Industry News

The latest report from Turner & Townsend highlights the significant impact of AI infrastructure growth on Asia’s construction market, revealing a surge in demand for data centres that is straining market capacity and exacerbating skilled labour shortages. The Global Construction Market Intelligence report, now in its 17th year, indicates that 16 out of 29 Asian markets are experiencing “hot” or “overheating” activity, driven by investments in data centres, advanced manufacturing, and logistics.

Key findings show that residential and social housing remain Asia’s top-performing sectors, followed by data centres and industrial logistics. Tokyo leads as the most expensive construction market in Asia, with costs reaching $5,801.2 per square metre, largely due to its burgeoning data centre sector. Other Japanese cities like Osaka and Sapporo also rank high in construction costs.

The report warns of a severe shortfall in skilled labour, particularly in mechanical, electrical, and plumbing trades, crucial for tech-centred projects. Sumit Mukherjee, Managing Director for Real Estate for Asia at Turner & Townsend, emphasised the uneven demand concentrated on AI-driven sectors, stating, “There is a very real risk that growth in the pool of skilled labour needed to build data centres won’t keep up with demand.”

The report also notes that geopolitical uncertainties are creating opportunities in manufacturing-led construction, with nearshoring driving growth. In India, cities like Mumbai are set to experience significant inflationary pressures due to rising demand for transport infrastructure and commercial space.

As the construction market in Asia braces for further growth, the report underscores the need for strategic planning to address labour shortages and inflationary pressures.

ASEAN investors are increasingly turning to Australian real estate private credit as a means of securing reliable income and diversification amidst global economic uncertainties. This trend is highlighted in a new whitepaper by Zagga, a specialist in real estate private credit investment. The research reveals that 49% of ASEAN investors intend to boost their exposure to private credit, a figure that is 10% higher than the global average.

Zagga’s CEO and Co-Founder, Alan Greenstein, emphasised Australia’s appeal due to its stable economy and robust property market fundamentals. “Australia is undoubtedly a very credible destination for capital, with ASEAN investors recognising the investment potential on their doorstep,” he stated. Traditionally, ASEAN investors have favoured the US and UK markets, but there is now a growing interest in diversifying into Australian private credit, particularly real estate, which offers a unique risk-return profile.

The Australian private credit market, valued at approximately US$235b, has seen a compound annual growth rate of 21% over the past decade. Despite global challenges, Australia benefits from long-term demographic and property market drivers, supporting the evolution of its private credit market.

To aid investors, Zagga has launched an educational whitepaper series, “Opportunity through Uncertainty,” which explores the risks and opportunities in global private credit and the importance of governance and risk management. With over 1,000 entities in its global investor base, Zagga continues to expand its presence in the ASEAN region, appointing Roushana Sjahsam as Senior Board Adviser.

As the search for stability intensifies, Zagga’s initiative aims to provide investors with the necessary insights to navigate the complexities of the Australian real estate private credit market.

The Asia Pacific (APAC) real estate market is witnessing renewed investor interest as geopolitical tensions ease and interest rate outlooks become clearer, according to a recent report by Savills. Despite subdued transaction volumes in the second quarter, the market is expected to gain momentum towards the end of the year, driven by increased visibility and confidence among investors.

Artificial intelligence (AI) continues to play a significant role in the region’s capital markets, particularly in Taiwan and Korea, where technology stocks are seeing strong gains. This has led institutional investors to rebalance portfolios towards private assets such as infrastructure, private equity, and real estate, with improved pricing visibility and attractive valuations supporting increased allocations.

Asset conversion strategies are emerging as a key theme in APAC markets, particularly in developed regions like Hong Kong, Australasia, Korea, and Japan. These areas, characterised by older building stock, present opportunities for converting ageing office and hotel assets into rental housing, co-living spaces, and senior living facilities. The demand for such conversions is driven by stronger occupier demand in the living sectors compared to commercial spaces.

The data centre landscape in APAC is also evolving, with new facilities increasing in size to meet the demands of hyperscalers and AI workloads. However, access to power remains a primary constraint, influencing where capacity can be delivered. Larger projects require significant capital and early power access, favouring major operators over smaller developers.

In Korea, the living sector is seeing a shift in interest towards senior living, as the number of single-person households headed by individuals over 75 is projected to rise significantly. This demographic change is expected to redirect capital from youth rental markets to aged care facilities.

Hong Kong’s real estate market is showing signs of recovery, with residential markets rebounding and office sector declines slowing. The correction in asset values has opened up new strategies for asset repurposing, attracting capital from both equity and credit perspectives. As sentiment improves, the market is poised for rapid changes, with opportunities for investors to capitalise on discounted assets.

A recent survey by Atradius has uncovered a growing divide in the business-to-business (B2B) credit environment across Asia, with smaller companies facing heightened payment stress. The Atradius Payment Practices Barometer Asia, published today, analysed feedback from 2,145 suppliers in China, Hong Kong, India, Indonesia, Japan, Singapore, Taiwan, and Vietnam. It found that whilst larger firms maintain stable payment behaviour, smaller businesses and certain sectors are struggling with liquidity pressures and volatile demand.

The survey reveals a “two-speed credit landscape,” according to Silvia Ungaro, Senior Adviser on B2B payment trends at Atradius. “Risk is becoming more concentrated rather than widespread, masking a widening gap in performance,” Ungaro noted. Stronger companies continue to sustain stable payment behaviour, whereas weaker segments are experiencing rising strain.

Key sectors such as construction and trade are particularly vulnerable due to their reliance on trade credit and long payment cycles. Manufacturing is also showing signs of stress, with increasing overdue invoices and bad debts. In contrast, the services sector remains relatively stable but cautious, reflecting broader economic concerns.

The survey highlights that over 80% of suppliers have experienced late payments recently, driven by customer cash flow stress. This has led to a domino effect, with many firms delaying their own payments, thereby amplifying risks across supply chains.

Looking ahead, business sentiment remains uncertain. “Companies are almost evenly split between expecting payment conditions to improve or deteriorate in the months ahead,” Ungaro stated, underscoring the ongoing uncertainty in the region’s key trade markets.

SC Capital Partners Group, a prominent Asia Pacific real estate investment manager, has acquired a 206-room hotel in Central Tokyo’s Shinjuku district. This acquisition, made on behalf of its Japan Hospitality Fund, aims to capitalise on Shinjuku’s status as a bustling commercial and entertainment hub, attracting both domestic and international travellers.

The strategic location of the hotel in Shinjuku, known for its excellent transport links and vibrant retail scene, offers a unique opportunity to enhance the hospitality experience in the area. SC Capital Partners plans to implement a comprehensive asset enhancement programme to align the property with the needs of the growing inbound traveller base and improve its competitive positioning.

Suchad Chiaranussati, Chairman and Founder of SC Capital Partners, expressed confidence in Japan’s hospitality sector, citing Tokyo’s strong domestic demand and significant barriers to new supply as key factors. “Opportunities of this nature require deep local market knowledge, hospitality expertise and the ability to execute complex repositioning strategies,” he stated.

Since 2010, SC Capital Partners has invested over $1.3b in Japan’s hospitality sector, managing 60 hotels with approximately 13,000 rooms. The firm also owns Japan Hotel REIT Advisors, managing one of Japan’s largest hospitality REITs, Japan Hotel REIT Investment Corporation, which holds 52 hotels valued at over $5.3b.

Beyond hospitality, SC Capital Partners has diversified its investments across various real estate sectors in Japan, including multifamily housing, student accommodation, and corporate housing. The acquisition in Shinjuku marks another step in SC Capital Partners’ strategic expansion in Japan’s real estate market.

Google has announced a suite of new shopping solutions at the Google Marketing Live Southeast Asia event in Singapore, aiming to revolutionise video commerce and strengthen brand-creator partnerships in the region. These innovations leverage the power of AI-driven Search and YouTube’s creator ecosystem to connect businesses with consumers more effectively.

The newly introduced Commerce Media Suite allows brands with marketplace storefronts to direct high-intent shoppers from YouTube ads to seamless checkout pages. This solution is currently being piloted with Shopee, showing promising results such as a 7.4% increase in revenue for Maybelline.

Additionally, the Creator Partnerships Boost enables brands to promote YouTube creators’ videos as ads within their campaigns, expanding reach beyond organic followers. This approach enhances engagement for creators whilst allowing brands to scale their message.

Google is also piloting the Affiliate Partnerships Boost in Southeast Asia, one of the first regions globally to test this solution. It allows marketplaces and retailers to amplify high-performing affiliate videos as paid ads, providing creators with a new revenue stream through commissions on sales.

Sapna Chadha, Google Vice President for Southeast Asia and South Asia Frontier, highlighted the transformative impact of AI on shopping experiences, stating, “AI is transforming how they explore and shop across our region.”

These developments are set against the backdrop of Southeast Asia’s booming video commerce market, which has grown fivefold from 2022 to 2025, now accounting for 25% of the region’s total e-commerce Gross Merchandise Value. With over 50% of eligible creators enrolled in YouTube’s Shopping Affiliate Programme, the platform continues to be a trusted source for product recommendations.

Investment in energy generation is on the rise across Southeast Asia, but a new report from consultancy TBH reveals that the real challenge lies in infrastructure and connectivity. As industrial growth and urbanisation increase electricity demand, the report argues that simply building more generation capacity will not suffice. Instead, the focus should be on moving, storing, and stabilising power, as well as enhancing cross-border connections for energy sharing.

The report, “Connecting Southeast Asia’s Energy Future,” examines the energy transition in Malaysia, Thailand, Indonesia, Vietnam, the Philippines, and Singapore. It emphasises the need for coordinated planning in generation, transmission, storage, and connectivity to achieve sustainable energy outcomes. Ali Nami, Director and Energy Lead at TBH, stated, “The ability to coordinate these investments and translate them into reliable outcomes will play a major role in shaping the region’s long-term energy future.”

Key insights from the report include Malaysia’s growing role as a data centre hub, Thailand’s expansion of solar energy, and Indonesia’s complex delivery challenges across its island network. Vietnam faces transmission network strains due to rapid industrial growth, whilst the Philippines focuses on energy resilience with offshore wind opportunities. Singapore is positioning itself as a hub for low-carbon electricity imports and cross-border energy connectivity.

The report also highlights the ASEAN Power Grid concept and the ASEAN Plan of Action for Energy Cooperation 2026-2030 as pivotal for regional energy integration. Michael Tan, TBH’s Country Manager for Malaysia, noted the importance of careful planning and coordinated investment to support the region’s energy growth. The full report is available for download on TBH’s website.

Julius Baer has released its Global Wealth and Lifestyle Report 2026, revealing that the Asia Pacific (APAC) region continues to be a leader in global affluence. The report highlights that Singapore has retained its title as the world’s most expensive city for high-net-worth individuals (HNWIs) for the fourth consecutive year. This is attributed to high residential property and car prices, alongside the strong Singapore dollar.

The report indicates that APAC’s average price increase of 7.4% in US dollar terms is below the global average of 10.2%, suggesting that currency appreciation in other regions has had a more significant impact than local inflation. APAC investors are noted for their adaptive behaviour, with over 74% increasing diversification in the past year. The region is also experiencing a two-track economy, with cities like Singapore, Hong Kong, and Shanghai benefiting from hi-tech growth, whilst others remain reliant on traditional industries.

Jen-Ai Chua, a research analyst at Julius Baer, commented on the economic dynamics: “The presence of cities in both the top and bottom five of the Lifestyle Index reflects the emergence of a two-track economy in the region.” Meanwhile, Singapore Branch Manager Yee Kim Tan noted the city’s appeal for asset diversification due to its stability and strong rule of law.

The report also highlights that APAC cities dominate the global rankings for luxury spending, with five of the top ten most expensive cities located in the region. This underscores APAC’s role as a powerhouse in global affluence, with a focus on future-oriented wealth accumulation and ethical investment criteria.

M-DAQ Global, a Singapore-based fintech specialising in foreign exchange and cross-border payment solutions, has announced a strategic integration with METech, the majority shareholder of PayME, a licensed payments service provider in Vietnam. This move allows M-DAQ to establish its own regulated payments infrastructure in Vietnam, enabling direct processing of collections and payments in Vietnamese Dong (VND), thus reducing reliance on third-party partners.

The integration is part of M-DAQ’s broader strategy to create a unified ASEAN Payments Hub, enhancing its ability to provide efficient cross-border payment flows. By combining METech’s local market expertise and regulatory knowledge with M-DAQ’s regional infrastructure, the partnership aims to strengthen cross-border payment capabilities within ASEAN and beyond.

Vietnam, one of ASEAN’s fastest-growing economies, presents significant opportunities for cross-border commerce. The country’s digital economy is projected to reach $72.1b by 2025, accounting for over 14% of its GDP. The government aims to increase this to 30% by 2030. M-DAQ’s integration with METech positions it to tap into this growth, leveraging Vietnam’s expanding digital and e-commerce markets.

Tan Choon Seng, Group CEO of M-DAQ Global, stated, “Vietnam is one of ASEAN’s most dynamic growth markets and a key pillar for the region’s digital transformation. We are proud to mark M-DAQ’s first direct presence in the country through this integration, advancing our ASEAN-focused strategy.”

With this integration, M-DAQ now holds five regulated licences across four key ASEAN markets, furthering its ambition to build a comprehensive payments footprint across the region’s economic corridors.

United Overseas Bank (UOB) and Avid Sports Singapore (ANTA) have signed a Memorandum of Understanding (MOU) to collaborate on enhancing customer engagement across the ASEAN region. This partnership combines UOB’s extensive network with ANTA’s diverse sports brand portfolio, including ANTA, DESCENTE, FILA, Salomon, and Wilson, to deliver integrated value to customers, partners, and businesses.

The collaboration will provide UOB’s Emerging Affluent and Affluent segments with preferential benefits through lifestyle offerings and targeted engagement strategies. Customers can expect exclusive offers, limited-edition releases, and curated brand experiences. From 10 July to 31 August 2026, UOB cardholders will enjoy a 5% discount and double reward points with ASCEND+ across participating ANTA brands in Singapore.

ANTA will utilise UOB’s regional platforms to increase awareness and engagement in markets such as Singapore, Malaysia, Thailand, Indonesia, and Vietnam. The partnership aims to promote a healthier lifestyle by enhancing sports engagement and customer experiences.

Additionally, UOB and ANTA will explore community engagement and talent development opportunities. ANTA will support UOB’s annual Heartbeat Run by producing 9,000 event T-shirts. The partnership also includes potential youth-focused collaborations, such as sponsorships and development initiatives, and future talent development opportunities for tertiary students.

Wee Ee Cheong, Deputy Chairman and CEO of UOB, expressed enthusiasm for the partnership, stating, “This reflects what we are already seeing in customer behaviour – a growing preference for quality products and experiences that fit their evolving lifestyles.” The collaboration is set to unlock new opportunities and foster sustainable growth across the region.