KUALA LUMPUR: Malaysia ranks number two in terms of its attractiveness for infrastructure investment in Asia.

It now sits in fifth place globally in the third edition of the Global Infrastructure Investment Index, according to Arcadis, a global design and consultancy firm.

According to the report, Malaysia’s strong economic performance and continued long-term investment in infrastructure have made the market attractive for private/inward investment.

The government’s 11th Malaysia Plan, published in May 2015, emphasised the importance of infrastructure in achieving Malaysia’s transformation into a fully developed nation by 2020.

The plan sets out a continued focus on the strengthening of enabling infrastructure to boost productivity and support economic expansion.

Major projects to be completed by 2020 include the Klang Valley MRT Line, the 2,000km Pan Borneo Highway and the West Coast Expressway.

Completed projects include 93,000km of new roads, increasing the road network by 68 per cent, while investment in urban rail saw a 32 per cent increase.

It said, in the race to achieve the 2020 goals, a key challenge faced by Malaysia will be to ensure that the quality and sustainability of the new infrastructure are not compromised.

Also, in the short term, investment is threatened by a number of risks, including its currency depreciation against the dollar and a corruption scandal that has delayed some projects.

Neighbouring Singapore retained its position as the world’s most attractive market for infrastructure investment, with its stable political situation, secure business environment and strong growth potential.

By comparison, in terms of economic scores, China ranks first among the 41 countries analysed, yet its less attractive business conditions and higher risk environment keep it ranked at number 17 in the index.