There has been steady economic growth in Southeast Asia (SEA) in 2024, backed by significant efforts towards infrastructural upgrades. According to the International Monetary Fund, the region’s GDP was projected to rise by 4.6 per cent year on year in 2024, far outpacing the global average of 2.4 per cent. While economic performance varies across countries, Vietnam recorded a remarkable GDP growth of 7.4 per cent in the third quarter of 2024, its third-highest benchmark in five years. Singapore achieved a quarterly GDP growth of 5.4 per cent in 2024, its strongest since 2022. Besides, Thailand also gained economic momentum in 2024 while growth was more moderate in Indonesia, Malaysia and the Philippines. The key drivers of this sustained regional progress include a mix of strong exports and increased investments. At the same time, SEA countries are undergoing rapid infrastructure expansion with higher investments in sectors like energy, transportation, urban infrastructure and telecommunications. This is attracting un­pre­ce­dented levels of foreign direct investments (FDI) and fuelling the transformation of their infrastructural landscape. Countries like Indonesia, Vietnam, Thailand, Malaysia and the Philippines are spearheading major infrastructure projects, making SEA a prime destination for investors seeking opportunities in the global supply chain.

Southeast Asia Infrastructure presents a snapshot of the key trends and major developments in various infrastructure sectors in the region and countries during 2024…

Rise in foreign investments and private participation

There has been a notable surge in investment in infrastructure projects across the region. FDI inflows have been rising, with China, South Korea, Japan, and the US as the leading contributors. Their projects play pivotal roles in each sector. For instance, China’s Belt and Road Initiative continues to prioritise large-scale road and rail projects for the region, while Japan and South Korea are collaborating with SEA countries to implement cutting-edge technologies and sustainable infrastructure.

Public-private partnerships (PPPs) are also driving infrastructure growth, emerging as a vital financing model for ASEAN’s ambitious projects. The engagement of private players has enabled the mitigation of financial risks and improved efficiency in the execution of these projects. The private sector funding for Singapore’s renewable energy initiatives and recent airport upgradations in the Philippines exemplify the trend towards greater private sector participation.

Major sectoral developments Energy

SEA countries are rapidly expanding their energy infrastructure to keep pace with rising demand. The energy requirements of the region are expected to surge by more than 70 per cent by 2040 fuelled by urbanisation and economic development. Various solar projects are being undertaken by private 9companies to promote the use of sustainable energy across industries. Similarly, there is a higher focus on the deployment of new-age technologies to optimise energy usage across projects while hydropower projects are also gaining traction.

  • In December 2024, Solarvest Holdings Bhd partnered with Singapore-based Vista Contracting and Investment Global Private Limited to develop rooftop and utility-scale solar projects in Malaysia, Brunei, Cambodia and Taiwan. Their memorandum of understanding (MoU) aims to combine the renewable energy expertise of the two companies to create advanced sustainable energy infrastructure in the targeted countries. Vista specialises in investing, developing and managing renewable energy projects, particularly solar power systems. This partnership is expected to also boost Solarvest’s financial performance while supporting the global shift towards clean energy. The joint projects under the MoU will foster the adoption of renewable energy across SEA and Taiwan.

 

  • In December 2024, the SMART-HS project by the University of Oxford received Euro 2 million funding under the UKRI Ayrton Challenge Programme. The project focuses on optimising hydropower systems in Vietnam, Laos and Cambodia by implementing advanced monitoring and forecasting technologies. These innovations aim to improve energy efficiency, enhance safety and promote sustainable practices in underserved areas. In collaboration with local and international partners, the initiative leverages machine learning- and satellite-based tools to address energy needs and climate challenges in the countries.

  • In September 2024, Founder Energy Sdn Bhd, a subsidiary of Reservoir Link Energy Bhd, signed an MoU with MN Power Transmission Sdn Bhd to explore renewable energy projects, including solar, biogas and biomass, in Malaysia and other SEA countries. The MoU emphasises collaboration in identifying and developing these projects, sharing technical expertise and executing key implementation strategies.

  • In August 2024, Trina Solar announced plans to expand its hybrid solar initiatives across SEA following the successful launch of Malaysia’s largest hybrid solar project. Located in Merchang, Terengganu, the 100 MWac project integrates 35 MW of floating solar panels with 65 MW of ground-mounted panels, designed to offset 202,024 tonnes of carbon emissions annually. The facility utilises Trinasolar’s Vertex 590-595 W bifacial modules, which are highly efficient and durable in coastal environments. These advanced panels capture sunlight on both sides, increasing energy production while lowering costs.

Transportation

SEA’s transportation sector has been focusing on enhancing regional connectivity and supporting trade expansion in the region. It is experiencing significant development and investment, as both governments and private entities focus on improving infrastructure and connectivity across the region. Efforts are being made to modernise and expand air, ports and shipping, roads and rail transport networks to meet growing demand, enhance operational efficiency and support economic growth. These initiatives by SEA countries are centred around upgrading existing infrastructure, integrating innovative technologies and adopting sustainable practices.

  • In January 2025, the Philippine government allocated PhP 7.7 billion in its 2025 budget to upgrade 15 airports nationwide. This funding will support the construction and rehabilitation of runways, taxiways, ramps, control towers and passenger terminals, as well as the procurement of navigational equipment to improve air travel safety and efficiency. The upgrades aim to enhance passenger experience, attract more tourists, generate jobs and support small businesses. Another important development was the taking over of operations at the Ninoy Aquino International Airport by San Miguel Corporation The consortium is implementing a PhP 170.6 billion modernisation plan.
  • In December 2024, Mitsui O.S.K. Lines and Singapore’s Maritime and Port Authority formalised their extended partnership on maritime decarbonisation with an MoU. The collaboration focuses on advancing alternative fuel sources like methanol, ammonia and hydrogen, as well as exploring wind technology. Other goals include improving digitalisation in maritime operations, enhancing voyage management and conducting trials for autonomous vessels. The partnership will also invest in developing maritime human resources, including training for seafarers and shore-based personnel. This initiative is a significant step in establishing the Singapore-Japan Green and Digital Shipping Corridor and positioning both nations as leaders in sustainable and digital maritime solutions.
  • In October 2024, Vietnam proposed a $3.17 billion expressway project to connect its south-western provinces with Cambodia. The Ha Tien-Rach Gia-Bac Lieu Ex­pressway will span 175 km, linking the Ha Tien International Border Gate to Na­ti­o­nal Highway 1 in Bac Lieu City. The four-lane road, designed for a speed of 100 km per hour, includes emergency lanes and aims to boost regional connectivity and socio-economic growth. This project is part of Vietnam’s broader strategy to enhance the Mekong Delta’s expressway network, targeting the completion of 600 km of ex­pressways by 2025 and 1,200 km by 2030. Currently, over 120 km is operational, with more sections under construction.
  • In August 2024, the Malaysia-based Dhaya Maju Infrastructure (Asia) Sdn Bhd signed an MoU with India’s Rail Vikas Nigam Limited (RVNL) to collaborate on railway infrastructure and services in the SEA market and beyond. The partnership includes plans to establish a manufacturing base in Malaysia for railway coaches and related products to address the growing demand of the railway sector

Urban infrastructure

There have also been significant advancements in urban infrastructure in SEA, with a focus on improving urban rail systems and water and wastewater management. Urban mobility options like mass rapid transit (MRT) and light rail transit (LRT) networks are being expanded in SEA countries. Transit networks are being upgraded with new train stock and signalling, communication and remote control systems. Moreover, the SEA countries are also addressing critical water management challenges by improving their key water treatment facilities and expanding service capacities. They are also adopting advanced technologies to improve efficiency and sustainability. Multilateral development banks are providing funds for these large-scale projects, bridging their financial constraints.

As of January 2025, the Philippines’ Department of Transportation made marked progress on two key metro projects in Manila. For MRT 7, a PhP 573.7 million budget has been allocated to hire an independent consultant to review design changes proposed by San Miguel Corporation. The 22.8 km line, connecting Quezon City to San Jose del Monte, includes station relocations and depot adjustments to improve connectivity and minimise disruption. Partial operations are slated for late 2025, with full completion expected by 2028. Besides, construction on the 15.6 km MRT-4 line, which will connect Taytay in Rizal to the EDSA-Ortigas interchange, is set to begin in 2026 with $1 billion funding from the Asian Development Bank (ADB).

  • In January 2025, works for the Mutiara LRT project started with the ground-breaking works ceremony in George Town, Penang state, Malaysia. This is the first LRT project in Penang. The LRT line (formerly known as Bayan Lepas LRT Project) will span 29.5 km and cover 21 stations (fully elevated). The project will involve an investment of MYR 13 billion. Mass Rapid Transit Corporation Sdn Bhd will execute this project; passenger services are expected to commence in 2031.
  • In December 2024, ADB approved $173 million for two water management projects in Cambodia. The first initiative, valued at $88 million, will focus on river basins in Battambang and Pursat pro­vinces. The second project worth $85 million, aims to upgrade irrigation systems across four provinces. These projects are designed to enhance climate resilience, improve water efficiency and protect communities from flooding and drought, ultimately strengthening food security and boosting agricultural productivity.
  • In May 2024, Cimic secured a $107 million contract to redevelop the Choa Chu Kang Waterworks plant in Singapore, which supplies 80 million gallons of water daily to the western region. The project includes expanding the plant and upgrading its water treatment technology. Leighton Asia will manage mechanical, electrical, instrumentation, control and automation works, along with civil, temporary and building services, and testing and commissioning. These works are expected to be completed by 2028.


Communications

SEA countries are committed to upgrading the telecommunications infrastructure of the region. They are investing in advanced 5G technology, data centres and digital platforms and support the region’s target to take digital economy to $330 billion by 2025. These advancements are essential to support e-commerce, fintech and artificial intelligence, strengthening the region’s position as a digital leader in emerging markets.

  • In January 2025, EdgePoint Infrastructure announced its intent to expand its operations by adding at least 5,000 towers across SEA within the next two to three years. Headquartered in Singapore, the company plans to solidify its presence in Indonesia, Malaysia and the Philippines while venturing into new markets such as Thailand and Vietnam. This growth is fuelled by increasing demand for 5G services and rising data consumption in the region. Currently managing over 15,600 towers, EdgePoint’s expansion is backed by key investors, including Adia, DigitalBridge, and the World Bank Group’s International Finance Corporation.
  • In October 2024, Global Tower Corpo­ration Private Limited (GTC) received $19.97 million in financing from the Export-Import Bank of Malaysia Berhad (EXIM Bank Malaysia) to enhance tele­communications infrastructure in Cambodia. The funds will support the construction of over 400 telecommunication towers, aiming to improve connectivity in both urban and rural areas. GTC’s efforts are focused on bridging the digital divide and fostering socio-economic development in the region.
  • In September 2024, the OMS Group committed $300 million to expand submarine cable and terrestrial infrastructure across SEA. This investment seeks to boost regional connectivity and address the growing demand for digital services. Key projects include acquiring ownership of submarine cables and building backhaul infrastructure to link cable landing stations with data centres. A notable initiative, Project MIST, is an 8,100 km subsea system connecting Malaysia, India, Singapore and Thailand with a capacity of 216 TB. OMS aims to strengthen its foothold in SEA and meet the region’s increasing data and bandwidth needs.
  • In September 2024, LitUp Network Singapore entered into an MoU with International Gateway to improve network connectivity across Thailand and the SEA region. The partnership focuses on subsea cable systems and cable landing stations to meet the rising demand for high speed internet. A key collaboration between the two companies is for the Satun-Hatyai-Songkhla-Rayong cable system, which will connect major cities in Thailand. This initiative aims to bolster digital infrastructure and support the region’s growing digital economy.


Future building blocks and constraints

SEA is poised for significant economic and infrastructural growth in the coming years, driven by shifting global supply chains. As global businesses look to capitalise on emerging infrastructural opportunities, the region will benefit from diversified supply chains and advancements in manufacturing and technologies. The region’s position as an infrastructural hub will be facilitated by initiatives like the ASEAN Master Plan on Connectivity 2025. The plan will promote regional integration and improve market access, creating a more interconnected and investment-friendly environment. Besides, a lot more construction activity is expected to take place in different infrastructure sectors. For instance, the construction contracts of Singapore’s Building and Construction Authority are expected to increase to between $47 billion and $53 billion in 2025, up from an estimated $ 44.2 billion in 2024. This increase is driven by major public infrastructure initiatives, including the development of Changi Airport Terminal 5. Similarly, the construction of Malaysia’s MRT-3, also known as the Circle Line, is scheduled to begin in 2027. The timeline depends on the land acquisition process, which could extend to 2026. The 51 km line will complete the Klang Valley MRT network, connecting various rapid transit systems. With a capacity to carry 25,000 passengers per hour in each direction, MRT-3 will offer a total journey time of 73 minutes once operational.

Going forward, balancing economic growth with environmental sustainability remains a critical challenge for SEA nations. Large-scale projects, such as Indonesia’s new capital city, Nusantara, showcase efforts to integrate sustainable features and minimise their environmental impact. However, regulatory complexity and inconsistent policies across countries can delay project implementation and deter foreign investors. Streamlining regulations and fostering a more unified framework are crucial steps to enhance investment attractiveness and ensure seamless execution of infrastructure projects. Given the region’s vulnerability to climate change, countries are increasingly prioritising climate-resilient infrastructure. Investments in flood defences, energy-efficient systems and green building standards are being made to mitigate the risks posed by natural disasters and ensure long-term stability. With these developments, SEA continues to solidify its position as a global economic powerhouse, offering businesses and investors unparalleled opportunities to contribute to and benefit from the region’s transformative growth.