Get Ready for the Southeast Asian Infrastructure Boom
- Big spending jump in Thailand, Philippines: Capital Economics
- Old Mutual, Maybank Kim Eng, BDO Unibank and others share tips
A Hitachi Construction Machinery Co. excavator moves stones at a coastal wall in the Isla Verde shantytown of Davao, Mindanao, the Philippines, on Friday, Dec. 11, 2015. Davao city's reputation as one of the safest, most vibrant and best-run cities in the country is drawing migrants and business people in their thousands. It has become a victim of its own success, and an archetype of modern urbanization in developing countries, where inward migration is outstripping governments' ability to supply infrastructure and services.
Photographer: Veejay Villafranca/BloombergManila’s Metro Pacific Investments Corp., Indonesia’s PT Krakatau Steel and Airports of Thailand Pcl are among the top investor picks as Southeast Asian governments embark on programs to boost roads, rail, ports and power plants.
Philippine President Rodrigo Duterte is promising 8 trillion pesos ($160 billion) of spending over his six-year term, while Thailand’s military-led government plans to list an infrastructure fund on the stock exchange in March. Indonesia has set aside almost 10 percent more to spend on projects this year and Malaysia is pushing ahead with plans including a high-speed rail line from Kuala Lumpur to Singapore.