In a recent White Paper prepared by GlobalData for INTERMAT ASEAN 2018 and Concrete Asia 2018, the region’s trade shows for construction, infrastructure, and concrete sectors, it was revealed that construction output in the member states of the Association of South-East Asian Nations (ASEAN) would expand by over 6% yearly on average during 2018–2022.
Danny Richards, GlobalData’s Lead Economist for Construction Industry says:
“The South-East Asia region continues to develop at a rapid pace, with economic growth projected to reach an annual average rate of 5.1% during 2018–2022, the fastest among all global regions, and an acceleration from the healthy rate of 4.8% recorded in the past five years. Much of this growth is being driven by investment in new infrastructure, while increasing domestic demand is driving the expansion in construction of buildings across the residential and non-residential sectors.
See Also: July architecture firm billings remain positive despite growth slowing
“Although there are disparities in the pace of growth in construction output among the ASEAN member states, the region’s construction industry as a whole will grow by 6.1% on an annual average basis in the next five years. This is marginally behind the projected growth of 6.5% in the thriving emerging markets in the Middle East and Africa, but the ASEAN region presents investors and developers with a lower level of risk of projects being put on hold or cancelled, according to GlobalData’s Construction Risk Index.
“Reforms to encourage Public Private Partnerships (PPPs) are almost universal across the ASEAN region. The Philippines, Myanmar, Laos and Vietnam have undergone reforms to create more accessible markets for private sector investment in construction through PPPs. Indonesia has undergone similar reforms, expanding the construction sectors eligible for PPPs and increasing incentives to invest. Land ownership is another area that is under reform. Once a notoriously difficult process, acquiring land in Indonesia is now much fairer and more transparent. Vietnam has also implemented an initiative in which foreign investors are allowed to acquire land and hold a majority stake in a commercial or residential project.
“According to GlobalData, the combined value of mega-projects (with a minimum value of US$25m) across ASEAN stands at US$2.9 trillion. This includes all projects from the announcement stage to execution. An analysis of the pipeline by stage reveals that the region provides huge opportunities with respect to a large volume of early stage projects. Just under US$1.5 trillion of projects are currently in the planning and pre-planning stages, suggesting significant construction spend is to occur for some time.”
Related Stories
Market Data | Aug 21, 2019
Architecture Billings Index continues its streak of soft readings
Decline in new design contracts suggests volatility in design activity to persist.
Market Data | Aug 19, 2019
Multifamily market sustains positive cycle
Year-over-year growth tops 3% for 13th month. Will the economy stifle momentum?
Market Data | Aug 16, 2019
Students say unclean restrooms impact their perception of the school
The findings are part of Bradley Corporation’s Healthy Hand Washing Survey.
Market Data | Aug 12, 2019
Mid-year economic outlook for nonresidential construction: Expansion continues, but vulnerabilities pile up
Emerging weakness in business investment has been hinting at softening outlays.
Market Data | Aug 7, 2019
National office vacancy holds steady at 9.7% in slowing but disciplined market
Average asking rental rate posts 4.2% annual growth.
Market Data | Aug 1, 2019
Nonresidential construction spending slows in June, remains elevated
Among the 16 nonresidential construction spending categories tracked by the Census Bureau, seven experienced increases in monthly spending.
Market Data | Jul 31, 2019
For the second quarter of 2019, the U.S. hotel construction pipeline continued its year-over-year growth spurt
The growth spurt continued even as business investment declined for the first time since 2016.
Market Data | Jul 23, 2019
Despite signals of impending declines, continued growth in nonresidential construction is expected through 2020
AIA’s latest Consensus Construction Forecast predicts growth.
Market Data | Jul 20, 2019
Construction costs continued to rise in second quarter
Labor availability is a big factor in that inflation, according to Rider Levett Bucknall report.
Market Data | Jul 18, 2019
Construction contractors remain confident as summer begins
Contractors were slightly less upbeat regarding profit margins and staffing levels compared to April.