PROPOSED LAND BRIDGE (Linking Andaman Sea with Gulf of Thailand)

[Mr Speaker in the Chair]

Mr Chng Hee Kok asked the Minister for Trade and Industry what will be the impact on Singapore's economy of the proposed land bridge linking the Andaman Sea with the Gulf of Thailand.

The Minister for Communications (Mr Mah Bow Tan): Mr Speaker, Sir, the proposed land bridge is part of Thailand's Southern Seaboard Development (SSB) plan. It is not the only land bridge project being proposed in the region. Malaysia has also proposed a Penang-Songkhla land bridge within the Indonesian-Malaysian-Thailand Growth Triangle economic cooperation framework.

The two projects will involve substantial investments in roads, pipelines and port infrastructure. The viability of the projects will depend on how competitive the costs of unloading, transportation and reloading of cargo are, in relation to the existing alternatives. As the preliminary feasibility study into the project has not been completed yet, it is premature to assess the projects' full impact on Singapore.

The two land bridge projects are being proposed at a time when the Asia-Pacific is growing rapidly and trade is expanding. The port of Singapore will grow with the region as long as we continue to provide the shipping community with good service at competitive rates. In particular, the Port of Singapore Authority must strive to maintain its competitiveness through skills upgrading, sound management and investment in infrastructure and technology. This way, Singapore can meet the keener competition posed by emerging regional ports and other infrastructure projects like the proposed land bridges.