Sir, I beg to move.

Question put, and agreed to.

Resolved,

"That this Parliament, in accordance with section 4 of the Asian Development Bank Act (Chapter 15), resolves that the Minister for Finance be authorised to increase, on behalf of the Government, the total subscription of Singapore to the authorised capital stock of the Asian Development Bank by a sum not exceeding two hundred and ninety million and four hundred thousand United States dollars."