International Enterprise (IE) Singapore and China Construction Bank Corporation (CCB) signed a Memorandum of Understanding (MOU) this week that sees CCB providing $22bn (S$30bn) in financing for infrastructure projects under China’s ambitious ‘One Belt, One Road’ (OBOR) initiative.
The money is intended to encourage collaboration between Singaporean and Chinese companies and help them invest in OBOR infrastructure projects in Singapore.
It is the first MOU CCB has signed with a country in Southeast Asia.
"China’s OBOR initiative will improve connectivity and catalyse projects in both physical and info-comm infrastructure," said Lee Ark Boon, IE Singapore’s chief executive, at the MOU signing on 25 April.
He added: "As the regional infrastructure hub, Singapore’s know-how and networks with China and Southeast Asia gives Singapore-based companies a further advantage on OBOR projects."
The OBOR concept includes what China calls "21st Century Maritime Silk Road". China wants countries in southeast Asia to collaborate with China in areas such as infrastructure and connectivity, logistics, financial services, trade, urban planning and clean technology.
In a statement announcing the MOU CCB said it has 176 major projects in the OBOR countries, with an aggregate investment size of more than US$300 billion covering power generation, construction, mining, transportation and telecommunication sectors.
Photograph: Singapore’s port, one of the busiest in the world, with the city in the background (Mot.gov.sg)