Addressing demand-supply infrastructure gaps in Southeast Asia

This is a reproduction of an Austrade case study.

In the complex landscape of global infrastructure, Australian company Plenary stands as a beacon of innovation and strategic expansion. Founded 20 years ago, Plenary has carved a niche for itself in the realm of public infrastructure, primarily focusing on public-private partnerships (PPP) models. 

Plenary has operations spanning Australia, the Middle East, the UK, North America, and now Southeast Asia. The company’s journey underscores the potential for Australian businesses to thrive on the international stage with the right support and strategic vision.

Plenary develops social infrastructure, including hospitals, schools, courthouses and convention centres. Over time, the company’s expertise has broadened to encompass civil infrastructure projects such as public transport systems, roads and more. This diversification has allowed Plenary to adapt to the evolving needs of the markets it serves. 

‘We’ve grown our business significantly, expanding into more property-type opportunities and integrating infrastructure development with property developments,’ says Paul Crowe, Plenary’s Chief Investment Officer.

Plenary’s decision to establish a presence Southeast Asia over a decade ago was driven by a clear recognition of the region’s burgeoning infrastructure needs. With GDP growth rates in Southeast Asia outstripping those of China, the rising middle class and urbanisation have created unprecedented demands on infrastructure. 

‘The infrastructure challenge in Southeast Asia is immense,’ says Crowe. ‘You travel to any major city and see the gridlock, the overstretched hospitals, the overcrowded schools. The demand-supply gap in infrastructure is evident everywhere.’

Understand the unique needs of each market

Navigating the diverse and dynamic markets of Southeast Asia requires a strategic and patient approach. Plenary focused on building relationships and understanding the unique infrastructure needs of each country. 

‘We segmented the market, focusing on target jurisdictions and sectors where we could make the most impact,’ Crowe explains. ‘This approach enabled us to pivot and adapt, leveraging our expertise to tap into unexpected opportunities, including an extremely successful expansion into the Middle East. We were also able to benefit from strong relationships with Southeast Asian-based institutional investors and debt markets to the benefit of our infrastructure pursuits in other jurisdictions.’

Austrade played a pivotal role in Plenary’s Southeast Asian expansion, helping the company navigate the initial stages of its journey. 

‘Austrade has been instrumental in providing us with the necessary introductions and understanding of the operating environment,’ Crowe acknowledges. ‘While Austrade’s traditional focus has been on trade and inbound investment into Australia, their support in facilitating market entry cannot be understated.’

Southeast Asia a source of new markets and investment

Plenary’s investment in Southeast Asia has secured valuable relationships and opportunities in the region. These ventures have also enhanced Plenary’s reputation and capabilities back home in Australia. ‘Using Singapore as an investment hub has worked well for us, creating a platform to support our investments once secured,’ Crowe notes. 

The importance of strong trade and investment relationships with Southeast Asia cannot be overstated. For Australian businesses, these connections are vital for accessing new markets, securing investment and fostering innovation. 

‘Clear policy intent and support from government bodies like Austrade, the Department of Foreign Affairs and Trade, and Export Finance Australia can significantly assist in navigating legislative changes and making countries more appealing for foreign investment,’ Crowe says.

For Australian businesses contemplating expansion into Southeast Asia, Crowe offers some advice. ‘Understand the market thoroughly, build strong relationships, and be prepared to adapt. The infrastructure needs are vast, and the opportunities are significant, but it requires a clear strategy and persistence.’

View the Austrade case study: Plenary helps Southeast Asia meet demand-supply infrastructure gaps.