KUALA LUMPUR: Malaysia ranks No. 2 in terms of attractiveness for infrastructure investment in Asia.
It also sits in fifth place globally in the third edition of the Global Infrastructure Investment Index, according to Arcadis, a global design and consultancy firm.
The report said Malaysia’s strong economic performance and continued long-term investment in infrastructure had made it attractive for private and inward investments.
The government’s 11th Malaysia Plan, which was launched a year ago, has placed importance on infrastructure in achieving Malaysia’s transformation into a fully developed nation by 2020.
The plan sets out a continued focus on the strengthening of enabling infrastructure to boost productivity and support economic expansion.
Major projects to be completed by 2020 included the Klang Valley mass rapid transit, the 2,000km Pan-
Borneo Highway and the West Coast Expressway.
“Completed projects include 93,000km of new roads, which increased the road network by 68 per cent, while investment in urban rail saw a 32 per cent increase,” said the report.
Arcadis said in the race to achieve the 2020 goals, a key challenge faced by Malaysia was to ensure that the quality and sustainability of the new infrastructure were not compromised.
Singapore retained its position as the world’s most attractive market for infrastructure investment, with its stable political situation, secure business environment and strong growth potential.
In terms of economic scores, China ranks first among the 41 countries analysed, yet its less attractive business conditions and higher risk environment kept it at rank 17 in the index.
Arcadis Asia head of client solutions Graham Kean said the index gave valuable insights into how long-term political and economic stability led to greater investment.
“It is no surprise that Malaysia and Singapore remain at the top of the table.”
He said the region had a lot of social and public needs for new infrastructure.
“There are a host of project ideas and plans out there, but they are not investible or bankable enough, which is the basic problem. The key to unlocking investments in the region hinges on making the projects bankable, an area which we have been supporting.”
Kean added that Asia-based investors had been taking positions globally as infrastructure became an increasingly popular asset class for private sector investors, particularly in times of increased risk and uncertainty.