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ARTICLE · 01 JUNE 2015

Opportunities and challenges for infrastructure investment in Asia

Infrastructure investors should monitor political, regulatory and other risks and opportunities before making decisions.

ChinaStrategy

This article was written by Susan Hilliard (Partner, Sydney) and John Sullivan (Partner, Singapore)1

Introduction

The combination of the two largest developing economies (China and India) in the world with other developing countries, as well as other established developed countries, makes Asia one of the leading areas for infrastructure investment over the next decade (2015 to 2025).

The Asian Development Bank estimates the demand at USD730 billion each year for the next decade.2 In South East Asia alone an estimated $2.5 trillion in investment will be needed over the next ten years, with one third to be spent on transport, one third on electricity, and the remainder on water supply and sanitation, solid waste management, telecommunications and irrigation. 3 The appetite for infrastructure makes Asia a key region for infrastructure investors – offering significant opportunities for growth over the short, long and medium terms.

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