ARCADIS Global Infrastructure Investment Index 2014
It is not surprising to see Singapore continuing to be a world leader in terms of attractiveness to investors. It is one of the few places in the world where there is a truly integrated strategic plan which links infrastructure planning with business and social requirements. The government is very pro-business and in terms of value of built assets (see ARCADIS Global Built Asset Wealth Index) the country has the highest value per capita in the world at US$156,000. This demonstrates the commitment to infrastructure investment pursued by the government to promote the quality of life that its population requires.
As part of its long term plan the government wants to increase Singapore’s population from 5.5million to 7million by 2030 and it has planned the infrastructure accordingly. This means doubling the length of the Singapore Mass Rapid Transit (MRT) system to 360km, building new airport terminals and a third runway as well as relocating the main container port to Tuas in order to almost double container capacity and free up prime development land.
Singapore’s affluence means that opportunities to invest are however limited as mature government entities finance and manage major projects. One foray into private investment to date has been the Singapore Sports Hub, a 35 hectare complex including a new 55,000 seat National Stadium in Kallang which opened in June 2014. A consortium of international companies including equity investors, contractors, event organisers and facilities management firms delivered the project under a design, build, finance and operate (DBFO) structure for client Sports Singapore. However, this kind of opportunity is limited and investors have turned to more commercial investment in property as a way to capitalise on the country’s growth potential.
You can access the full report here: ARCADIS Global Infrastructure Investment Index 2014