Media Centre

Excellencies, Ambassadors, High Commissioners,

Distinguished guests,

Ladies and gentlemen,

Introduction

1.   Let me begin by extending a warm welcome to all of you, and especially those who have travelled from overseas to join us here in Singapore.

Context

2.   Against the backdrop of climate change, challenges of urbanisation and the quest for liveable cities, as well as the geopolitical landscape, infrastructure has become even more critical. Beyond basic development goals, it is clear that infrastructure plays a key role in securing countries’ strategic interests as well as ensuring economic security and resilience.

3.   This year’s forum calls on us to be bold, so that together we can bridge the infrastructure gap for a stable, sustainable and resilient Asia.

4.   Against the backdrop of Asia’s growing infrastructure needs, acting boldly means building ahead for the future, even in uncertain times. Investing in sustainable infrastructure is a key strategy to achieve collective economic, social and environmental progress. It sits at the heart of resilience across energy systems, supply chains and national economic security to drive effective, positive long-term outcomes.

5.   Indeed, Southeast Asia is working hard on its green transition.

• ASEAN achieved a 14% mix of renewable energy in total primary electricity supply in 2023 and has set a target of doubling that by the end of this decade.
  
  
• Recent developments also underscore the need to press on with this transition, and ASEAN members and major institutions have responded with renewed commitments.
  
  
• ADB announced at its Annual Meeting that it will back US$70 billion in new energy and digital infrastructure initiatives by 2035, emphasising the need for regional connectivity.
  
  

6.   While these developments are promising, we must build on this momentum as there is much more to be done.

Asia needs to build resilience and future-proof infrastructure

7.   First, we must build resilience and future-proof infrastructure. 

8.   The recent conflicts in the Middle-East have painfully exposed the high regional dependency on energy and other supplies from the Gulf States. Despite some gains in renewables capacity over the years, the supporting infrastructure has been insufficient, leaving many countries with limited options during this energy crunch. The disruption has threatened other downstream sectors beyond energy, such as food production.
 

9.   There is need for adaptable infrastructure that can be responsive to risk or disruption. One good example of such adaptable infrastructure would be the ASEAN Power Grid (APG). The APG is intended to optimise renewable resources from member states by routing excess energy and distributing it via a regional grid to states in need of additional energy, delivering a win-win outcome for all. When developed, the APG will be an additional source of energy to complement existing sources and reduce the impact of volatility and fluctuation in global energy supplies. Last year, ADB and World Bank jointly launched the APG Financing Initiative and committed over $12 billion of financing, reflecting the importance and potential of the APG.

10.   Second, we need to better protect our economies against climate risks. Climate events are becoming more extreme each year. Recent disasters such as cyclone Senyar caused massive devastation and economic losses, estimated at $4 billion, despite the storm’s relatively weak winds. We cannot ignore these signs. In the face of the destructive potential of such climate related events, nations cannot remain reactive. The region must be proactive.

11.   A good example of such proactive action is the Climate Resilience Development policy which is part of Indonesia’s National Adaptation Plan 2025-2030. Working together with the United Nations Development Plan, Ministries and local governments are considering ways to mitigate climate risks in sectoral planning, which is encouraging.

Public-Private collaboration must deepen across the project lifecycle

12.   We also need greater public-private collaboration across project lifecycles.

13.   With growing infrastructure needs and project complexity, many governments face increasing fiscal and capacity constraints. The scale and technical sophistication of 21st-century infrastructure from high-speed rail to smart city integration has evolved beyond the capacity of any one single state development agency. 

14.   More than ever, strong ecosystem partnerships will be needed to address these constraints.

• Today I am glad that Infrastructure Asia will renew its MOU with the World Bank Group. This long-standing partnership focuses on enhancing project development and capacity building in the region.
  
  
• In addition, a new partnership will be forged with the Private Infrastructure Development Group (PIDG) to expand access to alternative financing approaches to support the origination of more bankable infrastructure opportunities across Asia.
  
  
• Infrastructure Asia will also strengthen existing partnerships with regional governments to better support their project development needs.
  
  

15.   Early private sector engagement and strong public-private collaboration can also unlock the capital and expertise to deliver stronger outcomes.
 

Market Soundings

16.   For public-private collaborations, sensitivity to markets and private sector investor sentiment is important.

17.   Infrastructure Asia, for example, recently facilitated market soundings to gather private sector feedback from Singapore-based industry players on upcoming regional projects. Working with trusted partners like the ADB, AIIB and IFC, it supported early consultations for the Philippines North South Commuter Railway, Philippines Transportation System Master Plan and Cambodia's Sihanoukville Logistics Complex. We were glad to see strong industry participation and the valuable feedback provided to help improve project bankability and attract competitive participation from relevant infrastructure firms and service providers.

Professional Services Hub

18.   Professional services are an integral part of infrastructure project development. Singapore continues to be a reliable business hub where professional services firms help regional governments and businesses navigate uncertainties and risks, to better prepare infrastructure projects. Many global firms with expertise in infrastructure advisory, built environment, legal structuring, arbitration, project finance and technical consulting, have anchored their global capabilities centres here. We encourage those in the region with infrastructure needs to make full use of the invaluable expertise that is available here in Singapore.

19.   AECOM, for example, set up its Underground Infrastructure AI Innovation Centre in Singapore, focusing on developing AI-powered solutions to solve complex underground design challenges.

20.   Several Singapore-based firms also qualified for Cambodia’s approved list of international consultants for Public-Private Partnership (PPP) projects. We are encouraged to see this model renewed in 2026. By pre-qualifying a pool of experts, the Cambodian government ensures it has immediate access to trusted advisory services at any time. 
 

21.   I hope that more regional governments will seize the opportunity to formalise such collaborations to bridge the technical-financial gap and catalyse more infrastructure investment in Asia. 

Bold policy signals and innovative market mechanisms are required to unlock the transformative potential of private capital

22.   Bridging the gap between national ambition and actual project delivery requires stability, scalable pipelines and effective risk management to attract capital. This can be achieved through four means.

Legal framework

23.   Firstly, a strong and enabling legal framework. This signals stability and predictability to attract long-term capital. In Vietnam, the Government laid the tracks for increased private sector participation through its recent Railway Law amendments. By allowing the retention and use of transit-oriented development land value proceeds to support metro system financing, it grants and allows private investment in railways via PPPs or other models. The improved legislation addresses factors that long-term capital providers value, including revenue diversity, risk insulation and fiscal incentives.

Blended financing through FAST-P

24.   Secondly, unlocking the scale which blended finance can achieve. We need to move away from one-off deals and provide investors access to a strong project pipeline to scale their investments. Platforms like Singapore’s FAST-P have demonstrated the benefits of tapping on concessionary capital to crowd in commercial debt capital to support the region’s transition to a low carbon economy. The Green Investment Partnership (GIP) under FAST-P has achieved its second close with $800 million in May this year, reflecting strong investor interest and momentum. Besides GIP, two other FAST-P initiatives, the Industrial Transformation Programme and Energy Transition Acceleration Finance, which will target energy transition and decarbonisation investments respectively, will announce their first close this year.

Guarantees and insurance

25.   Thirdly, to safeguard and ensure strategic deployment of our limited concessional funds, there is great scope to utilise insurance and guarantees to address residual risks that the market cannot cover. GuarantCo’s 100% payment default guarantee provided in 2022 and 2025 to First Finance, a microfinance institution in Cambodia, increased access to longer-term mortgage products for the unbanked segments in Cambodia. In total, up to $23.3 million has been committed which will mobilise a series of long-term debt facilities.

Carbon credits

26.   Lastly, carbon credits. Recognised carbon credits can help create a bankable revenue stream that improves project economics and accelerates decarbonisation while bringing broader project benefits.

27.   Singapore has made significant strides on this front. We have signed 11 legally binding Implementation Agreements, which set out the standards and process for the generation and transfer of carbon credits. Five of these agreements have further progressed to a formal call for project applications. This gives financiers and buyers greater confidence to commit capital for green infrastructure in host countries. Building on this momentum, Singapore’s National Climate Change Secretariat and the World Bank Group just launched the Singapore Carbon Markets Program, to support countries in developing and scaling their national carbon markets.

28.   Singapore is home to more than 150 firms across the carbon management value chain. By tapping Singapore’s carbon ecosystem, regional governments can create investable assets that unlock financing options for infrastructure development.

Conclusion

29.   In conclusion, the challenges and hurdles before us are greater than ever.  But for that very reason it is imperative that countries in the region take bolder steps to secure their infrastructure needs, through the public and private sector working more closely together.