However, making uninformed or no investment can be extremely costly from a socioeconomic
perspective. The quality and extensiveness of infrastructure significantly
impacts economic growth and reduces income inequalities. For example, transport and
telecom infrastructure enables connectivity with less developed and rural communities,
thereby increasing access to economic activities. ASEAN countries need to individually
and collectively review their infrastructure portfolio to appropriately plan for the required
infrastructure that can catalyse economic development, and subsequently raise the
productivity of the entire region.
A review of the planned megaprojects across ASEAN countries for the next decade
paints an encouraging picture; however, the estimated US$ 690 billion is far short of
what is required to catalyse economic connectivity across these countries (Exhibit 7). It
is absolutely imperative that the government and private sector in these countries come
together to overcome the barriers and build the required infrastructure. Sustaining even
the current levels of investment in infrastructure will be a challenge due to four main
challenges that we outline in the next chapter.