Singapore, the Number One Choice for China’s Belt and Road Plan
Singapore, Indonesia and Vietnam are the top three countries in Asia for China’s One Belt One Road initiative, where Singapore clearly stands as favorites.
The Belt and Road Initiative of China spans across Asia, Europe and Africa, which aims to improve regional cooperation and connectivity and grow global trade. With more than US$1 trillion of investment, it includes plans to fulfill the need of the emerging markets for infrastructure investments.
This initiative has been under suspect by the critics, claiming that China would be the sole beneficiary of this project, along with concerns with regards to the transparency and sustainability of some projects.
Jin Liqun, president of Asian Infrastructure Investment Bank, has put emphasis that a greener approach in infrastructure projects is the need of the hour. President Xi Jinping, in response assured that sustainability issues would be give due consideration and all of the countries involved would gain profit from the initiative.
Japan, the world’s third largest economy chose not join to, but has outspent China by US$367 billion compared to US$255 billion in infrastructure projects in the six largest economies of the Association of Southeast Asian Nations (Asean).
However, with projects in more than 125 countries, Beijing has enthusiastically invested on railways and roads. Railways in Laos, Indonesia and Malaysia are some on its signature projects in Asean.
At the two-day infrastructure summit held in the city state, Singapore, details of the study conducted that surveyed nearly 50 senior executives from different industries, was shared.
It rated Singapore, Indonesia and Vietnam as the countries with maximum potential. As regional companies that plan to get involved in the project are on the look for infrastructure projects that include smart cities, industrial estates and roads.
According to Asian Development Bank, to make sure that Southeast Asian economies undergo continuous growth, an investment of US$210 billion is required in infrastructure from 2016 to 2030.
The city state that has positioned itself as a broker for much-needed infrastructure projects across Southeast Asia can greatly benefit from China’s emphasis on sustainable financing and green growth for the belt and road initiative.
Singapore can bring in its expertise in smart nation technologies to bear on infrastructure development. With the help of showcase projects ranging from airports to bridges that count as intellectual property that it can export, it can easily market itself as a base for world-class construction companies.