Mr Lee Yi Shyan at the Asia-Singapore Infrastructure Roundtable

​Speech by Mr Lee Yi Shyan, Senior Minister of State, Ministry of Trade & Industry and National Development, Asia-Singapore Infrastructure Roundtable on 3 October 2013, 1340Hrs at Pan Pacific Hotel, Singapore

Your Excellency Pedro Lay da Silva, Minister for Transport and Communication, The Democratic Republic of Timor-Leste,

Distinguished Guests,

Ladies and Gentlemen,

1.           Good afternoon. I am pleased to join you this afternoon at the inaugural Asia-Singapore Infrastructure Roundtable organised by IE Singapore.

The infrastructure imperative for Asia

2.           The infrastructure imperative for Asia is clear. According to the Asian Development Bank (ADB), Asia’s fast-paced development would need to be supported by effective and well-executed infrastructure growth, to the tune of some 8 trillion US dollars from 2010 to 2020. 

3.           The demand would be broad-based across many sectors such as power, transport, and water, and translates directly into a wealth of opportunities that can be tapped by the infrastructure industry. There is also a shift in demand towards higher-quality infrastructure, stemming from both a larger and more discerning middle class, as well as the need for greater environmental sustainability.

4.           Indeed, most Asian countries recognise the urgency with which they need to bridge the infrastructure gap so as not to constrain future economic growth, and have committed significant pipeline projects and resource support. Thailand for example, recently announced their plans to spend 66 billion US dollars on transport investment[1]. India has set an ambitious target of doubling its renewable energy to 55,000 Mega Watts by 2017[2].

Singapore as a regional infrastructure hub to drive closer stakeholder collaboration

5.           Singapore, too, has reaped the benefits of strong infrastructure which underpins the sustainable development and quality of life that we enjoy today. In our urbanisation journey, we have built up a comprehensive suite of companies across the entire infrastructure value chain. For instance, Sembcorp and Singapore Power have extensive experience implementing and operating infrastructure projects locally and overseas. They are supported by a growing ecosystem of legal, consultancy and financing companies with a good track record in infrastructure projects, such as Clifford Capital and DBS.

6.           We hope to capitalise on these capabilities to further develop a regional infrastructure hub and contribute towards the growth of good-quality infrastructure in Asia. To do so, we must step up our efforts to foster greater stakeholder collaboration.

Stronger Public-Private Partnerships for more bankable projects

7.           In particular, there is scope to strengthen public-private partnerships (PPPs) in project financing in the region. The public sector in Asia generally lacks the capacity to structure high-quality and bankable infrastructure projects. Consequently, regional infrastructure projects still remain a relatively challenging investment option for private investors, despite strong interest.

8.           To address the gap, Singapore has partnered with the World Bank (WB) and Asian Development Bank (ADB) respectively to set up the Infrastructure Finance Centre of Excellence (IFCOE) and more recently, the Asian Infrastructure Centre of Excellence (AICOE) here. They work with regional governments to structure infrastructure project and the AICOE in particular, also explores using capital markets to finance these projects. I would like to encourage you to explore opportunities with both the IFCOE and AICOE, with the common goal of increasing the number of bankable projects in Asia.

Deeper collaboration platforms

9.           There is also a need to form a closer nexus of players across the entire infrastructure value chain, to facilitate the successful implementation of complex infrastructure projects.

10.       It is for this reason that IE Singapore has started this inaugural Infrastructure Roundtable as a first-of-its-kind regional platform within the industry for governments, project sponsors and private enterprises to bounce ideas off each other, share experiences and form new partnerships for the next wave of Asia’s infrastructure growth.

11.       On this note, I wish you all a fruitful session this afternoon, and look forward to your continued support for future platforms. 

Thank you.

[1] Source: http://www.nationmultimedia.com/business/Thailands-location-drives-transport-investment-pla-30197376.html

[2] Source: http://www.thehindu.com/news/national/pm-india-to-double-renewable-energy-capacity-by-2017/article4626346.ece