GHD: Bridging the infrastructure gap in Southeast Asia

More people in Southeast Asia (SEA) are living in cities, as rapid economic growth takes place in tandem with rising urbanisation. In the region set to become the world’s fourth largest economy by 2030, more than half of the population today are already living in urban areas, and an additional 70 million are forecast to be added by 2025.

To sustain economic growth, the Asian Development Bank estimated that more than S$30 trillion (US$22.6 trillion) needs to be spent on infrastructure through to 2030. Along with the rise of megacities in SEA, there is growing demand for solutions in infrastructure and sustainability against challenges such as congestion, unchecked urban sprawl and environmental degradation.

Looking to better support infrastructure projects in the region, global professional services company GHD is tapping into Singapore as a central hub in the Asia-Pacific (APAC) to access key SEA markets.

"Through our Advisory practice, we’re helping clients optimise their investment portfolios by identifying key risks and value drivers to inform transactions in the region,” says Mr Jason Tok, GHD’s Market Leader Advisory for Asia.

He adds: “Identifying ‘green projects’ for clients and facilitating infrastructure players to derisk their projects, as well as bridging the financing gap are key focus areas that are gaining momentum here.”

Building a sustainable future in SEA

Having advised on over S$200 billion (US$150 billion) worth of transactions globally, GHD’s Advisory practice brings an aggregate of its commercial, technical, regulatory and digital expertise to clients and the communities they serve in SEA, starting with a regional base in Singapore.

Singapore’s location makes it an obvious choice, says Mr Tok. “As one of the world’s leading economic hubs, we can service the rest of SEA from Singapore. It is also a very well-respected location that is connected with the entire infrastructure ecosystem and renowned for its ease of doing business.”

With 60 per cent of project financing in SEA managed through Singapore, the city-state brings together the world’s top engineering consultancies, global law firms with infrastructure practices and financiers.

With a focus on sustainable resilience, GHD is also well-placed to develop sustainable infrastructure solutions for customers. The Republic is home to businesses building green solutions, such as solar panel maker REC Solar and urban air mobility pioneer Volocopter. Automotive manufacturer Hyundai is also making electric vehicles in Singapore.

The team is excited to explore sustainable opportunities in the region, Mr Tok says, from the deployment of green energy sources and low-carbon technologies to climate change adaptation and circular economy solutions.

A firm foundation for expansion

In a matter of nine months since its establishment, GHD’s Advisory team has made significant progress. Alongside Singapore-based and international clients, their projects span the region, in markets such as renewable power, waste management, transportation and manufacturing. Services have included asset optimisation, feasibility studies, project governance, technical and environmental due diligences.

Through its Singapore hub, the team has been advising on a 50-megawatt solar farm in the Philippines, waste sector merger and acquisitions in China, power supply options for a materials refinery in Indonesia, and reviewing the energy generation mix for a Singapore-based power generation company.

An ongoing project with a Singapore-headquartered infrastructure developer also sees the team developing a health, safety, environmental and social management system for project implementation in the countries of South and Southeast Asia.

Furthermore, to meet the global need for digital solutions in infrastructure projects, GHD is also looking at the digitisation of infrastructure. “Around the world, we see that infrastructure projects are becoming increasingly large and complex,” explains Mr Tok. “We have the ability to manage the vast amounts of data that are typically associated with mega projects through digital solutions, and efficiently inform decision-making throughout a transaction.”

With a strong start here, the team is looking at further opportunities in SEA, such as in Indonesia and the Philippines, with projects related to green energy, waste, water and transportation.

Virtually the easiest place to start a business

The pandemic and travel restrictions did not deter GHD’s plans to set up in Singapore last year. Mr Tok shares: “We’ve managed to successfully launch the business despite the pandemic. The ease of doing business in Singapore was a key contributing factor, together with the help of local authorities meant that our launch occurred almost effortlessly.”

The company also finds it easy to recruit the right team in Singapore, with a “very diverse and well-educated talent pool”. With its leadership sitting in Singapore, Mr Tok looks forward to growing the team here.

As an employee-owned company, GHD and its people are passionate about addressing the world’s most pressing challenges. Mr Tok says: “We are committed to positively impacting the communities in which we live and work. Our people are focused on making water, energy and urbanisation sustainable for generations to come.”