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New bill to ease borrowing for Government of Singapore to fund infrastructure projects [free access]

April 6, 2021

A new bill has been proposed that will allow the Government of Singapore to borrow resources to finance major national infrastructure projects in the country. The government will be able to borrow up to SGD90 billion under the drafted Significant Infrastructure Government Loan Act (Singa), to pay for infrastructure development that will last at least 50 years.

 

The total borrowing amount is based on the estimated costs of developing nationally significant infrastructure for the next 15 years. There is a SGD5 billion annual interest ceiling and if it is violated, the government will be unable to borrow any more money in the next fiscal year. These limits can only be altered by amending the Singa bill in the Parliament. The funds will be used for multiple projects, including the construction on the Cross Island and Jurong Region MRT lines. The borrowed funds will have interest rates close to zero, and provisions will be in place to ensure that the funds are used sustainably and responsibly. The estimated cost of these projects must be at least SGD4 billion.

 

(1 SGD [Singapore Dollar] = 0.74 USD)