KUCHING: Four infrastructural projects in Asean have been listed as among the best infrastructure developments currently under way around the world, according to KPMG International’s Infrastructure 100: World Markets Report 2014.
These include a brand-new communications network in Myanmar, renewable energy in Cambodia, and urban mobility solutions in Indonesia and Singapore.
With a total estimated value of over US$1.73 trillion, the 100 projects illustrate a range of infrastructure investment, some with a potentially transformative impact that could change the face of nations.
Among other countries in Asean, Singapore’s Intelligent Transport System which seamlessly moderates road network usage and Indonesia’s upcoming second line of its Mass Rapid Transit system in Jakarta were the other two developments in ASEAN that made it into the final 100 projects.
Datuk Johan Idris, managing partner of KPMG in Malaysia says that infrastructural investments are imperative for Aseaneconomies’ continued growth.
Each country within ASEAN would have its own approach to developing and funding infrastructure, but all share the common challenge of creating the right conditions to attract investment so desperately needed.
“Private capital remains critical, but investors need economic and political stability before committing. Consistency and sustainability are imperative to establishing a steady stream of projects that could attract private money.
“In Malaysia, the Klang Valley Mass Rapid Transit (KVMRT) project that involves the construction of a rail-based public transport network forms the backbone of the Greater Kuala Lumpur/Klang Valley region, together with the existing light rail transit (LRT), monorail, KTM Komuter, KLIA Ekspres and KLIA Transit systems,” said Johan.
Well-maintained highways in Malaysia links major growth centers to seaports and airports throughout the peninsula and provide an efficient means of transportation for businesses throughout the nation.
To complement these highways, a Kuala Lumpur-Bangkok-Kuala Lumpur containerized service known as the Asean Rail Express (ARX) has been initiated with the aim of expanding it to become the Trans-Asia Rail Link that will include Singapore, Vietnam, Cambodia, Laos and Myanmar before ending up in Kunming, China.
The report underscores the critical role of private investment in meeting the infrastructure challenge.
While infrastructural investments are vital for economic growth, funding is often in short supply.
Given the scale of most projects, government investment alone is insufficient and public institutions lack the critical capacity of qualified people to deliver the goods.
The private sector thus plays a crucial role in delivering and financing critical projects.
“The greatest advantage to businesses in Malaysia has been the nation’s persistent drive to develop and upgrade its infrastructure.
“Over the years, these investments have paid off and our country has now one of the most well developed infrastructures among the newly industrializing countries of Asia,” said Datuk Johan.
In Asia alone, the Asian Development Bank (ADB) has estimated that the infrastructure funding gap stands at $8 trillion between 2010 and 2020.
In that light, the $50 billion recently pledged by China to start up the Asian Infrastructure Investment Bank (AIIB) is a welcomed move.