Oxstones Investment Club™November 8, 2010 11:10am
Competitive building is nothing new. For centuries rival countries have sought to show-off by building the tallest and the biggest buildings on the planet. Some go on to become global icons – helping tourism and lifting the country’s business profile. Others end up as white elephants.
With south east Asia in full boom mode, the diggers are back. And so are the complaints.
As Ben Bland reports in today’s FT, Vietnam last week put the finishing touches to the Bitexco tower in Ho Chi Minh city. The structure, at a mere 78-floors, fails to take on the existing regional champ in Kuala Lumpur, the Petronas Towers – a show-case for Malaysia , propelled by starring in the Catherine Zeta-Jones vehicle, ‘Entrapment’, and famous for being an icon of the Asian financial crisis (the Towers opened in 1998). The lotus-like Bitexco Tower has one extra thing going for it though – it’s got a helicopter pad.
But, local residents quip, unless the government does more to improve the crumbling infrastructure in Vietnam’s ever-more crowded cities, travelling by helicopter may soon become a necessity for executives rather than a luxury.
Vietnam has another 10 or so in the works, in Ho Chi Minh, in a new ‘business district’ in the Communist seat of power in Hanoi (thing Canary Wharf on the Red River), and in some smaller cities across the country.
Vietnam isn’t the only country searching for a symbol. Bangkok’s skyline includes a number of tall buildings – but none that has captured the world’s imagination. Although not yet signed-off, plans are afoot for the world’s largest ferris wheel – one that would dwarf London’s now-famous London Eye. The plans for a 176m high wheel have been put forward by the Bangkok Metropolitan Authority – to a mixed reaction, as the Bangkok Post notes.
Do we really need the Bangkok Eye? People’s answers may vary. Those who support the project may welcome more income from tourism. Yet the location needs to be carefully studied, in order to avoid visual pollution and cultural insensitivity.
However, many people believe the BMA should be spending their time and labour on more urgent projects. Perhaps, they need more of a “Bangkok Brain” than a Bangkok Eye.
When it comes to competitive building Indonesia is lagging, despite having recently completed the Bakrie Tower in Jakarta. At a mere 48 floors, it does little to challenge the big boys, although it is quite eye-catching. As the FT’s Anthony Deutsch notes:
There were plans to outdo Petronas, but they never saw the light of day, as with so many major projects here, like public transport. Jakarta also needs a new airport and harbour, but they are unable to draw enough investment.
Most Jakartans would be happier with a functioning railway system than a prestige tower. Jakarta’s gridlock costs more than $1.6b in annual loses and all efforts to set up public transportation have flopped.
Malaysia, not to be outdone, could well steal a match on any would-be pretenders to the throne. Plans were announced last week for a 100-storey, $1.6bn tower in downtown KL – a project that would put even the Petronas Towers in the shade (literally). The project has already been met with some disquiet, with residents – as in Bangkok – pointing out that there are far more pressing concerns in need of some capital investment.
As the FT’s Kevin Brown points out – Malaysia’s big plans are not to be taken at face value. Last week’s budget included an infrastructure spending plan topping $450bn – a figure many would say is mere fantasy.
Asia is rising, literally. But for most people left living at the bottom, there are a lot more important things than a shiny new skyscraper.
Source: blogs.ft.com
Tags: Asia, Bakrie Tower, Bitexco tower, Ho Chi Minh city, Indonesia, infrastructure, malaysia, Petronas Towers, Vietnam