Singapore named most attractive market for infrastructure investment

The Infrastructure Investment Index recently published by built asset consultancy, EC Harris, ranked 40 countries across the globe in terms of how attractive they are to infrastructure funds.

In order to gauge their appeal several factors were taken into account including: 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.

The report revealed Singapore as a potential favorite for private equity funds seeking a steady and reliable return. The country scored highly 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 investor confidence.

Malaysia ranked second in Asia, finishing seventh globally. Australia was the third of three Asian countries to be ranked in the top 10, coming in ninth. China was deemed the least risky BRIC market in which to invest in infrastructure projects.

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 threaten to undermine Western Europe's future competitiveness.

"Singapore will always be an attractive market to investors however much of the existing infrastructure is already world-class," said Richard Marriott, head of lenders and investors for EC Harris in Asia. "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."

The study highlighted opportunities in China for infrastructure investors, particularly in Central and Western parts of the country where economic development imbalances and urbanization have created a need for new infrastructure.

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 good 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.

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• Topics
• Infrastructure
• Infrastructure
• Southeast Asia
• Singapore
• Indonesia
• Malaysia
• China
• Australia
• Infrastructure