A road worth travelling for Singapore businesses

CHINA'S Belt and Road Initiative (BRI) is an ambitious undertaking that has the potential to reshape the global economy and transform world trade. Many governments, multinational development organisations and international corporations welcome the opportunity to fill the infrastructure gap and strengthen the value chain network. With over 60 countries and 4.4 billion people included in the route passing from Asia to Africa, covering one-third of world GDP, the economic and financial benefits are likely to be significant.

Singapore, a key node along the Maritime Silk Road, is well positioned to advance the BRI by bridging China and other countries along the route. Recognising its strategic location and unique position, Singapore has been proactive in seeking BRI opportunities.

While the government has encouraged Singapore enterprises to engage in this physical connectivity vision, many are waiting on the sidelines. Citing the lack of details, they are either unsure of how they can be involved meaningfully or are doubtful that this initiative is relevant for organisations not in the business of building airports and constructing roads. Others are concerned about the risk-return trade-offs of such investments that come with long payback periods.