Cluster of city-led interventions
These refer not to a single/larger development (such as an industrial park), but mul�ple/smaller infrastructure improvements that spread out across the city, more or less explicitly suppor�ng commercial ac�vity, e.g. solar-powered ba�ery recharging sta�ons around malls, marketplaces, and commercial buildings. Nothing new as such. However, with rela�vely limited but well-targeted capacity building, city officials can apply the same investment planning methodology described above to also iden�fy and pursue innova�ve financing solu�ons that can apply to this type of projects (i.e. leveraging resources through mechanisms such as land-based financing, public-private partnerships, and debt issuances). This is not to say that these solu�ons are easy, but that ci�es can structure their role and approach to these solu�ons in a more systema�c and strategic way. Technological and engineering solu�ons for these interven�ons should be iden�fied jointly with private sector providers and end-users. A climate-smart capital investment planning methodology will help scale-up such solu�ons and turn this approach into systemic change. A precondi�on for crowding-in private investments and for the approaches outlined above is the overall creditworthiness of ci�es. While this is a long-term goal for most ci�es, a few rela�vely straigh�orward steps can be undertaken by ci�es to improve their preparedness for commercial-based financing. Other steps may require lengthier efforts, some�mes even reforms at the Central Government level. But this should be no excuse, including for the development community, to overlook the fundamental importance of improving ci�es’ creditworthiness. Successful endeavors for suppor�ng green industrial development require a strong public sector counterpart, both in terms of capacity to interact with the private sector and in terms of fulfilling investment grade prerequisites to a�ract investments.
Preparedness for commercial-based financing
Malaysian ci�es have demonstrated already great prowess a�rac�ng private investments, par�cularly with respect to industrial parks. Malaysia can also count on a solid enabling environment and a well-developed capital market. The case to “upgrade” to a fully climate-smart and financially sustainable model for urban-industrial
infrastructure development couldn’t be stronger. Malaysian ci�es, in collabora�on with the Government, can unlock the poten�al of a virtuous urban-industrial symbiosis, demonstra�ng to ci�es worldwide that a sustainable model is within reach.
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| Malaysia Smart City Outlook 2021 - 2022
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