SINGAPORE - Corporations play an essential role in improving cities, especially during times of crisis and disruption.
A winner-takes-all approach does not work; instead, there is a need for collaboration, partnership, and complementary skills and capabilities, said incoming Temasek chief executive Dilhan Pillay Sandrasegara.
He added that companies must work with communities, employees, customers, suppliers, and investors - and should always consider the environment when making decisions.
He was speaking at the World Cities Summit on Tuesday (June 22) on the topic "Cities adapting to a disrupted world".
The summit, held in a hybrid format this year because of Covid-19, brings together government leaders and industry to address urban challenges and share solutions. It ends on Wednesday.
Mr Pillay, chief of the commercial arm Temasek International, who is to succeed Ms Ho Ching as Temasek CEO and executive director on Oct 1, said cities today face unprecedented challenges such as resource scarcity, climate change, ageing infrastructure, and security risks.
The United Nations has estimated that the world's population living in urban areas will grow from 4.2 billion in 2018 to 6.7 billion by 2050.
"We need to look into the key areas that are opportunities for innovation in cities - water, energy, food, waste, urban development, materials, and clean transport - which are all linked to the sustainability of our cities and communities," he said, adding that governments and firms must accelerate technological innovations that can help cities decarbonise.
To promote a more sustainable future, collective responsibility and strong public-private sector partnership is needed, he said, citing the example of the proposed Maritime Decarbonisation Centre in Singapore.
In April, the Maritime and Port Authority of Singapore (MPA) announced that it would establish a $120 million fund for the centre, supported by funding from industry partners. The MPA has signed a memorandum of cooperation with BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas and BHP.
Robust policy frameworks also need to be in place, said Mr Pillay, pointing out that carbon pricing can be an effective tool to reduce carbon emissions, and a fair and equitable way to raise finances for capital intensive climate adaptation projects.
More can also be done to mobilise private finance towards sustainable investments and away from pollutive industries, he said. However, many opportunities are not being capitalised due to the lack of bankable infrastructure projects.
"Cities can work with local and global financial institutions to develop climate finance infrastructure solutions, or provide concessions such as tax incentives for financial institutions providing green bonds."
It is also important for urban planning to be inclusive, he added. "In return, corporates should be able to reap the benefits of more dynamic and resilient economies that will, over the long term, mitigate the risks of climate change, and help define and create new opportunities."
In a panel discussion moderated by Singapore Institute of International Affairs chairman Simon Tay, Urban Redevelopment Authority chief executive Lim Eng Hwee stressed the importance of digitalisation, saying that planning in a dynamic environment requires a holistic understanding of cities as an ecosystem.
Digitalising the planning process, he explained, can help to better coordinate infrastructure provision and development, and test different scenarios.
For example, the authorities can identify where to locate certain jobs and facilities, and evaluate which areas are lacking in amenities such as parks and schools.
Governments can not only leverage data to deal with long-term problems, but also manage recovery from the pandemic, for instance by monitoring crowd levels in shopping malls to prevent overcrowding, Mr Lim said.
"On the people side, we can also identify where vulnerable segments of the community are located, so that services can be brought to them."
Other panellists included Taoyuan City mayor Cheng Wen-tsan from Taiwan, Mitsubishi Heavy Industries Asia Pacific executive vice-president Yoshiyuki Hanasawa from Japan, United Nations Under-Secretary-General and executive director of UN-Habitat Maimunah Mohd Sharif, Microsoft managing director and regional business leader Manish Prakash, and Asian Development Bank chief of Urban Sector Group Manoj Sharma.
