Non-stop flights to emerging markets would boost Singapore economy: MTI report
The gains would be in direct investment flows and passenger, cargo transfers, for instance
A recent report by Singapore's Ministry of Trade and Industry suggests that non-stop flights to emerging markets could significantly boost the Singapore economy. The simulations reveal that stronger air connections with developing regions like Latin America, Africa, and Central Asia could lead to increased direct investment flows and passenger and cargo transfers.
By serving as a key stop for goods and travelers on routes between emerging markets and Southeast Asia and Oceania, Singapore could gain an additional S$200 million in foreign direct investment and S$520 million in direct investment abroad annually, just by eliminating a stopover to a similar-sized economy within 7,500 km. The report also highlights that shorter flight connections to cities more than 7,500 km away could generate more modest improvements in investment flows and visitor arrivals.
Senior economists Ryan Kor and Ngoh Jia Hui noted that the stronger response for geographically closer cities could be due to their existing trade and investment relationships. While the report advises that setting up these new air links would depend on factors like aircraft availability, air traffic rights, and commercial viability for airlines, it suggests that adding direct flights to "selected cities in North America and Europe" could yield significant economic gains.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
