Overview of development finance trends
Singapore is one of two high-income countries in Southeast Asia, alongside Brunei. Its $467 billion GDP (2022) makes up 13% of the region’s GDP. With a population of 5.6 million, per capita GDP of $82,808 is the highest in Southeast Asia. Singapore ranks 9th out of 193 countries on the Human Development Index, and it is 5th out of 180 countries in Transparency International’s 2022 Corruption Perceptions Index.
Singapore developed rapidly after independence, with average GDP growth of 6.6%, despite its limited natural resources. Singapore has a highly trade-oriented economy and is a major international finance hub.
Despite Singapore’s high-income status, its outgoing official development finance (ODF) program is modest. From 2015 to 2022, Singapore only spent $5.6 million in development finance in Southeast Asia.
Official development finance from Singapore to Southeast Asia Spent, constant 2022 US$
Singapore’s development finance program is narrow, entirely focused on health and humanitarian aid. It contributes regularly to the ASEAN Coordinating Centre for Humanitarian Assistance on Disaster Management and has disbursed funds for disaster relief and recovery on several occasions, usually implemented by the Singapore Red Cross or Ministry of Health. Singapore has on occasion provided funds directly to Indonesia, Laos, and Myanmar, but more commonly supports regional efforts. For example, in 2017 it funnelled $75 million through the ASEAN Coordinating Centre for Humanitarian Assistance on Disaster Management, additional to its annual contribution, earmarked for relief for displaced communities in Myanmar.
Singapore’s ODF ramped up dramatically in 2021 in response to the Covid-19 pandemic. It donated $4.6 million worth of vaccines to Brunei, Thailand, Malaysia, Indonesia, and the ASEAN stockpile.
Singapore is involved in Southeast Asian development beyond the provision of ODF. The Technical Cooperation Directorate of the Ministry of Foreign Affairs in Singapore manages the Singapore Cooperation Programme, which provides training and technical assistance for government officials from developing countries but does not finance or implement development projects. In 2017, the Singaporean government established Infrastructure Asia, a facilitation office that works with multilateral development banks to support infrastructure development and leverage their own experience in urban development.
Singapore also receives a small amount of development finance, totalling $7.11 million from 2015 to 2022. Japan was its major source of ODF, responsible for more than 60% of those disbursements. Other donors include the United States, the United Kingdom, and the European Union.
The total ODF Singapore received was equivalent to about 80% of what it disbursed over 2015–22. However, if vaccine donations are not included, Singapore received more than seven times as much as it disbursed, at odds with its position as the wealthiest nation in the region. Climate and gender finance levels from and to Singapore were negligible.