Singaporean Gov’t allowed to borrow 90 bln SGD for national infrastructure

The financial district of Singapore (Photo: AFP/VNA)

Singapore (VNA) - A new bill introduced on April 5 is expected to pave the way for the Singaporean Government to pay for major national infrastructure projects through borrowing.

The proposed Significant Infrastructure Government Loan Act (Singa) will allow the Government to borrow up to 90 billion SGD (67 billion USD) to pay for infrastructure projects that will last for at least 50 years.

Deputy Prime Minister Heng Swee Keat said in a Facebook post shortly after he tabled the draft law, which will be debated when Parliament sits next month, that Singa will allow the Government to borrow to finance nationally significant infrastructure that is critical for long-term development.

Singapore last borrowed for infrastructure in the 1970s and 1980s, to pay for the large upfront costs of building Changi Airport as well as the first MRT lines. By the 1990s, with the economy growing rapidly, the Government paid for infrastructure in full from its revenue./.

VNA