SINGAPORE: The Republic signed an intergovernmental Memorandum of Understanding (MoU) on Friday (Oct 24), together with 20 other countries, to establish the Asian Infrastructure Investment Bank (AIIB).
The AIIB will be a multilateral financial institution focused on infrastructure development in Asia, with its headquarters in Beijing. Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam represented Singapore at the MoU signing in Beijing, China, according to the Ministry of Finance (MOF) press release.
“The AIIB is a positive development which will help meet the immense infrastructure needs in Asia, said Mr Tharman.
“Singapore looks forward to partnering other members to establish the AIIB as a resilient multilateral institution, complementing and drawing on best practices of existing players like the World Bank and Asian Development Bank, so as to promote sustained growth in Asia.”
The 20 other countries who signed the MoU are: Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Lao PDR, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Sri Lanka, Thailand, Uzbekistan and Vietnam.
After signing the MoU, the signatories will participate in the negotiations for the AIIB’s Articles of Agreement (AOA). Countries that subsequently sign and ratify the AOA will officially become founding members of the AIIB. The AOA negotiations are expected to be completed by end 2015, according to MOF.