Asia Continues To Attract Foreign Market
According to the Asia Construction Outlook 2014 survey, the prospect for both the size and the growth of Asian Construction market remains positive with 92% respondents in agreement. It is expected that the market will continue growing healthier for 50% for the remainder of the year.
The survey results in AECOM 2014 indicates that Indonesia, Malaysia and Thailand stand out as countries which respondents expect to become increasingly attractive to foreign suppliers of construction service. However, comparing to the 2014 survey results with those from the 2013 survey indicate that respondent’s views have become more pessimistic regarding long-term market attractiveness in Singapore and India.
Indonesia’s construction industry has performed well during the Jakarta review period, driven by strong economic activity and high levels of investment. The country, along with Malaysia is said to be the forefront of market growth in the region for the next 12 months.
Multinationals have been increasing their footprint in Asia for years as they have moved from selling into the region to also investing here. Asian companies are also being competitive threats outside the region as well, as they set their site on the global dominance.
It is never easy to set foot into a developing nation. Aside from the competition that may arise against local businesses, there are also competitors among fellow foreigners, causing a lot of complaints. Indonesia is a key target for infrastructure companies because its nearly 250 million people are increasingly demanding better health care and transportation. In 2012, the government has even imposed a stricter process for foreign investors that plan to start business in the country.
On the other hand, in the sudden increase of companies with the same industry, project managers and the public have become keen and aware as to which company to trust. Established construction companies such as Axis Capital Group which is based in Singapore and has branched out in Jakarta, Indonesia, have already secured their place in the industry. However, despite the arduous process and strictness of the government to maintain only legit and licensed companies to operate, some construction companies and equipment rentals in Jakarta, Singapore, Malaysia and other leading developing countries could not avoid fraud and scams to exist.