• 2 – 4 SEPTEMBER 2020
  • MARINA BAY SANDS EXPO

Construction outlook for Asia – General Overview


ASEAN, a 10-country regional bloc consisting Philippines, Indonesia, Malaysia, Thailand, Viet Nam, Cambodia, Myanmar, Singapore, Laos, and Myanmar, highlights $250 billion potential in construction, reports New Building Materials and Construction World Magazine. The markets are expected to grow at 7.5% in the construction sector, compared to global growth of 3% over the same period by 2021. 

Growth by Markets

Indonesia

The Indonesian construction industry continues to expand at a fast pace, driven mainly by government investment in energy and transport infrastructure. The industry's output value is expected to continue to expand at a healthy rate over the forecast period (2019-2023), with investments in housing, transport and tourism infrastructure projects continuing to drive growth. 

The market is expected to follow a similar trend over the forecast period, with infrastructure construction accounting for 36.4% of the industry's total value in 2023. Residential construction was the second-largest market in the Indonesian construction industry during the review period, accounting for 25.8% of the industry's total value in 2018. Energy and utilities construction accounted for 22.4% of the industry's total output in 2018, followed by commercial construction with 7.8%, industrial construction with 6.3% and institutional construction with 3.5%. Read more here.

Malaysia

The construction industry is expected to face some challenges, mainly stemming from the new government's policy to reduce the country's debt by cutting investment on major infrastructure projects.

Growth would mainly be driven by the government’s increased expenditure on public infrastructure and residential housing. Industry players are looking at projects in Sarawak due to support from the state government.

Residential construction was the largest market in the industry during the review period, accounting for 29.1% of its total value in 2018. Market expansion over the forecast period is expected to be supported by affordable housing programs being implemented by the government. Infrastructure construction was the second-largest market in the Malaysian construction industry during the review period, accounting for 24.4% of its total value in 2018. The market is expected to retain its position over the forecast period, accounting for 26.8% of the industry's total value in 2023. Read more here.

Philippines

The Philippine construction industry registered a growth of 15.1% in real terms in 2018, with the industry's output value - measured at constant 2017 US dollar exchange rates - increasing from US$38.5 billion in 2017 to US$44.3 billion in 2018; this was preceded by an average annual growth of 9.6% during the preceding four years. Growth during the review period (2014-2018) was driven by positive developments in regional economic conditions and government investment in residential, transport and energy infrastructure.

Accounting for 33.3% of the industry's total value in 2018, residential construction was the largest market in the Philippine construction industry during the review period. The market is expected to retain its position over the forecast period, and account for 34.7% of the industry's total value in 2023. Infrastructure construction accounted for 21.5% of the industry's total output in 2018, followed by commercial construction with 17.5%, energy and utilities construction with 15.6%, institutional construction with 7.0% and industrial construction with 5.2%. Read more here.

Singapore

Construction demand in Singapore to stay strong as the Building Construction Authority (BCA) of Singapore expects a steady improvement in construction demand over the medium term. Demand is projected to reach between S$27 billion and S$34 billion per year for 2020 and 2021 and could increase to between S$28 billion and S$35 billion per year for 2022 and 2023.

Residential construction was the largest market in Singapore's construction industry during the review period, accounting for 26.0% of the industry's total value in 2018. The market will retain its spot as the largest segment, but its market share is expected to decrease, accounting for 24.4% of the industry's total value in 2023. Infrastructure construction accounted for 18.5% of the industry's total output in 2018, followed by industrial construction with 18.2%, institutional construction with 16.9%, commercial construction with 11.0% and energy and utilities construction with 9.5%. Read more here.

Thailand

After a weak construction activity in 2017 due to unstable political environment, the industry's output value is expected to pick up over the forecast period (2018-2022), with investment in public infrastructure, renewable and nuclear energy, commercial and industrial projects, and improvements in consumer and investor confidence.

The construction industry's output value is forecast to rise at a compound annual growth rate (CAGR) of 3.04% over the forecast period. Forecast period growth in the residential construction market will be supported by government efforts to build houses for middle-and low-income groups through its social housing program, coupled with growing urbanization. Under this, the government announced plans to spend THB10.0 billion (US$306.8 million) to provide loans to builders to construct affordable houses in the country for low- and middle-income people. Read more here.

Vietnam

Vietnam has one of the fastest growing economies in the world. The country’s construction industry is booming and new infrastructure, high-rise buildings and private housing projects are shaping the skylines of cities across the country.

The trade war between the US and China is also expected to divert foreign investment towards Vietnam, and cause the country to emerge as an attractive destination for the manufacturing industry, which could have a positive impact on construction industry.

The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 7.87% over the forecast period.

The market is expected to follow a similar trend over the forecast period, with residential construction accounting for 42.6% of the industry's total value in 2023. Infrastructure construction accounted for 22.6% of the industry's total output in 2018, followed by energy and utilities construction with 13.6%, industrial construction with 8.9%, commercial construction with 7.4% and institutional construction with 3.2%. Read more here.

Find out how you can tap onto these markets

As an Exhibitor/Partner

Boost business potential with face-to-face contact and leverage on our 360- degree multichannel marketing campaign to increase your brand awareness.

As a Visitor

Source innovative products and technologies. Gain insights and learn best practices from top thought leaders at our complimentary seminars.