SINGAPORE – More than $1 billion have been pledged under the newly launched Philanthropy Asia Alliance (PAA) towards the development of Asian solutions for global environmental and social challenges.
Temasek Trust announced this on Friday at the 3rd Philanthropy Asia Summit where it launched PAA, which seeks to “build capabilities, capacities and communities in the philanthropic sector, and harness multi-sector partnerships”. This is to develop solutions in Asia to tackle challenges in Asia and globally.
The challenges include climate change, loss of biodiversity and natural habitats, and improvement of quality of life for the elderly.
PAA comprises over 80 global members and partners from the Americas, the Asia-Pacific, Europe and the Middle East, including DBS Foundation, Bill & Melinda Gates Foundation, Sembcorp Industries, The Rockefeller Foundation, and Li Ka Shing Foundation.
President Tharman Shanmugaratnam attended the launch of PAA – his first event since he was sworn in as Singapore’s ninth president on Thursday night – as its distinguished patron.
In his opening remarks, Mr Desmond Kuek, chief executive officer of Temasek Trust, the philanthropic arm of state investment company Temasek, noted that Asia takes up less than a quarter of the US$1 trillion (S$1.36 trillion) of global impact investing in Asia.
“The opportunity for philanthropic capital to catalyse positive impact in Asia is immense, and the Philanthropy Asia Alliance will accelerate this,” he said, adding that the alliance “will harness the strengths, ideas and best practices of members and partners”.
Collective PAA pledges have crossed US$777 million, which includes Temasek Trust’s US$100 million commitment.
PAA chairman Lim Boon Heng said that with Asia being home to 60 per cent of the global population and accounting for half of global emissions, “the opportunity to drive impact in Asia is significant”.
For now, the alliance has identified 29 projects, or “Calls to Action”, which span three main categories – climate and nature, inclusive and holistic education, and global and public health.
The alliance members and other funders can fund or partner these projects, and the projects can tap the funds pledged under PAA.
Eight projects presented solutions to problems in safe water, educating girls and using genomic detection to eliminate infectious diseases. Three other initiatives were announced on Friday at the summit, which was held at Shangri-La Singapore.
One of them is Co-Axis, by Temasek Trust and DBS Foundation, a digital platform that seeks to bring together financiers and solution providers for social and environmental challenges.
To be developed in phases, the first phase of Co-Axis – a crowdfunding platform for start-ups seeking to make an impact – will be ready in the first half of 2024.
Co-Axis will feature innovative financial instruments such as recoverable grants and blended finance structures to increase capital and amplify impact per dollar.
Also launched at the summit was the Amplifier programme for the mentorship of start-ups to deliver positive change in the environment and social sectors. The one-year programme – by PAA and the Centre for Impact Investing and Practices – seeks to help the start-ups achieve commercial viability and sustainability.
Partners of the programme will provide digital advisory services, impact measurement, legal advice and client management services.
Mr Kuek also noted that impact start-ups often lack funding and operational commercial experience. “They need investors who are patient, and partners who can help them navigate tough markets and that extended valley of death,” he said.
The Asia Centre for Changemakers, by PAA and Temasek Trust, was also launched. It aims to develop a regional community of people “ready to deploy their resources, skills, and passion” for the philanthropic ecosystem, said PAA CEO Lim Seok Hui.
It is slated to open by early 2024, with its base in Singapore.
More than 300 people attended the event, including alliance partners, members, philanthropists, foundations, and family offices from over 16 countries.
