CBRE Asia SEA Infrastructure Report

CON N EC TI N G
ASEAN
Infrastructure, Integration
& Real Estate Grow th
CBRE Research
CO N T E N T S
08 The ASEAN Growth Story
Infrastructure Projects to Support Economic Progress
Investment Needs and Gaps
14 Connecting ASEAN
Cities: Alleviating Urban Sprawl, Achieving Smart Growth
Klang Valley Mass Rapid Transit System (Malaysia)
Bangkok Mass Transit Development and Expansion (Thailand)
Metro Lines in Hanoi and Ho Chi Minh (Vietnam)
Countries: Advancing Secondary Regions

Cavite – Laguna Expressway (Philippines)
Phnom Penh – Sihanoukville Expressway (Cambodia)
Intra-ASEAN: Approaching Economic Integration

Kuala Lumpur – Singapore High Speed Rail
Phnom Penh – Ho Chi Minh Tollway
32 Regional Impact
Improving Trade Flows
East Coast Rail Link (Malaysia)
North-South Railway South Line (Philippines)
Eastern Economic Corridor (Thailand)
Kalibaru Port (Indonesia)
Opportunities in Tourism and Retail

Infrastructure developments in Quang Ninh Province (Vietnam)
Changi Airport Terminal 5 (Singapore)
38 ASEAN in the Future
40 Conclusion
CONNECTING ASEAN Infrastructure Integration & Real Estate Growth 2017
Connecting ASEAN:
Infrastructure, Integration
and Real Estate Growth
Foreword
As the Association of Southeast Asian Nations (ASEAN) Individually, countries have been building up their own
marks the 50th year of its founding in 2017, it is timely infrastructure prowess. Many of these are still in progress
to note how the region has matured in terms of increased and offer opportunities for people and companies.
economic integration and mutual understanding.
Going into the next 50 years, intra-regional infrastructure
This continued focus for ASEAN – which comprises 10 efforts will bring another dimension to the AEC.
member states and a total population of 628.9 million
- was formalised in 2015 with the establishment of the Together, these acts connecting ASEAN will lead to
ASEAN Economic Community (AEC). The AEC is built the growth of new urban areas. They will contribute to
on four pillars: (1) a single market and production base, trade flows and the logistics and tourism markets, with
(2) a highly competitive economic region, (3) a region of subsequent implications for real estate.
equitable economic development, and (4) a region fully
integrated into the global economy. This report will highlight various key projects planned in
and between countries, and discuss ways in which
The AEC has had its achievements, including a more connecting the region will transform industries and the
liberalised market and better mobility of skilled persons property landscape.
between countries. Today, rising physical integration – in
the form of infrastructure projects – lends support to and
indeed reflects this goal of economic integration.
4 CBRE RESEARCH © 2017 CBRE, Inc. 5

Phnom Penh to Ho Chi Minh Phnom Penh-Sihanoukville Railway Link between Phnom
Tollway Expressway
Hong Kong Infrastructure OutlookPenh – When East MeetsAirport
International West and
Southeast Asia
• Expands the existing two-lane road into Phnom Penh Special Economic
• 167 km toll road compared to 232 km
a 4-lane, 190km-long, 25m-wide
1
previously
expressway Zone (PPSEZ)
• Halves travel time from approximately
MAJOR INFRASTRUCTURE DEVELOPMENTS

• Build-Operate-Transfer contract between • Construction to start in March 2018
6 hours to 2.5-3 hours
state-owned China Road and Bridge • Reduces traffic congestion in the city,
Cooperation (CRBC) and Ministry of Public facilitates movement of workers to PPSEZ
Works and Transport and goods from the airport and PPSEZ to
2
the sea ports
3
Kertajati International
Airport Kalibaru Port Patimban Seaport
• Expansion of Indonesia’s • Expected to boost Indonesia’s automotive exports due
• Total area of 1,800 ha
largest port terminal, Tanjung to proximity to automotive manufacturers in Karawang
• Capacity of 18 million passengers
Priok Port Industrial Estate and Bekasi in West Java
20 per year at completion
• Total capacity of 11.5 million • Capacity of 1.5 million TEUs by 2019 and up to 7.5
East Coast Railway Line
4 twenty-foot equivalent units million TEUs by 2027
Hanoi (TEU) per year at completion, (ECRL)
21 up from current 7 million TEUs
6
• Approximately 600 km, acting as a
19 land bridge between Port Klang and
5
Kuantan Port
• Reduces cargo transport time
Klang Valley MRT between Port Klang and Shenzhen,
• Total length of 51km (SBK Line) and China from 165 hours to 30 hours
52.2km (SSP Line) • Public-private participation project
• Phase 1 of SBK Line opened in between IJM (Malaysia) and Beibu
Dec 2016 and Phase 2 is expected Kuala Lumpur-Singapore High Speed Rail
GulfPort group (China)
9
to open in 2017. SSP Line is under • Total length of 350km with seven stations in Malaysia and one in Singapore
THAILAND VIETNAM construction • Reduces travel time from 4hours by car to 90mins by rail
16
• Reduces travel time between
Kota Damansara to Bukit Bintang
Central from circa 77mins to 30mins
7
17 22 Manila
3
Bangkok
1
23 10 8 Cavite-Laguna Expressway
• Total length of 44.2km
10
LRT Line 1 Cavite
Extension
• From CAVITEX in Kawit, Cavite and end at the • Total length of 11.7km
SLEX-Mamplasan Interchange in Biñan, Laguna • Reduces travel time from Metro
2 CAMBODIA Mass Rapid Transit
(Singapore)
• Reduces travel time from CAVITEX to SLEX by about 45 minutes Manila to Bacoor, Cavite from
two hours to just 40 minutes
Ho Chi Minh • New lines: Cross Island Line, Jurong
PHILIPPINES
• Capacity of 800,000 passengers
Region Line and Thomson-East North-South Railway daily
24 Coast Line
11
• Extensions to Circle Line, North East (South Line)
Line and Downtown Line • Total length of approx. 653km
• By 2030, MRT network will expand • Consists of commuter line, long-haul
12 to about 360 km
• Eight in ten households will live within
a 10-minute walk of a train station
Changi Airport
Terminal 5
line and expansion lines connecting
Manila, Laguna, Legazpi and
Matnog
12 Bangkok Mass Transit
Development & Expansion
11 • Increases capacity from
• Additional 271.4 km
13
66 million to 135 million
passengers per year Tuas Mega Port • Doubles the estimated ridership from
MALAYSIA • Shortlisting of architect and
consultant in progress
• Consolidation of existing ports in Tanjong
1 million per day 2015 to 2.3 million
per day in 2025
Pagar and Pasir Panjang
• Expected to complete in • Orange, Pink, Yellow lines are
8 late 2020s
• Additional capacity of 20 million TEUs
under construction
15
Double-track Railway
14
Kuala Lumpur per annum. Eventually the terminal will
Development
• Total length: 668 kilometres
handle about 65 million TEUs, or double
the amount handled in 2014 16
• Comprises of five routes: (1) Nakhon
SINGAPORE 15
Pathom to Hua Hin, (2) Lop Buri to
Pak Nam Pho, (3) Map Kabao to Eastern Economic Corridor Ha Long - Hai Phong Bach Dang Bridge
Expressway • Reduces distance between Hanoi to Ha Long by
Thanon Chira Junction, (4) Hua Hin (EEC) Development
13 to Phrachuap Khiri Khan, (5) • A high-tech industry cluster focusing on • Total length: 20km
50km, between Ha Long to Haiphong by 25km
9 Phrachuap Khiri Khan-Chumphon industries for the future such as robotics • Reduces the travel distance
between Ha Long to
• The Halong-Haiphong expressway and Bach
Dang Bridge are going to reduce the travel time
• Designed to be ASEAN water transport hub,
7 between Ha Long and Hai Phong to a little over
19
linking the Dawei deep-sea port (Myanmar), Hai Phong
17
20 minutes
from 60km to
20
Sihanoukville (Cambodia) and Vung Tau
port (Vietnam) 25km
• Expected to complete after 2027
• To speed up the progress, Thailand
government allows more flexible PPP rules
5 National Road 4B and that reduce the time frame for Metro Lines in Hanoi Metro Lines in Ho Chi Minh
INDONESIA (5 lines)
18
Van Tien Bridge approval from 40 months to (8 lines)
6 • National Road 4B extends through 8-10 months • Line 2A (Cat Linh-Ha Dong) started
construction in 2011 and was
• Line 1 has a total of 19.7km and is
Van Don Economic expected to open in 2020
Zone – Van Don district supposed to open in 2016 but was • Line 2 has a total of 48km and is being
Jakarta delayed. It has now completed 90% done in 3 phases with phase 1 expected
• 1.5km Van Tien Bridge connects
of the work and is set to go into
21
Van Don Economic Zone and Van Don to handover in 2017
Not in timeline 4 Tien Yen District, to improve access
from the economic zone to the
International Airport
operation in 2018. It was financed
through ODA from China Eximbank
• Line 5 has a total of 23.4km. The plan
is under review and is to be done in 2 phases
eastern districts of Quang Ninh and • Quang Ninh’s first and only • Line 2 (Nam Thang Long-Tran • Other lines are under planning/review
14 Changi Airport Terminal 5 – late 2020s the border to China international airport Hung Dao) was delayed and is set
to complete in 2023
22 23 24
• Capacity of 2 million passengers
18 Eastern Economic Corridor (EEC) development – After 2027
per year at opening and 5 million
passengers after 2020
* No indicative timeline for projects with (N/A)

19 Ha Long - Hai Phong Expressway 6 Soft opening of Patimban Seaport 11 LRT Line 1 Cavite Extension 16 Bangkok Mass Transit Development 9 Kuala Lumpur-Singapore High Speed Rail 13 Cross Island MRT Line (SG)
20 Bach Dang Bridge 13 Opening of part of Thomson-East Coast 17 Thailandʼs Double-track Railway Development
and expansion 13 Jurong Region MRT Line (SG)
8 Klang Valley MRT SBK Line MRT Line (SG) 5 Kalibaru Port
23 Line 3 of of Hanoi Metro
2017 2018 2019 2020 2021 2022 2023 2024 2025 2027 2030 2033
3 Start of construction of Railway Link between 2 Phnom Penh-Sihanoukville Expressway 7 East Coast Railway Line (ECRL) 13 Thomson-East Coast MRT Line (SG) 6 Patimban Seaport 1 Phnom Penh to Ho Chi Minh Tollway
Phnom Penh International Airport and PPSEZ 10 Cavite-Laguna Expressway 8 Klang Valley MRT SSP Line
4 Kertajati International Airport
15 Tuas Mega Port 12 North-South Railway (South Line)
21 Van Don International Airport
24 Line 1 of Ho Chi Minh City Metro
22 National Road 4B & Van Tien Bridge in
Quang Ninh
23 Line 2A of Hanoi Metro
CBRE RESEARCH, Q1 2017
This report was prepared by CBRE Singapore Research Team, which forms part of CBRE Research—a network of preeminent researchers and consultants who collaborate to provide real estate market research and econometric forecasting to real estate.
© CBRE Ltd. 2017 Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it.
It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. Agency License No.: L3002163I.
CONNECTING ASEAN Infrastructure Integration & Real Estate Growth 2017 CONNECTING ASEAN Infrastructure Integration & Real Estate Growth 2017
The ASEAN Growth Story

Infrastructure Projects to While ASEAN has many attributes to propel future growth
– including a young and expanding population and a
At a regional level, the Master Plan on ASEAN Connectivity
2025 outlined five strategies to improve physical, institutional
Support Economic Progress burgeoning middle class – infrastructure gaps and lack of and people-to-people connectivity: sustainable infrastructure,
connectivity within the region could hold it back from making digital innovation, seamless logistics, regulatory excellence and
ASEAN is rapidly expanding but still below its full potential. the most of the AEC, or even prevent the region’s people from people mobility.
Regional GDP rose 4.7% to US$2.55 trillion in 2016, and is shifting from low-cost to high-value economies1. According to
expected to grow 4.8% in 2017 – making it the sixth largest the Asian Development Bank, ASEAN needs about US$2.76 The region is a manufacturing hub in areas including
economy in the world. More mature economies such as trillion in infrastructure investment between 2016 and 2030 to chemicals, commodities, electronics and textiles, which all the
Singapore, Thailand and Malaysia are expected to have maintain its growth momentum and eradicate poverty. more emphasises the need for a solid logistics framework. This
moderate yearly growth of 2-3%, in contrast to the 4-6% said, ASEAN has increasingly been taking on the characteristics
growth expected among the developing member states. Countries have been boosting their infrastructure budgets: of a middle income country, with the services sector accounting
Still, most of its member states are below the global average Vietnam leads Southeast Asia in infrastructure spending of for a rising proportion of GDP (see Infographic on page 10).
in terms of GDP per capita and the degree of urbanised 5.7% of GDP, while the Philippines Government has said it The sector includes value added in wholesale and retail trade
population. aims to spend 7% of GDP on infrastructure from 2017 to (including hotels and restaurants), transport, and government,
2022. ASEAN governments have additionally sought to involve financial, professional and personal services. For example,
The region has also become increasingly connected with the the private sector. For example, the Indonesia Government Philippines has become a major offshore service provider in
world, with trade flows rising within ASEAN as well. Total trade established a Public Private Partnership (PPP) unit within its information technology and business process outsourcing.
hit US$2.27 trillion in 2015, or a compound annual growth Ministry of Finance, and has made available certain facilities
rate of 2.1% from 2010 to 2015. including financing and guarantee support packages for
these projects.
1
Groff, Stephen P. “ASEAN’s Infrastructure Crisis.”

GDP GROWTH IN ASEAN Investment Needs and Gaps

According to the Asian Development Bank (ADB),
the ASEAN region requires about US$2.76 trillion in
infrastructure investment between 2016 and 2030,
mostly in power and transport infrastructure, translating
to approximately US$ 184 billion of projects annually.
Among the developing countries in Southeast Asia, there is
a significant gap of US$ 92 billion (Figure 1) between the
current level of investment and infrastructure needs.
3.9%
6.3%
5.7%
-0.9%
0.4%
2.4%
GDP Growth
CAGR (2007-2011)
2000 2015 2000 2015 CAGR (2012-2016)
BRUNEI MYANMAR Est.CAGR (2017-2021)
GDP Breakdown (%)

3.9%
5.6%
5.8%
3.3%
5.2%
4.4%
Services
Industry
Agriculture
2000 2015 2000 2015
CAMBODIA PHILIPPINES
*Industry comprises value added
in mining, manufacturing,
construction, electricity, water,
4.4%
2.4%
2.5%
4.9%
4.1%
4.2%
and gas.
Source: World Development
Indicators, World Bank
2000 2015 2000 2015

INDONESIA SINGAPORE
6.4%
5.8%
5.2%
1.8%
2.0%
2.5%
2000 2015 2000 2015
LAO PDR THAILAND
3.2%
4.0%
3.2%
4.7%
4.8%
5.0%
2000 2015 2000 2015
MALAYSIA VIETNAM

Figure 1: Estimated Infrastructure Investment Levels and Gaps of Selected Developing Countries in the Regions Figure 3: GovernmentGovernment
Budget Allocation for Infrastructure
Budget Allocation for Infrastructure, 2017 In the private sector, there has been an increased interest in
infrastructure debts among private funds on the back of low yields
in 2017 25% from traditional fixed income assets3. In general, infrastructure
Estimated Infrastructure Investment Levels and Gaps of Selected Developing Countries in the Regions
Government Budget Allocation for Infrastructure, 2017 sectors that have direct economic returns such as transport,
800 telecommunication and power generation have seen more
25%
20% support from the private sector than social areas such as water
700 Estimated Infrastructure Investment Levels and Gaps of Selected Developing Countries in the Regions
supply and healthcare, prompting the public sector to fill the gap.
% of 2017 budget
600
800 20%
prices in 2015 prices
15% For the developing countries in ASEAN, major external sources

500
700 of infrastructure funding continue to be overseas bodies. In
% of 2017 budget
Cambodia’s case, for example, main funding sources are China,
400 15% Japan and the more developed ASEAN members, such as
600 10%
Gap: US$ 160 billion
US$ billion
Malaysia funding the expansion of the Phnom Penh International

300
500 Airport; along with international organisations like the Asian
US$ billion in 2015
Gap: US$ 92 billion 10%

5% Development Bank. On top of this, there is funding available
200
400 from overseas initiatives, especially China with its “Belt and Road
Gap: US$ 160 billion
Initiative” or popularly known as the “One Belt, One Road” (BRI
100
300 5%
Gap: US$ 92 billion 0% or OBOR). In the Belt and Road Forum in May 2017, China has
Philippines Indonesia Thailand Singapore Malaysia pledged another US$124 billion under OBOR. Given Southeast
2000
Asia’s economic and geographical significance in the world
Central South Southeast India Indonesia China 0%
100 Asia* Asia* Asia* economy, ASEAN countries can look forward to benefit from
Philippines Indonesia Thailand Singapore Malaysia overseas interests in infrastructure investment.
0 Estimated Current Investment (2015) Annual Needs
Central South Southeast India Indonesia China Sources: CBRE Research, Department of Budget and Management, Philippines; With various sources of funding from the governments, private
Source: Asian Development Bank, 2016 using baseline estimates. Central Asia includes Armenia, Kazakhstan, Kyrgyz Republic. South Ministry of Finance, Singapore; Ministry of Finance, Malaysia; Ministry of Finance,
Asia*
Asia includes Afghanistan, Asia* Asia*India, Maldives, Nepal, Pakistan, Sri Lanka. Southeast Asia includes Cambodia,
Bangladesh, Bhutan, Indonesia. Data unavailable for Brunei, Cambodia, Laos, Myanmar and Vietnam.
sector and overseas organisations, the infrastructure plans in
Indonesia, Malaysia, Myanmar, Philippines, Thailand, Vietnam. Pacific includes Fiji, Kiribati, Marshall Islands, Federal States of Southeast Asia are more likely to materialise going forward.
Micronesia, Papua New Guinea. Estimated Current Investment (2015) Annual Needs 3
Liew, Ruth. “$125 Billion Manager says Asia Investors are Flocking to
Infrastructure.” Bloomberg
A challenge to increasing infrastructure investment in ASEAN risen in the past decade, it has yet to return to pre-Asian
Financial Crisis level (Figure 2). This, coupled with the lack
How ASEAN can benefit from upcoming
has been the lack of private participation, especially among the
developing countries. As noted by the ADB, more than 90%2 of financing power of the public sector, has resulted in delays
and challenges to infrastructure development in many
infrastructure projects
of Asia’s infrastructure investment is done by the public sector.
This comes as no surprise given the long term investment ASEAN countries.
horizon and the high risk attached to large infrastructure
projects. Although private infrastructure investment has slowly 2
Asian Development Bank, 2017.
Infrastructure in SEA
Private Infrastructure Investment in ASEAN Countries
Figure 2: Private
25 Infrastructure Investment in ASEAN Countries Infrastructure in SEA
Private Sector Public Sector
Billions of US$Billions of US$
Private Infrastructure Investment in ASEAN Countries • Increased opportunities for development • Increased attractiveness of country for FDI
20
25
Private Sector
• First-mover advantage in new growth areas Public Sector
• Multiplier effects for the economy
• Increasedoropportunities
in areas nearfortransport links
development • Increased attractiveness of country for FDI
15 • First-mover advantage in new growth areas • Multiplier effects for the economy
20 or in areas near transport links
Office Industrial Tourism & Retail Residential
10 • Decentralised office clusters • Reduced transport time and cost • Decentralised mall clusters • More affordable housing options
15 Office Industrial
• Expansion of ports will increase Tourism & Retail
• Opportunities for higher footfallResidential
in • Connectivity to CBD, office and
• Decentralised office clusters • Reduced logistics
transportcapacity
time and cost • Decentralised mall clusters developments
transport-oriented • More affordable housing
commercial options
clusters
5
• Expansion of ports will increase • Opportunities for higher
• Increased footfall
tourism in
arrivals • Connectivity to CBD, office and
10
logistics capacity transport-oriented developments commercial clusters
0 • Increased tourism arrivals
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Financial Closure Year

0 Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Thailand Vietnam
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Financial Closure Year

Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Thailand Vietnam
Source: World Bank Private Participation in Infrastructure Database.
* Data unavailable for Brunei Darussalam and Singapore.
12 CBRE RESEARCH © 2017 CBRE, Inc.

Connecting ASEAN
Cities: Alleviating Urban Sprawl, Urban growth (% of urban population) Klang Valley Mass Rapid Transit (KVMRT) System (Malaysia)
Achieving Smart Growth 2005 2015 MRT Line 1: Sungai MRT Line 2: Sungai Buloh-
38 50
Buloh-Kajang (SBK) Serdang-Putrajaya (SSP)
Apart from fully urbanised Singapore, other ASEAN countries Thailand
have been experiencing large-scale urbanisation over Cost RM21 bil (for SBK) RM32 bil (for SSP)
34
the past three decades. For example, Thailand’s urban
population grew from 38% to 50% of the population within
the span of ten years. In 2016, Jakarta, Manila, Bangkok,
Vietnam 27 Parties
involved
Mass Rapid Transit Corp Sdn Bhd
46 54
Ho Chi Minh City, Hanoi, Kuala Lumpur were among the 50 Time Total 51km, 31 stations Total 52.2km, 24 stations
Phase 1: Sungai Buloh – Semantan (21km, 12 stations) Phase 1: Sungai Buloh – Kampung Batu
largest built-up urban areas in the world, with the first four Indonesia Phase 2: Semantan – Kajang (19 stations) Phase 2: Kampung Batu – Putrajaya Sentral
classified as mega-cities (with population above 10 million)4.
Going forward, the demand for infrastructure should only Source: World Bank. Status Phase 1: Opened in Dec 2016 Construction started in Sept 2016
intensify, given the rising urban population and the region’s Phase 2: Started operating in July 2017 Phase 1: Expected to be completed by Q2 2021
Phase 2: Expected to be completed a year after
positive economic outlook. Phase 1
Congestion has been a bugbear for many of ASEAN’s capital New rail lines often lead to a pickup in development and
cities, the result of poor road infrastructure, limited public investment activities near train stations, and the relocation
transport options as well as cheaply available private vehicles. of offices and retail shops to the vicinity. Importantly, public
Add to that increasing urbanisation and an expanding middle transit projects can help tackle housing affordability issues Taman
Bandar Tun
Hussein Onn
AMPANG Tun Razak Suntex
class, and it is clear that transport infrastructure in these cities in city centres, as it promotes decentralisation of homes and PARK Exchange
Sri Raya
Batu Sungai
Kampung Stadium
are severely strained. workplaces. In Malaysia for instance, where the supply of Baru North Conlay
Maluri Taman
Sebelas
Cheras
Jernih Kajang
Kajang
Pertama Taman
Government-owned greenfield sites in Kuala Lumpur has Hospital
Kuala Lumpur
KLCC
East Cochrane Taman Taman
Connaught Bukit
Dukung KAJANG DEPOT
Planned public transit projects in metropolitan areas should been nearly exhausted and high home prices are a concern, KAMPUNG Jalan
Bukit
Bintang
CHAN
SOW LIN
Midah Mutiara
BATU Merdeka
however give some relief to problems associated with the Klang Valley MRT will make viable homes in new areas. Ipoh TITIWANGSA
Pasar
Kentonmen Sentul West Bandar
congestion, including pollution and costs to travellers and Sri Delima Seni
Malaysia
North
businesses. Congestion can also affect workers’ ability to The upgrading of urban transport systems in these cities will Jinjang Muzium Bandar
Negara Malaysia SUNGAI
access jobs. support the commercial real estate market as well. This is Kepong Baru South BESI
opportune as the investors in major Southeast Asian cities Metro Prima Semantan Kuchai
Lama
Taman
Naga
Serdang
Raya North
Pusat Bandar Emas Technology Park
In Singapore, for example, close to 60% of the working increasingly favour the office sector as well as core-plus Damansara (Provisional)
Seri
Kembangan
KEPONG
population take public transport to work5. The Singapore assets – prime assets in non-core areas or non-prime assets SENTRAL
Serdang
Raya South
UPM
authorities plan to double its MRT network by 2030, in order in core areas – according to the CBRE Asia Pacific Investor Sri Damansara East
to facilitate the commute of households living in the various Intentions Survey 2017. Sri Damansara West
Taman Tun Phileo
Damansara
Housing Board towns. Eventually, 8 in 10 households will live Damansara
Damai
Dr. Ismail
SERDANG
Taman DEPOT
within a 10-minute walk from a train station. Upgrading and Bandar Universiti
4
Demographia, 2016. SUNGAI Mutiara
Utama (Provisional)
expanding the existing public transit network is crucial as it is 5
General Household Survey, 2015. Department of Statistics Singapore.
BULOH Damansara
Equine Park
the main transport means for most residents. http://www.singstat.gov.sg/docs/default-source/default-document-library/
publications/publications_and_papers/GHS/ghs2015/ghs2015.pdf --> see
Kampung
Proportion of Resident Working Persons Aged 15 Years and Over by Mode of Selamat
Surian
Taman Putra
Kwasa PUTRAJAYA
Transport to Work. Damansara
Permai
SENTRAL
Cyberjaya
Kota North
SUNGAI Damansara
BULOH 16 Sierra Cyberjaya
DEPOT Kwasa City Centre
Sentral
Commercial clusters Township &

Bukit Bintang Residential areas:
Decentralised retail Kwasa Damansara MRT Line 1: Sungai Buloh-Kajang (SBK)
MyTown Shopping Centre Damansara Damai MRT Line 2: Sungai Buloh-Serdang-Putrajaya (SSP)
EkoCheras Mall Kepong Interchange station with other lines
Batu Kampung Pandan
Kampung Baru
Sentul
Serdang

The Klang Valley MRT (KVMRT) project is intended as three As the MRT becomes operational and the city centre Bangkok Mass Transit development and expansion (Thailand) BTS Group, the majority shareholder of the Bangkok Mass
MRT lines, with the third still being planned. Phase 1 of the becomes more accessible from fringe areas, there could be Transit System, even entered the development fray in 2015,
first MRT line, the Sungai Buloh-Kajang (SBK) Line, started more demand for CBD offices as well. This is anticipated by as it teamed up with property firm Sansiri. As part of the
Cost Approximately US$17billon in total
running in December 2016, while Phase 2 started operating the large number of commercial mega projects which have five-year partnership, they are developing 25 residential
in July 2017. been launched in the area recently – including Tun Razak Parties Four methods, depending on the projects along the routes of Bangkok’s mass transit systems.
Exchange (TRX), Tradewinds Centre, Merdeka PNB 118 and involved project: While BTS-Sansiri projects are mainly on the fringe of the
The completed SBK Line is expected to ferry over 500,000 Bukit Bintang City Centre. 1) Private-Public Partnership (PPP) CBD, along existing mass transit lines rather than outer city
arrangement where government
passengers daily and result in 160,000 fewer cars on the mainly responsible on land areas, it has noted opportunities to build in outer Bangkok
roads, Malaysian Prime Minister Najib Razak and Mass On the retail front, mall decentralisation to locations near appropriation cost. M&E and as well.
Rapid Transit Corporation Sdn Bhd has said. KVMRT stations is best illustrated by Sunway Velocity Mall operation cost will be borne by
private sectors
(about 1.0 million sq ft) which was completed in 2016, and (2) Government fiscal year budget The development possibilities offered by decentralisation
The potential for new projects and townships near the MRT MyTown Shopping Centre (about 1.1 million sq ft) which (3) Thailand Future Fund (TFF) via rail may also be reflected in the rise of a mega mall –
route present opportunities for developers, investors and was completed in 2017. Both are in the Cochrane area. (4) Wholly invested by private sectors CentralPlaza WestGate, which opened in August 2015 in
end-users alike. For example, a landmark project arising Further south to Cheras, EkoCheras Mall (about 650,000 Time All planned to be completed before the Bang Yai area. The regional shopping centre, which
from the SBK Line is Kwasa Damansara, a township on sq ft) in the upcoming Taman Mutiara MRT station is under 2023. (Delay is expected) has 500,000 sq. m. of retail space, over 500 Thai and
a 2,330 acres site that will be connected to the KVMRT. construction and expected to open in 2018. international brands, and a 10,000 sq. m. cineplex, is
Status 119.8 km has been completed and
The project, which is being built by a subsidiary of opened for service connected to the MRT Purple Line. About 30,000 future
Malaysia’s Employees Provident Fund (EPF), will have 30 MRT Line 2, or the SSP Line, is expected to reap even more Of the total 271.4 km of new mass condo units are to be completed in the area, according to
acres of commercial development, including the EPF new benefits for Malaysians as it passes through more densely transit lines: CBRE data.
- 80 km under construction
headquarters, retail malls, hotels and a media hub called populated and lower income areas, including the large - 191.4 km being planned with
Kwasa Utama. neighbourhoods of Damansara Damai, Kepong, Batu expected completion date in 2023 However, ridership is currently below estimates due to the
Kampung Pandan, Kampung Baru, Sentul and Serdang6. lack of connectivity with the existing network – users have
Property prices in these new townships are naturally It will also be nearer to areas where Perbadanan PR1MA to travel about 1km on the road between Purple and Blue
also cheaper than in more established areas. A serviced Malaysia (PR1MA), the Government’s housing development Lines. The developers are also facing challenges in selling
residence unit in Sungai Buloh, where high-rise residences programme, is expected to build affordable housing for Although the Purple Line was just one of numerous mass existing units along the Purple Line.
are considered new products, could go for RM800 to Malaysians. rapid lines being built, it quickly gained favour with
RM900 per sq ft, compared with RM1,000 to RM1,1,00 per developers as many land plots were available along the In 2017, developers have identified the MRT Pink, Yellow
sq ft in Cheras and TTDI, established high-rise residential Apart from providing easy access to the Kuala Lumpur city line. As a result, new condominium developments have and Orange Lines as routes where they are hoping to
areas which are also along the route. centre, the SSP, which could have a catchment population proliferated along the line, while some developers are acquire new development sites, given construction plans are
of about two million people, will also have two interchange still holding on to sites and waiting for existing supply to clearer for these lines.
Additionally, the KVMRT system is set to encourage further stations with the future High Speed Rail to Singapore. be absorbed first. Prices of new condos in these locations
decentralisation of offices from Kuala Lumpur city centre, Similarly, in Bangkok, the ongoing expansion of the Mass are usually THB 70,000 to 85,000 per sq. m. and do not
while also stimulating growth of the central business Rapid Transit (MRT) will provide homebuyers with more exceed THB 3.0 million per unit, as these are targeted
district (CBD). affordable options. This has already been borne out in towards the lower to middle-income groups. In contrast,
recent times by the large-scale property development along average new condo prices in the inner city are around THB
It is noted though that decentralised offices and those in the MRT Purple Line (Tao Poon-Klong Bang Pai) which first 200,000 per sq. m.
the CBD cater to different needs. Prime CBD offices will phase started running in Q3 2016.
always be in demand with companies seeking a prestigious
address, as well as high visibility and accessibility. On
the other hand, decentralised offices are in demand with
companies looking to relocate backroom operations to less 6
MY Rapid Transit.
costly premises.

Lines under construction: Generally, the expansion of the Bangkok Mass Transit will help While land prices are expected to go up and residential
reduce traffic congestion and commute times in the Bangkok clusters can be expected to emerge along the rail lines, CBRE
Start of Expected Estimated Daily Ridership Metropolitan Region. The Mass Rapid Transit Authority does not believe that the planned new mass transit lines
Route
Construction Opening (persons)
forecasts an increase in the total ridership of all MRT lines per will act as significant catalysts for sales. This is as people
Orange Line (Taling Chan – Min Buri) 2017 (First phase) 2022/2023 114,000 (First phase) 500,000 (Both phases) day from 1 million rides in 2015 to 1.9 million rides in 2020 will typically only buy residential units along the routes once
and eventually 2.3 million rides by 20257. It will also help considerable construction progress has been made. Similarly,
Pink Line (Khae Rai – Min Buri) 2017 2020 270,000
facilitate the expansion of the CBD outward of Downtown CBRE also does not expect an immediate impact of the new
Yellow Line (Lat Phrao – Samrong) 2017 2020 247,900 Bangkok. On the other hand, the massive undertaking faces MRT lines on commercial properties. Potential tenants tend to
challenges in the form of how to integrate the overall network. choose office locations only when they are sure that the MRT
The land acquisition and bidding processes could also stations will be operational when they move into the building.
cause delays. Nevertheless, companies do recognise that proximity to MRT
Lamlukka stations play an increasingly bigger role in attracting the best
SaiNoi Junction
7
Thailand Board of Investment, 2016. From http://www.boi.go.th/upload/ talents and therefore will prefer such locations.
content/BOI_TIR_SEP2016_22669.pdf.
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Don Mueang International Airport Office clusters

Suvarnabhumi Airport Rama IV Road
Residential clusters Ploenchit
Bang Yai Wireless Road
Silom & Sathorn
Chaengwattana
Northern Corridor: Petchaburi Road to Lad Prao and Ratchayothin
Bang Na district

Metro Lines in Hanoi and Ho Chi Minh (Vietnam)

City Hanoi Ho Chi Minh
Cost Line 1: Ngoc Hoi - Yen Vien: VND19,460 billion Line 1: Ben Thanh - Suoi Tien: US$2.49 billion
(~US$860 million) Line 2: Thu Thiem - Ben Xe Tay Ninh: US$2 billion
Line 2A: Cat Linh - Ha Dong: US$886 million Line 3A: Ben Thanh - Tan Kien (has not been announced)
Line 2: Nam Thang Long - Tran Hung Dao: VND51,700 Line 3B: Nga Sau Cong Hoa - Hiep Binh Phuoc
billion (~US$2,300 million) (has not been announced)
Line 3: Nhon – Railway Station – Hoang Mai Line 4: Nguyen Van Linh - Cau Ben Cat,
(US$1,300 million) Thanh Xuan (has not been announced)
Line 5: South Westlake – Ngoc Khanh – Lang – Hoa Lac Line 4B: Cong vien Gia Dinh - Lang Cha Ca
(US$2,019 million) (has not been announced)
Line 5: Ben xe Can Giuoc - Cau Sai Gon: Phase 1 US$
1.5 billion
Line 6: Ba Queo - Vong Xoay Phu Lam (has not been
announced)
Parties Line 1: Ngoc Hoi - Yen Vien: JICA Line 1: ODA from Japan
involved Line 2A: Cat Linh - Ha Dong: ODA (China) Line 2: ODA from Germany and two other countries
Line 2: Nam Thang Long - Tran Hung Dao: ODA from Line 5: ODA from Europe
Japan
Line 3: Nhon – Railway Station – Hoang Mai: ADB, AFD,
BEI, DGT
Time Line 2A: Cat Linh - Ha Dong: to complete in 2018 Line 1: Ben Thanh - Suoi Tien: to complete in 2021
Line 3: Nhon – Railway Station – Hoang Mai: Line 2: Thu Thiem - Ben Xe Tay Ninh and Line 5: Ben
2010-2021 xe Can Giuoc - Cau Sai Gon is under revision by the
government because of budget re-adjusting
Status Line 2A: Cat Linh - Ha Dong: ready for trial in Line 1: Ben Thanh - Suoi Tien: ready for trial in 2020
Q3 2018 Line 2: delayed
Line 2: Nam Thang Long - Tran Hung Dao: delayed Line 5: delayed
Line 3: Nhon – Railway Station – Hoang Mai: under Others: planning stage and proposing for funding
construction (slow progress)
Line 5: South Westlake – Ngoc Khanh
– Lang – Hoa Lac: delayed Others: Planning

Metro Lines in Ho Chi Minh (Vietnam) Metro Lines in Hanoi (Vietnam)
Soc Son
Thu Duc
District
Go Vap
District
District 9
Mai Dinh
Tan Binh
District
Tan Son Nhat 4 Binh Thanh

International Airport District
Phu Cuong
Tan Phu
District
1
2 Phu Nhuan
District 2
District
Binh Tan District 1
District
Nam Dong
6 District 3
HCMC CBD
Kim No Van Noi
District 10
Vinh Ngoc
Hai Boi Tam Xa

District 4
3 District 5
Yen Thuong
Phung Station Lien Ha
District 6
Yen Vien Station
District 8 Cau Ca
Duc Thuong
District 7 Yen Vien
Tan Lap Dong Hoi
5 Xuan Dinh
Dinh Xuyen
Tay Ho District
Phu Dien
CBD
Scale Viet Hung
Thu Thiem NUA Station
District 9 2km West Lake
Binh Chanh District

Cau Giay Sai Dong
Van Canh District Ba Dinh
Hoai Mai
District
Duc Dich Long Bien Co Bi Station
Hoan Kiem District
CBD Thu Thiem NUA District 9 District
My Dinh
Dong Da District
In Vietnam’s largest cities of Ho Chi Minh and Hanoi, This should be the case especially for Line 2 (Nam Thang
An Khanh Duong Xa
planned metro lines are set to foster the development of Long - Tran Hung Dao) as it connects the North, the South National Convention
Centre
satellite economic areas. In Ho Chi Minh, the planned six- and the CBD (Tran Hung Dao), where many of the current Duong Noi Thanh Xuan Hai Ba Trung District Da Ton
Thuong Dinh District Vinh Tuy
line metro system will connect to satellite cities in provinces office buildings are. CBRE Research expects new office Bat Trang
Mo Lao
including Long An, Binh Duong and Dong Nai, and clusters to be established should this line materialise. La Phu
La Khe
residential areas along metro stations are expected to see a Tran Trieu Linh Nam
rise in selling prices and rental growth. While the construction of several metro lines in both Linh Dam
Yen So
Vietnamese cities has been delayed, the first of these Phap
While commercial real estate near metro stations in Ho Chi scheduled for completion - Line 2A (Cat Linh-Ha Dong) in CBD Van Hong Mai District
Ha Dong District
Minh City should see rents increase, improved connectivity Hanoi – should start running from September 2018. After Nguyen Trai Road
Ha Dong
to the CBD will encourage increased commercial supply in construction of Line 2A started, numerous condominium Noi Bai International Airport Station Phu Luong
decentralised areas as well. District 9, after Thu Thiem New projects have risen alongside Nguyen Trai Road, a major Metro Depot Dai Ang
Vinh Quynh
Urban Area (NUA) in District 2, should see more activity in thoroughfare where two railway construction projects are National Railway Station
supply and rental growth – thanks to its college cluster and going on. Metro Line 1: Ngoc Hoi – Yen Vien Ngoc Hoi
Station
hi-tech parks. Already, there are plans of new campus-style Metro Line 2: Ha Dong – Noi Bai
offices popping up in the district. That said, hotel or serviced apartments in both Vietnamese Metro Line 3: Nhon – Railway Station – Hoang Mai
cities will probably not be very affected by the metro lines, Metro Line 4: Lien Ha – Bac Thang Long
In Hanoi, where eight metro lines are planned, office as such sectors generally prefer sites in tranquil areas. Metro Line 5: South Westlake – Ngoc Khanh – Lang – Hoa Lac
clusters could be created within 1km from metro stations, as Metro Line 6: Noi Bai – Ngoc Hoi
it will be more convenient for employees to get to work. Metro Line 7: Me Linh – Ngoc Hoi
Metro Line 8: Co Nhue – Trau Quy

Countries: Advancing Secondary time in the Calabarzon-Metro Manila route, thus increasing
the efficiency of trade and commerce. It will also provide
than one quarter of the country’s total construction activity14.
This is expected to continue, supported by infrastructure
A roadblock that remains for this project would be the
uncertainty of securing the right of way for parts of the route,
Regions linkages to the industrial areas of Cavite and Laguna, and development in the region. hence delaying the construction that was supposed to start in
allow faster transport to and from the Manila ports and the April 2017.
Transport links not only help with spreading urban sprawl out Batangas Ports.
of the congested metropolitan areas, but also make possible
the growth of secondary cities – an ever-increasing need as 1. Cavite – Laguna Expressway (Philippines) Growing population (millions) GDP Contribution
capital cities become overcrowded.
Cost PHP48.5 billion
In many cases, development has been uneven even within US$974.6 millon 2015 2045p % share of Real per capita
individual ASEAN countries. A comparison between the
CBDs of Tier 1 cities such as Bangkok, Kuala Lumpur and
Parties Department of Public Works and Highways and
Calabarzon 14.4 20.1 2016 GDP GDP (PHP)
16.8% 94,826
involved Metro Pacific Tollway11
Jakarta with the rural parts of Northeast Thailand, Sabah in Under flagship PPP Scheme: Build-Transfer- Calabarzon
12.9 14.5
Malaysia and Eastern Indonesia, reveals stark differences in Operate, i.e. Private sector to finance, National
construct, operate and maintain
basic infrastructure, including properly-constructed roads and Capital
access to sanitation. Time 2020 Region (NCR) NCR
36.6% 232,836
Status Contract signed on 10 July 2015. National
- 78,712
These differences are both cause and effect of an uneven
distribution of resources, including investment in infrastructure
On 10 March 2017, the Department of Average
Public Works and Highways signed a contract
that often focuses mainly on the capital cities. For example, in with Metro Pacific Tollways to expedite the
2016, 53.6%8 of the investment in Indonesia was channelled construction. Construction is expected to start
in April
to Java island, where Jakarta and major cities such as
Bandung and Surabaya are located. Indonesia Investment Coordinating Board, 2017. http://www2.bkpm.go.id/
Cavite – Laguna Expressway (CALAX) (Philippines)
8
images/uploads/file_siaran_pers/Bahan_Paparan_-_Eng_-_TW_IV_2016-
Taguig City
250117_FINAL.pdf.
This state of affairs should however gradually change in
y
9
Master Plan on ASEAN Connectivity 2025, 2015. From page 30
Ba
From https://aseanup.com/infographic-top-cities-urbanization-asean/
ila
line with population growth in the smaller “middleweight”
an
10
From https://aseanup.com/infographic-top-cities-urbanization-asean/
M
or secondary cities. It is estimated that an additional 90 11
Metro Pacific Tollways contracted the project to DM Consunji Inc which will Cavite City Parañaque City
million people will move to cities in ASEAN by 20309. As construct the Laguna side and Leighton Holdings of Australia for the Cavite side.
12
Philippine Statistics Authority, 2016.
such, some governments are extending their infrastructure 13
Oxford Business Group, 2017.
Las Piñas City
plans to the less developed areas of the countries: such as
towards the eastern side of Indonesia and Malaysia, as well The Calabarzon region, comprising of Cavite, Laguna, Kawit
Laguna de Bay
as towards Southern Luzon in the Philippines. This is also in Batangas, Rizal and Quezon, is the second largest contributor Rizal
line with AEC’s third pillar of achieving equitable economic to the national GDP after Metro Manila12 and has the highest Muntinlupa City
development at the regional level. concentration of manufacturing activity and is considered

an important industrial belt for the country13. The CALAX will
Cavite General Trias
In Manila, which was ranked the most populated city in serve commuters from highly populated Cavite and Laguna Laguna
ASEAN in 201510, better connectivity to the Southern Luzon who work in Manila. Quezon
Batangas
regions is expected via the new Cavite-Laguna Expressway
(CALAX). This will aid the commuters from Cavite and Laguna CALAX will also give an added boost to the tourism sector in
who travel daily into Manila for work. Calabarzon, especially in Cavite which is rich in cultural sites.
Mamplasan
Calabarzon is already a favourite weekend getaway or day-
And in Cambodia, the planned expressway connecting trip destination for people in Manila as it is accessible from Dasmariñas City Biñan City
Phnom Penh and Sihanoukville is set to support the existing SLEX. Once CALAX is ready, it will improve the Cabuyao City
Sihanoukville’s growth as a key industrial centre, and traffic in these areas. Trece Martires City Santa Rosa City
promote the Phnom Penh-Sihanoukville route as a strategic

economic corridor. Privately-developed townships in the interior parts of Cavite Cavite – Laguna Expressway (CALAX)
and Laguna will grow, and there is expected to be renewed 14
Philippine Statistics Authority, 2016 Interchange along CALAX
Manila Port
The CALAX will connect the existing Manila-Cavite demand for suburban homes, especially from the working Batangas Port
Expressway (CAVITEX) and the South Luzon Expressway population in Metro Manila seeking more affordable or
(SLEX). It is expected to immediately benefit the Cavite and lower density housing. In Q4 2015, the Calabarzon region
Laguna areas, and in time the Southern Luzon region. It will already had the highest number of construction projects for
decongest traffic in Cavite and Laguna, and reduce travel both residential and commercial sectors, representing more

CONNECTING ASEAN Infrastructure Integration & Real Estate Growth 2017
2. Phnom Penh – Sihanoukville Expressway (Cambodia) A planned expressway from Phnom Penh to Sihanoukville This expressway will expand the currently congested two-
(Sihanoukville Expressway) is set to bolster the growth of both lane National Road 4 into a four-lane road. The highway is
cities, linking Cambodia’s major urban centre with the country’s set to span the cities and provinces of Phnom Penh, Kandal,
Cost Approximately US$1.9 billion
principle port in Sihanoukville, itself an emerging major city Kampong Speu and Sihanoukville; as well as improving
Parties Parties Involved and industrial hub. The expressway is among the transport links access to Sihanoukville Special Economic Zone (SSEZ), an
involved China Road and Bridge Cooperation (CRBC) contributing to Sihanoukville’s rising star: International flights economic and trade cooperation project between Cambodia
and Ministry of Public Works and Transport. only started servicing Sihanoukville in 2015 and its airport is and China.
CRBC is a Chinese state-owned enterprise
set to complete a major expansion programme by early 2018.
Source of Financing In addition, a growing tourism sector is blossoming among The route is an important one: According to the World
Chinese Concessional Loan Sihanoukville’s beaches and islands. Bank15, the Phnom Penh-Sihanoukville transport corridor,
Note: This will be a Build-Operate-Transfer which includes the expressway, railway and the Sihanoukville
contract Growing population (millions) Autonomous Port (PAS), carries about 75% of the country’s
trade traffic.
Time Construction is expected to begin in 2017 and
scheduled to complete in 2020 2008 (‘000) 2030p (‘000)
Status Construction is on track to start by end-2017 Phnom Penh 1,326 2,451 The coastal province of Sihanoukville, which is home to the
country’s only international deep sea-port, has been quickly
developing as an industrial centre – an opportunity identified
Sihanoukville
200 361 and supported by the Cambodian Government16. Indeed,
companies have increasingly been opening processing,
Source: 2008 Population Census, National Institute of Statistics, Ministry manufacturing and assembly operations in the area,
of Planning, Cambodia. with SSEZ welcoming its 130th investor in Q2 2017. The
Populations Projections for Cambodia, 2008-2030, Statistics Bureau,
expressway will thus help the development of an effective
Phnom Penh-Sihanoukville Expressway Ministry of Internal Affairs and Communications, Japan.
logistics system, with improvements in the trade volume,
Thma Bang Aoral District
speed, costs, quality and safety of goods transported.
In addition, Sihanoukville is a developing tourism hub, with

hotels, resorts and condominiums expanding. Traditionally the
city has been the preserve of backpackers and local tourists;
Krong Chbar Phnom Penh improvements in infrastructure and a blossoming economy
Mon are changing this, bringing greater numbers of foreign tourists
Kirirom and companies to this expanding port city and the wider
National Cambodian coastal region.
Park
A rise in industry in the province will also support its nascent
Shrae Ambel Traeng condo and commercial property markets. Several mixed-use
Trayueng projects are being built in the area, including D’Seaview
and Blue Bay. Overall, CBRE Research expects a continued
Prey Kabbas rise in land and property prices in Sihanouk province as well
as areas along the expressway route.
Krong
Doun 15
World Bank’s 2014 Cambodia Trade Corridor Performance Assessment.
Kaev 16
2015 Cambodia Industrial Development Policy 2015 – 2025 outlined
plans directly focusing in economic corridors such as from Phnom Penh to
Sihanoukville Sihanoukville, Bavet and Popet. Some of the plans include: (1) developing and
implementing a master plan for transport and logistic system, (2) prepare urban/
Angkor Chey
city development plan to transform these locations into industrial centres.
Prey Krong Kampot
Nob
Phnom Penh – Sihanoukville Expressway

Sihanoukville Autonomous Port (PAS) Kampong Trach
Sihanoukville International Airport
Sihanoukville Special Economic Zone
Phnom Penh Autonomous Port (PAS)
Phnom Penh International Airport
Phnom Penh Special Economic Zone (PPSEZ)

Intra-ASEAN Connectivity: The 350km-long High Speed Rail (HSR) between Kuala
Lumpur and Singapore is set to cut travel time between the two
CBRE Research expects land and property values to increase
in these cities, especially in the areas immediately surrounding
and expatriate housing should rise in Kuala Lumpur. Moreover,
the express service connecting the upcoming Bandar Malaysia
Approaching Economic cities to 90 minutes, compared with over four hours by car. the stations. Homebuyers have already been increasingly in Kuala Lumpur and Jurong Lake District in Singapore will
attracted to Jurong East, for example, going by well-received have spillover benefits for businesses in the area in the next 10
Integration It will have eight stations in all, of which seven are in Malaysia: condo launches in the area in recent years. to 20 years, as the hubs are developed.
Kuala Lumpur, Putrajaya, Seremban, Ayer Keroh in Melaka,
Given marked disparities in the level of development among Muar, as well as Batu Pahat and Iskandar Puteri in Johor. The Additionally, the HSR should contribute to the economic The HSR will also support growth in tourism. This has become
ASEAN countries, transport links between neighbouring cities last stop will be Jurong East in Singapore. Most of the line, growth of Kuala Lumpur city and the expansion of smaller a focus for states such as Melaka, which saw tourist arrival
can open up opportunities for freer flow of goods and skilled or 335km, will be in Malaysia, with the remaining 15km in cities along the line. For instance, demand for offices, hotels figures rise 53.8 per cent year on year to 12.7 million in 2016.
labour. Indeed, infrastructure growth will work hand-in-hand Singapore.
with concrete commitments by governments to boost multi-
lateral economic relations and improve trade and labour
flows in the region. For example, the ASEAN Trade in Goods
Agreement signed in 2009 saw the elimination or substantial
Map of KL-SG HSR
reduction of intra-ASEAN import duties among the 10 ASEAN
countries. Overall, infrastructure coupled with the political will
to cooperate should certainly help the region move towards Kuala Lumpur
the first pillar of the AEC – the formation of a single market South China Sea
and production base. Kuala Lumpur

International Airport Putrajaya Malaysia
Penang
1. Kuala Lumpur-Singapore High Speed Rail Seremban
Cost RM 60 billion Ayer Keroh
Parties Public-private participation: A consortium

involved of WSP Engineering, Mott MacDonald and Muar
Ernst & Young has been appointed Joint Batu Pahat
Development Partner By high speed rail
Iskandar Puteri
By air
Time 2018-2025 By train Changi
Airport
Singapore
Status Preliminary Stage
Source: Land Transport Authority, Singapore.

2. Phnom Penh – Ho Chi Minh Tollway The tollway can be expected to facilitate Cambodia’s
attempted shift towards a modern industrial structure, as it
Cost Approximately US$2.5 billion from Phnom would help firms move goods faster. There could be a rise
Penh to Bavet (the Border with Vietnam) in foreign investment and tourists, and enhancement of the
competitiveness of Cambodian export commodities.
Parties Parties Involved
involved - Japanese International Cooperation
Agency (JICA) It should benefit modern industries such as the automobile
- Minister of Public Works and Transportation and electronics industries, tourism, agriculture, construction
Source of Financing and transportation, it has been noted. There could be a rise of
Japanese Official Development Assistance land and property prices, along with opportunities for logistic
(ODA) and industrial development.
Time Scheduled for completion in 2033.
From a broader perspective, there would also be increased
The project has 3 phases. cooperation among ASEAN and Greater Mekong Sub-region
Phase 1: Phnom Penh – Neak Loeung
(35km) is expected to begin in 2023. (GMS) countries as the tollway is a major part connecting the
Phase 2: Neak Loeung – Svay Rieng (58 km) Southern Economic Corridor of the GMS cities of Bangkok,
Phase 3: Svay Rieng – Bavet (46 km) Phnom Penh and Ho Chi Minh.
Status Planning
In January 2017, the transport ministers of both Cambodia
and Vietnam met and expressed their commitment to support
the project. In May 2017, the transport ministers signed a
The tollway will span the cities and provinces of Phnom memorandum of understanding on the construction, agreeing
Penh, Svey Rieng, Bavet, Kandal and Prey Veng – including that the tollway will consist of two sections: Vietnam will build
the Phnom Penh New Port. The 167km tollway reduces the the 65km section from Ho Chi Minh to the border point in
distance between the two major conurbations from 232km Moc Bai, Tay Ninh while Cambodia will build the 130km
and halves the travel time from six hours to between two and a section from Phnom Penh to the border point in Bavet.
half to three hours. Delay and changes in construction timeline and cost can be
expected as the project is still in its early planning stages.
Map of Phnom Penh - Ho Chi Minh Tollway
OTDAR
To MEANCHEY
BANGKOK
BANTEAY
MEANCHEY
TBONG
KHMUM
To
HO CHI MINH
PREAH
Southern Economic Corridor SIHANOUK
Phnom Penh - Ho Chi Minh Tollway

Regional Impact
As discussed previously, investment in infrastructure has advance their logistics infrastructure. At the same time, the
benefits beyond the country or region projects are located e-commerce market in ASEAN is poised to grow by leaps
in. It will also strengthen ASEAN’s position as a region and bounds, buoyed by the region’s young population and
in terms of attractiveness for trade and tourism. Quality high mobile phone penetration. E-commerce is much more
port infrastructure, for example, will play a crucial part logistics-intensive compared with traditional retail formats –
in the region’s export and import activities. Expansion to due to such factors as the need to carry more inventory and 1. East Coast Rail Link (Malaysia) The East Coast Rail Link (ECRL) will connect townships
existing airport infrastructure, together with efforts such as process returns – and therefore requires strong infrastructure including Port Klang, ITT (Integrated Transport Terminal)
the Visit ASEAN joint marketing campaign, will encourage support. Cost RM 55 billion Gombak, Bentong, Mentakab, Kuantan, Kemaman, Kerteh,
both intra-ASEAN and international tourists to travel within Kuala Terengganu and Kota Baru, ending in Tumpat. More
different parts of the multicultural region. According to the World Bank’s global Logistics Performance Parties Public-private participation importantly, it is envisioned to catalyse growth in the less
Index (LPI) in 201617, ASEAN economies are in relatively involved IJM (Malaysia) and Beibu GulfPort group (China)
developed eastern side of the peninsula as it links Port Klang
Improving Trade Flows good stead. For example, Singapore, Malaysia, Thailand
and Indonesia performed better than the East Asia &
Time Construction to start in 2017 and complete in
2022
in the east to Kuantan Port in the west – a 250km section that
could become a major land bridge in and out of Asia. As
Pacific regional average, while the developing countries of such, the ECRL could create new routes to boost trade for the
As ASEAN countries increasingly participate in global Status Construction to start in Aug 2017
Indonesia, Vietnam and the Philippines were in the top 10 of Upgrading of Kuantan Port by 2018 ASEAN region, with Malaysia as the conduit. It is expected
and intraregional value chains, it becomes vital that they the lower middle-income countries. to act as a shortcut for transporting goods between China
and Southeast Asia without the need to pass by Singapore
East Coast Railway Line (Malaysia) in the south. For example, the ECRL could reduce cargo
transportation time from the current 165 hours to 30 hours
Table 1: World Bank’s Logistics Performance Index (LPI) in 2016 Perlis from Port Klang to Shenzhen in China. Upon completion, the
Country Logistics Performance LPI Score 2016 Quality of trade and transport Competence and quality of ECRL will transform Kuantan Port into a regional hub, with
Index LPI Global Ranking related infrastructure logistics services Sultan Abdul cargo passing through Port Klang to Kuantan and vice versa.
201618 (highest score 4.44) (highest score 4.28) Halim Airport Tumpat
Kota Bharu
Kedah
Singapore 5 4.14 4.20 4.07 Penang
The ECRL is also expected to translate into industrial park
port demand, such as for Kuantan Port City. Already, there are
Malaysia 32 3.43 3.45 3.34 signs of a pick-up in economic activity in eastern Malaysia,
Penang Perak Kuala
Kelantan Terengganu Terengganu especially the surrounding areas of Kuantan Port – evidenced
Thailand 45 3.26 3.12 3.14
by the presence of several large petrochemical installations
Indonesia 63 2.98 2.65 3.00 Kertih such as BASF Petronas Chemicals, a joint venture between
Malaysia’s state-owned oil corporation and Germany’s BASF.
Vietnam 64 2.98 2.70 2.88 Pahang
Kuantan port According to Malaysian government officials, with the
Brunei 70 2.87 2.75 2.57 Mentakab
construction of new roads and flyovers from the port complex
Selangor
Philippines 71 2.86 2.55 2.70 to a nearby industrial park nearing completion, the eastern
Port
Klang economic region has already attracted more than RM8.9
Cambodia 73 2.80 2.36 2.60 Kuala billion in investment, mainly from manufacturing firms from
Lumpur
Negeri
Sembilan
China. These include investment from Beijing Goldenway
Myanmar 113 2.46 2.33 2.36 Biology Tech Co, the world’s largest bio-humic acid producer,
East Coast Railway Line
Malacca and a RM3.5 billion steel facility by Guangxi Beibu Gulf Iron &
Source: http://www.worldbank.org/en/news/press-release/2016/09/15/singapore-tops-list-of-asean-countries-on-2016-logistics-performance-index-ranked-fifth-globally. Key cities
Johor Steel Investment Co.
Airports
However, it is noted that all ASEAN countries except Singapore 17
The logistics performance (LPI) is the weighted average of the country scores on Sultan Ismail
the six key dimensions: efficiency of the clearance process (i.e., speed, simplicity Seaports Inter-national
-
and Malaysia had a lower infrastructure score than their and predictability of formalities) by border control agencies, including customs; Airport Other than boosting trade and the economy, the ECRL is also
East Coast Economic Region
overall logistics performance scores (Table 1), indicating quality of trade and transport related infrastructure (e.g., ports, railroads, roads, Special Economic Zone expected to benefit logistics and tourism. For example, the
information technology); ease of arranging competitively priced shipments;
that infrastructure quality still impedes the region’s logistics competence and quality of logistics services (e.g., transport operators, customs
Terengganu State has planned a line-up of projects including
industry. This is set to change, however, with the following brokers); ability to track and trace consignments; and timeliness of shipments in branding the Kuala Terengganu City Centre as a Heritage
projects that are envisioned to grow existing industries and reaching destination within the scheduled or expected delivery time. Waterfront City and tourism gateway. A mixed tourism
18
Out of 160 countries.
even create new economic zones in their respective countries. development centre as well as a centre for halal businesses,
shopping and conventions are examples of the 71 projects
intended to bring the economic growth to 8% by 2020.

2. North-South Railway South Line (Philippines) It comprises three parts, namely the 56-km commuter line 3. Eastern Economic Corridor (Thailand) If successful, the EEC development is expected to boost
from Tutuban, Manila to Calamba, Laguna, 478-km long-haul regional GDP by 1.0% to 1.5%. The logistics and industrial
Cost PHP285 billon (US$5.7 billon) line from Tutuban, Manila to Legazpi, Bicol, as well as two Cost US$43 billion in combined public and sectors will benefit especially from improved road
expansion lines: a 117-km extension from Legazpi to Matnog private investment, with US$15.8 billion for transportation. Industrial estates are to be built or expanded
Parties Department of Transportation and and a 58-km branch line from Calamba to Batangas City. infrastructure projects only in Map Ta Phut, Laem Chabang and Chachoengsao areas,
involved Philippine National Railways
Parties Depends on the project to facilitate the export-bound manufacturing sector under the
Time To be completed in 2021 Previously a Public-Private Partnership (PPP) scheme, the South involved Most will use PPP model to deliver the EEC projects. Moreover, the EEC will also benefit the tourism
line is now one of the three priority projects funded by Official project. The delivery structure is still under sector in Pattaya, especially with the expansion of U-Tapao
plan/debate
Status For Bidding Development Assistance (ODA) via a loan from China to cover International Airport and the high speed rail from Bangkok.
the construction and the right-of-way acquisition costs. The Time Completion date is not specified. But
Included in the 2017 National Budget as construction plan goes up to 2027
follows: availability of funding helps to solve the difficulties in clearing However, project feasibility is expected to be an issue,
Initial PHP2.5 billon (US$50 millon) for illegal settlers and structures along the existing right of way. Status At planning stages. The Draft EEC Act particularly for the high-speed rail project due to high
Phase 1: Commuter Rail to Calamba was approved in October 2016, the EEC construction and operation costs. Moreover, infrastructure is
Commercial office, retail and residential developments committee established in January 2017 only part of the equation in transforming the Thai economy.
Initial P9.4Bn (US$188Mn) for Phase 2: and the EEC Act is expected to come into
Other works for up to Matnog near the planned terminals will likely flourish, spurred by the force during Q2 2017 Given the massive scale of the entire economic zone, the
increased passenger and cargo volumes expected. This will impact to the economy may not be immediate.
Spanning about 653km, the North-South Railway (South also benefit the commercial properties in various economic In line with Thailand 4.0, the Eastern Economic Corridor
Line) is expected to promote inclusive growth in the Southern zones and industrial zones along the route such as those in (EEC) is planned to be a high-tech industry cluster focusing 4. Kalibaru Port (Indonesia)
Luzon provinces, revive and improve the existing railway Manila, Calamba and Batangas. The terminus in Tutuban, on 10 industries, including industries for the future such as
line, facilitate transportation of passengers and cargo and Manila is near a number of shopping malls as well as Cost Approx. US$912 million (IDR 12 trillion)
robotics, biofuels and biochemical. The EEC aims to further
decongest traffic along the main highways. Binondo, Manila’s Chinatown, which are often frequented (for the whole project of New Priok
develop Thailand’s current industrial production base, the Container Terminal)
by both locals and tourists. As such, the railway line will also Eastern Seaboard, covering the three provinces of Chonburi,
benefit commuters visiting the shopping hub. Chachoengsao and Rayong. Parties JV between state-run port operator Pelindo
Manila - North-South Railway (South Line) (Philippines) involved II and a Japan-Singapore consortium
Clark, Pampanga
The major infrastructure components of the EEC are: one Time Expected to be completed and operational
airport (U-Tapao International Airport in Rayong), two deep in 2023
sea ports (Map Ta Phut Phase 3 and Laem Chabang Phase 3), Status First phase has been completed
Tutuban, Manila one commercial port (Sattahip), one motorway, one double-
track railway upgrade (Laem Chabang – Map Ta Phut seaport)
Lamon Bay plus two proposed routes (Laem Chabang – Pluak Daeng In line with President Joko Widodo’s vision to turn Indonesia
– Rayong and Map Ta Phut – Rayong – Chantaburi) and one into a maritime power, developing and optimising Indonesia’s
Calamba, Laguna
high-speed rail way from Bangkok to Pattaya and Rayong. The maritime infrastructure has been a key priority since 2014,
EEC is also designed to be ASEAN water transport hub, linking together with improving maritime security.
the Dawei deep-sea port in Myanmar with Sihanoukville in
Cambodia and Vung Tau port in Vietnam. The completed 32-hectare Kalibaru Port terminal is one of
Tayabes Eastern Economic Corridor (Thailand) such projects. The new terminal is an extension of Indonesia’s
largest trade hub, Tanjung Priok Port in Jakarta. The expansion
Batangas City
Bay
aims to improve Indonesia’s logistics competitiveness by
Bangkok
increasing its capacity to 1.5 million twenty-foot equivalent
Chachoengsao units (TEU) per year. The development of Kalibaru Port is
Legazpi, Bicol
Mortoway
divided into several phases; the first phase started construction
since early 2013 and began operating in August 2016.
West High Speed Train
Philippines Sibuyan Sea Laem Chabang
The upcoming New Priok Container Terminal 2 and Terminal
Chon Buri 3 will be built on reclaimed land and are set to add a total of
Sea Matnog,
Deep Sea Port
Sorsogon 3 million TEUs in capacity. Altogether, these plans will increase
import-export capability to an overall capacity of 11.5 million
Industrial Estate
Rayong TEUs per year from the overloaded capacity of 7 million TEUs.
Double
Commuter line from Tutuban, Manila to Calamba, Laguna Upcoming branch line from Calamba to Batangas City Track Railway
Long-haul line from Tutuban, Manila to Legazpi, Bicol Upcoming North Railway U-Tapao
Upcoming extension line from Legazpi to Matnog International
Airport
Map Ta Phut Industrial

Opportunities in Tourism Similarly, the neighbouring province of Hai Phong has also
seen keen interest in resort development. This is in areas such
and Retail as Cát Bà, the largest island in the complex of Ha Long Bay,
and Đồ Sơn, a popular beach town from the time of French
The travel and tourism sector is important for most ASEAN colonial rule. Given the government’s focus on promoting
countries. In terms of economic contribution, the sector in eco-tourism and maritime tourism, both local and foreign
2015 directly accounted for 5.0% of ASEAN’s GDP, and a investors have committed to build a range of offerings
further 7.4% in indirect and induced GDP19. This is higher including eco-tourism complexes, hotels and expanded golf
than other regions such as Europe and the Americas, where courses21. Investment in infrastructure projects such as the 2. Changi Airport Terminal 5 (Singapore) In 2019, Changi Airport will be unveiling Project Jewel, a
the sector contributed to 9.6% and 8.6% of regional GDP20 upgrading of Cat Bi International Airport in 2016 has helped shopping mall designed by architect Moshe Safdie. It will
respectively. to spur tourism growth, and the new Van Don International Cost To be determined, approximately tens of be an iconic retail destination for both locals and tourists,
Airport will further boost tourism as it is designed to handle billions SGD
with features such as a 40m indoor waterfall and five-storey
Investment in infrastructure would help improve and expand two million passengers per year by 2020. This capacity is Parties To be funded mostly by Singapore garden, and 53,500 sq. m. of net lettable area of retail space,
routes to new tourist destinations. It also fits in well with expected to expand to five million passengers by 2030. involved government, operations by CAG or about 300 stores. There will also be a 130-room boutique
recent trends of experiential travel, where vacationers seek Time To complete in the late 2020s hotel for transit passengers and airport operation facilities.
a more local and authentic experience. More transport Other than tourism, the Ha Long-Hai Phong Expressway will The expansion in the airport’s capacity and the addition of
options would certainly help those looking for areas off the connect Ha Long City and Quang Ninh province with the Status Shortlisting in progress for consortium of Project Jewel are part of Changi Airport’s continuous effort to
usual tourist trail. At the same time, it offers opportunities for surrounding cities and provinces, boosting trade among these design firms to undertake the project be ahead of its peers and to eventually grow the contribution
provinces as well as with neighbouring China. Ha Long and Tender by mid-2017, selection by early
developers to cater to the ever-present demand for new and 2018 of the tourism sector to Singapore’s GDP24. For retailers,
exciting locations, whether resort or retail offerings. Quang Ninh are located near the sea, so the improvement in Project Jewel presents an opportunity to establish themselves
infrastructure can help enhance logistics in the North. in a landmark development amid the competitive retail
For example, infrastructure developments is expected to Singapore’s Changi Airport – proud holder of Skytrax’s environment in the region.
benefit the real estate market of Ha Long City in Quang Figure 4: Tourist Arrivals to Vietnam World’s Best Airport title for five years running22 – continues
Ninh province. A range of resorts are being built in and to expand its capacity and enhance its allure for tourists, with
around Ha Long Bay by reputable developers such as
100 Figure 5: Tourist Arrivals to Singapore
transformative projects planned over the next 5 to 10 years.
Millions persons
Vingroup, Sun Group, BIM Group and FLC Group. These include the expansion of the existing Terminal 1 and the 20.0
50 additions of Terminal 4 and Terminal 5, which together will
1. Infrastructure developments in Quang Ninh Province more than double the current capacity of the airport; as well
as the completion of a mixed use development, Project Jewel. 15.0
(Vietnam)
Millions persons
0
2000 2005 2010 2015
An expansion to the airport’s capacity will ensure that 10.0
Cost - Ha Long - Hai Phong Expressway: Domestic International
US$287 million Singapore maintains its attractiveness as a regional tourism
- Bach Dang Bridge: US$ 331 million Source: Vietnam National Administration of Tourism destination. In 2016, Changi Airport served 58.7 million
- Van Don International Airport: US$331 visitors23 and has the capacity to host up to 66 million 5.0
million
- National Road 4B, Van Tien Bridge etc Quang Ninh Province, Vietnam passengers per year. When Terminal 5 is completed in the
Quang late 2020s, the airport’s total capacity will be boosted to
Parties Developer: Quang Ninh Department of Ninh 135 million passengers per year. To ease congestion, the 0
involved Transportation and Logistics 2000 2005 2010 2015
Hai Phong airport will be implementing a three-runway system, up from
Time - Ha Long - Hai Phong Expressway: to the current two; and developing cargo complexes and other Source: Singapore Tourism Board.
complete in 2017 supporting ground transport infrastructure.
- Bach Dang Bridge: to complete in 2017
- Van Don International Airport: to open in
2018 21
These include eco tourism complexes by Ha Noi-based Sun Group and multi-
- National Road 4B, Van Tien Bridge etc: sector investment firm FLC. Other planned resort complexes are by HCM City-
To complete in 2018 based Him Lam Joint Stock Company and South Korean investment 200
group McKinley.
Status - Ha Long - Hai Phong Expressway: Under 22
Ranking in the Skytrax World Airport Survey. Source: Changi Airport Group.
construction
23
From http://www.changiairport.com/corporate/about-us/traffic-statistics.html.
24
Currently, tourism contributes about 4% of Singapore GDP (Singapore Tourism
150
- Bach Dang Bridge: Under Construction
Board, 2017).
- Van Don International Airport: Under
in US$ Billions
Construction 100
- National Road 4B, Van Tien Bridge etc:
Under Construction
50
19
World Travel & Tourism Council. Travel & Tourism Investment in ASEAN, 2016.
20
A total of direct, indirect and induced GDP.
0

-50
07
09
11
13
15
17F
19F
21F
23F
25F
27F
ASEAN in the Future 20.0
15.0
Millions persons
10.0
Growth outlook for ASEAN is positive, given regional On top of the region’s inherent potential, ASEAN has also been
demographics
5.0 and the pace of development of member drawing on external interests in the region to grow. China’s
countries. Barring any unforeseen circumstances, the region One Belt, One Road (OBOR) initiative has been welcomed
can over the next decade look forward to a rising trend in by most ASEAN countries, and aims to enhance global
forecasted 0economic indicators such as net inflows of FDI and cooperation at a time where other large nations are appearing
2000
total trade. With the 2005
increased infrastructure 2010
investment 2015
today to move towards protectionism. To allay fears of China
and the stronger commitment towards the AEC, ASEAN will be domination and to woo countries to join in the bandwagon,
on the right path towards achieving these forecasted figures. President Xi reiterated in the 2017 Belt and Road Forum that
OBOR seeks win-win solutions and is not meant to undermine
stability. Rather, it will “connect development strategies of
Net inflows of FDI into ASEAN different countries and complement each others’ advantages”;
200 and China will not intervene into the internal affairs of other
nations, he said.
150
OBOR presents various opportunities for ASEAN countries.
On one hand, for developing countries such as Cambodia
in US$ Billions
100 and Laos, OBOR can offer financial assistance and expertise
in various strategic infrastructure projects. On the other hand,
50 countries like Singapore can play a part by offering business
services such as financing and legal practices in the early
0 stages of OBOR; and engaging in the real estate development,
logistics and e-commerce sectors in its later stages. Once the
major infrastructure routes are in place, ASEAN as a whole can
-50
look forward to increased participation in and benefits from
2007
2009
2011
2013
2015
2017F
2019F
2021F
2023F
2025F
2027F
global trade flows.
Growth in ASEAN total trade

5.0% Quick facts on One Belt, One Road (OBOR)
• Formal name: Belt and Road Initiative (BRI)

4.0%
• First mooted by President Xi Jinping in 2013
• Comprises of two routes:
The land-based “Silk Road Economic Belt” which aims to revive the ancient
3.0%
Silk Road
The sea route called “21st Century Maritime Silk Road”.
• Six planned economic corridors, covering more than 60 countries and regions
2.0%
from Asia to Europe or more than 62% or world population.
• In terms of economic impact, it accounts for more than 30% of global GDP and
1.0% over 34% of the world’s merchandised trade.
• Financing facilities include the Silk Road Fund with US$40billion initial funding
and a multilateral development bank, the Asian Infrastructure Investment Bank
0% (AIIB), on top of existing development banks in China.
CAGR CAGR Estimated Estimated • In the most recent Belt and Road Summit, President Xi pledged more than
(2007-2011) (2012-2016) CAGR CAGR
US$100billion for infrastructure spending across Asia, Europe and Africa.
(2017-2021) (2022-2026)
Source: Oxford Economics. Source: Hong Kong Trade Development Council, The New York Times.

Conclusion
Overall, various infrastructure projects planned and increased connectivity within each country and between
underway in ASEAN are in line with the aims of the neighbouring countries. In the longer term, decentralisation
ASEAN Economic Community25 – as encapsulated in within metropolitan areas and sub-national regions will
its Four Pillars. In a two-tier ASEAN market, upcoming provide plenty of opportunities for developers, owners and
infrastructure projects could change the dynamics of the occupiers of space – running the gamut from residential and
regional economy. As developing ASEAN countries such commercial to hospitality.
as Cambodia, Laos and Myanmar evolve into low-cost
production centres with the potential to replace China or the Infrastructure development often brings about multiplier
more developed ASEAN countries, the latter’s role in global effects to the economy by increasing employment and
value chains will change. private consumption. Infrastructure development in ASEAN
is necessary and investment in this sector is timely. Prospects
A case in point would be Denso, a Japanese automotive are promising for both the economy and real estate markets,
components manufacturer, that opened its production plant however, whether these projects can truly be gamechangers
in the Phnom Penh Special Economic Zone in 2015. The will depend on their execution.
plant produces parts that will be transported back to its
Thailand facilities for assembly, thereby reducing the cost
of production and allowing its Thailand factory to become
a regional hub focusing on the production of new products The Four Pillars of ASEAN Economic Community
outside Japan.
1. Single market and production base
Due to such shifts, more developed ASEAN countries such Rail and road projects will facilitate the free flow of goods and people within the
as Malaysia, Singapore and Thailand will have to continue country and across national borders.
moving to higher value industries. For these countries,
2. Competitive Economic Region
improving the urban transportation network and increasing
their competitive advantage will be the key focus. Better transport infrastructure also will help to boost tourism and retail sector
as locals and tourists alike can move around more easily, discovering non-
At the same time, there could be competition within traditional tourist spots or immersing themselves in the local culture.
industries. For example, the plans and potential of the East
3. Equitable Economic Development
Coast Railway Line in Malaysia may take away a significant
amount of the logistics business in Singapore. Planned infrastructure projects present opportunities in the growing secondary
regions both for residential and commercial developments. This promotes a more
Among the real estate sectors, the logistics sector inclusive and cohesive ASEAN.
should be the main beneficiary of ASEAN’s high levels of 4. Integration into the Global Economy
infrastructure investment in the short to mid-term, given
Improved physical connectivity is set to benefit the logistics industry. This will
eventually present ASEAN as a more attractive investment destination to the
global economy.
REF EREN C ES
Groff, Stephen P. ASEAN’s Infrastructure Crisis.
World Bank - Urban Population.
ASEAN Statistics Division (ASEANstats) Net inflow of FDI in ASEAN.
ASEAN Secretariat, Tourist arrivals by country of origin.
ASEAN Secretariat, % Share to total ASEAN trade.
World Bank’s Logistics Performance Index (LPI) in 2016.
25
ASEAN Secretariat, 2008. ASEAN Economic Community Blueprint World Travel & Tourism Council. Travel & Tourism Investment in ASEAN, 2016.

For more information regarding this major report, please contact:
Desmond Sim James Hodge Chotika Tungsirisurp

Head of Research Associate Director Associate Director
Singapore & Southeast Asia CBRE Cambodia CBRE Thailand
desmond.sim@cbre.com.sg james.hodge@cbre.com chotika.tungsirisurp@cbre.co.th
Rennie Whang Kazim Ali Bokhari Duong Thuy Dung

Assistant Manager Senior Associate Director Senior Director
rennie.whang@cbre.com.sg PT Leads Property Services Indonesia CBRE Vietnam
kazim.ali@leads-property.com dung.duong@cbre.com
Dylan Chua
Assistant Manager Aziah Mohd Yusoff Nguyen Hoai An
dylan.chua@cbre.com.sg Director Director
CBRE|WTW, Malaysia CBRE Vietnam
Yuki Suzuki aziah.myusoff@cbre-wtw.com.my an.nguyen@cbre.com
Senior Analyst
yuki.suzuki@cbre.com.sg Roy Amado L. Golez Jr.
Director
Gisela Jahja Leechiu Property Consultants, Philippines
Graduate Trainee roy.golez@leechiu.com
gisela.jahja@cbre.com.sg
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nick.axford@cbre.com richard.barkham@cbre.com spencer.levy@cbre.com
Henry Chin, Ph.D. Jos Tromp

Head of Research, Asia Pacific Head of Research, EMEA
henry.chin@cbre.com.hk jos.tromp@cbre.com
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CON N EC TI N G

Countries: Advancing Secondary Regions

Intra-ASEAN: Approaching Economic Integration

Opportunities in Tourism and Retail

38 ASEAN in the Future

4 CBRE RESEARCH © 2017 CBRE, Inc. 5

MAJOR INFRASTRUCTURE DEVELOPMENTS

* No indicative timeline for projects with (N/A)

The ASEAN Growth Story

8 CBRE RESEARCH © 2017 CBRE, Inc. 9

GDP GROWTH IN ASEAN Investment Needs and Gaps

GDP Breakdown (%)

2000 2015 2000 2015

10 CBRE RESEARCH © 2017 CBRE, Inc. 11

15% For the developing countries in ASEAN, major external sources

Malaysia funding the expansion of the Phnom Penh International

Gap: US$ 92 billion 10%

Financial Closure Year

Financial Closure Year

12 CBRE RESEARCH © 2017 CBRE, Inc.

Commercial clusters Township &

14 CBRE RESEARCH © 2017 CBRE, Inc. 15

16 CBRE RESEARCH © 2017 CBRE, Inc. 17

BANG BAMRU MO CHIT an

Rama Bang Kapi

Lam HUA MARK

Don Mueang International Airport Office clusters

18 CBRE RESEARCH © 2017 CBRE, Inc. 19

Metro Lines in Hanoi and Ho Chi Minh (Vietnam)

20 CBRE RESEARCH © 2017 CBRE, Inc. 21

Metro Lines in Ho Chi Minh (Vietnam) Metro Lines in Hanoi (Vietnam)

Tan Son Nhat 4 Binh Thanh

Hai Boi Tam Xa

Binh Chanh District

22 CBRE RESEARCH © 2017 CBRE, Inc. 23

development at the regional level. concentration of manufacturing activity and is considered

promote the Phnom Penh-Sihanoukville route as a strategic

24 CBRE RESEARCH © 2017 CBRE, Inc. 25

In addition, Sihanoukville is a developing tourism hub, with

Phnom Penh – Sihanoukville Expressway

26 CBRE RESEARCH © 2017 CBRE, Inc. 27

and production base. Kuala Lumpur

1. Kuala Lumpur-Singapore High Speed Rail Seremban

Cost RM 60 billion Ayer Keroh

Parties Public-private participation: A consortium

28 CBRE RESEARCH © 2017 CBRE, Inc. 29

Map of Phnom Penh - Ho Chi Minh Tollway

30 CBRE RESEARCH © 2017 CBRE, Inc. 31

32 CBRE RESEARCH © 2017 CBRE, Inc. 33

34 CBRE RESEARCH © 2017 CBRE, Inc. 35

36 CBRE RESEARCH © 2017 CBRE, Inc. 37

ASEAN in the Future 20.0

Growth in ASEAN total trade

• Formal name: Belt and Road Initiative (BRI)

38 CBRE RESEARCH © 2017 CBRE, Inc. 39

Asian Development Bank, 2016.

Asian Development Bank, 2017.

World Bank - Urban Population.

ASEAN Statistics Division (ASEANstats) Net inflow of FDI in ASEAN.

ASEAN Secretariat, Tourist arrivals by country of origin.

ASEAN Secretariat, % Share to total ASEAN trade.

World Bank’s Logistics Performance Index (LPI) in 2016.

40 CBRE RESEARCH © 2017 CBRE, Inc. 41

Desmond Sim James Hodge Chotika Tungsirisurp