Earlier this week, a delegation composed of high-level executives and entrepreneurs from Hong Kong and Shanghai visited the Philippines on an investment mission geared towards the implementation of the Belt and Road Initiative.
WHAT IS THE BELT AND ROAD INITIATIVE?
It is also called the “The Silk Road Economic Belt and the 21st-century Maritime Silk Road” – in a nutshell, it is a development strategy proposed by the Chinese government that focuses on connectivity and cooperation between Eurasian countries.
The strategy aims to connect the various countries in Europe and Asia by building new infrastructure like modern railways, bridges and water routes, with China serving as the hub. It is an ambitious project. Infrastructure corridors encompassing around 60 countries, primarily in Asia and Europe but also including Oceania and East Africa, will cost an estimated US$4-8 trillion.
HONG KONG AND SHANGHAI DELEGATION VISIT
The delegation, organised by the Hong Kong Trade Development Council (HKTDC) in association with the Shanghai Federation of Industry and Commerce, consists of some 40 Hong Kong and Shanghai business leaders and services providers coming from a wide range of industries including consultancy, architecture, energy, waste and water treatment, engineering and construction, legal and accounting, transportation and other sectors.
They were in the country from April 22-24, and met with local players to explore cooperation and investment opportunities, notably under the Belt and Road initiative. The delegates also participated in project briefings and attended the “Hong Kong and Shanghai: Your Investment Partners” luncheon organised by the HKTDC on 24 April.
Belt and Road facilitators: Hong Kong and Shanghai
We were granted a quick audience with HKTDC Chairman Vincent HS Lo, founder and chairman of Shui On Group, and Co-Mission Leader Dr Jonathan Choi, Chairman of the Hong Kong Chinese General Chamber of Commerce and Chairman of Sunwah Group.
Both men shared their optimism about working with the Philippine government on potential projects. They were particularly keen on developing commercially viable infrastructure projects, such as those in Hong Kong. For example, the MTR in Hong Kong is commercially viable because the commercial properties built on top of the MTR stations make money and financially subsidize the subway, keeping the fare affordable for commuters. The management of successful projects like these are what the Hong Kong delegates excel in, and it is what they bring to the table.
Some of the local projects in the works that they were able to reveal are the reclamation of areas in Laguna de Bay, and the conversion of Clark Air Base.
DEVELOPING CLOSER TIES
The visit of the delegation is timely as Philippine president Rodrigo Duterte has made infrastructure development a top socio-economic development priority. Under his “Build, Build, Build” initiative, a list of mega infrastructure projects amounting to US$160 billion is in the pipeline. Infrastructure spending is ambitiously targeted to expand to 7 per cent by 2019. Infrastructure investment is expected to be a major economic driver over the next few years. The Belt and Road Initiative can provide the much-needed infrastructure financing to partner countries.
