Asia-Pacific’s infrastructure opportunity is not just a private affair

INFRASTRUCTURE assets are recognised for their ability to generate steady and predictable cash flows. In Asia-Pacific (Apac), however, infrastructure means much more. It is an asset class with real growth potential, underpinned by structural tailwinds of decarbonisation, digitalisation and rising prosperity of the middle class.

In particular, Apac’s demographics and growth dynamics will drive demand for transport and technology infrastructure. Healthcare infrastructure also faces strong prospects as consumers increasingly prioritise healthcare spending and populations grow older.

More broadly, the region will also need sizeable investments in industrials, utilities, waste management, renewables, data centres, education services, airports, highways and railways. Developing Asia alone will require an estimated US$1.7 trillion of annual infrastructure investment to sustain its economic development and enhance climate adaptation and mitigation, according to the Asian Development Bank.