On 3 December 2024, the Monetary Authority of Singapore (MAS) announced collaboration with the Australian Government, through Export Finance Australia, which has approved a US$50 million investment into Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative. This initiative aims to support Southeast Asia’s clean energy transition and sustainable infrastructure development.
The Monetary Authority of Singapore serves as Singapore’s central bank and financial regulatory authority and maintains financial stability while advancing innovative and sustainable financial solutions. Export Finance Australia, the Australian Government’s export credit agency, and aims to promote Australian business interests abroad and strengthening regional ties through impactful economic investments.
This joint effort is part of FAST-P, a blended finance platform launched by MAS at the 28th United Nations Climate Change Conference (COP28) in 2023. FAST-P aims to mobilise international concessional and commercial capital to accelerate Asia’s decarbonisation and climate resilience. The Singapore Government has pledged up to US$500 million in concessional funding, which will be matched by contributions from international partners, including governments, multilateral finance institutions, and philanthropic organisations.
Australia’s US$50 million investment under the FAST-P initiative is the first allocation from its A$2 billion Southeast Asia Investment Financing Facility (SEAIFF). This facility, introduced following the Invested: Australia’s Southeast Asia Economic Strategy to 2040 report, seeks to deepen Australia’s economic engagement with the region while supporting the development of sustainable infrastructure and clean energy projects.
Pentagreen Capital, a sustainable infrastructure debt financing platform established by HSBC and Temasek, will oversee the deployment of FAST-P’s Green Investments Partnership (GIP) funding. This collaboration will prioritise renewable energy, electric vehicle infrastructure, sustainable transport, water management, and other key green sectors.
John Hopkins, CEO and Managing Director of Export Finance Australia, while talking about the initiative stated: “Our support for projects in Southeast Asia reflects Australia’s commitment to supporting the clean energy transition and infrastructure development in the region, as well as fostering economic partnerships that benefit both the region and Australia. Through initiatives like FAST-P, we are not just financing projects – we are building a foundation for long term, mutually beneficial relationships in the region, including with the Singapore Government. At Export Finance Australia, we see significant potential in Southeast Asia’s energy transition and connecting Australian investors and businesses with opportunities in the region.”
MAS Deputy Managing Director Leong Sing Chiong praised the collaboration and stated: “MAS welcomes Export Finance Australia as the latest partner to join our FAST-P initiative. This latest partnership is a testament to the strong alignment of interest among Singapore, Australia, and other like-minded partners on the FAST-P platform to mobilise capital to support the region’s decarbonisation efforts.”
Pentagreen Capital’s CEO, Marat Zapparov, discussed the value of multilateral partnerships in addressing climate challenges, stating: “Multilateral efforts can significantly accelerate climate infrastructure investment in Southeast Asia, as like-minded partners across public, private and philanthropic sectors come together to scale our commitment. We are delighted the Australian Government is joining the Green Investments partnership to advance our shared objective of catalysing high quality infrastructure development in our region. Pentagreen Capital is looking forward to drawing on the deep expertise in the infrastructure sector offered by Australia to unlock capital flows for the benefit of our clients, partners and neighbours in the region.”
