Monday, March 2, 2015

Why countries should develop infrastructure now

Although much of the world is hurting from pain slower growth, it's arguable, this may be one of the best times in the past decade to get construction projects going.

Steel prices, iron ore, crude oil are hitting record lows.  If you are a country which spent their time saving and waiting for the right moment to upgrade infrastructure, this is it.  China is deliberately scaling back growth and therefore raw materials of all sorts are in excess supply.

Malaysia might actually see the prices in steel drop dramatically lower, as well as the cost in constructing the MRT.  Either the price will drop or the companies involved will reap major profits.  Probably the companies involved will make the profits since in Malaysia a lot of these construction companies will just kick the profits back to certain government elites.



India has just kicked off a major rail road rebuilding project.  It's not hard to see why as steel prices are hitting all time lows.  India will reap the rewards of its rail road project in decades to come.

Infrastructure hasn't had it this good in a long time!


0 comments:

  © Blogger template 'Minimalist G' by Ourblogtemplates.com 2008

Back to TOP