International Business & Economy Singapore can seize many opportunities from China's Belt and Road initiative

Singapore can seize many opportunities from China’s Belt and Road initiative




- Advertisement -

Asia today can be likened to Europe after the Second World War. Then, Europe had a significant infrastructure requirement, but needed capital from the US in the form of the Marshall Plan. Fast-forward to the present day: while China will not be able to finance Asia’s infrastructure need all on its own, with its significant savings surpluses and capital, it can catalyse a similar kind of Marshall Plan for Asia.

BRI also opens up significant opportunities for Asian companies, with the most obvious industries standing to benefit being power, transportation, water and infrastructure. Commercial banks as well as debt and equity capital markets also have a role to play in complementing policy banks like AIIB in greasing the wheels of commerce, financing trade, enabling working capital efficiencies and providing hedging solutions.

Closer to home, I believe Singapore has a number of intrinsic strengths that it can leverage on, allowing it to seize the many opportunities afforded by BRI.

  • Singapore is a very important financial hub. Singapore is one of the places where large amounts of capital gathers: it is the second-largest wealth management centre in the world, the third-largest financial market centre, and perhaps the number one commodities hub. As much as 60% of all project finance in Southeast Asia is arranged by Singapore domiciled banks. As a global financial centre, Singapore is able to intermediate both capital and trade as it goes out from China into the rest of the world. Singapore also does the reverse. It is an extremely good hub to raise capital back into China. As Chinese capital markets open and Chinese companies are able to access global bond markets, Singapore is extremely well-positioned to facilitate that process.
  • Singapore has a role as honest broker. The fact is, geopolitics sometimes comes along with economic and commercial considerations. In several markets and several countries, the ability for Chinese investment to go independently is often challenging. Being able to partner with Singapore, and being able to use Singapore as a conduit for their investments often makes those investments and projects a lot more palatable.
  • Singapore has a lot of world-class companies that can partner with Chinese companies. With BRI, there are opportunities and projects in the port, construction and offshore marine sectors for example. In a range of different industries, there are world-class Singapore companies which can prove to be extremely useful partners in being able to drive joint activity with Chinese collaborators around the region.

Excerpted from Article by Piyush Gupta, Group CEO of DBS Bank, titled ‘Belt and Road Initiative: implications for Asia and Singapore‘.Follow us on Social Media

- Advertisement -

Send in your scoops to 

No tags for this post.
- Advertisement -

‘Stop the double standards,’ says PAB rider after seeing LTA officers let off an errant rider

Singapore – “PAB (power-assisted bicycle) rider doing food delivery? You’d better just dress like you look like an Aunty because LTA (Land Transport Authority) will not issue you a ticket,” said a member of the public after witnessing the authorities let...

Leong Sze Hian faces backlash for crowdfunding, shares hate messages he received

  Singapore — Some of the wind has gone out of blogger Leong Sze Hian's crowdfunding campaign and he has been getting hate messages too. Mr Leong took only 11 days to raise the S$133,000 the High Court ordered him to pay as...

M’sian worker and sole breadwinner suffers a stroke and severe memory loss in SG; family with two young kids crowdfunds for S$100K

Singapore -- A 34-year-old Malaysian man who was working in Singapore lost his memory after collapsing from a stroke. He is the sole breadwinner for his family, and his wife and two young children are crowdfunding to pay his medical bills. In...
Follow us on Social Media

Send in your scoops to 

No tags for this post.