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The ECRL is an example, whereby the projected cost of building it will be 55 billion ringgit ($13.6 billion), funded with a soft loan from Exim Bank of China – 85 percent of project cost – at 3.25 per cent interest, the institute said. The balance of 15 per cent will be funded with so-called Islamic bonds.

Mega Projects Under Review

Following the recent elections, the new government led by Prime Minister Mahathir Mohamad said that it is reviewing a slew of major projects initiated under the previous administration. These include a high-speed rail project linking Kuala Lumpur and Singapore, and the Melaka Gateway Project. 

The reviews are part of the new government's investigations into parties related to 1MDB and the country's deteriorating debt situation. «There has been a material change in debt to gross domestic product from 50 percent previously to 65 percent, now or maybe 80 percent...we need to do a full assessment of all the 1MDB transactions to get the final number,» said Rajeev De Mello, head of Asian fixed income at Schroder investment management, who also spoke at the SwissCham Singapore event.

Both Singaporean and Malaysian newspapers have reported that the high-speed railway, or HSR, will be shelved or cut back in scope. MGP is likely to get axed too, according to «The Star Online». The 42 billion ringgit project, which spans 1,505 hectares, would have become one of Southeast Asia's largest private marina. 

Singapore Worries

News of China's billion-dollar investments into Malaysia's ports dominated the headlines in 2017, with Singapore paper «Today»reporting that China wants Malaysia to rival Singapore's port. Some media even asked if China would develop the «Singapore Slayer» – a port and rail infrastructure in Malaysia that could supersede Singapore's port. China is the world's biggest factory with the ability to divert trans-shipment away from Singapore's port. 

Singapore was named top maritime capital of the world last year by Norwegian consultancy firm Menon Economics. The Menon report looked at 24 indicators. The city-state was ranked number one in three categories: shipping, ports and logistics, as well as attractiveness and competitiveness.

In order to maintain its top rankings as a maritime center, the Singapore government has started to invest billions into developing its own mega port in Tuas, which will have a capacity of 65 million twenty-foot equivalent units, or TEU. Last year, Singapore's total container volume was 13.2 million TEUs.