​ASEAN: Mega construction projects will rebound to reach $ 2.9 trillion over the next five years

Increasing investment in ASEAN construction industry

The COVID-19 crisis left many economies across the globe, including the construction industry, closed for a few weeks / months in the first quarter of 2020.

For ASEAN, significant opportunities for the growing demand for construction machinery are expected to increase after 2020, due to large infrastructure projects and changing labor dynamics in the construction equipment rental market.

The construction sector is expected to rebound at more than 6% after 2020. And it is estimated that over the next five years, the combined cost of all mega projects in the region will reach 2.9 trillion dollars. According to Business Wire report brief on “Global Construction Equipment Rental Market Outlook 2020-202”, of this value, about $ 1.5 trillion is invested in the planning / pre-planning phase.

This estimation is contributed by many mega development projects such as the public and private infrastructure investments such as Indonesian National Medium-term Development Plan (USD 460 billion), Vietnam Socio-Economic Development Plan (USD 61.5 billion), and the Philippine Development Plan Build, Build, and Build ($ 71.8 billion).

Current status of the construction sector in Cambodia

In Cambodia, the sector is also likely to grow again after 2020. Only the construction of airports across the country is not under $ 3 billion, excluding major projects, other dollars, major ports and highway construction.

On June 22, 2020, Prime Minister Hun Sen said construction on both the private and government sectors, such as roads, airports and residential buildings, was continuing as planned.

“New Phnom Penh Airport Company is investing $ 1.5 billion. The company did not talk about a lack of investment funding, nor did it talk about a moratorium on construction. We have other companies like Peng Huot and Chip Mong, which are continuing their project just like they did before the COVID-19 crisis.” the PM underlined.

This shows that the situation in Cambodia seems to be much better compared to the global situation in which the global construction equipment rental market has only seen positive growth in the last three years (2017-2019) resulting from the vast investment made in the housing and smart commercial buildings and government policies before it has declined.

Major government projects, such as the construction of hospitals, key utilities and infrastructure, continue to operate, but at a slower pace with less workforce at work to prevent the spread of infectious diseases. Therefore, by the year 2020, the global construction equipment rental market prices will likely drop by 30%.(This news came from Consstruction-Property.com)