Improved aviation infrastructure needed to spur growth in Asean, says Liew Mun Leong

Singapore

ECONOMIC growth in Asean countries can be accelerated if more is done to improve their infrastructure within the region, especially in the area of aviation, said Liew Mun Leong, chairman of Surbana Jurong Private Ltd and chairman of Changi Airport Group, on Monday morning.

Currently, the region is "grossly deficit" in infrastructure facilities, which severely hinders the region's global connectivity, he told the audience of almost 300 business leaders at The Business Times Leaders' Forum 2018.

In his speech, he listed the challenges for infrastructure development in the region. The difficulty of securing finance is one, as most infrastructure projects may not appear "bankable" if they lack adequate technical and financial feasibility studies.

"It is not uncommon that infrastructure development projects are reported to be notoriously plagued with mismanagement, burdensome bureaucracy or riddled with corruption," he said.

Mr Liew added that political instability and uncertainties will also undermine the prospects and confidence of large capex infrastructure projects.

However, with increasing demand from China as well as continued urbanisation within the region, air connectivity among Asean countries is crucial to meet the surge in aviation demand, he said.

He pointed out that airports in Asean capital cities such as Jakarta and Bangkok are now facing capacity constraints and expansion plans have been put up at these air hubs.

For the top 100 airports in Asia, 52 per cent need more terminal capacity and 69 per cent need more runway capacity by 2030, he said.

On that note, he spoke on Changi Airport's experience: "One important lesson from our experience is that we always have to plan and develop ahead of demand as an airport requires many years to plan and construct."

The phrase "supply drives demand" is an apt one for the aviation industry, added Mr Liew.

For Asean countries lacking in infrastructure, he said that there are lots of opportunities to help develop infrastructure in this resource-rich region.

"Asean member countries must be committed to efforts to start up these projects to create value and to maximise the region's comparative advantage," he noted.

"Improvement in airport connectivity will drive regional competitiveness when physical, economic, and material connections are optimised between airports and their respective cities."

Mr Liew rounded off his speech by stating that if the aviation industry continues to grow and expand at its current trajectory, investments into aviation infrastructure is expected to increase exponentially.

"For the aviation industry, the sky is really the limit," he quipped.

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