The International Finance Corporation (IFC) expects Singapore’s commitments to exceed US$1 billion (S$1.36 billion) for the second consecutive year in FY2024, as Singapore companies continue to support businesses in emerging markets that are actively involved in the environmental, social and governance (ESG) sector.
Working with Singapore companies to provide climate finance to businesses in these markets to help them reduce their carbon emissions has been a top priority for DDA over the past year.
For the fiscal year 2023 ending June 30, the IFC committed a record US$1.2 billion in funding for 18 projects to help Singapore-affiliated companies seeking to expand in emerging and developing economies.
The IFC is also weighing potential investments in areas such as renewable energy, agriculture and infrastructure for the remainder of the fiscal year.
The IFC sees many opportunities to support development and promote private sector growth in markets such as Malaysia.
Supporting trade flows is another major theme for the IFC next year. The IFC hopes to work with partners in Singapore to design programs that will enable them to provide more trade finance to companies in emerging and developing economies.
“We also see opportunities for blended finance to make climate-smart projects more bankable and investable,” added Ms. Dowd-Gonsalves.
Blended finance combines public and private sector resources to address development challenges.