Transportation reforms in Singapore

Following a rash of announcements by the Transport Ministry regarding changes to transportation in Singapore, current congested transportation links looks set to be improved even as the government aims to increase the population from current 4.5 million to 6.5 million.

The changes are comprehensive and on all fronts as the rail lines, bus transport industry, road taxes and road infrastructure are all affected by one way or the other. 40 billion earmarked for improving rail capacity and rail density, bus industry being deregulated, decrease in road taxes as more ERP gantries are being set up and 14billion to build more expressways are pretty radical changes all announced back-to-back within a two weeks.

With all these construction in the works, what does it mean for the average Singaporean?

First, the effectiveness of the increase in capacity in transport may be blunt by increase in permanent population in Singapore as the government try to attract more permanent residents and the projected rise of tourism-related activities. So the onus is on the Transport Ministry to coordinate with all the transport agencies to ensure the supply meets the demand.

Secondly, the Singapore economy will be boosted by huge government construction funds and therefore remain robust for the next ten years. Tourism will also be a major contributor to the economy.

Last but not least, it seems strange that all these anouncements are being made in the middle of bank crises around the world. Whether these changes are designed to detract criticism of aggressive Singapore foreign investments or to assure locals are taken care of in spite of heavy foreign investment during a time of inflation is hard to determine.

All in, the average Singaporean can expect to enjoy the fruits of prosperity in the near future and have a rocking good time.

Chinese capital

Finally writing after kind of settling dowm in UNiversity of Connecticut for exchange. It is cold during winter seaon, from Nov to March. After that i guess the weather will become less cold. But with sufficient clothes, it should be mangable, even for a guy from the tropics like me...

Reuters 23Jan

BEIJING, Jan 23 - China has signed a memorandum of understanding with Singapore allowing approved banks to invest their clients' money in the city state's equities markets, the banking regulator said on Wednesday.

The China Banking Regulatory Commission said it is negotiating similar arrangements with Japan, Germany and the United States.

To date Chinese banks are permitted to invest their customers' money only in Hong Kong and Britain.

The CBRC permitted banks last year to start investing client funds in overseas securities as part of China's Qualified Domestic Institutional Investor programme.

China's currency regulator has so far allocated 23 banks a combined quota of $16.1 billion.

MY take

Now that money from China is allowed to be invested elsewhere, stocks in Singapore should be rising. Singapore should be experiencing higher economic growth and more buffer against a possible American economic recession. However, Singapore should still be prepared for a economic contraction in such an event as US trade is influential in both Singapore and worldwide.
Investments by the Chinese government in Singapore may also be pulled out during a recession to prop up ailing US and Europe markets.

Changi T3

Jan 10

Changi airport T3 opened with much fanfare yesterday and consolidated Singapore's share as a air transportation hub. At over 380 000 sq meters, its is the largest terminal in Changi. Minor glitches that surfaced were quickly fixed as Civil Aviation Authority of Singapore had previously held an exercise involving over 5 000 staff and volunteers for over 50 trials of passenger and baggage check in and passenger boarding and disembarking procedures.

This terminal is able to handle jumbo sized aircraft, specifically the A380. Although this terminal will ease the air transportation squeeze, whether Singapore will become more popular as a travel destination and as a stopover will really depend on the quality and standard of the tourism industry and future trend of air travel: using long haul flights like the A380 and bypass Singapore or using short-haul flights like the Boeing Dreamliner and use Singapore as a stopover.
Competition from other Asian airports Suvarnabhumi Airprt in Bangkok, Kuala Lumpur International Airport, Dubai Interantional Airport is also getting keener with expansion in the works in Bangkok and Dubai.
Changi airport would do well to enhance its customer services and increase the number of F&B and retail outlets available to attract more customers.