Funding ASEAN booming infrastructure sector

Despite substantial investments in the region’s physical infrastructure over the last decade, there is still a huge infrastructure need for ASEAN to accommodate expected GDP growth. The diversity of ASEAN countries and the development gap between members complicate the building of regional infrastructure as they are in many cases – such as with highways, railways and power – based on national networks.

Financing infrastructure development is a challenge for the region as many of the ASEAN countries face fiscal constraints, resulting in lower public investment. The private sector has often been reluctant to participate in infrastructure investments due to unclear allocation of risk and returns. Solving these issues to increase infrastructure development is crucial for ASEAN as the lack of infrastructure could hamper long-term economic growth.

Issues discussed

1. Challenges in attracting investments to develop and finance infrastructure, particularly from the private sector.
2. Financial gaps between spending of and potential demand for infrastructure are different across the region.
3. Barriers such as the gap between infrastructure demand and supply, poor regulatory system and market issues in emerging economies and short supply of well-structured projects
4. Public sector needs to improve regulatory system and enforcement, with focus on enhancing efficiency, streamlining the process, and having rationale objectives.
5. Private sector should invest in capacity building and technology transfer especially for local experts/partners.

Sector Chair
Billy Wong, Regional Executive, Southeast Asia, AECOM Technology Corporation

Sector speakers

1. Chew Seng Kok, Managing Director, ZICO Holdings Inc
2. Mike Nikkel, Managing Director, China-ASEAN Investment Corporation Fund
3. Clive Kerner, Chief Executive Officer, Clifford Capital Pte Ltd
4. Yasushi Iwata, General Manager, Economic Research Institute for ASEAN and East Asia (ERIA)
5. Anu Sahai, Founding Director, ASEAN Private Equity& Venture Capital Association
6. Dr.Guanghua Wan, Directorm Research Asian Development Bank Institute

Research Partner
Dr. Fauziah Zen, Economist, Economic Research Institute for ASEAN and East Asia (ERIA)