Are Investors Ready for Southeast Asia?
With Indonesia leading the charge, many Southeast Asian countries are seeking foreign investments in infrastructure projects to be built and/or maintained in the region. Indonesia is seeking around US$9 billion for investments in waterworks, roads, airport and seaport projects and is the test to determine if these economies are able to corner investments in this field.
The Asian Development Bank has identified nearly US$600 billion in infrastructure projects needing capital infusion. The enticements for investors to come in is the easy global liquidity as well as being at the forefront of one fo the world's fastest growing regions.
The main drawbacks, despite the clear shortage of projects offered and the more than average returns is the bureaucratic red tape as well as regulatory uncertainty in the region, especially in hot economies such as Indonesia, the Philippines and Thailand.
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