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Singapore topped Asia in returns per capita from infrastructure and buildings at US$35,900 (S$51,082), followed by Hong Kong at US$21,400 (S$30,450), revealed Arcadis’ Global Built Asset Performance Index.
An alternative indicator to measure a country’s economic performance, the index examines the income generated by buildings and infrastructure – schools, homes, airports, roads, malls, power plants, ports, railways and all other fixed assets – in 36 countries, which collectively represent 78 percent of global Gross Domestic Product.
Japan came in third, while Malaysia and South Korea took the fourth and fifth spot respectively. Rounding up the top ten are Thailand, China, Indonesia, the Philippines and India.
According to the report, the return on built assets per capita is closely correlated with per-capita incomes. Singapore, for instance, ensured its returns on built assets per capita grew steadily. High savings rates were injected into productive investments which steadily moved up the value chain and created a manufacturing hub.
Competing in some of the most high-value knowledge industries, Singapore slightly reduced its reliance on built assets, though it retains some of its high-tech manufacturing.
“Singapore’s economic growth, which exemplifies development through investment both in built and intangible assets, is certainly slowing,” said Girish Ramachandran, head of business advisory for South East Asia at Arcadis.
“However, the resilience of Singapore’s economic growth over decades has been remarkable and so only a slight reduction is expected. It is evident that Singapore is keen to continue building new, smart and value-worth assets, and paying greater attention to maximizing the productivity and performance of existing assets for the long term.”
Meanwhile, Southeast Asian countries like Indonesia and Malaysia have big deposits of a range of commodities but over long periods they moved towards manufacturing, said Arcadis.
“To sustain growth, it is essential for these countries to further invest in built assets such as reliable power, transport and communications infrastructure,” it said.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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