research report

  • [UBS] Future cities will create US$1.5 trillion in global opportunities

    Indonesia will move its capital in stages from Jakarta to Nusandara in East Kalimantan province, about 1,300 kilometers away, starting in August this year. Pavich Kesavawong, Thailand\’s deputy minister of climate change and environment, also said earlier that Bangkok may not be able to adapt to the world\’s current global warming trend, so the authorities have been considering moving the capital. From the first linear city in Saudi Arabia to the new cities of the Indonesian archipelago, a new wave of cities is taking root around the world. Investment bank UBS estimates the scale of construction projects at more than $1.5 trillion and is using the insights of its global industry team to identify companies that will benefit from this phase of construction. Lian Peikun, Director of Greater China Research at UBS Investment Bank, said: \”Currently urbanization has promoted the prosperity of successful cities. We have further discovered five emerging themes, namely the growth of livable demand, mixed life-work-entertainment communities, Deepening connectivity, smart cities and green cities – we believe these themes will drive cities into the future.” UBS further pointed out through case studies what macro and investment opportunities these themes will bring. Indonesia is solving the environmental and socio-economic problems facing Jakarta by building a new capital, Nusantara. Elsewhere in Asia, China’s Guangdong-Hong Kong-Macao Greater Bay Area and the Singapore-Johor Joint Network illustrate how deepening urban interconnection can enhance mutual synergy. We also look beyond Asia, with U.S., European and Middle Eastern equity implications also discussed. Indonesia: A tale of two cities points to a sustainable future