Search

NEWS
MARKETS & INVESTING | Staff Reporter, Singapore
Published: 12 Dec 12
1591 views


Singapore the world's best country to invest in infrastructure

It beat Malaysia, Australia and Japan.

According to a research by asset consultancy EC Harris, funds looking for a steady and reliable return on the capital they invest in infrastructure projects will look no further than Singapore.

The firm’s ‘Infrastructure Investment Index’ ranked 40 countries across the globe according to how attractive they are to infrastructure funds. In order to gauge their appeal the study looked at various issues including the ease of doing business in each market, tax rates, GDP per capita, government policy, the quality of the existing infrastructure and the availability of debt finance. Combining all of these factors provided a strong overview of the risk profile for each market and how attractive each one is likely to be to potential investors.

Overall, the report showed Asia and the Middle East were emerging as the most attractive regions in which to invest in infrastructure, as high levels of tax, bureaucracy and regulation threatened to undermine Western Europe’s future competitiveness.

The study identified major opportunities across the wider Asia-Pacific region however there was significant variance in the level of risk facing investors in each market. Singapore, Malaysia and Australia were deemed to be the most attractive countries in which to invest in infrastructure, finishing in first, seventh and ninth place respectively.

Singapore scored consistently high in all of the key criteria used to rank each market, with the maturity of the business environment and the transparency of the political and legal systems, particularly important factors in helping to build confidence with private investors.

Richard Marriott, Head of Lenders & Investors for EC Harris in Asia said: “Singapore will always be an attractive market to investors however much of the existing infrastructure is already world-class. For funds, this means the biggest opportunities to drive increased profit margins are likely to come in adopting a more innovative approach to how these assets are managed, in other words, unlocking untapped revenue streams in mature assets..

China emerged as the most attractive of all of the BRIC markets, finishing in 18th position overall, four places above India in 22nd place, and well ahead of Brazil and Russia who finished in 31st and 35th place. The study highlighted a host of opportunities within China for infrastructure investors, particularly in Central and Western parts of the country where economic development imbalances and growing levels of urbanisation had created vast geographic differences and a pressing need for new infrastructure.

“Private finance will be needed to fund the volume of infrastructure development planned in China over the next decade. However, not all of these schemes will be commercially lucrative and success will depend on how well risk is identified and mitigated at the outset. Selecting the right opportunities will also require thorough due diligence, a detailed understanding of the local market and links to the right partners, particularly if investors want to secure access to highly-monopolized industries like energy or transportation” added Marriott.

At the other end of the scale, Indonesia and the Philippines were pinpointed as the riskiest markets across Asia in which to invest in infrastructure schemes. Whilst the report identified excellent long-term growth prospects in Indonesia, concerns around corruption, political stability and global connectivity increased the level of risk facing investors, which could see them focus elsewhere. In the Philippines, public-private partnerships are seen as key to financing large-scale infrastructure schemes however the immaturity of the legal framework and limited track-record in this space, meant the market remained a risky bet for investors.



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: Richard Marriott, infrastructure investment in Singapore, EC Harris

CO-WRITTEN ARTICLES & SPONSOR CONTENT ››

The leading Philippine residential developer unveils its most upscale township yet.
233 views

Find out what it has impressively accomplished.
432 views

LATEST MARKETS & INVESTING JOBS »
PRINT ISSUE »

Subscribe Now
Trains, planes, automobiles and drones

167 views

As goes Hong Kong, so goes Singapore?

1484 views

Office property shows no signs of a slowdown

414 views

MOST READ EXCLUSIVES

Singapore’s 20 most influential 40 and under lawyers

Singapore’s 20 most influential 40 and under lawyers

Check out who made our cut.

by KRISANA GALLEZO
15 Aug 2014 | 170395 views
 

13 most exclusive credit cards in Singapore

13 most exclusive credit cards in Singapore

Some of which you’ve probably not heard of.

by KRISANA GALLEZO
27 Aug 2014 | 100513 views

Singapore's 12 most influential business professors under 40

Singapore\'s 12 most influential business professors under 40

The youngest is aged 34.

by KRISANA GALLEZO
23 Oct 2014 | 43781 views
 

11 craziest credit card purchases in Singapore

11 craziest credit card purchases in Singapore

Find out if each is worth the outlay.

by KRISANA GALLEZO
22 Sep 2014 | 40264 views

Singapore’s 7 hot new restaurants in September

Singapore’s 7 hot new restaurants in September

Have you checked out a very secretive cafe at 48 ¾ Niven Road?

by KRISANA GALLEZO
6 Oct 2014 | 22771 views
 

Singapore's 8 hot new restaurants in July

Singapore\'s 8 hot new restaurants in July

More Singapore openings from famous restaurants in Asia.

by KRISANA GALLEZO
4 Aug 2014 | 21996 views

20 most preferred hotels of Singapore travelers in Asia

20 most preferred hotels of Singapore travelers in Asia

Hotels in Thailand dominate the list.

by KRISANA GALLEZO
12 Aug 2014 | 21609 views
 

Singapore’s 8 hotels coming your way next year

Singapore’s 8 hotels coming your way next year

A total of 3,458 hotel rooms will soon be available.

by KRISANA GALLEZO
8 Sep 2014 | 20149 views

Singapore’s 8 hot new restaurants in August

Singapore’s 8 hot new restaurants in August

Get a taste of an aromatic broken rice dish without MSG.

by KRISANA GALLEZO
4 Sep 2014 | 11580 views
 

Have you been to The Providore Warehouse yet?

Have you been to The Providore Warehouse yet?

Check out some photos inside.

by KRISANA GALLEZO
1 Sep 2014 | 10469 views

Check out General Motors’ new HQ in Singapore

Check out General Motors’ new HQ in Singapore

A ‘hot desks’ rule is implemented in the new office.

by KRISANA GALLEZO
3 Oct 2014 | 10415 views
 

Awesome workplace at 501: How's having a meeting while cuddling a teddy bear?

Awesome workplace at 501: How\'s having a meeting while cuddling a teddy bear?

Also check artistically designed in-house locations for video shoots.

by KRISANA GALLEZO
6 Aug 2014 | 10083 views

Singapore’s 10 favorite meals on wheels

Singapore’s 10 favorite meals on wheels

You better cut the pizza: An Italian dish bagged the number 1 spot.

by KRISANA GALLEZO
17 Oct 2014 | 9167 views
 

Have spare time before boarding? Dine in at Old Chang Kee’s first Changi Airport outlet

Have spare time before boarding? Dine in at Old Chang Kee’s first Changi Airport outlet

The new outlet’s construction cost more than half a million dollars.

by KRISANA GALLEZO
11 Sep 2014 | 5675 views

5 craziest things you can't imagine founders would do to make their startup successful

5 craziest things you can\'t imagine founders would do to make their startup successful

Will you jump out of the plane flying at over 15K ft  just to catch a potential client?

by KRISANA GALLEZO
3 Sep 2014 | 5395 views
 

Three best buddies in their 30s set up 6 Prawns and a Beer

Three best buddies in their 30s set up 6 Prawns and a Beer

Here’s a new food hub at Bukit Timah to enjoy a well-loved seafood with beer.

by KRISANA GALLEZO
12 Aug 2014 | 4518 views

The wait is over: Japanese restaurant chain ON-YASAI finally hits Singapore

The wait is over: Japanese restaurant chain ON-YASAI finally hits Singapore

10 to 15 more outlets coming over the next 5 years.

by KRISANA GALLEZO
28 Aug 2014 | 4448 views
 

Get ready to work and play at Spotify’s regional office

Get ready to work and play at Spotify’s regional office

All the furniture except the bean bags were imported from Sweden.

by KRISANA GALLEZO
23 Sep 2014 | 4393 views

Opera Estate welcomes a little bar simply called ‘Slake’

Opera Estate welcomes a little bar simply called ‘Slake’

It wants to be your living/dining room outside of home.

by KRISANA GALLEZO
25 Sep 2014 | 3754 views
 

These NUS students boldly suggest removal of Malaysian Airlines' CEO to survive

These NUS students boldly suggest removal of Malaysian Airlines\' CEO to survive

That's just one part of the strategy.

by KRISANA GALLEZO
16 Sep 2014 | 3109 views

No boys allowed: Here’s a coworking space designed for women only

No boys allowed: Here’s a coworking space designed for women only

The office space can be transformed to a large event venue for social nights.

by KRISANA GALLEZO
14 Aug 2014 | 3067 views
 

Could this be the most intelligent phonebook app yet?

Could this be the most intelligent phonebook app yet?

It’s self-updating and removes duplicates for worry-free contacts storage.

by KRISANA GALLEZO
29 Sep 2014 | 2563 views

Will you take up the challenge to live on $5 a day and share the experience?

Will you take up the challenge to live on $5 a day and share the experience?

This campaign already generated over 8,000 followers on Facebook.

by KRISANA GALLEZO
23 Sep 2014 | 2539 views
 

Worry about your loved ones’ whereabouts no more

Worry about your loved ones’ whereabouts no more

Folr introduces a real-time geo-location tracking mobile app that also details where they were.

by KRISANA GALLEZO
5 Sep 2014 | 2525 views

Arete Culture opens first store in Lam Soon Building

Arete Culture opens first store in Lam Soon Building

It's a one-stop shop for your quirky interior decors.

by KRISANA GALLEZO
24 Sep 2014 | 2519 views
 

Want to know a ‘smart’ way to have your clothes washed?

Want to know a ‘smart’ way to have your clothes washed?

My Laundry Box introduces a smart laundry locker platform that works with an app.

by KRISANA GALLEZO
17 Oct 2014 | 2506 views

Have money but don’t know what to do? Call DrWealth

Have money but don’t know what to do? Call DrWealth

It creates Asia’s first online financial planning platform for the masses.

by KRISANA GALLEZO
12 Aug 2014 | 2504 views
 

Orchard Gateway welcomes the second outlet of Outback Steakhouse

Orchard Gateway welcomes the second outlet of Outback Steakhouse

The store construction costs US$1.5million.

by KRISANA GALLEZO
21 Aug 2014 | 1984 views

Sofitel in Sentosa launches world's largest So SPA

Sofitel in Sentosa launches world\'s largest So SPA

Future plans are finally revealed.

by KRISANA GALLEZO
22 Oct 2014 | 1837 views
 

Noël Caleb Concept Store opens September 29

Noël Caleb Concept Store opens September 29

It targets women wanting to wear designs not found anywhere in the world.

by KRISANA GALLEZO
10 Sep 2014 | 1808 views
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter