.2.1 Infrastructure Infrastructure FIGURE 5 Source: World Economic Forum in collaboration with Kearney. Traditionally, infrastructure investment has focused on tangible assets such as transport networks, utilities and other physical facilities. Roads, ports, railways and logistics capabilities remain a key priority for stakeholders. Such physical infrastructure is essential to ensuring the smooth movement of goods, people and resources. As global value chains evolve, however, consultations reveal that the importance of intelligent infrastructure is growing. This shift does not diminish the necessity of physical infrastructure but rather underscores the need for an integrated approach that integrates the two. The challenge for some countries is not merely upgrading their physical infrastructure but developing and implementing policies that facilitate the integration of these advanced technologies. A symbiotic relationship exists between tangible upgrades and the enhancement of intangible components such as data security, connectivity and digital governance. Using the indices described in the production readiness model (see Appendix 1), the top three strongest-performing markets for the quality of their physical and digital infrastructure were Denmark (converger), the Netherlands (converger) and Singapore (scaler). While not yet appearing in the top 3 countries, China stands out as a global leader in infrastructure investment, underscoring its commitment to enhancing this readiness factor.6 Connectivity extends beyond physical infrastructure. We prepare and develop industrial parks with “plug-and-play” facilities with last-mile connection to utilities, research institutes and academia located close by, to enable companies to pilot products and kick-start production in a seamless manner. This is complemented by Singapore’s trade connectivity. We are the largest air cargo hub in South-East Asia and the world’s busiest transhipment seaport with an extensive network of 27 Free Trade Agreements, which provides ease of access for our goods and services to reach global markets. Cindy Koh, Executive Vice-President, Singapore Economic Development BoardSub-factors Physical infrastructure Availability and quality of transportation networks (roads, ports, railways), utilities (electricity, water) and logistics capabilities. Intelligent infrastructure Penetration and reliability of high-speed internet, data centres and communication networks, integration of advanced technologies – e.g. internet of things (IoT), artificial intelligence (AI) and big data analytics – and measure of cybersecurity. Indices Quality of transport networks and logistics capabilities Access to high-speed internet Secure data centres Environmental, social Geopolitical regulatory and skillsResourcesInfrastructure Technologyand governance landscape Fiscal and Labourand energy Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains 10

Beyond Cost 2024