Singapore's parliament has approved its attempt to become a founding member of the China-led Asian Infrastructure Investment Bank, Channel NewsAsia (CNA) reported on Monday.

With the passing of the Bill, Singapore is set to contribute 250 million U.S. dollars to the Bank, giving Singapore 0.48 percent of the total voting share.

In response to query over whether Singapore's joining in will give benefits to the country as well as its people, Senior Minister of State for Finance Josephine Teo said AIIB will promote opportunities for local SMEs.

"As a member of this region, Singapore welcomes new initiatives that will promote greater infrastructure investment. Better infrastructure and connectivity will facilitate regional economic development, and in turn provide positive spin-offs for the Singapore economy," she said.

According to the bill, 50 million of the 250 million U.S. dollars will be paid in over five equal annual installments. The remaining 80 percent will not be paid in, except when decided by the Bank's members in extraordinary circumstances, CNA said, adding that such a practice is similar to other international financial institutions.

The prospective founding members of the Asian Infrastructure Investment Bank (AIIB) finalized at 57 in April, with 50 countries have signed the Bank's Articles of Agreement in July. The remaining seven members need to sign the articles by the end of the year. Endi

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