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Singapore has the highest built asset income per capita in Asia
Arcadis Singapore published its latest Global Built Asset Performance Index.
The index is an alternative measure of a country’s economic performance by measuring how built assets can power more growth to economies and contribute to better performance.
It was reported that buildings and infrastructure contributed US$36 trillion to global GDP in 2016, an increase of US$3 trillion from 2014.
This represents an increase of global GDP attributed to buildings and infrastructure from 38.7% in 2014 to 39.6% in 2016. Remaining GDP is generated from wages and resource rents.
Source: Unsplash
According to the report, Singapore generates the highest built asset income per person in Asia, at US$35,900 per capita, though this growth has plateaued.
Although reliance of built assets has been reduced, its high-tech manufacturing is retained.
However, this figure is only expected to be a slight decline through Singapore’s resilient economic growth that exemplifies development through investment in built and intangible assets.
Hong Kong trails in second at US$21,400 built asset income per person in Asia per capita. In global rankings, Qatar takes a substantial lead in this segment at US$66,300 followed by United Arab Emirates at US$37,900.
There remain continuous investments in Singapore’s Changi Airport to double passenger capacity to 135 million by 2025.
Source: Unsplash
Findings of the report include China pushing ahead of the U.S. with nearly double the returns from buildings and infrastructure. China’s reliance on its built asset returns will continue as its efforts to shift the focus away from manufacturing and construction endures.
It is also projected that India will be the next powerhouse to overtake the US as it increases real returns from built assets by as much as 126% in the next decade.
Built assets performance continues to be an integral measure for nations seeking to boost their economic returns.
Despite difference requirements, regulatory frameworks and funding models, common elements can be adopted, adapted and shared across borders to gain from best practices at a global scale.
(By Lily Teh)
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