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Singapore, 20 other countries sign MOU for new Asian bank

BEIJING — Singapore and 20 other Asian nations have signed on to a new international bank for Asia opposed by Washington as an unnecessary rival to established institutions such as the World Bank.

China's President Xi Jinping (R) meets with the guests at the Asian Infrastructure Investment Bank launch ceremony at the Great Hall of the People in Beijing October 24, 2014.  Photo: Reuters

China's President Xi Jinping (R) meets with the guests at the Asian Infrastructure Investment Bank launch ceremony at the Great Hall of the People in Beijing October 24, 2014. Photo: Reuters

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BEIJING — Singapore and 20 other Asian nations have signed on to a new international bank for Asia opposed by Washington as an unnecessary rival to established institutions such as the World Bank.

Representatives signed a memorandum of understanding (MOU) today at the Great Hall of the People in the heart of Beijing to establish the Asian Infrastructure Investment Bank (AIIB).

The bank aims to fund the construction of roads, railways, power plants and telecommunications networks that global finance officials say are needed to keep the region’s economies humming along.

Those taking part included regional economic powers India and Qatar. Absent were close US allies South Korea and Australia.

China proposed the bank a year ago and has said it will provide most if not all of the initial US$50 billion (S$63.8 billion) in capital.

In a statement, Singapore’s Deputy Prime Minister and Minster for Finance, Mr Tharman Shanmugaratnam, who represented Singapore at the signing of the MOU, said: “The AIIB is a positive development which will help meet the immense infrastructure needs in Asia. Singapore looks forward to partnering other members to establish the AIIB as a resilient multilateral institution, complementing and drawing on best practices of existing players like the World Bank and Asian Development Bank, so as to promote sustained growth in Asia.” AGENCIES

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