Timely to diversify Singapore's funding sources for major infrastructure

AMID a slowing global economy and trade tensions between the world's two giant nations that could worsen the slump, the Singapore government's decision to guard the city state's reserves and instead borrow to partly fund "lumpy" and long-term infrastructure investments is perfectly timed.

The recent Budget announcement by Finance Minister Heng Swee Keat on the government's plan to add debt to the financing mix for long-term projects like Changi East and the Cross-Island MRT line, the benefits of which span multiple generations, is in itself not new and represents a follow through or reiteration of last year's Budget.

The backdrop, however, has changed much since then.