Singapore infrastructure spending set to exceed $10bn per year

29 July 2019 (Last Updated July 29th, 2019 18:05)

The quality of infrastructure in Singapore is among the highest in the world, reflecting high levels of investment supported by years of political stability and general economic prosperity.

Singapore infrastructure spending set to exceed $10bn per year

The quality of infrastructure in Singapore is among the highest in the world, reflecting high levels of investment supported by years of political stability and general economic prosperity.

The government is continuing to invest in developing the country’s infrastructure, particularly its transport networks, and low levels of risk ensure Singapore remains an attractive destination for private institutions investing in infrastructure projects through public-private funding initiatives.

The government aims to expand the length of the country’s railway network, from 230km in 2018 to 360km by 2030, increasing the density and reach of mass rapid transit (MRT), so that eight out of ten households will be within a ten-minute walk from a train station.

The two main MRT developments are the Cross Island MRT line and the Thomson-East Coast MRT Line (TEL). Construction of Phase 1 of the Cross Island MRT line (CRL1) is due to start in 2020, and be completed by 2029. It will stretch 29km, out of the full length of the project of 50km. TEL will add 43km to the MRT network, with Phase 1 of the project set to be completed by 2019, with the remaining four phases all under construction and set to be completed by 2024.

The government plans to build a new terminal at Changi International Airport by 2030, named Terminal 5, which will increase the passenger handling capacity from 85 million per year in 2018 to 135 million per year by 2030. It will also involve the construction of three runway and tunnelling systems on a 1,080ha area, with a total investment of SGD7.5 billion (US$10.0 billion). Of the total investment of US$10 billion, the government will directly fund around 70% of the project, with the remainder being provided by Changi Airport Group, which is held by the Finance Ministry.

In addition to transport, Singapore is also investing in water infrastructure, with Deep Tunnel Sewerage System: Phase II, which includes a conveyance system comprising 40km of deep tunnels and 60km of link sewers to create an interconnected network that channels used water by gravity to a new water reclamation plant (WRP), the Tuas WRP. The US$4.8 billion project is due to be completed by 2025.

In total, GlobalData is tracking infrastructure projects in Singapore with a total value of US$95.2 billion, of which close to 80% comprises publicly-funded projects. If all the projects in the current pipeline proceed as planned, spending could reach US$9.8 billion in 2020 and US$10.7 billion in 2021, with spending on railway projects accounting for 45% of the total.