The year 2025 marked another decisive phase in Southeast Asia’s (SEA) push to strengthen connectivity as governments across the region continued investments in road and rail infrastructure to support economic growth, trade and mobility. Building on the momentum of previous years, the focus in 2025 remained firmly on expanding expressway networks, advancing flagship rail corridors and accelerating the development of urban mass transit systems. Together, these developments across the roads and railways sector reflected a sustained recognition that efficient transport infrastructure is central to improving logistics competitiveness, reducing congestion in rapidly expanding cities and supporting regional integration efforts across the region.
Continued momentum on building the expressway and highway network
Indonesia remained a key driver of road sector activity in the region. The country continued to advance its toll road programme, with new sections being completed and others moving through construction stages. In East Kalimantan, toll road projects such as the Balikpapan-Samarinda Toll Road and access roads supporting the connectivity to the new capital city, Ibu Kota Nusantara (IKN), progressed. Key developments include the completion of the IKN Section 3A Karangjoang-KKT Kariangau toll road in August 2025. These developments underscored the role of road infrastructure in supporting long-term urban planning objectives around strategic economic zones.
Indonesia’s reliance on public-private partnership (PPP) structures continued, with several toll road packages prepared or offered to private investors under the national PPP pipeline to mobilise capital and technical expertise.
Vietnam also sustained a strong pace of road development in 2025 as expressway construction remained central to national infrastructure priorities. The year saw continued progress on multiple segments of the North-South Expressway, including sections such as Mai Son-National Highway 45, Vinh Hao-Phan Thiet and Phan Thiet-Dau Giay, with several stretches becoming operational or nearing completion. The rapid expansion of the expressway network is increasingly viewed as a catalyst for regional development, enabling faster movement of goods and people while easing pressure on overloaded national highways. Vietnam’s approach reflects a broader regional trend of using large-scale road investments to increase productivity and attract private investment into manufacturing and logistics.
In Thailand, road expansion remained an important pillar of transport planning. The opening of motorway sections continued during 2025, with Motorway 6, Bang Pa-in-Nakhon Ratchasima, opening for trial use in December 2005. Road connectivity also remained closely tied to tourism recovery and regional trade, reinforcing the importance of maintaining reliable highway links between major urban centres and border areas.
Malaysia’s road sector expansion in 2025 continued to be shaped by long-running corridor projects, particularly in East Malaysia. Progress on the Pan Borneo Highway remained a focal point, with sections in Sabah and Sarawak steadily moving through advanced stages of construction. The emphasis on upgrading existing alignments, improving safety and enhancing access to rural and semi-urban areas were key objectives underpinning road investments in the region.
Focus on rail corridors
Rail infrastructure developments in 2025 reflected a combination of long-term ambition and gradual progress, with several major intercity and cross-border projects reaching important milestones. While rail projects typically face longer gestation periods compared to roads, the year saw tangible movement in some of SEA’s key projects.
Malaysia’s East Coast Rail Link (ECRL) remained one of the most prominent rail projects in the region. Construction progress continued through 2025, with official updates indicating that the project had reached an advanced stage of completion. The ECRL is expected to reshape east-west connectivity across Peninsular Malaysia, linking the South China Sea coast with the west coast’s ports and industrial hubs. Its strategic significance extends beyond domestic transport, as it is also positioned as a key logistics corridor within the broader regional trade network and the project is expected to be launched in early 2027.
There was renewed attention on Vietnam’s rail sector in 2025, particularly in relation to strategic new lines and international connectivity. Plans to modernise and expand rail links connecting northern Vietnam with China gained traction, including proposals for a Lao Cai-Hanoi-Haiphong railway corridor aimed at improving access to key ports and strengthening cross-border trade routes.
Thailand continued to demonstrate progress in its high speed rail ambitions, with the Bangkok-Nong Khai high speed rail project remaining central to the country’s connectivity strategy. The project is designed to link Thailand to the wider regional rail network via Laos and China, reinforcing Thailand’s aspiration to position itself as a logistics and transport hub in mainland SEA. While the project is in the construction phase, developments during 2025 reinforced the project’s strategic importance.
Technology, sustainability and operational efficiency
Beyond physical construction, 2025 saw growing emphasis across SEA on improving operational efficiency, safety and sustainability across transport networks. In the rail sector, modern signalling systems, digital monitoring tools and integrated operations were increasingly recognised as critical enablers of network reliability, safety and capacity optimisation. Several ongoing rail programmes incorporated upgraded signalling and systems integration as part of broader modernisation efforts. Projects such as Malaysia’s ECRL and Thailand’s high speed rail corridors increasingly emphasised operational readiness, safety systems and network integration alongside civil works, reflecting a shift towards lifecycle based infrastructure planning rather than asset creation alone.
In the road sector, technology adoption remained more incremental but continued to evolve. Expressway and toll road projects across Indonesia, Vietnam and Thailand increasingly integrated improved safety features, access control and corridor-based logistics planning to enhance traffic flow and reduce accident risks, particularly on high speed routes linking industrial zones and ports.
Environmental considerations also featured more prominently in transport policy discussions during 2025. Rail investments were frequently positioned as low-carbon alternatives to road transport, particularly for long-distance freight and intercity passenger movement. At the same time, road authorities increasingly focused on improving network efficiency to reduce congestion-related emissions, reinforcing the role of operational improvements alongside new capacity creation in supporting sustainability objectives.
Future outlook
By the end of 2025, SEA’s roads and railways sector had reinforced its role as a cornerstone of regional development strategies. Expressway expansion continued to underpin logistics efficiency and economic corridor development, while rail projects, both intercity and cross-border, showed signs of steady progress towards long-term connectivity goals. Looking ahead to 2026, the region’s challenge will be to maintain delivery momentum amid fiscal pressures, rising construction costs and increasingly complex urban environments. Recently, the Indonesian government announced a proposed reduction in the budget allocation for road infrastructure while emphasising the need for higher private participation. Furthermore, other governments are also looking to crowd in private investments. Ensuring that new infrastructure translates into tangible economic and social benefits will depend not only on completing projects, but also on integrating roads and railways more effectively with ports and industrial zones in urban planning frameworks.
