In a first since the 1980s, the government will borrow to finance its infrastructure projects. This will primarily be done through the new Significant Infrastructure Government Loan Act (SINGA) bonds, which will finance major, long-term infrastructure developments. The government will also issue green bonds for sustainability projects, including green public infrastructure. The government has, in the past, borrowed to finance infrastructure such the first MRT lines and Changi Airport’s T1 and 2. Now, SINGA bonds will spread out large, lumpy development costs over longer periods of time. In Budget 2018, Minister Heng Swee Keat said the government was looking into financing such infrastructure through borrowing, as Singapore’s infrastructure spending needs are set to spike. SINGA will enable the government to do this. The costs of major infrastructures will then be recorded as assets in the government balance sheet, and expensed off annually. Borrowing costs under SINGA will also be charged to the annual Budget. Mr Heng also announced that the government will issue green bonds as part of larger efforts to finance sustainability efforts. These will mainly comprise borrowings issued under SINGA.... Continue Reading