from the ground Up

by Jessica Cheam, The Straits Times, Mar 24 2009

‘Highways’ of growth will help prepare for recovery: Grace Fu

SINGAPORE will seize the opportunity in this downturn to build its own “highways” of growth by investing heavily in infrastructure, said Senior Minister of State for National Development Grace Fu yesterday.
The Government will invest $18billion to $20 billion in infrastructure projects this year, which will “prepare us well for recovery and growth”, she said.
In 2010 and 2011, the Government will invest another $15 billion to $17billion each year in building and infrastructure projects, said Ms Fu at the inaugural Asia Infrastructure Summit at the St Regis Hotel.
Details of the spending programme were first unveiled in Singapore’s Budget in January.
They include building a new cruise liner terminal, new roads and parks, the upgrading of schools, sports facilities, and public housing, Ms Fu told the conference.
Other countries in Asia, such as China, have stimulus plans in which infrastructure spending is a key aspect, she noted.
China is spending US$586 billion (S$885 billion) this year and next to build public transport networks across the nation. India will spend US$50 billion on similar work too.
Although Asia has been hard hit by the crisis, it still has a projected growth rate of 2.7 per cent this year – the highest for any region in the world, said Ms Fu.
“For the longer term, Asia will remain a key growth engine for the world and the centre of the global action.”
“Here in Singapore, we are taking the opportunity…to build our own ‘highways’ to prepare for the next phase of Asia-centric growth”, she added.
She mentioned Marina Bay as a new growth area in which the Government has already invested $5.7 billion, with another $1 billion to spend over the next 10 to 15 years.
Singapore’s public transport system will get another $40 billion boost, she added.
Singapore’s infrastructure investment extends beyond its own shores: the 30 sq km Sino-Singapore Tianjing eco-city in northern China is one project that China and Singapore are jointly building.
The eco-city will “set a new benchmark for environmental performance in China”, she said.
The quality of the water in the eco-city will be improved and made potable from the tap – a first in China.
As Singapore plans for the long term, “our financial resources allow us to undertake the projects at the appropriate time despite the negative economic outlook”, said Ms Fu.

Breakdown of govt spending
$18 billion to $20 billion this year on infrastructure projects like new roads and parks, the upgrading of schools, sports facilities and public housing.
Another $15 billion to $17 billion each year on building and infrastructure projects in 2010 and 2011.
$1 billion over the next 10 to 15 years on Marina Bay.
Another $40 billion on the public transport system.