ASIAN DEVELOPMENT BANK (AMENDMENT) BILL

Order for Second Reading read.

4.27 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bill seeks to amend the Asian Development Bank Act by adding thereto a new section 9A which will exempt the Asian Development Bank and the issue by the Bank of shares, debentures, bonds, notes and other securities from the requirements of the Companies Act.

The Asian Development Bank (referred to as "the ADB") has so far not borrowed from the Asian Dollar Market, although it has issued bonds in the capital markets of New York, Tokyo. Zurich, Frankfurt. Luxembourg and Vienna. Before the Bank can consider floating a bond in Singapore, it will be necessary to remove certain legal constraints which arise from the broad definition of the term "corporation" in the Companies Act. Under the Act, a "corporation" includes any body corporate whether domiciled in Singapore or abroad. Although the ADB is not a Company, it is deemed to be a Corporation under the Act and is therefore required to comply with the requirements of the Companies Act in the event of a public issue of its securities in Singapore. However, certain sections in the Companies Act are not appropriate for application to the Bank as an inter-governmental organisation.

In order to facilitate the entry of the ADB into the Asian Dollar Market, it is proposed to amend the Asian Development Bank Act of Singapore so that the ADB will be deemed not to be a Corporation within the meaning of the Companies Act.

Sir, I beg to move. Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill.-[Mr Hon Sui Sen].

Bill considered in Committee; reported without amendment; read a Third time and passed.