INFRASTRUCTURE development would be the biggest worry and obstacle to Singapore Government's proposal to build a satellite town in Shanghai, Singaporean developers say. 'Unless the Shanghai government gets involved in developing the infrastructure for the town, [Singaporean] developers will not be willing to jump into the venture,' said Koh Gee Kum, managing director of Pisces Land. 'This is because infrastructure development entails huge investments for foreign developers.' The real estate company was one of the developers in Singapore Prime Minister Goh Chok Tong's business delegation to China. The team's visit included Chengdu, Wuhan and Shanghai. Mr Koh said the proposal for a satellite town was a good one in view of the success of the Singapore Government's Housing Development Board flats, which provide housing for the majority of Singapore's population. 'Shanghai needs a similar project. But it will be quite different, because in Singapore the government provides the infrastructure.' Mr Koh stressed that, excluding the foreign exchange factor, the rate of return on investments should range between 10 to 20 per cent to make it feasible. Another problem developers faced was inadequate information, he said. But in an attempt to improve regulations covering the market and make it more transparent, Shanghai has pledged to set up an exchange centre that would enhance dissemination of information and ensure that developers adhere to planning and sales requirements. The proposal to build a satellite town for middle-income housing for about 200,000 to 300,000 people, to be undertaken by Singaporean developers, was put forward by Mr Goh last week. He said an eight to 10 sq km site could be identified for the project, which would be complete with roads and other facilities and would tie in with Shanghai's urban redevelopment plans. Although Shanghai leaders welcomed the proposal, they said that, if implemented, their master plan for the city would have to be heavily revised.