Overview of development finance trends
Singapore is a high-income country, one of only two in Southeast Asia. Its $397 billion GDP (2021) makes up 12% of the region’s GDP. With a population of 5.4 million, its per capita GDP of $72,750 is the highest in Southeast Asia. Its Human Development Index ranking is 12th in the world out of 191 countries, and it is 4th out of 180 countries in the 2021 Transparency International’s Corruption Perceptions Index.
As a high-income country, Singapore is not eligible for official development assistance (ODA). The country developed rapidly after independence, with average GDP growth of 7.7%, 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 official development finance (ODF) program is modest. From 2015 to 2021, Singapore distributed $13.5 million in development finance in Southeast Asia.
Official development finance in Southeast Asia Spent, constant 2021 US$
- Singapore
- Other recipients
Singapore’s development finance program is focused entirely on humanitarian aid
and disaster recovery. It contributes regularly to ASEAN’s 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. Singapore has provided funds directly to Indonesia, Laos,
and Myanmar, but more commonly supports regional efforts; for example, a
2020 disbursement of $200,000 Intra-Reg-Singa-003 was directed to the
region in response to natural disasters in Vietnam, Cambodia, Laos, and the
Philippines.
Singapore’s ODF ramped up dramatically in 2021 in response to the Covid-19 pandemic. It donated $12.5 million in vaccines to Brunei, Thailand, Malaysia, Indonesia, and to the Association of Southeast Asian Nations (ASEAN) stockpile.
Singapore is, however, 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 Program, 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, exclusively in the form of loans from the Japanese Ministry of Foreign Affairs. The total amount of ODF from Japan to Singapore from 2015 to 2021 was slightly more than $4.4 million (in constant US$), averaging just $734,000 annually.
The total ODF Singapore received was equivalent to about a third of what it disbursed over 2015–21. However, if vaccine donations are not included, Singapore received more than three times as much finance as it disbursed.