1 Mr Deputy Speaker, on behalf of Deputy Prime Minister and Minister in Charge of the Monetary Authority of Singapore, I beg to move, “That this Parliament, in accordance with section 6A(2)(d) of the Bretton Woods Agreements Act 1966, resolves that the maximum amount of grants that the Monetary Authority of Singapore may give, under a bilateral agreement (or its subsequent variations) to be made between the Monetary Authority of Singapore (on behalf of the Government of the Republic of Singapore) and the International Monetary Fund (“IMF”) to support the IMF’s Poverty Reduction and Growth Trust (“PRGT”), is Special Drawing Rights (SDR) 21 million (approximately USD 28.6 million).” 

2 Sir, I will be moving a second motion for a separate grant of SDR 4.48 million (approximately USD 6.1 million) to the IMF’s Trust for the Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries (“PRG-HIPC Trust”), to support Sudan’s debt relief.

3 Sir, I would like to propose that the substantive debate on both of these motions takes place now, to allow the key considerations to be covered in a single debate. Subsequently, I will move the second motion separately, in compliance with Parliamentary procedural requirements. Thank you, Sir.

IMF’s Role to Safeguard Stability of the International Monetary System 

4 As part of its mandate to ensure the stability of the international monetary system, the IMF provides financial assistance to countries experiencing balance of payments difficulties. To carry out this important function, the IMF relies on resources provided by member countries, including Singapore. This has allowed the IMF to respond to external shocks, including the COVID-19 pandemic and the war in Ukraine, by stepping up financing support to member countries. 

5 The IMF has been stepping up its financial support for member countries to build resilience in an increasingly fragmented and fragile external environment. Since the pandemic, it has deployed US$1 trillion in global liquidity and reserves through lending and the allocation of SDRs. Notably, it made the largest SDR allocation of US$650 billion to its member countries in 2021. Now this SDR allocation was made to enable all members to address the long-term global need for reserves, build confidence and foster resilience of the international economy through a series of disruptive events. 

6 As required under the IMF’s Articles of Agreement, the US$650 billion SDR general allocation was distributed in proportion to the quota shares of IMF’s members, and not according to the relative needs of its members. Singapore received SDR 3.73 billion in SDRs, notwithstanding that we did not require an augmentation of our resources.

7 The IMF is now calling on members with strong economic fundamentals and ample official foreign reserves to channel some of their SDRs to various IMF trusts and programmes to support more vulnerable IMF members. The amounts that Singapore has been asked to contribute are in line with Singapore’s quota share at the IMF, and a relatively small portion of the 3.7 billion SDRs we received from the IMF in 2021. Singapore will also be providing these contributions as part of broader, multilateral effort to support IMF’s capacity to assist vulnerable, low-income countries. 

Bretton Woods Agreements Act Requirements 

8 The Bretton Woods Agreements Act enables the MAS to make grants to the IMF as part of international efforts to assist countries in need.  This is subject to four conditions. 

a. First, the IMF requests Singapore to assist in support of a fund programme for the benefit of one or more countries. The PRGT and PRG-HIPC Trust are such fund programmes.

b. Second, at least one other member country has provided or intends to provide similar financial assistance. This condition has been fulfilled, with a good representation of member countries pledging support or already contributing to the two programmes.

c. Third, MAS publicly discloses key information about the financial assistance via a Gazette publication.

d. Fourth, Parliament fixes by resolution the maximum amount of the grants.

9 I will now explain the specific context and considerations for the two grants.  

Poverty Reduction and Growth Trust

10 First, Singapore’s grant contribution to the Poverty Reduction and Growth Trust, or the PRGT. 

11 Now, the PRGT supports the IMF’s concessional lending to low-income countries. It plays a central role in debt resolution for distressed countries and provided emergency support to many low-income countries during the COVID-19 pandemic. The IMF’s annual lending commitment increased five-fold compared to the pre-pandemic period, to SDR 5.5 billion per annum during 2020 to 2023.  

12 This surge in lending during the pandemic, coupled with the sustained high financing needs post pandemic driven by tighter financial conditions and rising food prices, have placed significant strain on the PRGT’s finances. The IMF is hence seeking voluntary contributions from economically stronger member countries to support the PRGT’s longer term financial sustainability.

13 The IMF has requested that Singapore provide a contribution of SDR 21 million (approximately USD 28.6 million). 

14 Singapore’s contribution will be part of a broader multilateral effort, with 45 member countries, including the United States, having also pledged to contribute to the PRGT. The quantum of our proposed contribution to the PRGT is commensurate with our quota share at the IMF, which stands at 0.82% today.  

Trust for Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries for Sudan’s Debt Relief

15 Next, Singapore’s grant contribution to the Trust for Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries (“PRG-HIPC Trust”) to support Sudan’s debt relief.

16 Let me first provide background on the broader PRG-HIPC Trust. The IMF and World Bank launched the Heavily Indebted Poor Countries (“HIPC”) Initiative in 1996 to ensure that no poor country faces an unmanageable debt burden. To be eligible for this HIPC Initiative, countries need to meet certain criteria, commit to policy changes to reduce poverty, and demonstrate a record of doing so.

17 In 2005, the HIPC Initiative was supplemented by the Multilateral Debt Relief Initiative. This allows countries to receive 100 percent relief on eligible debts by the IMF, the World Bank, and African Development Fund after demonstrating sustained economic performance, implementing key structural and social reforms and also maintaining macroeconomic stability. 

18 IMF financing for the HIPC Initiative comes from bilateral contributions from members and IMF resources, mainly investment income on proceeds from the IMF’s gold sales in 1999. However, resources in the PRG-HIPC Trust have been insufficient to finance debt relief to the remaining two HIPC countries with protracted arrears to the IMF – that’s Somalia and Sudan. The IMF has thus initiated separate fundraising efforts to mobilise the resources needed for it to cover its share of debt relief to Somalia and Sudan. In 2021, following Parliament’s approval, Singapore contributed SDR 0.68 million (approximately USD 0.93 million) to Somalia’s debt relief. There has been no request for further contribution to Somalia.

19 Sir, turning to Sudan, Sudan is amongst the world’s poorest countries, with an estimated two thirds of its population living in poverty. Its history is marked by political instability, internal conflict and isolation from the world economy. Following Sudan’s efforts to re-engage with the international community in 2020, it met the necessary conditions to begin receiving debt relief under the HIPC Initiative. Completing this process would allow Sudan to regain debt sustainability and help it implement essential reforms to free up resources to tackle poverty and improve social conditions for its people.  
 
20 For Sudan, the IMF has requested Singapore to contribute SDR 4.48 million (equivalent to approximately USD 6.1 million). The quantum of our contribution is determined based on our quota share at the IMF. 

21 Similar to the PRGT, Singapore’s contribution towards the debt relief for Sudan is part of a broader multilateral effort, with 122 members having also pledged to contribute, including our ASEAN-4 neighbours (Indonesia, Malaysia, Philippines and Thailand).

Considerations

22 Now, why should Singapore make these contributions to the IMF, considering today’s uncertain global environment? With multilateralism under threat, we should support multilateral institutions such as the IMF to help them play their role in maintaining the stability of the global system. 

23 It is in Singapore’s interest to do so, as a stakeholder in the international community,and it is our role to support the IMF. As a small open economy with multiple connections to global markets, Singapore has an interest in supporting initiatives that promote global resilience to crises, and to safeguard stability in the global monetary system.   Singapore also joins a broader base of other countries in supporting IMF programmes.  

Impact on Singapore’s reserves

24 Sir, the impact of our contributions on our OFR is not significant. As I noted earlier, Singapore’s OFR increased by SDR 3.73 billion following IMF’s 2021 SDR allocation. Against this,

a. Our contribution to the PRGT will thus draw from Singapore’s allocation of the SDR, resulting in a reduction of MAS’ OFR by a modest SDR 21 million (approximately USD 28.6 million). 

b. The contribution to the PRG-HIPC Trust will be funded from Singapore’s share of IMF’s existing resources in IMF accounts and will not affect the size of MAS’ OFR. 

25 The proposed grant amounts are also proportionate to Singapore’s quota share at the IMF and consistent with Singapore’s standing in the international financial system.  

Conclusion

26 Mr Deputy Speaker, MAS has issued a media release on 28 January_2026 to inform the public of its intention to participate in the package of contributions to the IMF, including the grants for which it would seek Parliament’s approval. Following Parliament’s resolution to fix the maximum amount of grants that MAS can allocate to the IMF’s PRGT and PRG-HIPC Trust, MAS will publish in the Gazette key information about the grants. 

27 Mr Deputy Speaker, I beg to move.

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