Asian market growing rapidly and steadily
Infrastructure construction projects are being carried out vigorously in Asian
countries against the backdrop of rapid economic growth and urbanization.
China, the world’s second largest economic power, and India, which will have the world’s largest population in the 2020s, are increasing their presence, together with ASEAN (Association of Southeast Asian Nations). According to the World Economic Outlook released by the International Monetary Fund (IMF) in January 2019, ASEAN is expected to maintain an economic growth rate in excess of 5%, while its working-age population is expected to continue growing stably in the future as well.
In addition to the branches it has already established in Shanghai, Hong Kong, and Singapore, since 2015 the Kanamoto Group has strengthened its focus on ASEAN and has established new joint venture companies in Indonesia, Vietnam, Thailand, the Philippines, and Malaysia.。
ASEAN countries expected to have vigorous infrastructure demand
In Indonesia, construction of power plants and new ports and a high-speed railway (MRT) plan are being implemented, based on a National Medium Term Development Plan targeting infrastructure investment of 44 trillion yen over a five-year period from 2015 through 2019. Vietnam is building sewer and drainage systems and urban rail transit networks as national projects under programs such as the Socio-Economic Development Strategy for the Period of 2011-2020 and the Hanoi Capital Master Plan to 2030, while in Thailand, the government is undertaking national highway expansion based on the Ministry of Transport’s 20-Year Plan and implementing construction projects in areas such as shipping, aviation, high-speed railways and flood control (each to require two trillion yen). In other countries, a road map for implementing infrastructure development with a value of seven trillion yen by 2030 has been approved in the Philippines, and in Malaysia, large-scale infrastructure construction is planned based on the Eleventh Malaysia Plan and Penang Transport Master Plan. Taken as a whole, vigorous construction demand is anticipated in the ASEAN countries where the Kanamoto Group has opened bases.
In the future, the Kanamoto Group will strive to develop business related to the expansion of infrastructure demand in ASEAN countries, while maintaining and expanding each company’s operating results and deepening cooperation with overseas partner firms.。
