Singapore has the largest amount of built-asset income, per resident, in all of Asia. The current built-asset income for each person is thirty-five thousand and nine hundred dollars, US. Next on the list is Hong Kong, which generates twenty-one thousand and four hundred dollars per person.
These statistics come from an Index called the Global Built Asset Performance Index and the figures were announced recently by a firm known as Arcadis, which handles worldwide design and also does consulting. This index is a different way of measuring the economic health and growth of nations. It shows the way that built assets fuel economic growth and also explores facts related to income generation from structures and infrastructure.
For example, income from educational facilities, roadways, airports, retail outlets and other types of structures and infrastructure are factored in. The Index looks at the economic performance of thirty-six nations which, overall, make up seventy-eight percent of worldwide GDP (gross domestic product).
The Index demonstrates the built assets per capita return as it correlates to income levels, per capita. In the island city-state of Singapore, returns for built assets per capita have grown at a stable and predictable rate. Savings rates were put into good investments which sparked the creation of manufacturing hubs and continued to move upwards on the “value chain”.
According to Arcadis, Singapore is very competitive in terms of thriving in particular niches, including knowledge industries which have high value. Singapore is now less reliant on high-tech production. The nation is branching out and diversifying and this is a good thing.
While overall growth in Singapore may be down a little bit, the overall prognosis for economic growth is strong. Singapore is doing well in a tough global economy and the nation is clearly committed to creating innovative, intelligent and value-rich assets, as well as to optimizing the value of current assets over the long haul.
Malaysia will also need to invest in built-assets in order to compete. At present, Malaysia is involved in manufacturing to a large extent and it will need to upgrade its infrastructure in order to keep apace with Singapore.
SIngapore Has a Progressive Government
It’s quite likely that Singapore’s progressive, forward-thinking government is one key reason why the country continues to put a strong focus on built-assets. Singapore excels in many areas, as its leaders really care about supporting entrepreneurs, improving health care, upgrading infrastructure and generally taking care of those who work and live in Singapore. It’s a nation with very low crime rates and a lot to offer to residents and foreign investors. As Brexit moves forward, it’s also expected that more offshore investment in Singapore will happen. There is a lot to look forward to in Singapore and it’s a great place to live and to do business.
In the future, Singapore may hold its position as a leader for returns per capita related to infrastructure. Only time will tell. If the government continues to value built-assets, there’s no reason why Singapore can’t stay at number one.