While some of the construction industry has tempered in parts of Asia, special attention should be made of the growth potential in Myanmar, UK-based construction consultancy company AECOM and its Davis Langdon KPK group said in a report.
The half-yearly Asia Construction Outlook 2014 report, which provides review of, and forecast for, the construction markets in Asia, said in the medium-term Myanmar has been identified as a country with potential for “significant future growth in construction,” along with the Philippines in the near-term.
Although construction spending growth in Indonesia and China will remain the strongest in the region, the report added.
The findings, which were based on an analysis of sector statistics combined with the results of market sentiment, showed the residential sector in Asia appears to be gathering some momentum.
However, respondents were slightly less optimistic regarding the future prospects for construction in Asia, with Indonesia being the top-rated country in terms of potential construction spending growth in the medium term.
A lack of investor confidence in Thailand is expected to affect construction spending in the near term, the report said.
“There is an increasing downside risk shown in our forecasts based on the level of credit availability in the region,” said Dato’ Sri Kandan, chairman, Davis Langdon KPK.
The report said integrated planning, design and engineering solutions will be the key to advance the value of the project. As market pressures mount on projects’ financial viability due to higher costs and lower margins, innovation in procurement such as the Integrated Project Delivery process should be considered, it added.
“This, coupled with the principles of Lean, such as improving quality and productivity, would seek to deliver maximum value to the owner, reduce waste and maximise efficiency through all phases of design and construction.”