Construction Starts Report

1st Quarter 2006 to 4th Quarter 2008

All project categories 35,000 32,812 USD millions

BCI Asia recorded US$32.8 billion worth of construc- 30,372
30,000
tion starts in Southeast Asia and Hong Kong in the 26,966 26,764 Indonesia
25,000 24,786 26,116 26,365
4th quarter 2008; up 22.6% from $26.8 billion in the 24,320 Malaysia
22,202
same quarter a year earlier. The value of construction 20,000
19,417 Philippines
17,934
starts for 2008 were up 24.1% against the prior year 15,000 16,795 Singapore
with Singapore up 98%, Indonesia up 30%, Thailand
10,000 Hong Kong
24%, Malaysia 20% and Vietnam up 14%. The value
5,000 Thailand
of starts in the Philippines contracted 1% for 2008
Vietnam
while Hong Kong contracted 23%. 0
Total region
1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08

Infrastructure projects 10,000

9,820 USD millions
Infrastructure starts surged to $9.8 billion in the 4th 9,000
quarter 2008 due to big projects in Malaysia, such as 8,000 Indonesia
the Penang Second Crossing project (shown below). 7,000
Malaysia
6,000
5,000 Philippines
4,358 3,905 3,959 Singapore
4,000
3,114 4,012 4,140
3,000 Hong Kong
2,667 2,217 2,465
2,000 Thailand
1,758 1,504
1,000
Vietnam
0
Total region
1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
Image Courtesy of CHEC Construction (M) Sdn Bhd 06 06 06 06 07 07 07 07 08 08 08 08

Large residential projects 7,000 6,925

6,897 6,335 USD millions
The value of large residential projects starting con- 6,000 5,958 5,498 5,649 5,480
struction in the 4th quarter 2008 slipped 3% to $5.5 5,154 5,445 Indonesia
5,000
billion from $5.7 billion in the 4th quarter last year. 4,931 4,861 Malaysia
Steep declines in residential starts for the 4th quarter 4,000
4,111 Philippines
were recorded in the Philippines, Thailand and Malay- 3,000 Singapore
sia. Meanwhile, large residential starts were up 131%
2,000 Hong Kong
for the quarter in Vietnam with construction starting
1,000 Thailand
on the 33-storey Preche apartment complex in Ho Chi
Vietnam
Minh City. Starts for the 4th quarter were up 60% in 0
Total region
Indonesia and 45% in Singapore. 1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08
2 BCI Asia Construction Starts Report - 1st Quarter 2006 to 4th Quarter 2008

Utilities projects 6,000

5,429 USD millions
BCI Asia recorded $3.8 billion worth of utilities pro-
5,000
jects starting construction in the 4th quarter 2008, Indonesia
4,116 3,798
down 30% on the 4th quarter last year. Starts in 2008 4,000 3,869 Malaysia
3,965
were down 6% on 2007 with annual contractions in 3,337
Philippines
3,000 2,613
Vietnam and Indonesia. In the 4th quarter 2008, there 2,801 Singapore
was a surge in the value of utilities starts recorded in 2,000 1,975
1,376 Hong Kong
Thailand due to the Gheco One coal-fired power plant
1,000 Thailand
getting underway with an estimated cost of $993 mil- 804
460 Vietnam
lion. The plant is expected to have a 660-megawatt 0
capacity when operational in 2012. Total region
1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08

Industrial projects 5,000

4,776 4,543 USD millions
4,500 4,502
The value of industrial projects starting construction in 4,115
4,000 3,606 Indonesia
2008 was $14.8 billion, down 4.9% from $15.5 billion
3,500 3,385
in 2007. Industrial starts were down 53% in Hong 3,761 Malaysia
3,000 3,129
Kong, 41% in Thailand, 13% in Vietnam and 2% in 2,793 2,973 Philippines
2,500
Singapore. However, industrial starts increased 52% 2,000 Singapore
1,917
for the year in Malaysia, 14% in the Philippines and 1,500 1,718 Hong Kong
9% in Indonesia. In the 4th quarter 2008, large indus- 1,000 Thailand
trial starts were recorded in Vietnam, Malaysia and 500
Vietnam
Indonesia. 0
Total region
1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08

4,000
Oil, gas & mining projects 3,672 USD millions
3,500
Only $459 million worth of oil, gas and mining projects
3,000 Indonesia
were recorded in the 4th quarter 2008, down 66.9% 2,707
2,500 Malaysia
on the 4th quarter 2007. Despite the 4th quarter drop, 2,658
2,000 Philippines
the sector grew 43.2% for 2008 over the prior year
1,418 Singapore
with growth recorded in all regions except Malaysia 1,500 1,384
1,381
729 459 Hong Kong
and Hong Kong. In the 4th quarter 2008, several large 1,000 681 952
mining-related starts were recorded in Vietnam and 869 Thailand
500 742
Indonesia, but few large oil and gas starts were re- Vietnam
0
corded apart from the $25 million LNG receiving ter- Total region
1 2 3 4 1 2 3 4 1 2 3 4
minal for PTT at Maptathut Industrial Port in Thailand. Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08

USD millions
3,000
Transport projects 2,565
2,500
Transport projects surged to $1.6 billion in the 4th Indonesia
quarter 2008, up 689% from $199 million in the 4th 2,000 Malaysia
quarter 2007. In the 4th quarter 2008, construction 1,564
1,500 Philippines
started for the $964 million Phu Quoc International
Singapore
Airport in Kien Giang, Vietnam, as well as for the 1,000
687 701 Hong Kong
$367 million Bugis bus interchange station in Singa-
pore, which will be integrated into the existing Bugis 500 467 Thailand
171 306 148 199
97 260 Vietnam
underground station. 205
0
Total region
1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08
3 BCI Asia Construction Starts Report - 1st Quarter 2006 to 4th Quarter 2008

Retail projects 2,500

2,295 USD millions
The value of retail starts climbed 15.9% to $6.7 billion
in 2008 from $5.8 billion in 2007. However, year-on- 2,000 1,864 Indonesia
1,750
year for the 4th quarter, they climbed only 3.2% to 1,596 1,765 Malaysia
1,500 1,291
$1.3 billion. Retail starts for 2008 were up 162% in 1,328 1,349 1,332 Philippines
Vietnam, mainly through large mixed development 1,148 Singapore
1,000 1,084 1,058
projects. They were up 75% in Singapore, up 35% in
Hong Kong
Indonesia and up 7% in Malaysia. Retail starts were 500 Thailand
down 54% in Hong Kong, down 12% in Thailand and
Vietnam
down 2% in the Philippines for 2008. 0
Total region
1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08

Office projects 2,500 2,388

2,310 USD millions
Office project starts surged to $8.7 billion in 2008, up 2,281
2,000 1,889 Indonesia
38.1% on $6.3 billion in 2007. A hefty $2.3 billion 1,803
worth of office project starts were recorded in the 4th 1,581 1,562 1,682 Malaysia
1,500 1,515
quarter 2008, up 47.9% on the $1.6 billion recorded in 1,390 Philippines
the 4th quarter a year earlier. Office starts surged in 1,000 1,098 1,179 Singapore
Singapore, Hong Kong and Vietnam in the 4th quarter Hong Kong
2008 despite several large office projects being aban- 500 Thailand
doned or delayed in Singapore and Hong Kong amid Vietnam
a declining rental market and increasingly difficult 0
Total region
capital-raising conditions. 1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08

Hotel projects
1,800
Only $674 million worth of hotels 1,625 USD millions
1,600
were recorded in 4th quarter
1,400 1,344 Indonesia
2008, down 49.8% on 4th quarter
1,200 1,150 1,226 Malaysia
2007. Despite this drop, the sec- 1,171
tor grew 23% for 2008. Vietnam 1,000 Philippines
844
800 809
was up 308% for the year with 659 822 Singapore
600 674
projects like Best Western Pre- 538 Hong Kong
mier at Nha Trang. Singapore 400 458
Thailand
was up 67% and Indonesia up 200
Vietnam
7%. Thailand contracted 30%, 0
Total region
Malaysia and Philippines fell 22% 1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
and Hong Kong lost 18%. 06 06 06 06 07 07 07 07 08 08 08 08
Image Courtesy of Ho Thieu Tri Architect and Associates Co., Ltd.

1,200 1,137 1,113 USD millions

1,100
Education & research projects 1,000 958
900 Indonesia
Education and research projects surged to $958 mil- 898
800 847 857 Malaysia
lion in the 4th quarter 2008, up 26.8% from $756 mil- 756
700 636
lion in the 4th quarter 2007. The value of starts was 600 Philippines
546 539 573
up 15.5% for 2008 due to rapid growth in Vietnam 500 Singapore
400
(220%) and the Philippines (44%) as well as meas- Hong Kong
300 302
ured growth in Hong Kong (20%), Indonesia (13%) 200 Thailand
and Singapore (4%). The value of starts for 2008 de- 100 Vietnam
0
clined 10% in Thailand and 2% in Malaysia, although Total region
1 2 3 4 1 2 3 4 1 2 3 4
the latter remained by far the greatest contributor to Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
education and research project starts in the region. 06 06 06 06 07 07 07 07 08 08 08 08
4 BCI Asia Construction Starts Report - 1st Quarter 2006 to 4th Quarter 2008

Recreation projects
1,200
Recreation starts increased 7.7% in 2008. In the 4th USD millions
1,048
quarter 2008, $703 million worth of recreation projects 1,000
Indonesia
started construction including the Singapore Civic and 834
800 839
Cultural Centre (shown below) in Singapore. 770 Malaysia
580 703 Philippines
600 541
567 Singapore
495 480
400 453 450
Hong Kong
200 Thailand
Vietnam
0
Total region
1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
Designed by Andrew Bromberg of Aedas 06 06 06 06 07 07 07 07 08 08 08 08

900
Health projects 854
USD millions
800
Health starts surged to $854 million in the 4th quarter
700 Indonesia
2008, up 173% from $313 million in the 4th quarter 628
600 Malaysia
2007. For 2008, the value of health projects increased 487
500 439 Philippines
36.3%. Vietnam contributed the most value in health
400 Singapore
starts in 2008 with $430 million worth of projects in-
300
cluding the 15-storey general hospital to contain 230 313 208 Hong Kong
200 190 214
1,400 beds in Dong Nai, and the 14-storey dentistry 167 Thailand
100 158
building at the University of Medicine and Pharmacy 100 Vietnam
0
in Ho Chi Minh City. Total region
1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08

Community & legal projects 350

311 USD millions
The value of community and legal starts increased 300
6.8% for 2008 to $723 million, up from $678 million in 251 Indonesia
250
2007. The largest increase was recorded in Vietnam, Malaysia
which soared 230% to $114 million in 2008. Malaysia 200
176 Philippines
156 151
was up 31% to $223 million, Thailand was up 12% to 150
144 149 154 Singapore
$92 million and Singapore was up 7% to $71 million. 129 132
100 97 Hong Kong
The value of recreation starts slipped 1% in Indonesia 86
to $140 million, decreased 35% in the Philippines to 50 Thailand
$48 million and fell 66% in Hong Kong to $37 million. Vietnam
0
Total region
1 2 3 4 1 2 3 4 1 2 3 4
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
06 06 06 06 07 07 07 07 08 08 08 08

BCI Asia’s Construction Starts Report provides an To subscribe to BCI Asia’s construction reports, please contact a
immediate and historical overview of the value of BCI Asia office below or visit www.bciasia.com:
projects starting construction by category and region Bangkok + 662 651 8600
in a given quarter, as reported by BCI Asia. Brisbane + 61 7 3634 8500
Hanoi + 84 4 537 8548
While every effort has been made to ensure that the Ho Chi Minh City + 84 8 997 4220
information contained herein is accurate, the pub- Hong Kong + 852 2538 0011
lisher will not accept any liability for omissions or Jakarta + 62 21 5790 2930
errors. BCI Asia Construction Information Pte Ltd Kuala Lumpur + 60 3 7661 1380
disclaims any and all liability which may be claimed Manila + 63 2 884 1122
arising out of reliance upon the information pre- Melbourne + 61 3 8412 7900
sented in this publication. Copyright ® 2009 by BCI Perth + 61 8 9228 2227
Asia Construction Information Pte Ltd. All rights Singapore + 65 6538 6836
reserved. Surabaya + 62 31 547 3439
Sydney + 61 2 9432 4100