Due to their economic takeoff and the rapid pace of urbanization, Southeast Asian developing cities like Hanoi, Ho Chi Minh City, Phnom Penh, and Vientiane saw the number of private vehicles – first motorcycles and then cars – on their streets increasing tremendously. Thus, now they face severe traffic congestion. To address this critical issue, local governments often apply two main remedies. On the one hand, they build new roads, which satisfies the emerging middle class which can afford to buy cars, without seriously taking into account the negative environmental impacts. On the other hand, they try to modernize public transit networks, especially by constructing mass rapid transit systems that operate metros, buses, or light-rail trains on exclusive rights-of-way. But the development of these infrastructures is impeded by a serious lack of financial resources. In general, international development banks and agencies provide grants and loans to fund these costly megaprojects. Partnerships between public and private sectors are also seen as an option to build and operate these facilities. However, few cities seek a self-sufficient financing approach to establish and run a modern public transit network.

In terms of planning, financing, building, and operating an urban rail system, with its integrated “Rail plus Property” (R+P) model, Hong Kong is frequently seen as an example in Asia. The model is based on a “value capture” scheme, in which the Hong Kong government provides land rights to the railway operator, the Mass Transit Railway Corporation (MTRC).