Perspectives
In late 2025, the 21 members of the Asia-Pacific Economic Cooperation gathered in Gyeongju, South Korea, for their annual summit, declaring the region stands at a 'pivotal juncture'. Gyeongju proved a fitting location, given the city was once a key hub on the Silk Road; the ancient network of trade routes that linked Asia, Europe and the Middle East, and served as a blueprint for globalisation.
Both now and then, Asia's reputation as a strategic crossroads for trade, exchange, and technological innovation underscores how deeply its trajectory is influenced by global forces - a reality that continues today.
Woljeong Bridge in Gyeongju, South Korea.
In the face of shifting trade and tariff policies, the region continues to outperform the rest of the world – it contributed 60 per cent of global growth in 2025 and is predicted to do the same again this year.1
"Globally, there has been volatility in the past 12 months, but Asia has held up better than expected, delivering robust growth," says Verena Lim, Macquarie Group's Asia CEO and Co-Head of Infrastructure for Asia-Pacific, Macquarie Asset Management.
"In Southeast Asia, this is driven by domestic activity, while in northern parts of Asia - namely Korea and Japan – which rely more on trade flows, diversification has been strong."
With the region at a 'pivotal juncture', three key themes are driving investment opportunities and a new phase of expansion, according to Macquarie teams based in the region:
Successfully capitalising on these opportunities in a region where growth is increasingly multimarket and multispeed hinges on tailored strategies informed by an on-the-ground presence, according to Daniel Vizel, Head of Macquarie's Commodities and Global Markets business in Asia.
"A one-size-fits-all approach doesn't work and to counter that you need local expertise and local nuance to make sure you're meeting clients' needs in the right way, in the right place," he says, citing Macquarie's 30-year presence in the region across 11 markets.
Asia’s next phase of economic expansion is defined not only by its scale, but by the strategic diversification of its export engines. As global trade remains steady but subdued, and tariff pressures rise, the region is pushing deeper into high-tech value chains, broadening market reach and embedding itself even more firmly into the global economic architecture.
"Asia’s role as the high-end manufacturer of innovations will continue – and could even step up this year in light of the geopolitical landscape," says Christina Lee, Head of Asia Content (Research & Sales) at Macquarie Capital.
Pointing to the region’s reputation for driving the second derivative of innovation, Lee cites the success of BYD in the electric vehicle (EV) space, brands like Huawei and Xiaomi in electronics, and the expansion of computer chip giant TSMC as proof that Asia will remain a leading global hub for technology production. "Asia is very good at disrupting innovation and driving its next wave," says Lee.
China remains central to this shift. Higher tariffs imposed on its imports into the US have accelerated Beijing’s push to diversify beyond that market. Last year, its exports to Europe, ASEAN and Africa all increased strongly, contributing to growing its total exports by 6.6 per cent despite a 20 per cent fall in US-bound shipments.2
Strengthening supply chain links within ASEAN, supported by record bilateral trade and surging demand for machine tools, automobile parts, and electronics, illustrates how China is re-anchoring its export ecosystem.
In addition, Chinese companies are increasingly adopting their own version of the ‘China Plus One’, strategy, where companies diversify their manufacturing or sourcing beyond China by adding at least one other country, primarily in Southeast Asia.
"While that strategy has benefited some markets in Southeast Asia and South Asia in particular, a lot of their economic growth is still driven by the reinforcement of domestic activity and external demand," says Lim.
Domestic activity varies across the region, ranging from semiconductors in Malaysia to electronics in Vietnam and automotive components in Thailand, while Indonesia is establishing itself as a manufacturing hub.3
Meanwhile, India is emerging as one of Asia’s most dynamic export stories. Supported by new trade agreements – including a deal signed at the Indian-European Union summit at the start of the year – India is scaling rapidly in electronics, mobile phones, automotive components, and EV technologies.
"India has been interesting because it’s historically different from the rest of Asia in the sense that it was not export driven, it's more domestic consumption driven," says Lee. "But that’s starting to change and that change is going to be more evident going forward."
The rise of Asia’s middle class has long been heralded as a socioeconomic trend that would shape the region, as supply and demand seeks to cater to an expanding demographic.
By 2030, the region could account for two-thirds of the global middle class4 - up from barely a third a little more than a decade ago5 - an expansion that presents differently depending on the maturity of the market.
Across India and Southeast Asia, urbanisation and middle‑income growth are creating sustained demand for toll roads and transport assets. Citing Macquarie’s portfolio of toll roads in India, which it acquired in 2018 via the country’s first6 toll-operate-transfer (ToT) auction, Lim highlights the opportunity presented for private enterprise.
"The sheer need for more toll roads and connectivity means that domestic companies need to monetise and recycle capital, opening the door for private investment," she suggests.
Private investment also has a role to play in addressing the projected growth in emissions from increased road transportation. In India, for example, the world’s most populous country, road transport accounts for 12 per cent of energy-related CO2 emissions and this is projected to more than double by 2050 under current policies.7
In response, the government has set a target of 30 per cent electrification of the country’s vehicle sales by 2030, which is set to create a demand for sustainable transport – and by extension, an opportunity.
"What we are seeing in India is a massive push to decarbonise," explains Lim, highlighting Macquarie Capital's investment into ChargeZone, a leading provider of fast-charging infrastructure in India, and Macquarie Asset Management’s launch of Vertelo, a new fleet electrification solutions platform focused on accelerating large-scale adoption of electric vehicles.
"With government policy in India aimed at containing emissions from its fast-growing road transportation sector, the case for electrification is strong: the market is projected to generate a $US200 billion opportunity, creating new jobs and boosting domestic manufacturing."
To complete the deal, Macquarie Asset Management developed a blended finance platform with the Green Climate Fund acting as anchor investor. According to Lim, this unique partnership model – combining commercial and developmental funding – reflects the ongoing push for blended financing in emerging markets.
Beyond transport and energy, healthcare infrastructure is emerging as a high priority as the region confronts an age-old problem. According to the United Nations, the number of people aged 65 and older is expected to nearly double over the next two and a half decades, reaching 1.58 billion in 2050.8
Asia is at the forefront of this trend, with Hong Kong, Singapore, South Korea, Taiwan and Japan expected to have the highest share of people in this bracket by 2050.9 "In Southeast Asia, the 65-plus, middle-income population is increasing, which equates to opportunities for improved high quality private healthcare services," explains Lim.
Any expansion of the middle class will likely increase pressure on public healthcare systems already struggling to meet high demand with limited resources. "Governments often have constraints on their balance sheets," explains Lim. "Which means private hospitals, which offer critical services for an ageing population, will be of increasing importance."
In his 2025 report ‘Rights, Wrongs & Returns’, Macquarie Capital’s Head of Global Desk Strategy, Viktor Shvets, noted that: 'AI and its impact (both market and economic) will remain the main driving force of almost everything from labour markets and productivity to geopolitics for at least a decade to come'.11
This prediction is already playing out across Asia. Established markets such as Hong Kong, Singapore, South Korea, Japan and China are seeking to expand their data centre footprint, while emerging markets including India, Thailand, Indonesia, Malaysia, the Philippines, and Vietnam are developing them. All of this requires digital infrastructure, including battery energy storage systems, telecoms towers and fibre optic cables.
Lim highlights how Macquarie Asset Management was an early mover in the data centre sector when it invested in US-based Aligned Data Centres in 2018, and how that informed the subsequent acquisition of AirTrunk and its expansion across Asia-Pacific.
"We learned a lot from the US team and our ownership of Aligned and it helped us identify the opportunity in that sector here in this region," she says.
Recognising the growing need to deliver essential digital services to communities across the region, Macquarie Asset Management identified strong investment fundamentals underpinning the data centre sector and its potential for rapid growth.
"We grew that business substantially by combining our local presence and global expertise, delivering strong returns that reflect the value we create and our ability to identify, invest in and nurture resilient digital infrastructure assets," says Lim.
The business applies industry learnings across its digital ecosystem investments. These include Bersama Digital Infrastructure, a Southeast Asian digital infrastructure platform in which a Macquarie Asset Management-led consortium acquired a significant minority stake in 2022. Bersama is invested in a leading independent Indonesian telecom towers business with over 24,000 towers.12
AI-specific expertise is at a premium as governments across the region increasingly view digital infrastructure as a matter of national security, pushing for localised data storage, sovereign cloud frameworks, and tighter cybersecurity.
"There's a huge push on self-sufficiency; governments understand they cannot rely on external parties for national security, so they want to be in charge of scaling up their technology supply chains," says Lee.
The growth of AI is also intensifying the link between digital infrastructure and energy systems, with AI set to drive a surge in energy demand from data centres around the world. The International Energy Agency (IEA) projects electricity demand from data centres worldwide to more than double by 2030 to around 945 terawatt-hours (TWh), slightly more than the entire electricity consumption of Japan today.13
Source: IEA
Countries throughout the region are already future-proofing to accommodate the energy-intensive nature of AI and digital infrastructure growth. Malaysia has committed $US10 billion to upgrade its national grid infrastructure to meet its AI ambitions, while governments in Japan, South Korea and Taiwan have all announced frameworks to manage rising power and energy use.14
Japan faces an especially timely battle; the country’s rapid expansion of data centres is colliding with its climate and clean energy ambitions. "The growth of AI is fundamentally challenging energy demand in Japan," says Dan Vizel.
Compounding the pressure, the Japanese yen has seen a volatile last 12 months – though the start of 2026 has brought some relief with the strengthening against the US dollar.
"Our role in the power market helps manage price volatility and support a resilient, diversified power mix – essential for long-term digital and economic growth – and our currency hedging solutions help businesses navigate that added layer of uncertainty."
More mosaic than monolith, Asia’s markets are experiencing increasing divergence in growth paths, policy responses and consumer behaviours, shaped by trade dynamics, transformative technologies and demographic shifts.
Collectively, this represents a crossroads that Macquarie is well positioned to help clients and investors navigate and support. "We’ve been here, doing this, for the last 30 years, and have evolved our approach and client-focused solutions over that period," says Lim, reiterating the group’s track record of early market entry, its disciplined investment approach, and sustained relationship building.
"Combining regional perspective with local execution remains essential in markets where trust, understanding and timing are as critical as capital," she adds.
Looking ahead, Asia’s transition will require partners who can think beyond short-term cycles and work alongside governments, institutions, and communities to deliver sustainable growth, resilience, and innovation across the region.
CEO, Asia, Macquarie Group
Co-Head of Infrastructure for Asia-Pacific, Macquarie Asset Management
Head of Asia Content (Research & Sales), Macquarie Capital
Head of Commodities and Global Markets in Asia
1. ‘Asia’s Economic Growth Is Weathering Tariffs and Uncertainty’, International Monetary Fund, 16 October 2025, www.imf.org.
2. ‘China's trade ends 2025 with record $1.2 trillion surplus despite Trump tariff jolt’, Reuters, 14 January 2026, www.reuters.com.
3. ASEAN Strategy, 2026: Bottom up over top down’, Macquarie, 3 December 2025, www.macquarie.com.
4. ‘The rise of Asian global players', McKinsey & Company, 28 January 2025, www.mckinsey.com.
5. ‘An Emerging Middle Class’, Asian Century Institute, 26 March 2014, www.asiancenturyinstitute.com.
6. ‘NHAI Closes its first Toll-Operate-Transfer Project’, Press information Bureau, 29 August 2018, www.pib.gov.in.
7. ‘Transitioning India’s Road Transport Sector’, International Energy Agency (IEA), July 2023, www.iea.org.
8. ‘Leaving No One Behind In An Ageing World: World Social Report 2023’, United Nations, January 2023, www.un.org.
9. ‘Aging Populations’, Statista, www.statista.com (Accessed 9 February 2026).
10. ‘Korea's Healthcare System Part II: Policies to Contain the Growth of Healthcare Spending’, The Korea Economic Institute of America, 20 August 2024, www.keia.org.
11. ‘Rights, Wrongs & Returns’, Macquarie, Viktor Shvets, 21 November 2025, www.macquarieinsights.com.
12. ‘PT Tower Bersama InfrastructureTbk (TBIG) Announces Its Third Quarter 2025 Financial Performance’, TBIG, 31 October 2025, www.tower-bersama.com.
13. ‘Energy and AI’, International Energy Agency, 10 April 2025, www.iea.org.
14. ‘Energy Rules Tighten for AI Data Centers in Asia’, Arc Media Global, August 2025, www.arcmediaglobal.com.
