Cambodia Among ASEAN Countries in $7.1 Trillion Regional Infrastructure Push

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Southeast Asia will need an estimated $7.1 trillion in infrastructure investment through 2040 to support economic growth and strengthen regional connectivity, according to a new report from the Asian Development Bank.

The report covers all 11 ASEAN members, including Cambodia, and estimates annual investment needs of $476 billion from 2026 to 2040. That is equivalent to 8.7% of the region’s gross domestic product.

At current investment levels, government spending would cover about 45% of the total requirement, leaving an annual financing gap of $264 billion.

The report does not provide a separate estimate for Cambodia. But it identifies electricity, transport and digital networks as major investment priorities across the region—areas that underpin cross-border trade and connectivity for ASEAN economies.

“Southeast Asia’s growth depends on what it builds next,” ADB President Masato Kanda said, pointing to the need for reliable electricity and faster, safer routes to markets.

Electricity and transport account for 85% of the region’s infrastructure requirements, with estimated needs of $3.6 trillion and $2.5 trillion, respectively.

Power investment will be needed to expand generation, transmission and storage, including cross-border links under the ASEAN Power Grid. The ADB said stronger regional connections could improve energy security and support greater use of clean energy.

For Cambodia, regional electricity links form part of the wider infrastructure agenda identified by the report, although it does not specify projects or funding allocations for the country.

Roads represent the largest transport requirement, at nearly $2 trillion. Railways and airports are among the fastest-growing areas of need. The report said integrated transport networks and cross-border connections could reduce logistics costs and improve the region’s competitiveness in global markets.

Opening of the article, excerpted from Cambodia Investment Review. To read the rest, open the article on the publisher's site.