Asia Construction Outlook

ASIA
CONSTRUCTION
OUTLOOK 2014
CONSTRUCTION
OUTLOOK
About AECOM
AECOM is a global provider of professional technical and management support
services to a broad range of markets, including transportation, facilities,
environmental, energy, water and government. With approximately 45,000 employees
around the world, AECOM is a leader in all of the key markets that it serves.
AECOM provides a blend of global reach, local knowledge, innovation and technical
excellence in delivering solutions that create, enhance and sustain the worlds built,
natural and social environments. A Fortune 500 company, AECOM serves clients in
more than 150 countries and has annual revenue in excess of $8.0 billion.
More information on AECOM and its services can be found at www.aecom.com.
Foreword
Welcome to the second edition of Asia Construction Outlook,
following the successful launch of this publication in August 2013 by
AECOM and Davis Langdon KPK, an AECOM company.
This edition is based on a market sentiment survey across the Asia
region in countries where AECOM is involved in various kinds of
projects to create, enhance and sustain the worlds built, natural
and social environments. We engaged our Asia construction experts
to share their understanding of the markets. The results provide
very valuable information on the most important future trends in
construction activities over the near, medium and long-term.
The survey was conducted in January 2014 based on 68
respondents from nine countries. It suggests that respondents
remain convinced Asia as one of the worlds leading construction
markets although sentiment was slightly less optimistic about
the near-term future compared to the results from our first survey
conducted in May 2013.
Therefore, as markets change pressures mount on project financial
viability due to higher costs and lower margins, innovation in
procurement such as the Integrated Project Delivery process
should be considered. This coupled with the principles of Lean
construction would seek to deliver maximum value to the owner,
reduce waste and maximize efficiency through all phases of design
and construction.
I hope you find this edition of Asia Construction Outlook as
interesting and informative as our inaugural publication and I would
welcome your feedback to allow us to continually improve this
thought leadership publication.
Dato Sri Kandan
Chairman
Davis Langdon KPK, an AECOM Company
Cover: Second Penang Bridge, Malaysia
Executive Summary
Introduction
Asia Overview
Construction Market Overview
Our Experts View
12
5.1 Long-term Outlook for Asia
14
5.2 Near-term Outlook for Asia
14
5.3 Sub-sector Performance
18
5.4 Medium-term Outlook for Asia
20
Asia Outlook 22
Executive Summary
For most developed cities in China (Beijing,
Shanghai, Hong Kong, etc.), the competition
between construction firms is quite intense
and therefore, potential profitability has
been reduced in these locations.
In this second edition of the Asia Construction

Outlook, we highlight the key opportunities, trends
and challenges in the Asia construction market.
Our most recent review shows a slowing but still
strong Asian construction market. During 2013,
construction spending in the larger economies grew
approximately six percent on average, marginally
less than 2012.
The double-digit growth rates of the recent past
appear to be a distant memory, although when
compared to construction growth rates achieved
in the rest of the world, Asian growth continues to
be impressive. Furthermore, as Asian countries
continue to develop and more built assets are
in place, it is to be expected that construction
growth rates will start to diminish. However, some
governments in Asia are implementing further
stimulus packages in an effort to boost
construction spending going forward, in particular
infrastructure spending.
Our review highlights that, over the longer term, the
strongest construction spending growth will be in
Asia Construction Outlook
China, India, Vietnam and Indonesia through to the

end of the decade, while the near-term focus is on
Indonesia and China. In addition, special mention
should be made of the growth potential in the
Philippines, where re-construction efforts following
the typhoon in 2013 are gathering pace, and
Myanmar where, according to our experts, future
prospects look bright.
However, there is an increasing downside risk
shown in our forecasts based on the level of credit
availability in the region. In China, particularly, debt
levels are unprecedented and the risk of a serious
downturn due to credit withdrawal is growing.
If growth in China was to stall, there would likely
be serious implications for both the regional and
global economies.
Overall, our review suggests that the growth
prospects, profitability, openness and
attractiveness of construction markets in Asia
are slightly less optimistic when compared to the
results from our previous publication in May 2013.
Although, despite this, the future prospects still
appear broadly positive in most locations.
Infrastructure development in India is mostly in

the hands of the federal government and since
elections are proposed to be held by May/June 2014
and the new government will take some time to
settle, there is likely to be slow progress on major
infrastructure developments until well into 2015.
Introduction
This paper provides an overview of the construction
market in Asia at the beginning of 2014. It reviews
industry activity levels in 2013 and provides nearand longer-term forecasts for construction activity
by region, country and city. The findings are based
on analysis of sector statistics combined with the
results of an in-house market sentiment survey.
All data throughout this document are expressed in
US dollars ($)
- Market size US $billion at constant 2010 prices
- Market growth Percent per annum (average
annual growth rates)
AECOM and Davis Langdon KPK, an AECOM
company, undertake a construction market
sentiment survey in Asia twice a year. We send
questionnaires to our construction experts across
the region and the results provide very valuable
information on the most important future trends in
construction activity over the short, medium and
longer term.
Opinion surveys offer essential insights into
economic activity and when repeated regularly,
they can provide an in-depth understanding of the
direction in which markets are moving.
Here, we look at the results of our January 2014
survey, based on 68 respondents from nine
Asian countries.
Hyderabad Metro, India
This change of focus coupled with growing doubts

regarding credit availability is becoming a deterrent
to foreign direct investment in the region.
Asia Overview
During 2013, numerous economic indicators
suggested signs of a global recovery. At the same
time, Asia which was not greatly affected by the
recession started to move toward a more consumerdriven economy, and away from the export-driven
that facilitated the rapid economic growth of the
previous two decades.
Economic growth in Asia has slowed down as a

result of the growing consumer spending. The
ability to manage the restructuring process toward
a consumer-driven economy will be a crucial
determinant for the future success of many Asian
economies. There is also increasing competition
from other emerging regions, (Africa, Latin America
and the Middle East) which are all expected to grow
at healthy rates over the next few years.
Overall, while Asias pace of economic growth is

expected to stabilize in the medium term, the region
is likely to maintain its position as global growth
leader for some time. To accommodate the shift in
emphasis toward domestic demand, construction
spending in Asia is expected to increase in both
residential and infrastructure sectors going
forward. In the sections that follow, we examine the
outlook for the construction market in the region.
Construction
Market Overview
During 2013, the global construction market
showed signs of a recovery for the first time
since the financial crisis began. As in 2012, global
construction spending growth was driven by the
Asian market which outperformed every other
region, although growth rates in 2013 were slightly
reduced when compared with 2012.
Construction spending in Asia accounted for

44 percent of total global construction spending
in 2013, an increase of four percent from 2012.
Examining construction spending in individual
countries (Figure 4.1) shows that China was the
largest market followed by Japan, India, Indonesia
and Korea. Construction spending in China was
almost US$1.8 trillion in 2013, making it the largest
market in the world and more than US$1 trillion
larger than the markets in both the United States
and Japan. Since our last publication, construction
spending in Indonesia has overtaken Korea,
making it the fourth largest construction market
in Asia in 2013.
Despite the slowdown, future growth prospects are

still promising (Figure 4.2). Construction spending is
forecast to grow at rates above the regional average
of 4.4 percent in China, India, Vietnam, Bangladesh,
Indonesia and Thailand over the next five years.
China, India and Indonesia all stand out based on
market size combined with future growth prospects.
Figure 4.3 highlights the importance of the
infrastructure sector, which accounted for 37
percent of total construction spending in Asia in
2013. Of most interest here is the relative share
of residential construction spending which has
increased from 31 percent in 2012 to 34 percent in
2013, largely at the expense of spending on nonresidential structures.
Figure 4.1: Construction spending by country 2013 (US$)
1.78
427
$17bn
Taiwan
$42bn
742
billion
3.5%
.4%
6
Bangladesh
7%
The Philippines
$25 bn
2.4%
Japan
%
Strongly
Agree
2.7
Disagree
Agree
Not Sure
Strongly Disagree
2.6%
Taiwan
.8%
3%
Vietnam
4.2%
Malaysia
The Philippines
2.9%
Singapore
3.8%
Indonesia
Korea
Hong Kong
Thailand
India
Singapore
Indonesia
5.2%
Source: IHS Global Insight (2013)
Asia Construction Outlook Construction Market Overview
Pakistan
4.5%
$267bn
10
2013
China
$16 bn
Malaysia
$ 24bn
Vietnam
billion
37%
154 bn
Hong Kong
$33bn
34%
Infrastructure
Korea
Thailand
$32bn
Residential
Pakistan
India
Asia
.3%
Japan
$ 24 bn
29%
trillion
China
Bangladesh
Malaysia continues to see

strong growth especially in
infrastructure as the projects
related to the governments
economic transformation program
2014
are implemented.
Indonesia
continues to have huge potential
although there may well be a
short-term slowdown due to
the forthcoming presidential
elections. More uncertainties
exist in other Southeast Asian
countries although there could
be significant opportunities
in Myanmar as the country
continues to become more open.
Non-residential
Figure 4.2: Construction spending growth 2014-19 (%per annum)
$8.4 bn
Figure 4.3: Share of construction spending by sector 2013 (%)
Asia Construction Outlook Construction Market Overview
11
Our Experts View

Below we examine the outlook for construction in
Asia based on the results of our most recent opinion
survey. We start by briefly assessing broad longterm trends for the region and then we consider any
changes in sentiment regarding short-term trends
before focusing on medium-term trends by country
and metropolitan area.
12
46
46%
34%
34%
2013
Increasing
Increasing
Figure 5.4
.1 Long-term Outlook for Asia
Strongly Agree
.2 Near-term Outlook for Asia
Agree
The survey respondents generally support the

Disagree
Our experts highlighted a number of construction
Strongly Agree
view that looking ahead by around ten years, the
trends they expect to see in the next 12 months.
Disagree
prospects for both the size and growth of the Asian
Figure 5.2
construction market are positive, with 92 percent
Figure 5.2: The size of the construction market in Asia
in agreement. However, when compared to the last
time the survey was conducted, respondents have
2013
2014
become slightly more pessimistic (97 percent were
Decreasing
in agreement in May 2013).
Figure 5.2
%
%
Figure 5.2
Figure 5.1: The Asian construction market will remain large

and it will continue growing at a healthy rate
2014
2013
Unchanged
2013
2014
2014
%
22%
Decreasing 38
%
%
12
5 Increasing
5% 12 %
Unchanged
50% 2014
Unchanged
Decreasing
%
%
22
38
22
38%
5%% 12 %
Decreasing
Figure 5.2
2013
73%
2014
2014
Strongly Disagree
Increasingthat respondents
The survey results suggest
Figure
5.3
Increasing
Unchanged
are slightly less optimistic about the near-term
%
50%%to the %
73
future for%construction
in Asia, compared
%
22
38
73
results from our sentiment survey conducted50
in
2013
2014
2014
Decreasing
May 2013. Our respondents
opinion suggests that
Increasing
the growth prospects, profitability, openness and
%
%
Figure
5.3
% over
attractiveness
%
Figure
5.3 of construction markets in Asia
the next 12 months are slightly more negative when
Unchanged
compared to the results from nine months ago.
2013
2014
%
Decreasing
2013 %
2014
20
73
2013
46
20 50
58
Figure
5.3 The profitability of Decreasing
Figure 5.3:
the construction market
20 Increasing
20
20%
20%
2013
2014
21%
34% Unchanged
Decreasing
Unchanged
%
46% 20
% 58
%%
20
58%
Figure 5.4 46
in Asia
2013
2013
2013
Strongly Agree
Agree
Disagree
Strongly Disagree
Not Sure
Strongly Agree
Agree
Not Sure
Strongly Agree
Agree
Not Sure
Disagree
Strongly Disagree
Disagree
Strongly Disagree
Strongly Agree
Agree
Disagree
Strongly Disagree
Not Sure
Asia Construction Outlook Our Experts View
Increasing
Unchanged
Increasing
21
%
34
46
21%582014
34% Decreasing
%
Figure 5.4
2%
2Increasing
Figure 5.4 %
%
34
Unchanged 21
%
%
2013
2013
49
2013
Figure
5.4
2013 49%
49%
Figure 5.5
14
49%
49
49 49%
%%
2013
2014
%
62
Decreasing
Decreasing
%
%Increasing
2014
2% %
2 2 % 2014
Unchanged
36
Decreasing
Unchanged
62% %
2% 2%
62
Increasing
Unchanged
Increasing
36
Increasing
Decreasing
62
36
2014
%
%
Figure 5.10
2013
76%
76%
Figure 5.6:
Figure
5.6 The size of the construction market by country,
January 2014 Figure 5.12
2013
China
Decreasing
2014
%
2%
2Decreasing
%
2%
2Unchanged
2014
Unchanged
62
49%
Figure 5.10
%
62%
15% 49 22 % Increasing
Figure 5.10
Increasing
Structures
49%
36%
2013
2014
Residential
%
2013
2014
%
36%
12% 493Residential
Figure 5.10
15%Infrastructure
22 % %
%
155.5:
22
Figure
Figure
5.5 The attractiveness of the construction market
Structures
%
in Asia to foreign suppliers
%
2013
2014
75
Structures
73
Residential
% 5.5 %
Figure
122013 3
2014
3%% Decreasing
15% 12% 22
Infrastructure
2013
2014
%
%
Decreasing
Infrastructure
Structures
10
8
Figure
5.11
%
75
73% %
8% 75%
73 12% 3% 10%Unchanged
2013
2014
Infrastructure
42%
37% Unchanged
Residential
%%
%
%
Figure
42%
Increasing
37
75
73%5.11
17
15
Figure 5.11
Increasing
Structures
49%
53%
2013
2014
%53%%
49%
2013
2014
7Residential
3Residential
Figure 5.11
For the immediate
% future of the construction market
17by%Infrastructure
15experts
country,
% our
17
15%forecast the following shortterm
trends.
Structures
2013 76%
82% 2014
Residential
Structures
Market
growth
7%%survey
3%%results
17The
153%%suggest that the Philippines,
7
Indonesia and Malaysia are at the forefront of
%
Infrastructure
76
2013
Structures
respondents
views regarding market growth in
Infrastructure
%months. However, if we
the %
region over
the next 12
%
%
compare
current results with the%outcome of the
previous survey, respondents have become more
Infrastructure
2014market growth
pessimistic regarding near-term
Residential
prospects in:
%
%
%
India
76 7
76%
82%
82%
Infrastructure
Asia to foreign suppliers of construction services 2014

2013
Residential
Figure 5.12 %
7%Structures
3%
%
7Infrastructure
3%
21%
21%
Figure
5.4 The openness of the construction market in
Figure 5.4:
Not Sure
Agree
Strongly Disagree
Not Sure
12
58
58%
Unchanged
82
Figure 5.12
10
Figure 5.12 Singapore
19
82
Figure 5.12
2013
2013
Hong Kong
India
201
10%Residential 19%
10%Structures 19%
17% Structures9%
9%
17%Infrastructure
73%
73%
Indonesia
201
Residential
72%
72%
Infrastructure
Malaysia
The Philippines
Singapore
Thailand
Vietnam
0%
20%
Increasing
40%
Unchanged
60%
80%
100%
Decreasing
82
Structures
2013
Figure2013
5.12
2013
73%
Thailand
%
%
Residential
9
17
Residential
%
10%Infrastructure
% 19
10
19%
Structures
Residential
Structures
%
%%
%
1710
% 9 19 %
9
17
Infrastructure
Structures
Infrastructure
2014
2014
%
2014
72
15
Market profitability
The results of our survey indicate that the
Philippines stands out as a market expected to
experience increasing profitability in the region
over the next 12 months, most likely linked to
the predicted demand increase. If we compare
the results from the 2014 survey with those from
the 2013 survey, respondents have become more
pessimistic regarding profitability prospects in:
Market openness to foreign suppliers

It is suggested that Vietnam and Indonesia are
expected to exhibit increasing market openness
over the next 12 months. Comparison of the 2014
survey results with those from the 2013 survey
indicate that respondents views have become
more pessimistic regarding near-term market
openness in:
Indonesia
Singapore
Market attractiveness
The survey results indicate that Indonesia,
Thailand and Malaysia stand out as countries
which respondents expect to become increasingly
attractive to foreign suppliers of construction
services in the next 12 months. However, comparing
of the construction market by

Figure Figure
5.7
Figure5.7:
5.7The profitability
Figure 5.7
country, January 2014
Figure
5.8:
The openness
of Figure
the construction
market by
Figure
5.8
Figure
5.8
5.8
country, January 2014
Figure 5.9: The attractiveness of the construction market to

foreign suppliers by country, January 2014
China
China
China
China
Hong Kong
Thailand
And more optimistic regarding near-term market

openness in:
China
India
China
China
Hong Kong
Hong Kong
Hong Kong
Hong Kong
Hong Kong
Hong Kong
India
India
India
India
India
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
MalaysiaMalaysia
Malaysia
MalaysiaMalaysia
Malaysia
MalaysiaMalaysia
Malaysia
The Philippines
The Philippines
The Philippines
The Philippines
The Philippines
The Philippines
The Philippines
The Philippines
The Philippines
Singapore
Singapore
Singapore
Singapore
Singapore
Singapore
Singapore
Singapore
Singapore
ThailandThailand
Thailand
ThailandThailand
Thailand
ThailandThailand
Thailand
Vietnam Vietnam
Vietnam
Vietnam Vietnam
Vietnam
Vietnam Vietnam
Vietnam
Hong Kong
Hong Kong
India
0%
80%
India
100%
0%20%
40% 0% 40%
60% 20%60%80% 40%80%
100%60%100%
20%
Increasing
Increasing
Increasing
Unchanged
Unchanged
Unchanged
Decreasing
Decreasing
16
Decreasing
0%
80%
China
India
100%
0%20%
40% 0% 40%
60% 20%60%80% 40%80%
100%60%100%
20%
Increasing
Increasing
Increasing
Unchanged
Unchanged
Unchanged
Decreasing
Decreasing
Decreasing
0%
80%
China
China
India
100%
0%20%
40% 0% 40%
60% 20%60%80% 40%80%
100%60%100%
20%
Increasing
Increasing
Increasing
Unchanged
Unchanged
Unchanged
Decreasing
Decreasing
80%
the 2014 survey results with those from the 2013

survey indicate that respondents views have
become more pessimistic regarding near-term
market attractiveness in:
India
Singapore
A finding which supports the results related to
market openness and the more general negative
sentiment regarding future prospects in India.
The construction market

in Indonesia is facing
uncertainty in 2014 due to
the presidential election.
Some developments will
be held back until the
election is over when there
is more certainty. There
is also concern with the
unfavourable economic
situation due to high
inflation and weakening
of the Rupiah. This will
continue to push up
construction costs. There
are also potential capacity
issues which may force
the postponement of
some projects.
100%
Decreasing
17
ure 5.3
Figure 5.11
13
2014
Decreasing
20%
2013
20%
17%
Unchanged
.3 Sub-sector Performance
58
46
%
%Regarding sub-sector performance
over the next
12 months, respondents expectations are broadly
similar toIncreasing
results from the previous survey. The
infrastructure
sector in%Asia is expected to be the
%
fastest growing, most profitable and most open to
foreign suppliers over the near-term, although the
relative position of the residential sector
has improved.
21
34
ure 5.4
In terms of market growth and openness,

2014
respondents
are more optimistic regarding future
Decreasing
Figure 5.10
prospects in the residential sector in Asia when
%
%
compared to the previous survey results.
13
Figure
2013 5.10
2014
Unchanged
49
Residential
Figure 5.10: The fastest growing
sub-sector in Asia
%
15 Residential6222 %
%
2013
Increasing
49
73%
Infrastructure
However, respondents views regarding sub-sector

profitability and openness by country remain largely
unchanged from the previous survey.
Figure 5.12
Figure 5.12: The most open sub-sector in Asia to foreign suppliers
2013
Figure 5.11
75%
10
75%
2014
Figure 5.11:
% The most
%profitable sub-sector in Asia
Figure
2013 5.11
Unchanged
2014
Residential
42%15%
17% Residential
%
372013
Increasing
2014
Structures
17% % %%15%
49
7 Structures
3
53
Infrastructure
76%
7% 3%
Infrastructure
82%
82%
76%
Figure 5.12
Figure
2013 5.12
2013
18
2014
Residential
10%Residential 19%
10
17%
Structures
19

% Our Experts View
%
2014
Residential
10%
19%
Structures
9%
Infrastructure
Infrastructure
Decreasing
82
76
17%
3%
73%
13
China from structures to residential

%
%
Hong Kong from infrastructure to residential
2014
Infrastructure
ure 5.5
The Philippines from residential to infrastructure
Structures
12%
15%
In terms of changes atStructures

the country level, our experts
suggest that sub-sector growth prospects have
%
%
shifted in:
15%% % % 22 %
36 3
12 Structures
2014
Residential
73%
72%
Thailand has several large

infrastructure projects in the
pipeline. However, the current
political situation has put a
dampener on the works. Even with
the forming of a new government,
this is not expected to completely
resolve the situation in the nearterm and this is likely to impact
investor confidence going forward.
The residential market has cooled
somewhat due to rising prices
and the supply of good quality
contractors and services remains
tight and has caused prices to
increase significantly.
Sports Hub, Singapore
2014
19
.4 Medium-term Outlook for Asia

For the medium term, our experts highlighted a
number of construction trends they expect to see in
the next three years.
Regarding perceived profitability, China

is still the top rated country, followed by Indonesia
and Malaysia. When compared to the results from
the previous survey, most countries exhibit a
positive trend.
At the city or metropolitan level, Jakarta is the top

rated city in terms of market growth prospects (by
a considerable distance), followed by Kuala Lumpur
and Shanghai. In terms of perceived profitability,
Singapore is the top rated city followed by Jakarta.
At the country level, Indonesia is the top rated

country followed by China confirming the results
from the previous survey. Indonesia scores
particularly well in terms of market growth
prospects over the next three years.
However, of particular note, this time around is the

relative position of India, with respondents having
become more pessimistic regarding both growth and
profitability prospects in India over the medium-term.
In summary, the latest survey results confirm and

support the previous surveys findings with regard
to the relative position of both Indonesia and more
Figure 5.13: The country with the fastest growing construction market in Asia
specifically, Jakarta, with both being at the forefront

of survey respondents opinions/sentiment in the
medium-term. The relative position of India is also
declining, in terms of respondents perceptions,
both in growth and profitability expectations. The
relative position of Myanmar is also worthy of note
with respondents perceptions showing a broadly
positive trend in terms of market growth and
profitability expectations over the medium term.
Figure 5.15: The city or metropolitan region with the fastest growing construction market in Asia
Rank: 1
4Rank:
5 1 6 2 7 3
Change since last survey:

Change
Increase
since last survey:
No change
Increase
No change = Decrease
= Decrease
Rank: 1
4Rank:
5 1 6 2 7 3

Change
Increase
since last survey:
No change
Increase
= Decrease
Rank: 1
4Rank:
5 1 6 2 7 3

Change
Increase
since last survey:
No change
Increase
= Decrease
Rank: 1
4Rank:
5 1 6 2 7 3

Change
Increase
since last survey:
No change
Increase
= Decrease
2
2
2
2
3
India
3
India
1
1
Indonesia
1
1
2
2
=
Indonesia
2
2
Yangoon
1
1
Yangoon
1
1
Kuala Lumpur
Kuala=Lumpur
Kuala Lumpur
Kuala=Lumpur
=
Jakarta
Jakarta
Jakarta
Indonesia
Mumbai
3
3
Mumbai
2
2
Shanghai
Shanghai
3
Delhi
3 3 Shanghai 3 Shanghai
Delhi
Kong
Hong Kong
3 3 Delhi Hong
3
3 Yangoon
3
MumbaiYangoon Hong
Kong
Hong Kong
33
3
Mumbai
China
4 China
4 China
3 Myanmar
Myanmar
India
4
4
4
34
Myanmar
Myanmar
Vietnam
Vietnam
India
4
4
Vietnam
Vietnam
3
3
Malaysia
Malaysia
3
3
5 Malaysia
5 =Malaysia
Singapore
Singapore
5
5=
Indonesia
Singapore
Singapore
3
Delhi
3
China
2
2
Jakarta
Figure
in Asia
Change
since last survey:
Change
Increase
since last survey:
No change
Increase
No change = Decrease Rank: 1
4 profitable
5
6 7 construction market
Rank: 15.14:
2 The
3 country
4Rank:
5 1with
6 2 the
7 3 most
= Decrease
Figure
region with the
most
profitable
construction
in
Asia
Change
since
last survey:
Change
Increase
since lastmarket
survey:
No change
Increase
4Rank:
5 1 5.16:The
6 2 7 3 city
4 or5metropolitan
6 7
= Decrease

Change
Increase
since last survey:
No change
Increase
No change = Decrease Rank: 1
= Decrease
4Rank:
5 1 6 2 7 3
Rank: 1
4Rank:
5 1 6 2 7 3
1
15
India
China
2
2
Vietnam
Malaysia
3
3
Singapore
20

Change
Increase
since last survey:
No change
Increase
= Decrease
2
2
23
Indonesia
23
Indonesia
7
7
Saigon
Saigon
3
Kuala Lumpur
3
Johor Bahru
Kuala Lumpur
5
Johor Bahru
5
Vietnam
Malaysia
Delhi
Singapore
Delhi
6
Delhi
6
Malaysia
Malaysia
Singapore
Singapore
6
Delhi
6
China
4 China Myanmar
4 China
Myanmar
India
4
4
6
56
Myanmar
Myanmar
Vietnam
Vietnam
India
6
6
5
India
5
1
1
2
Indonesia
2
Indonesia
4
Hong Kong
4
4
Hong Kong
4
7
7
Saigon
Hong Kong
Saigon
Hong Kong
1 33 1
1 25 1 2
Kuala
Lumpur
Singapore
Johor Bahru
Singapore
Kuala
Lumpur Singapore
Singapore
Jakarta
Jakarta
Johor Bahru
Jakarta
25
Jakarta
21
During 2013, construction spending in the larger

economies grew by about six percent on average,
marginally less than the preceding year. However,
for the smaller economies, the slowdown was
significantly more marked. Over the longer term, the
strongest construction spending growth will be in
China, India, Vietnam and Indonesia through to the
end of the decade.
Asia Outlook
This second edition of the publication shows a
slowing but still strong Asian construction market.
Overall, the results of our most recent survey

indicate that respondents are slightly less
optimistic regarding the future prospects for
construction in Asia compared to the results from
May 2013. Our experts opinion suggests that the
growth prospects, profitability, openness and
attractiveness of construction markets in Asia are
slightly more negative when compared to the results
from nine months ago. Despite this, the future
prospects still appear broadly positive in
most locations.
Our review highlights that, over the near and
medium term, the strongest construction spending
growth will be in Indonesia and China. In addition,
special mention should be made of the growth
potential in the Philippines, where re-construction
efforts following the typhoon in 2013 are gathering
pace, and Myanmar where, according to our experts,
future prospects look bright.
Highlights of our most

recent review include:
Respondents are slightly less optimistic
regarding the future prospects for
construction in Asia
Indonesia is the top rated country in terms of
potential construction spending growth in the
medium-term
The Philippines (near term) and Myanmar
(medium term) are identified as countries
with potential for significant future growth in
construction
Upcoming parliamentary elections in
Indonesia and India are expected to have a
negative impact on near-term construction
prospects in both countries
A lack of investor confidence in Thailand is
expected to affect construction spending in
the near term
The residential sector in Asia appears to be
gathering some momentum
Due to the reconstruction and rehabilitation efforts of the

Philippines government in areas that have been affected by
natural disasters, the construction market is expected to
increase in the areas of infrastructure (roads, bridges, water
supply, power supply), structures and residential buildings.
In addition, both government and private sectors are
investing in infrastructure projects (airports, ports). There
are also private companies who are venturing into mining
and power plants, which are also expected to increase
construction demand providing favorable conditions for both
local and foreign suppliers.
22
Acknowledgements
We are very grateful to the survey respondents who took the time to
complete the questionnaire that informed this review. This document
was produced with contributions from:
Andy North, Kuala Lumpur

Clarence Tan, Bangkok
Daniel Shih, Shanghai
Dato Sri Kandan, Kuala Lumpur
David Crosthwaite, London
Didi Redoble, Manila
Eugenie Lip, Singapore
Gar Ti Wei, Kuala Lumpur
Jason Lau, Hong Kong
Meenakshi Sundaram Ramanathan, Chennai
Minda Xu, Shanghai
Phan Lay Eng, Singapore
Rebecca Yan, Hong Kong
Ronald Acio, Manila
Soh Chye Hian, Singapore
Tony Au, Singapore
AECOM has compiled the information in this document from a number of sources. AECOM
has not verified that such information is correct, accurate or complete. While every care
has been taken in the preparation of this document, AECOM makes no representation or
warranty as to the accuracy or completeness of any statement in it, including, without
limitation, any forecasts. Historical trends are not necessarily a reliable indicator for
actual future performance. AECOM accepts no liability or responsibility to any party in
respect of this document. This document has been prepared for the purpose of providing
general information, without taking account of any particular persons objectives,
situation or needs. You should seek professional advice having regard to your own
objectives, situation and needs before taking any action.

Asia Construction Outlook - 2014

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Asia Construction Outlook - 2014

Diunggah oleh

Hak Cipta:

Format Tersedia

ASIA

Cover: Second Penang Bridge, Malaysia

Construction Market Overview

Our Experts View

5.1 Long-term Outlook for Asia

5.2 Near-term Outlook for Asia

5.3 Sub-sector Performance

5.4 Medium-term Outlook for Asia

In this second edition of the Asia Construction

China, India, Vietnam and Indonesia through to the

Infrastructure development in India is mostly in

Hyderabad Metro, India