S’pore Looks to Contribute S$27.7m to International Efforts to Help Low-Income Countries Affected by COVID-19

By
Zhi Hao
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After countless wage and financial packages, it appears that Singapore is going at it again.

Though this time around, it’s more to the benefit of vulnerable countries than the citizens of Singapore.

Yes folks, the Lion City is lending a helping hand to those in need.

S’pore Looks to Contribute S$27.7m to International Efforts to Help Low-Income Countries Affected by COVID-19

According to The Straits Times, Singapore intends to pump some US$20.57 million (S$27.69 million) into international efforts to assist vulnerable countries, in the wake of a pandemic-induced economic fallout.

According to the news report, Singapore aims to finance three initiatives:

  • The International Monetary Fund (IMF)’s Catastrophe Containment and Relief Trust
  • COVID-19 Crisis Capacity Development Initiative
  • Trust for Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries

Singapore will contribute US$17.6 million (S$23.7 million) and US$2 million (S$2.7 million) to the first two respectively. These financial contributions will draw from the Monetary Authority of Singapore (MAS)’s Official Foreign Reserves.

Meanwhile, the Republic will contribute a US$970,000 grant to the Trust for Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries. This contribution, unlike the other two, will draw from existing resources in IMF accounts.

The grant is also expected to support the IMF’s US$344 million financial relief package, which caters to Somalia’s debt.

“The IMF has assessed that Somalia’s external debt is unsustainable and it requires urgent assistance to clear its prolonged arrears,” said MAS.

Collective Effort

According to the MAS, the contributions are part of a collective effort to assist vulnerable countries around the world.

“Singapore has a strong interest in supporting the global economic recovery from the ongoing COVID-19 pandemic,” they said.

“Alongside other member countries’ contributions, Singapore’s grant contributions in response to the IMF’s request also demonstrates our support for collective global action to help the most vulnerable countries.”

Singapore’s contributions will also be aligned with the Republic’s quota share, a metric which dictates the “maximum amount of financial resources a member is obliged to provide, reflecting the country’s relative position in the world economy”.

On The Vaccine Front

Meanwhile, Singapore has also contributed to the world economy on the vaccine front, having contributed US$5 million (S$6.7 million) to aid low-income countries in gaining access to vaccines via Covax.

Foreign Affairs Minister Vivian Balakrishnan pointed out that Singapore had backed the Covax Facility in its early stages and that Singapore had founded and co-chaired the Friends of the Covax Facility group to support the development of the facility.

He mentioned that COVID-19 “does not discriminate across language, race, religion or borders”, hence it would be “in our collective interest to help each other”.

Prime Minister (PM) Lee Hsien Loong has also called for international cooperation to ensure that all countries are able to obtain access to COVID-19 vaccines during the broadcast for Global Citizen’s “Recovery Plan for the World” campaign.

He appealed for global cooperation among nations in securing vaccines for all, saying, “Even as each of us gears up to secure our own (vaccine) supplies, we must cooperate internationally so that all countries, including developing ones, have access to vaccines for their people.”

On Other Fronts

Dr Balakrishnan has since stated that Singapore will continue to cooperate with the global community to implement the Paris Agreement in efforts to deal with climate change.

Singapore has also finalized Digital Economy Agreements with Australia, Chile, and New Zealand to enhance the security and efficiency of international digital interactions including e-payments and data flows.

The government is also collaborating with the United Nations (UN), Association of Southeast Asian Nations (ASEAN), and others to strengthen cybersecurity efforts, and Singapore has been very “[proactive]” in sharing expertise and experience, for instance through the Singapore Cooperation Programme.

Feature Image: mimisim / Shutterstock.com

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Zhi Hao
Email: [email protected]