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

Asia-Pacific nations poised to sign the world’s largest multi-lateral trade agreement, RCEP, in 2020

After six years of negotiations, more than a dozen countries in the Asia-Pacific are poised to sign the world’s largest trade agreement, known as the Regional Comprehensive Partnership (RCEP), in 2020. This agreement would boost commerce among participating countries by lowering tariffs as well as standardizing customs rules and procedures. The RCEP will widen market access, especially for those countries that do not have existing many bilateral trade agreements in place. Will India pay a price for its decision to stay out of the RCEP? Read more: https://www.spireresearch.com/newsroom/spirethoughts/asia-pacific-nations-poised-to-sign-the-worlds-largest-multi-lateral-trade-agreement-rcep-in-2020/

Spire shares business advice to start-ups on Indonesian market entry

On 17 July, Spire participated as a market advisor at the National University of Singapore (NUS) Market Validation Program in Jakarta, Indonesia. Jeffrey Bahar, Deputy Chief Executive Officer, Spire Research and Consulting Group held sessions with Singaporean companies planning to expand their business into Indonesia. Jeffrey pointed out the utility of high-tech approaches for start-ups entering Indonesia, such as online advertising, usage of the Internet of things (IoT), data analytics and even Artificial Intelligence (AI). These approaches enable starts-ups to bypass mature importer-principal relationships that may be hard to overcome through conventional means. He also shared with individual companies his thoughts on developing customized strategies for Indonesian market entry. Get more information : https://www.spireresearch.com/newsroom/events/spire-shares-business-advice-to-start-ups-on-indonesian-market-entry/

Ethiopia’s Strategic Cooperation with China

Over the past decade, Ethiopia has experienced an average economic growth rate of about 10%. Ethiopia is expected to grow by 8.5% in 2018, topping China’s projected growth of 6.5%. In recent times, the Ethiopian government has abandoned its 1970’s Communist ideology and put in place some basic reforms. They went on to build sturdy infrastructure and launch a successful industrial policy, calling to mind China’s own development pathway. The Chinese have contributed significantly to the building of Ethiopian infrastructure, with rail systems, buildings and dams. Will Ethiopia succeed in copying China’s development model? Read here more: https://www.spireresearch.com/newsroom/spirethoughts/ethiopias-strategic-cooperation-with-china/

Success factors for developed economies

As economies continue to become more developed, what key factors constitute to success? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in Business Times – Singapore. With more developed economies on the rise, growth is essential through ecosystems that require adequate nurture to enable productivity, growth and innovation. It is equally important to maintain the entrepreneur spirit and innovation with a culture that supports unorthodox thinking, creativity along with risk-taking. Another key factor for economic success is the education system. The quality determines the ability to push future leaders, designers, inventors and thinkers to think out of the box and nurture innovation as well as entrepreneurship. Read more: https://www.spireresearch.com/newsroom/media/success-factors-for-competitive-economies/

Breaking gender rules through video-gaming

Computer games have traditionally been developed with men in mind. Sadia Bashir from Pakistan is breaking with this tradition. She is the owner of PixelArt Games Academy and a member of Forbes’ 30 under 30 for Asia 2018. Working towards bridging the gap between industry demand and education by providing training in video game development, Sadia has been in the field since she was 13 years old. Intel is also working towards the same goal as Sadia, having recently invested USD300 million towards gender diversity in the gaming sector. Will the gaming industry embrace gender diversity? Read here more:https://www.spireresearch.com/newsroom/spirethoughts/breaking-gender-rules-through-video-gaming/

The Knowledge to Decide

Search This Blog