ARCADIS Global Infrastructure Investment Index 2016

3 May 2016 | Why Singapore?

Source: ARCADIS

Singapore has maintained its position as the world’s most attractive market for infrastructure investment. Ranking consistently high across business, risk, infrastructure and financial indicators, and despite a slightly lower score for economic factors, it maintains a strong economic environment.

The government has consistently maintained spending on infrastructure, prioritizing this as a mechanism to support its growth ambitions. Currently the country invests around 5% of its GDP on infrastructure, equivalent to $20bn in 2015, and this continues to rise. By 2020 the country aims to invest 6% of GDP, the equivalent of $30bn, which makes the market even more attractive for investment. Priority schemes are planned in healthcare and transport, including expansion of Changi airport through the construction of a new fifth terminal.

Historically projects have been publically financed with some bank involvement during construction phases. However, the government is seeking to develop further involvement from institutional investors, with efforts led by the Monetary Authority of Singapore (MAS). Research is ongoing into improving the quality of information available surrounding infrastructure investment. In February 2016 a new initiative aimed at developing equity and debt investment benchmarking, was revealed by business school EDHEC, working in partnership with MAS.

You can access the full report here: ARCADIS Global Infrastructure Investment Index 2016