The water sector can’t solve the complexities of challenges we are facing alone.  And we can’t do it without money.

According to a KPMG last year, private investment into infrastructure in South Asia, East Asia and Asia-Pacific totaled US$166 billion over the previous five years; out of this, approximately five per cent portioned  to the water sector, which was around US$9 billion.   It’s reasonable to assume that this will figure will increase as the proportion of investment into water infrastructure projects from the private sector increases.  This is certainly likely to be the case as more PPPs are tabled in Singapore (such as the new desalination plant) or if developing countries like Indonesia get PPP-related financing models attractive for such schemes.  According to a Frost & Sullivan report this year, investment in infrastructure in South Asia could grow as high as 10% as many developing countries are still building out their basic water infrastructure.

Ong Chong Jin, Senior Vice President and Head, Market and Business Development, Listings, Singapore Exchange

I made a point of attending the Singapore Exchange‘s Panel Discussion on Thursday afternoon.  The Exchange has a growing number of companies from the water sector – around 50% of the listed clean tech companies are water-related.  13 waste water and water treatment companies are listed with a total market cap of S$3.8 bn. Hyflux is one particular success story with its market cap now at S$1.6 billion  rising from S$54 when it originally listed in 2001.   Keppel’s K-Green trust was also listed during SIWW and I expect to see more as Singapore continues to export its water leadership overseas in the years to come.

It’s not an area I claim to be an expert of and I would’ve loved to have heard more from the panel which included SGX, Allen & Gledhill LLP, CLSA, Hyflux and Macquarie Capital Advisors.

Posted by Keith Morrison