Asian infrastructure markets are booming at the moment and there is a need to connect infrastructure demand in Asia to infrastructure financing, services and expertise in the region (e.g. China Belt and Road Initiative, and Asia-Africa Growth Corridor).
Set up an Infrastructure Office in Singapore:
- It is a great initiative to provide a centralised platform for eco-system of infrastructure players (i.e. investors, infrastructure developers and multi-lateral agencies). It will, for the first time, offer holistic solutions and help Singapore companies capitalise on the huge regional infrastructure opportunities.
Borrowing by statutory boards and creating vibrant capital bond markets:
- Agencies like the National Environment Agency, Land Transport Authority and Civil Aviation Authority of Singapore will fund huge infrastructure projects by way of public issuance of bonds in capital markets to equitably spread costs of heavy investments over future years.
- This is a right step that would encourage creation of vibrant domestic bond market supported by credible statutory boards for critical long term, large infrastructure projects like the Integrated Waste Management Facility, Changi Terminal 5, etc.
- This will also lay the foundation for listing by private infrastructure projects from the region thereby strengthening Singapore’s role as a regional finance hub.