Private sector investment key to Asia infrastructure

Governments in Asia must create a more conducive environment to encourage private sector investment in infrastructure construction, according to experts, who advocate an innovative financing mechanism.

Such a mechanism requires further collaboration between the public and private sectors to enhance partnerships, said Sithanonxay Suvannaphakdy, former lead researcher in economic affairs for the ASEAN Studies Centre at Singapore's ISEAS-Yusof Ishak Institute.

"Greater public-private partnerships should reduce pressure on regional governments, which have experienced severe budget deficits due to large pandemic-related expenditures in the past three years," he said, adding that regional authorities should create a conducive business and investment climate.