Urbanisation opportunities beckon

S'pore companies with proven expertise in planning, building and managing cities have excellent prospects

THE global march towards urbanisation is unstoppable - not even the deepest recession in 30 years is slowing it. And that should, at least, bring some sunshine to Singapore companies in these gloomy days.

'Urbanisation is a global mega trend,' points out Tham Poh Cheong, director of infrastructure, environmental & engineering services at International Enterprise (IE) Singapore.

Citing projections by the United Nations, he notes that half the world's population are already living in urban settings; by 2050, the number will jump to 70 per cent.

'By then, more than 20 megacities each with a population of at least 10 million will emerge,' Mr Tham says.

Many of these will be in China, the Middle East and South-east Asia.

'In China, the economic ripples created by the success of gateway cities such as Shanghai, Beijing and Guangzhou have spurred the growth of a new generation of Chinese cities such as Nanjing, Xian, Chengdu and Chongqing, which aspire to economic prosperity as well as a high quality of life for its residents,' Mr Tham says.

Environment-friendly

And, with the rising awareness of green issues, many of the cities also want to be environment-friendly.

In the Middle East, countries such as Saudi Arabia, Qatar, Oman and the United Arab Emirates are launching mega commercial and industrial projects in an attempt to reduce their reliance on oil and gas, and to diversify their economies.

Abu Dhabi has big plans to build a world-class city with massive investments in infrastructure, real estate development and cultural facilities. Likewise, Saudi Arabia is pumping billions of dollars into a series of mega economic cities to provide jobs and homes for its people.

Closer to home, escalating economic growth and urbanisation have led to demand for townships and industrial parks in countries such as Indonesia and Vietnam.

What have all these developments got to do with Singapore?

'They create enormous business opportunities for companies that are able to provide sustainable urban solutions in these cities,' Mr Tham says.

And that means Singapore companies with proven expertise in planning, building and managing cities.

'Singapore is a good model for sustainable solutions, and Singapore companies have gained the expertise from Singapore's history of physical transformation,' Mr Tham says.

Thus, the Asian Development Bank (ADB) and, more recently, the World Bank have teamed up with Singapore to tap its experience in urban management and to share it with developing countries.

Not every Singapore company is in the business of providing urban solutions; in fact, many of the specialists in urbanisation work for the government. But the public sector also ropes in companies from the private sector to execute plans.

Partnerships

That is why Mr Tham says that 'Singapore companies have accumulated deep knowledge and rich experience in urban solutions'.

Indeed, Singapore now has a group of companies that can offer the whole value chain in urban solutions that few others can boast of.

Which is perhaps why IE Singapore, in pushing Singapore companies to go global, prefers that those in urban planning, building, civil engineering and management of industrial parks band together in venturing out.

'IE Singapore has actively encouraged a Singapore Inc approach to foster partnerships to secure key projects overseas,' Mr Tham says. 'Singapore companies can then combine resources and expertise to provide an attractive, complete value proposition in urban solutions. This will sharpen the competitive edge of our companies, thus maximising the chances of success.'

Better still, they should team up with government agencies such as PUB and URA, which have started their own international and consultancy arms.

'Working hand in hand with Singapore companies in the internationalisation thrust, their participation would facilitate and increase the chances of the companies in identifying and securing projects overseas,' Mr Tham says.

Singapore companies have built up a good track record in developing industrial and science-and-technology parks abroad. They are also prominent in township projects that incorporate residential, commercial, recreational and educational developments.

Keep venturing out

Cost-effectiveness, quality and sustainability are the hallmarks of Singapore's urban solutions companies, according to Mr Tham.

But Singapore companies should never rest on their laurels; instead, they must continue to strive to win more projects in the global markets.

Thus, IE Singapore has not stopped encouraging Singapore companies to venture out.

Source: Business Times, 13 Aug 2009