Asia may not be able to fund its infrastructure needs without deeper credit culture: S&P

February 3, 2014 Leave a comment

Asia may not be able to fund its infrastructure needs without deeper credit culture: S&P

The Jakarta Post, Jakarta | Business | Thu, January 30 2014, 4:06 PM

Asian governments in high-growth countries may face difficulties in maintaining growth and funding for all their infrastructure needs, Standard & Poor’s Ratings Services (S&P) said in its recently published report titled “Why Global Investors Aren’t Making Inroads Into Infrastructure Funding In Asia.”

The report suggests that governments will need the private sector to channel funds into projects, or face the prospect of a slowdown in investments that will constrain economic growth.

“Many offshore investors expect higher returns from Asian infrastructure investments to reflect the greater risk. However, they are competing with liquid local banks that can charge lower costs and lend on weaker credit standards. As a result, there’s little incentive for governments to structure projects that international investors would consider investable,” S&P credit analyst Ian Greer said in an official release on Thursday.

 

Filed under Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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