The Infrastructure Investor Podcast

Episode: What's driving Asia-Pacific's infra markets?

Host: Daniel Kemp (A) – APAC Editor, Private Markets at PEI Group
Guest: Tom Taylor (B) – APAC Real Assets Reporter
Date: November 13, 2025

Episode Overview

This episode provides a deep dive into key takeaways from the 2025 Infrastructure Investor Network Australia Forum in Melbourne and other events across Tokyo, Seoul, and Singapore. The discussion focuses on investment trends, geopolitical dynamics, tax challenges for foreign investors, the burgeoning digital infrastructure sector, and the evolving strategies of major allocators and institutional investors in the Asia-Pacific (APAC) region.

Key Discussion Points & Insights

1. Australia's Infrastructure Market: Geopolitics & Investor Sentiment

(Starts at 00:59)

• Geopolitical Positioning:

  • Australia is highlighted as strategically positioned between the U.S. and China, benefiting in areas like battery supply chains without direct tariff conflicts. (01:32)
  • “[Australia is] able to benefit from not implementing the same tariffs that the US is on China because Australia is not trying to implement a trade war with China.” – Tom Taylor, 01:44

• Reversal of Globalization and Protectionism:

  • There's a noticeable trend towards protectionism and energy security, with Australia pushing for renewables through its capacity investment scheme. (01:59)

• Downside Risk and Resilience:

  • In the face of geopolitical uncertainty, "there just really needs to be this bigger kind of emphasis on protecting your downside risk." – Michael Chan, Stone Peak, paraphrased by Tom Taylor, 02:28

• Surprises in Portfolio: Rise of AI-Driven Infrastructure:

  • “The proliferation of AI related infrastructure in [UniSuper’s] portfolio was something that she wouldn't have expected... not just for data centers, but all the surrounding infrastructure, including renewable energy needed to power this surge in AI.” – Sandra Lee, UniSuper, paraphrased by Tom Taylor, 03:15

2. Digital Infrastructure: The Standout 2025 Theme

(Mentioned repeatedly from 04:04, with regional focus later)

• Digital infrastructure, particularly data centers, came up as a consistent headline topic across APAC investor forums.
• High investor interest: "Digital infrastructure definitely seems to get a lot of bodies in the rooms when that was being discussed." – Tom Taylor, 04:19
• Investment needs are huge, especially for capital-intensive data center buildouts.

3. Foreign Investor Challenges in Australia

(Main segment: 04:31 - 07:55)

• Tax Treatment Discrepancies:

  • Recent changes have seen foreign investors face higher capital gains tax compared to domestic super funds.
  • "[He] talked about a deterioration in conditions... particularly cited that tax treatment issue, but also a general politicization of infrastructure." – Daniel Kemp on Christopher Curtin, OMERS Infrastructure, 05:23
  • "He actually used the word 'demonization' of foreign investment in certain types of assets." – Daniel Kemp, 05:48

• Unintended Consequences & Optimism for Reform:

  • Investors like Jorn Hammer (CIP) expressed disappointment with government unawareness regarding the impact of tax changes but reported ongoing dialogue and potential legislative tweaks. (07:00)
  • “He was quite surprised at how ignorant the Treasury Department was about the effect of the changes on foreign investment.” – Jorn Hammer, CIP, reported by Daniel Kemp, 07:14

4. Renewable Energy: Challenges and Developments

(07:55 - 11:42)

• Offshore Wind Frustrations:

  • CIP’s disappointment: Successful in Taiwan since 2017, but “no projects stood up” in Australia due to canceled auctions. (08:17)

• Onshore Wind: Project Bottleneck:

  • No final investment decisions for utility-scale onshore wind projects in Australia this calendar year—a striking outcome given emission targets. (09:45)
  • "To not have any single wind projects stood up this year is quite a blow... Australia wants to achieve with its rollout of renewables.” – Tom Taylor, 09:57

• Policy and Political Stability:

  • Labour government re-election has created more policy certainty for emission targets, but opposition shifts away from net zero add uncertainty. (11:00)
  • "Investors like certainty and like to know the policy settings so they can set their own direction and commit capital for the long term." – Daniel Kemp, 11:20

• Wider APAC Renewable Trends:

  • Delays are mirrored elsewhere (e.g., Japan, Taiwan) – government-led auctions often don't result in real projects. (11:42)
  • “It’s all very well and good for a government to make big headlines... but are they actually going to follow through and get to completion?” – Daniel Kemp, paraphrased, 12:39

5. Regional Recap: Japan, Korea, Singapore

(13:26 onwards)

Japan (Tokyo Forum)

• Direct Investment Capability Growing:

  • LPs are increasingly investing directly rather than via gatekeepers; JST Agency made first two direct fund commitments, signaling maturing confidence. (13:26)
  • “There are slow signs that other Japanese LPs are starting to go down that kind of trajectory as well.” – Tom Taylor, 14:13

• GPs Scaling Up:

  • Funds like Sumitomo Mitsui Trust Bank launching bigger domestic infrastructure vehicles. (14:50)

South Korea (Seoul Forum)

• Asset Class Sentiment:

  • Real estate was notably more energetic this year, but infrastructure remains valued for inflation protection and defensiveness. (15:24)

• Overlapping Sectors & Digital-Focused Capital:

  • Investments are driven by the AI and data center boom, pulling from both real estate and infra buckets. (16:23)

• Tech Collaboration:

  • Nvidia doubling down in Korea; government ambitions for Korea to be the “AI center of APAC.” (17:38)
  • “I think that will definitely be a market to watch... Korea would be the AI center of APAC. So I guess that’s decided then.” – Tom Taylor, 18:00

Singapore (Pan Asia II Asia Event)

• GIC’s Approach to Manager Selection:

  • Chief Investment Officer Boon Chinhao stresses: “Track record, track record, track record.” (19:05)
  • If new managers want a relationship, “let’s be friends first.”

• Inter-fund Relationships Matter:

  • Japanese institutional investor JST also emphasizes relationship-building with GPs as they move into direct investment. (20:00)
  • “Communication, they said, is number one to being able to build up trust and long term relationships.” – Tom Taylor, 20:11

6. APAC’s Role in Global Infrastructure Capital

(Final segment: 20:59)

• Global Fundraising Figures:
  • Only $3.9 billion of $200 billion raised YTD is APAC-specific, but the region’s investors (especially in Japan/Australia/Korea) constitute a major pool of global capital. (20:59)
  • “The region punches above its weight in terms of allocating even if there’s still a way to go in terms of funds actually making investments and deploying here.” – Daniel Kemp, 21:39

Notable Quotes & Memorable Moments

• “Australia’s unique position... kind of middle point almost between the US and China in certain ways.”
  Tom Taylor, 01:32

• “Demonization of foreign investment in certain types of assets.”
  Christopher Curtin (reported by Daniel Kemp), 05:48

• “Track record, track record, track record.”
  Boon Chinhao, GIC, 19:05

• “Korea would be the AI center of APAC. So I guess that's decided then.”
  Tom Taylor, 18:00

Timeline of Important Segments

• 00:59 – 04:04: Australia Forum recap, geopolitics, digital infra, investor mindset shifts
• 04:31 – 07:55: Foreign investor issues in Australia, tax, politicization
• 07:55 – 11:42: Renewables in Australia and region, challenges and QIC’s wind platform stake
• 13:26 – 14:45: Tokyo Forum: maturation of Japanese investor base
• 15:24 – 17:38: Seoul Forum: real estate upturn, digital infra, Korean AI ambitions
• 18:19 – 19:33: Singapore: GIC priorities, manager relationships
• 20:59 – 21:54: APAC’s weight in global infrastructure capital and fundraising

Conclusion

This episode offers a comprehensive APAC infrastructure market update, highlighting the growing digital infrastructure wave, nuanced challenges for foreign investors, and the ongoing maturation of major institutional funds’ investment strategies. While policy and tax developments continue to complicate capital flows in some jurisdictions, the underlying capital strength and innovation in markets like Japan, Korea, and Singapore provide optimism for the future direction of infrastructure deployment in the region.