Southeast Asia is currently facing an infrastructure gap of US$102 billion.
International Monetary Fund Managing Director Christine Lagarde highlighted some of the risks in an April 12 speech in Beijing. She cited the challenge of “ensuring that Belt and Road only travels where it is needed” and warned of potential project failure and misuse of funds.
Government-linked infrastructure project funding is less common in Southeast Asia, but has been employed by government-linked agencies in Japan, South Korea and China over the last two decades,
Governments are boosting spending on everything from airports to high-speed rails and ports to increase connectivity and boost economic growth.