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ASEAN Infrastructure Market Profile

Executive Summary

The Association of Southeast Asian Nations (ASEAN) has an estimated total population of 605 million people and an estimated total GDP of US $2.21trillion. It is made up of 10 member states: Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam. ASEAN is one of the world’s fastest growing economic regions and is quickly becoming the free trade hub of Asia, having concluded free trade agreements with China, India, Japan, Korea, and Australia/New Zealand, as well as a Trade and Investment Framework Arrangement with the United States. The ASEAN-China FTA, which came into force in 2010, represents one of the largest free-trade zones in the world, with an estimated 2.0 billion consumers. ASEAN is working toward the ASEAN Economic Community (AEC) by 2015, which would harmonize trade laws and permit the free movement of goods, services, labour, and capital.

ASEAN countries have significant, but varying, infrastructure development needs.

Brunei is prioritizing infrastructure investment as part of an overall policy direction to support economic growth through foreign direct investment (Brunei Vision 2035). The country has launched infrastructure projects worth CAD 84 million with a focus on roadways and water treatment. Other priority projects in the pipeline include a waste management project and modernization of the Brunei International Airport Terminal.

Burma’s nearest term opportunities are in the area of airports and seaports. Due to its strategic location, over the longer term, Burma is likely to become a rail transport hub between the Indian Subcontinent, China, and Southeast Asia. Transportation infrastructure is primarily the domain of state-owned agencies with limited private sector activity.

Cambodia’s national strategy for growth prioritizes the rehabilitation and reconstruction of a multimodal transport network connecting all parts of the country and neighboring countries, potentially leading to opportunities related to seaports and dry ports.

Indonesia has announced CAD90+ billion in infrastructure funding for 2010–2014, CAD41 billion of which is expected to be provided by the private sector. Opportunities exist related to: airports, seaports, rail, roadways and water/wastewater treatment, attracting the interest of players across Asia. The Indonesian government has put emphasis on Public-Private Partnerships (PPP) as a mechanism to leverage private investment.

Malaysia presents opportunities in the areas of roadworks, sea ports, airstrips and water/wastewater management. Tenders are almost exclusively awarded to Malaysian companies – foreign expertise is incorporated by way of sub-contract or joint venture arrangements.

The Philippines is pursuing an aggressive PPP strategy with a short term emphasis on airports, roadworks and light rail and in the longer term, seaports. Opportunities also exist in the area of water and wastewater treatment. Private sector involvement in infrastructure operation and management is high in the Philippines relative to the rest of ASEAN.

Singapore boasts one of the most developed infrastructures in ASEAN and is comparable to other first world economies. Opportunities exist in the areas of water/wastewater and improvement to the country’s MRT. There are no restrictions on foreign and/or private sector involvement in infrastructure, making Singapore a common hub for foreign companies active in the region.

Thailand has an estimated 55 infrastructure projects worth CAD76.97 billion to be executed by 2020. Of these projects, 31 are railway lines (including four high speed railways), 13 road projects, seven water transport projects and four air transport projects.


For a full copy of the market profile, please contact the ASEAN Infrastructure team leader, Dodjie Fabian (dodjie.fabian@international.gc.ca).



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