The Singapore government will invest between S$15 billion ($11.3 billion; €8.2 billion) and S$17 billion annually in infrastructure projects in both 2010 and 2011.
“We are taking the opportunity of this downturn to build our own ‘highways’ to prepare for the next phase of Asia-centric growth. Upgrading our infrastructure is a key part of this growth strategy,” said Grace Fu, senior minister of state for national development and education, at a conference in Singapore.
There are two main thrusts to the development plans: to strengthen Singapore’s position as a business hub and to enhance it as “a magnet for talents”, said Fu.
New business areas are being developed, including Marina Bay in the centre of the capital where the government is investing S$5.7 billion.
Sea- and airports are also being expanded. The $500 million upgrading of Changi Airport’s Terminal 1 is in progress while planning for a fourth terminal has begun. Work is also underway to add 16 new berths at Pasir Panjang Terminal. The first berth should be complete in 2013.
Some S$40 billion has been set aside for transport projects including doubling rail capacity by 2020.
Singapore expects its economy to contract by 5 percent this year.