Vision of Temasek unit SingBridge creates new growth platform as well
Jessica Cheam Straits Times 9 Jul 10;
TEMASEK Holdings unit SingBridge International Singapore unveiled its vision yesterday to be a global 'master developer' of cities that are not only sustainable but also economically viable.
The strategy should create a new growth platform for Singapore firms, which can export their urban solutions to other cities around the world, even while providing a return of investment to the Singapore investment company.
SingBridge chairman Lim Chee Onn, speaking at the firm's first press briefing yesterday, said the strategic direction of the new unit was borne out of the observation of two major global trends: urbanisation and the 'tremendous interest in the environment'.
Singapore can draw on its development experience of the past four decades and 'aggregate the experience... to help strengthen capabilities and capacity in order to generate business opportunities', added Mr Lim, a former Cabinet minister and former Keppel chairman.
SingBridge, which was established a year ago, is a 'deliberate effort... in creating opportunities for Singapore and Singaporean companies'.
The firm has taken on the mission of investing in and developing sustainable and economic cities internationally, although its initial focus will be on China.
It recently signed an agreement with the Guangzhou Municipality to jointly develop the 123 sq km Sino-Singapore Guangzhou Knowledge City in Guangzhou. This will require an estimated two billion yuan (S$410 million) investment for its 50 per cent stake.
In May, SingBridge agreed to a feasibility study with the Jilin municipal government to assess the commercial feasibility of jointly developing a 1,450 sq km modern agricultural and food zone in Jilin City. It has also acquired a 10 per cent stake in the Singapore consortium that holds a 50 per cent stake in the Tianjin Eco-city project. There will be significant opportunities for businesses in sectors like real estate, infrastructure, health care, retail, services, education and manufacturing, said SingBridge.
The firm's chief executive, Mr Ko Kheng Hwa, the former managing director of the Economic Development Board, said SingBridge will assess projects carefully for their commercial viability.
'Massive urbanisation and the need to sustain our environment will create demand for eco-cities, but they're not eco for eco's sake. They will also have to be economic cities,' he said.
Mr Lim added that SingBridge will try to develop projects 'in bite sizes, instead of a 10-pounder cake'. Part of its strategy will be to develop a 'start-up area', like a 6 sq km site in the Knowledge City, and develop the city in stages, he said.
The firm will fund its projects by either raising capital on its own, through Temasek, or by applying to banks for credit. 'We're mindful not to plonk (down) too much capital, but (just) the necessary working capital,' said Mr Lim.
It may be a new player on the scene, but many have expressed an interest in collaborating with SingBridge, he added.
The firm is the 'conduit in which... authorities and agencies can cooperate with Singapore', hence the inspiration for its name, added Mr Lim.
Ultimately, SingBridge is a start-up. Over time, it will build a greater variety of projects, he said.
'So Singaporeans who are interested in an adventure, please call us.'
