Our thinking

Cutting through the noise: Infrastructure in Asia-Pacific 2019

What's inside

From rural farmlands to modern megacities, the complex and diverse Asia-Pacific infrastructure sector continues to attract international investment. Our survey shows investors are very positive about future opportunities and analyses the countries and sectors attracting this optimism.

Executive summary

The Asia-Pacific infrastructure market is open for business and opportunities abound. However, as our exclusive survey reveals, the prevailing wisdom on sentiment, regions and sectors may be wide of the mark.

Asia-Pacific (APAC) is one of the most dynamic regions on the planet and its need for infrastructure investment is acute. The Asian Development Bank (ADB) estimates that the region needs US$1.7 trillion of infrastructure investment by 2030 to keep pace with climate change and economic growth.

With these sentiments in mind, White & Case, in association with Inframation Group, set out to investigate the prospects for infrastructure investment across the APAC region. We interviewed 100 global senior executives from institutional investment firms, private equity houses and investment banks to gauge their views on the current infrastructure investment opportunities.


In Q4 2018, White & Case, in partnership with Inframation Group, surveyed 100 senior-level direct equity investors and financial services firms who had developed, funded or invested in at least one APAC infrastructure project in the past 12 months, with a value in excess of US$100 million.

Respondent firms include investment funds, sponsors and developers, pension funds, sovereign wealth funds, investment banks and financial institutions. Of those surveyed, 50 respondents were based in APAC, 25 were based in EMEA and 25 were based in the Americas.

The survey included a combination of qualitative and quantitative questions, and all interviews were conducted over the telephone by appointment. Results were analysed and collated by Inframation Group, and all responses are anonymised and presented in aggregate.

The research has proven to be illuminating, as a number of the findings have gone against the grain of current popular thought. Among other key findings, several intriguing themes have emerged:

Regional positivity trumps global uncertainty

Despite the infrastructure gap, the threat of trade wars and global political instability, the outlook from respondents is overwhelmingly positive—88 per cent of firms are expanding their teams in the region in 2019. Nobody is predicting any contraction.

Roads lead the way

If 2018 was the year for investment in renewable energy, then 2019 appears to be the one for transportation—in particular, roads. In spite of the clamour around other infrastructure sectors, roads are seen as the key infrastructure sector destination—67 per cent are planning to invest in the sector.

Stable income beats risky returns

Respondents’ choices for top investment destinations cut through recent noise about the rise of some developing APAC countries. According to our survey, investors will be concentrating their activity on larger, more stable countries such as Australia, India and Singapore. APAC countries with perceived higher political/systemic risk such as Sri Lanka, Pakistan and Vietnam appear to have drifted down the priority list as investment destinations for many investors.

Opportunity knocks

Above all, investors see APAC as a land of opportunity. Indeed, when asked about the greatest benefits to investing in the region, opportunity crops up in a number of different guises. Over half see a ’wealth of opportunity‘; more than a third envisage ’development of knock-on/secondary opportunities’, and a third are looking forward to the ’consolidation of related opportunities‘.

The research also addresses barriers to investment such as political risk, issues with public private partnerships (PPP) and the threat of trade wars but, overall, the general feeling among respondents is that the significant benefits on offer outweigh any challenges. As the director of M&A from a sponsor in Japan says: ’There is plenty of room for growth, development and advancement. There is a complete mismatch in the current infrastructure and the actual need based on the growth these markets are having. The opportunities in these markets are significant.’


Paul Harrison
Partner, Tokyo

Matthew Osborne
Partner, Singapore

Adeline Pang
Partner, Melbourne

Josh Sgro
Partner, Melbourne

Video: Cutting through the noise: Infrastructure in Asia-Pac

Partners Adeline Pang and Josh Sgro discuss the outlook for infrastructure in Asia-Pacific based on the survey of 100 decision makers in the market.

View this video on its own page

Cutting through the noise

The overwhelming majority of respondents see a multiplicity of opportunities in a variety of sectors and regions. However, our survey reveals that the ‘noise’ around some investment locations may be just that—noise.

Sector watch

While investors are looking at a variety of sectors in the region, our survey reveals that roads are the top priority, while both conventional and renewable energy are still very much on the radar.

Risky business

The rewards for infrastructure investors in APAC can be lucrative, but the region is not without its risks—particularly political ones.

Fundraising: Public and private

There has been a growth in the number of funds targeting the APAC infrastructure market as investors seek out greater returns. Meanwhile, public-private partnerships are likely to increase if they can overcome several systemic barriers.

The outlook for Asia-Pacific infrastructure

Risks may persist around infrastructure investment in APAC, but the overall outlook is very positive.

The outlook for Asia-Pacific infrastructure

The outlook for Asia-Pacific infrastructure

Risks may persist around infrastructure investment in APAC, but the overall outlook is very positive

3 min read

APAC governments are planning to increase infrastructure financing and development by easing regulations for private and foreign investor participation

While there are certain political and economic caveats, respondents are clearly looking east for growth and returns. Below are five key points that commentators feel will have a major influence on the APAC infrastructure market in 2019 and beyond:

1. A growing market

Our survey revealed that road transportation is looking very promising as a sector as countries develop. But overall, the sheer number and diversity of major projects listed by respondents can be seen to reflect a general excitement for APAC infrastructure— and countries’ ambitions—not to mention the great number of different countries that are viewed as attractive in the coming years.


2. Looking long term

Given current global macroeconomic and political volatility, it is hardly surprising that the majority of respondents are looking at larger, more ‘stable’ economies such as Australia, Singapore and India in 2019. However, countries such as Indonesia, Malaysia, Thailand and the Philippines also feature prominently, and it is likely because investors see the long-term benefits on offer. Indeed, when asked about the benefits of investing in Asian economies, the strength of long-term investment return came out as the top answer.


3. Renewables refreshed

The renewable energy market is showing sustained growth. Technical risks and costs have reduced as the volume of projects builds beyond the first generation of offshore wind projects. Political risk still exists—changes in governments and policies on green energy can cause short-term setbacks—but a changing climate and demand for sustainable energy mean that renewables projects are set to grow.


4. Investment incoming

Barring major macroeconomic shocks, which are always a risk for government-backed infrastructure programmes, more market reform will allow investors access to a wider portfolio of projects. Variation in definitions notwithstanding, PPPs formed and executed well will bring benefits for public and private sectors. ‘APAC governments are planning to increase infrastructure financing and development by easing regulations for private and foreign investor participation’, says the managing director of an investment fund in Hong Kong.


5. Tech takes control

All the infrastructure sectors outlined in the report rely heavily on technology and this dependence is only going to grow in the coming years.

The managing director of an investment fund in Canada says: ’I feel technology will play a significant role in infrastructure development in 2019 and beyond. Technology disruption and the use of machine learning, robotics and AI will be centre stage and will completely alter the way infrastructure development happens in the future’.

However, investors shouldn’t just see technology as a disruptive force but an enabling one allowing major projects to be completed more safely, quickly and efficiently.



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