Singapore can play key role in AIIB

THIS week's formal launch of the Asian Infrastructure Investment Bank (AIIB), which is dominated by China, may have the appearance of "rivalling" the World Bank (dominated by the US) and the Asian Development Bank (dominated by Japan). But the truth is the demand for infrastructure financing in Asia far exceeds the supply of funds available from the traditional multilateral lenders.

The funds are needed to finance the building of highways, power plants, dams, ports and airports. Asian countries such as India, Indonesia, Myanmar and Vietnam are in dire need of infrastructure funding - hence the relevance and timeliness of the AIIB.

China undeniably has made some incredible strides on the infrastructure front, with state-of-the-art airports, cities, ports and high speed trains. In its quest to build new growth drivers for its economy, it would like to export some of those homegrown infrastructure technologies and expertise to the rest of Asia.