Construction & Infrastructure

  • Investments in the industry have been the main impetus for economic development in Asian countries. Further, there is growing emphasis on the use of renewable energy such as solar energy. To support trade and industry growth, the region will need to continue upskilling its labour force.

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Industry Perspectives

 

Energy efficiency is the concept of using less energy to perform the same task, thus eliminating energy wastage and also bringing significant benefits to adopters. Buildings and construction projects are significant contributors to global CO2 emissions, accounting for 39 per cent of total emissions. Given the region’s sustainability targets, we have identified significant opportunities for energy efficiency.

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China's Belt and Road Initiative (BRI) has been presenting great opportunities in promoting economic cooperation and connectivity with major markets across the world. Find out more about China's recent conclusion of its 14th Five-Year Plan, developments of BRI-related projects and trades, and an update on recent events surrounding the escalation of the China-US tensions.

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Buildings are a key contributor to CO2 emissions. To address issues of sustainability and meet government targets to reduce pollution, there needs to be a refocus on buildings' energy efficiency. Governments have also offered incentives for building owners to go green.

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The transition to a smart city is vital to sustainable living and the environment due to the formation of megacities. If left unchecked, urbanisation could lead to challenges such as traffic congestion, pollution, crime, issues in water and waste management and more. As global communities navigate the challenges arising from urbanisation, adopting sustainable solutions is the key to building a better future.

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With disruptions facing the world today, enterprises need to move away from traditional business models to survive. Digital transformation (DX) is now happening at a much faster rate than before, as enterprises adapt to new restrictive conditions set out by their governments.

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The construction and infrastructure sector has been badly impacted by COVID-19, through movement restrictions, supply chain disruptions and project delays. However, there could be a pick-up in infrastructure spending once the pandemic is contained.

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We conducted a survey with 300 key decision makers across Southeast Asia (64%), Mainland China and Hong Kong (36%) to navigate the macro risk landscape given the current uncertainties.

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Renewable energy capacity growth is expected to outpace non-renewable energy sources. In Southeast Asia, rooftop solar power in particular is enjoying strong growth due to favourable regulations and incentives by selected governments in Southeast Asia.

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Electricity demand in Southeast Asia (SEA) is expected to grow at twice the rate of the global average from 2016 to 2040, driven mainly by increasing population and urbanisation, rising income, economic growth and improved electricity access. Many Southeast Asian countries are looking to increase their renewable energy capacities through attractive incentives.

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Malaysia's operating landscape has changed significantly post the 2018 landmark election. With the country's infrastructure needs and spending still robust, there are selective opportunities in renewable energy, infrastructure and affordable housing.

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Looking at global events, shifts in mindsets and more, this report will share UOB’s take on megatrends and the impact of these trends across industries.

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Videos

 

Video: Southeast Asia power & renewables outlook
ASEAN will be the world's fourth largest energy consumer by 2030. The region's projected energy source from renewables is expected to rise to meet growing electricity demand.

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Watch this video on Southeast Asia's power & renewables outlook.