Southeast Asia: Infrastructure Investment and the Growing Need for Surety Solutions

11 September 2025

A Region Investing at Scale

Southeast Asia is one of the fastest-growing regions for infrastructure investment in the world. Urbanisation, population growth, rising living standards, and government-led development programmes are driving demand for roads, ports, airports, energy systems, and urban infrastructure across the Philippines, Indonesia, Vietnam, Malaysia, Thailand, and Cambodia.

The Aon 2025 Global Construction Insurance and Surety Market Report noted that market conditions across Southeast Asia are generally becoming more favourable, with insurers treating most markets outside Japan cautiously but with reasonable capacity available for well-structured projects. India, Hong Kong, and Malaysia were noted as markets with moderate to favourable conditions.

Construction Bond Requirements in the Region

International construction contracts across Southeast Asia — particularly those procured by government bodies or supported by multilateral development bank funding from the Asian Development Bank, the World Bank, or the Asian Infrastructure Investment Bank — routinely require performance bonds and advance payment bonds as standard contractual conditions.

The specific requirements vary by country. In the Philippines, performance bonds and advance payment guarantees are standard requirements for government-procured contracts under the Government Procurement Reform Act. In Indonesia, similar requirements apply under national procurement regulations. Vietnam's public procurement framework also mandates performance security for construction contracts above defined thresholds.

The Access Challenge for International Contractors

For contractors from outside Southeast Asia competing for regional projects, or for regional contractors seeking bonds that are internationally acceptable to their employers, the challenge of sourcing a suitable guarantor is real. Local banking relationships may not translate across borders, and the employer's requirements regarding the form and origin of the bond may narrow the available options.

How Solidum Global Supports Regional Activity

Solidum Global's partner network covers multiple Southeast Asian markets. We facilitate access to performance bonds and advance payment bonds for construction projects in the Philippines, Indonesia, Vietnam, Malaysia, and beyond. If you have a bond requirement for a project in the region, submit an enquiry and we will assess whether our network can assist.

Reference: Aon — 2025 Global Construction Insurance and Surety Market Report: assets.aon.com/-/media/files/aon/reports/2025/2025-global-construction-insurance-and-surety-market-report.pdf

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