Credit by Laborers work at a construction site for an office building in Singapore © Asia Times
Japan vs China Investment in Southeast Asia. We See the Winner.
ECONOMY Beyond

Japan vs China Investment in Southeast Asia. We See the Winner.

Asia’s two biggest economies, Japan and China are jostling to expand influence in Southeast Asia, one of the world’s brightest economic spots and home to half a billion people.

Governments from glitzy Singapore to communist Vietnam are building airports, tollways and mass rapid transit to attract investment and create jobs.

Based on BMI Research, Bloomberg recently reported although China may steal all the headlines when it comes to its infrastructure push across Southeast Asia, but the data shows differently in which Japan is still well ahead in funding projects in the region.

The report added infrastructure is increasingly among the region’s main growth engines.

Indonesia boasts a pipeline of over 250 projects, while the Philippines plans to spend $180 billion on rails, roads and airports. Singapore is doubling the size of its mass transit system.

To reduce strain on government budgets, countries are turning to their richer neighbors, who are only too willing to strike deals.

The following charts show where the region is in its infrastructure push:

Keterangan Gambar (© Pemilik Gambar)

Meanwhile, herewith are the number of projects per country:

Source: BMI Research
Source: BMI Research

.. and some of the major projects are as follow:

China-backed projects

Country

Name

Value (US$)

Indonesia

Kayan River Hydropower Project, North Kalimantan

17.8 billion

Malaysia

East Coast Rail Link

12.7 billion

Malaysia

Melaka Gateway Project, Melaka

9.9 billion

Japan-backed projects

Country

Name

Value (US$)

Philippines

Makati-Pasay-Taguig Mass Transit System, Metro Manila

8 billion

Indonesia

Train III Project, Tangguh LNG Facility, Special Region of West Papua

8 billion

Vietnam

Long Thanh International Airport Project, Phase 1, Dong Nai Province

5.2 billion

The race is far from over. Government finances aren’t strong enough to fund all the projects, HSBC Holdings Plc said, and China can catch up.

Beijing sealing a series of infrastructure deals under its Belt and Road Initiative in the past two years is a good sign.

Keterangan Gambar (© Pemilik Gambar)


Source : Bloomberg

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