One Belt, One Road: China Construction Bank to invest S$30bn in Singapore
New funds will be made available to support Chinese and Singaporean companies as part of China’s One Belt, One Road infrastructure project. China Construction Bank (CCB) and International Enterprise (IE) Singapore have signed a Memorandum of Understanding committing to the project.
The idea of the scheme is to better connect China with commerce from Africa, Asia, and Europe, much like the ancient silk roads used to do.
Under the MOU, which is the first signed by CCB with a Southeast Asian country, S$30 billion of financial services will be provided to support local and Chinese companies in investing in One Belt, One Road projects through Singapore. The bank has 176 major projects in One Belt, One Road countries, with a cumulative investment size of more than S$405 billion covering sectors such as mining, transportation, and power generation.
As Lee Ark Boon, CEO of IE Singapore, told Channel News Asia, the partnership between CCB and IE Singapore is “strategic, strengthening the critical financing element and bringing more projects to fruition”.
Speaking at the One Belt, One Road Infrastructure and Capital Market Financial Services Forum, Chun Sung, Minister within the Prime Minister's Office, claimed that outward investments from China are surpassing foreign direct investments into China, and thus that with the levels of infrastructure required in Southeast Asia, there is “tremendous potential” to channel part of the outward direct investment into the region.