Will lack of funding halt ASEAN rail projects on their tracks?

With ASEAN rail infrastructure expenditure projected at USD8 to10 trillion from 2010 to 2020, lack of funding could put the brakes on growth. Despite an ASEAN railway development policy – albeit a non-formal agreement – member states are under no obligation to comply and not all countries have financial capacity to pay. Is there an alternative for funding of stalled multi-billion projects? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in China Daily – Asia Weekly.

Inadequate funding of rail projects at the regional level mean regional connectivity is yet to be established. Projects such as the construction of the planned high-speed Singapore to Kuala Lumpur rail line is yet to begin mainly due to negotiations on cost sharing.

At the same time, China’s USD9.7 billion rail agreement with Thai Government (in December 2015) and an USD5.5 billion deal with Indonesian state-owned companies (in October 2015) are among many that have been stalled over insufficient cash flow.

Perera highlighted that rail networks still need modernization. An upgrade to rail connectivity will provide additional benefits such as increase in trade, tourism and Gross Domestic Product (GDP).

On the other hand, the manufacturing sector will get a boost from better rail infrastructure, with low-cost locations such as Indonesia, Myanmar and Vietnam benefitting.

However, since the establishment of the China-backed Asian Infrastructure Investment Bank or AIIB in 2015, ASEAN members can now gain some respite from funding pressures as the AIIB will act as an alternative source for loans to invest in large-scale rail projects.

https://www.spireresearch.com/newsroom/media/will-lack-of-funding-halt-asean-rail-projects-on-their-tracks/

Comments

Spire sponsors INBC Salmon Evening to explore business opportunities in aqua farming

Indonesia is the world’s third largest aquaculture producer. What business prospects lie in Indonesia’s aqua farming industry? Spire Research and Consulting was honored to be a sponsor and speaker at the Indonesia Norway Business Council (INBC) Salmon Evening in Jakarta – an event aimed at exploring trends and potential business opportunities in Indonesia’s aqua farming industry. At the event, Franklin Crum, Manager, Client Service of Spire Research and Consulting, spoke about aqua farming and the untapped opportunities in this industry. He remarked that Indonesia, being the third largest aquaculture producer worldwide (trailing closely behind China and India), saw an average annual increase of 30.9% in aquaculture production volume from 2009 to 2012. Crum commented that opportunities in aqua farming are abundant. There is an increasing demand for high-value fish species such as snapper, grouper, pompano and barramundi as well as rising supply of fingerlings (young fish) for ...

FIFA World Cup 2018 holds lessons for successful team building

The FIFA World Cup 2018 is widely seen as one of the best World Cups in recent memory, with many surprises and goals aplenty. One talking point was the role of teamwork as opposed to just superstar talent. What lessons can businesses learn from the beautiful game? Leon Perera, CEO of Spire Research and Consulting, shared his thoughts in The Business Times – Views from the Top section on 23 July 2018. As World Cup fever draws to an end, the game lived up to its hype with breath-taking goals and outstanding performances. Perera highlighted the role of 'team effort' over mere individual talent, which was evident in the early failure of teams with world-class superstars like Argentina and Portugal. Perera also pointed out the importance of investing in new talent pipeline development, which paid rich dividends for France, the winning team and also one of the youngest teams in the World Cup. The game also highlighted the role of risk-taking. A relentless approach t...

Spirethoughts: Saving India’s farmers

Rural farming in India could benefit immensely from solar energy, as farmers can use water pumps that are powered by solar panels to irrigate farms; balancing out the electricity provided for urban dwellers in the process. This is crucial as approximately 18 million of the country’s 25 million water pump sets are linked to the national electric grid. To address the nation’s power shortage, a joint-venture will be formed between six state-owned companies in Mumbai, including Bharat Heavy Electricals Ltd and Power Grid Corporation of India Ltd, to build a 4-gigawatt solar photovoltaic farm by the end of 2016. The price would be INR10 cheaper than the lowest power bid in India. Once the government grant has been received, this would change the way clean energy is generated; providing light through solar energy to 70 percent of the population residing in the urban areas. Is solar energy becoming a transformative resource for rural farmers? http://www.spireresearch.com/ne...

Will Indonesia’s new government be favorable for economic growth?

What will be the impact of Indonesia’s recent Presidential and legislative elections on its growing economy? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in Business Times – Singapore. Mr. Joko’s likely victory in the Presidential elections of Indonesia would mean improved competitiveness through continued economic reforms. He would probably continue working on attracting direct foreign investment, build infrastructure, continue civil service reform, promote special economic zones and for locally sourced commodities to nurture value added processing. Mr. Joko’s second term would also be beneficial for Indonesia’s ICT startup sector. However the pace of the economic reforms may be slow, owing to the signs that the new legislature may possibly enhance the weight of social conservatives in politics. Read more : https://www.spireresearch.com/newsroom/media/will-indonesias-new-government-be-favorable-for-economic-growth/...

Asian consumers are turning back to natural and ancient ingredients

The recent spate of health scandals is encouraging Asian consumers to turn to natural, organic and herbal remedies in health and beauty. In 2013, 90% of urban female consumers in China preferred products made with natural ingredients. Furthermore, they are placing more trust in local products, due to the familiarity of Asian philosophies linked with balance and harmony. Greater awareness of environmental and food -borne toxins is also prompting Asian consumers to turn to natural and traditional health & wellness remedies. For instance in 2013, cosmetics brand Sulwhasoo launched a series of products in Malaysia that were formulated according to Korean philosophies of Sangseng; aimed at promoting harmony between body and mind. Are Asian consumers going back to the past and driving a niche market in wellness herbal remedies? https://www.spireresearch.com/newsroom/spirethoughts/asian-consumers-are-turning-back-to-natural-and-ancient-ingredients/

The Knowledge to Decide

Search This Blog