Cities need to build infrastructure not only to withstand climate change and pandemics, but also to reduce inequality and strengthen society's resilience, said Minister in the Prime Minister's Office Indranee Rajah.
This is because it is the more vulnerable who often bear the brunt of disruptions, she said. Infrastructure investments are also critical to providing basic needs, and are a key driver of economic recovery and long-term growth.
She was speaking at the World Cities Summit yesterday. The event, held in a hybrid format this year because of Covid-19, is for government leaders and industry to address urban challenges and share solutions. It ends tomorrow.
Ms Indranee, who is also Second Minister for Finance and National Development, said that around the world, those hardest hit by the coronavirus pandemic live in cramped conditions with inadequate sanitation.
Public transport, healthcare, recreational amenities and Internet access are examples of basic infrastructure that cities must not neglect, she said. "Widening access to these is critical to reducing inequality."
Singapore's efforts in this area, she added, include aiming for every household to be within a 10-minute walk of a park by 2030, and expanding the rail network from 230km to 360km.
It is also boosting digital literacy among the elderly.
Ms Indranee noted that according to Global Infrastructure Outlook, a Group of 20 initiative, the world's infrastructure investment gap will be at least US$15 trillion (S$20 trillion) by 2040.
The World Bank has estimated that 85 per cent of the investment gap in sustainable infrastructure will be borne by the private sector.
With Covid-19 straining government budgets, one option is to have investors join governments in public-private partnerships, she said. Aside from cost savings, the benefits include injecting fresh ideas and innovation, and reducing project completion times.
As for developers putting profit ahead of public interest, she said governments should work with the private sector to design and structure their partnership well.
For example, the Urban Redevelopment Authority sets requirements on public spaces and provision of greenery. "This approach sees government providing the planning parameters, while working with the private sector to operationalise them," she said.
Investing in a sustainable future is important, she said. Climate change is the collective challenge of this generation, and others include growing inequality, ageing populations, pandemics and technological disruptions.
"Infrastructure that integrates these considerations will not only boost resilience, (but) it will... also enhance liveability, help create jobs and drive inclusive growth."
Singapore's investments in sustainable infrastructure include car-free town centres, smart features in homes, its goal to become a zero-waste nation, planting one million more trees and installing solar panels on 70 per cent of public housing blocks by 2030.
In a panel discussion moderated by Infrastructure Asia executive director Seth Tan, International Finance Corporation Asia and Pacific vice-president Alfonso Garcia Mora said it is important to create a framework for cities to borrow responsibly, such as by issuing bonds. "We also need standards, capacity, incentives and budget prioritisation that allows a city to think long term."
DBS Bank's group head of institutional banking Tan Su Shan said there needs to be greater clarity in defining what sustainable infrastructure means, as well as flexibility and speed in implementing projects.
"Hopefully, with more multilateral cooperation, we can speed up the process and bring (more) liquidity, transparency and consistency to it," she said.
Other panellists included Jakarta Governor Anies Baswedan and Mr Gareth Wong, chief executive of Mitbana, a joint venture of Mitsubishi Corporation and Surbana Jurong.
Ms Indranee said that partnering the private sector for infrastructure investment, pursuing a sustainable vision and ensuring a recovery that leaves no one behind are all closely intertwined rather than separate agendas.
"To be resilient in the face of an uncertain future with unpredictable disruptions, cities need to invest in infrastructure that is both sustainable and equitable. Cities that succeed in doing so will... not only survive but thrive," she said.
