Top regional stocks to watch as transport infrastructure spending shifts up a gear

SINGAPORE (June 23): With the Asean-5 looking to improve their global competitiveness in the years ahead, HSBC Global Research is anticipating a regional shift in spending from power and telecoms, to the largely-neglected transport infrastructure segment.

In a June report entitled Asean Infrastructure – Full Throttle, industrials analyst Somesh Agarwal projects infrastructure investment in the Asean-5 to double over 2016-20E to US$705 billion ($980 billion), representing 4% of its member countries’ total GDP, with 65% going into transport.

“After taking into account the various government initiatives, we think Thailand and Indonesia are at the forefront of the transport push, while Malaysia has mature infrastructure and is trying to improve regional connectivity by expanding the rail network,”  notes Agarwal.

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