Latest news with #Infrastructure
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Nikkei Asia
10 hours ago
- Business
- Nikkei Asia
Japan's construction bottleneck hits $100bn as labor crunch deepens
TOKYO -- Backlogs in factory and commercial building projects are piling up across Japan, with unfilled orders soaring to an all-time high of more than 15 trillion yen ($103 billion). The construction slowdown, fueled by a chronic labor shortage, has intensified since last year, when new overtime limits further strained the sector's already thin workforce. Long a pillar of domestic demand, the construction industry makes up about 5% of Japan's gross domestic product and roughly a third of total capital spending. Unless the sector accelerates its project delivery rate, private investment and public infrastructure spending could stall, threatening broader economic growth. One company facing project delays due to the labor crunch is Aeon Mall. The retail developer has postponed the planned opening of its shopping mall in Date, Fukushima prefecture, north of Tokyo, from the end of 2024 to the second half of 2026, citing an inability to secure enough workers to complete construction on schedule. "The challenge in the Tohoku region lies not only in the limited pool of construction workers, but also in their wide geographic dispersion," a company official said. Similar cases have cropped up across Japan. As of March, the backlog of orders at construction companies reached 15.3 trillion yen on a 12-month moving average basis, according to statistics from the Ministry of Land, Infrastructure, Transport and Tourism. Driven in part by rising prices, this is the highest level since April 2011, when comparable industrywide data first became available. The volume of order backlogs surged in the early 1990s, before the prolonged period of economic stagnation that hit like a delayed hangover years after the collapse of Japan's bubble economy. Today's delays are largely driven by labor shortages rather than swelling demand. As of 2024, the construction sector employed 4.77 million workers, down 6% from a decade earlier, according to a survey by the Ministry of Internal Affairs and Communications. Of those, 800,000 were aged 65 or older, accounting for nearly 20% of the workforce, up 5 percentage points over the same period. The growing societal emphasis on work-life balance has made it more difficult for the construction industry to secure labor. Regulations that took effect in April 2024 generally limit construction workers' overtime to 45 hours per month and 360 hours per year. As a result, the industry's average working hours per person fell 32.3 hours in 2024 compared to the previous year, far exceeding the all-industry average decline of 14.3 hours. Competition for workers is intensifying. In Hokkaido, where Japanese semiconductor manufacturer Rapidus is building a mass-production plant for advanced chips, the number of construction workers employed by contractors with a workforce of 10 or more reached about 130,000 in 2023, up 23% from the previous year. Monthly basic salaries in the region averaged around 326,000 yen, an increase of more than 30,000 yen, compared with a national average rise of about 14,000 yen. Construction companies are tightening their criteria for new projects, with greater scrutiny of profit margins. In 2024, the average unit price of construction starts for private-sector industrial buildings climbed 18% from the previous year, reaching about 300,000 yen per square meter. "We carefully evaluate projects based on their profit potential and expected completion timelines," a top executive at a major construction company said. Unable to secure sufficient labor or win projects with healthy profit margins, many smaller companies have been forced out of business. The construction bottleneck has also been exacerbated by an industry-specific factor: the sector's continued reliance on a labor-intensive structure. "Japan's construction industry has been slow to adopt IT, largely because the sector is dominated by smaller companies," said Takayuki Sueyoshi, senior economist at Daiwa Institute of Research in Tokyo. Japanese builders invest only about one-fifth as much per worker in labor-saving and efficiency-enhancing software as their British and French counterparts, according to an estimate by the institute. Given the construction sector's vital role in the Japanese economy, enhancing builders' capacity to manage workloads should be a top priority. If labor shortages continue, the industry will need to accelerate digitization and implement other productivity-enhancing measures.
The Star
14 hours ago
- General
- The Star
How to make a clean city
'WOW, it looks like a Greek temple!' 'Do they really pool rainwater here?' These are common reactions from first-time visitors to the Metropolitan Area Outer Underground Discharge Channel, an enormous subterranean flood control facility located beneath Kasukabe City, just north of Tokyo. Towering 18m-high pillars support the vast chamber 50m below ground, giving it the nickname 'the underground temple'. It's not just impressive architecture. Stretching 6.3km and capable of holding 670,000 cubic metres of water – roughly the volume of a 60-storey skyscraper – the channel plays a vital role in protecting Tokyo from floods. Since its completion in 2006, it has saved an estimated ¥148.4bil in potential flood-related damage, according to Japan's Ministry of Land, Infrastructure, Transport and Tourism. That's a 65% return on the initial ¥230bil investment – and counting. But its real value lies in peace of mind. Residents in flood-prone areas of Kasukabe no longer need to worry each time heavy rain is forecast. For countries like Indonesia, where over five million people were affected by floods in 2024 alone, such infrastructure could be transformative. In Jakarta, annual flooding is almost routine due to the city's topography, intense monsoon rains and limited drainage capacity. With high-density traffic and little room for large surface-level construction, a Tokyo-style underground shield-tunnelling method – which allows digging without closing roads – could be the ideal solution. Environmental accolade Tokyo's environmental initiatives have earned it global recognition. In the 2024 Global Power City Index, Tokyo ranked third overall (behind London and New York), and stood out as the only Asian city in the top 10 for 'Commitment to Climate Action', a new benchmark under the Environment function. This accolade stems from years of consistent, multi-layered urban planning – the kind that South-East Asian cities, now grappling with climate-related challenges, can learn from. Rooftop forests, greener skylines High above ground, Tokyo has also been reclaiming the skyline for nature. Perched atop Ginza Six, a landmark building in the city's upscale shopping district, is a lush 4,000sq m rooftop garden. It features a circular promenade where office workers and shoppers stroll under the open sky, soaking in views of Tokyo Tower and the Ginza streets below. The green rooftop, the largest in the district, was created in 2017 as part of Tokyo's aggressive urban greening policy. The goal? Combat the urban heat island effect, improve air quality and beautify the cityscape. Since 2001, the Tokyo metropolitan government has required all new buildings over a certain size to dedicate at least 20% of their ground-level open space and roof space to greenery. Since April 2025, solar panels have also become mandatory on all new homes – a significant step toward reducing carbon emissions in the housing sector. This is where South-East Asian cities can catch up. Bangkok, for instance, routinely suffers from hazardous levels of air pollution. In January 2025, 48 out of Bangkok's 50 districts recorded PM2.5 levels exceeding 75 micrograms per cubic metre – well above Thailand's own limit of 50, let alone the World Health Organisation's safer guideline of 25. The root cause? A national power mix heavily reliant on coal and natural gas. While a full transition to renewables will take time, measures like Tokyo's – greening urban surfaces and decentralising solar power – are practical, affordable and adaptable today, even in cities like Hanoi or Ho Chi Minh City, which are also battling worsening air quality. Doing away with waste bins Another often-remarked feature of Tokyo is how clean its streets are – despite the near-total absence of public rubbish bins. This isn't magic; it's cultural. People simply carry their rubbish home. That attitude is part of a broader commitment to waste reduction. Tokyo aggressively promotes the three Rs – reduce, reuse, recycle. Packaging must use recyclable or biodegradable materials. Plastic waste is sorted and processed into materials for chemical reuse. There are clear efforts to phase out single-use items and reduce landfill dependency. Compare this with Malaysia, where landfills still dominate the waste disposal system and plastic pollution remains a critical issue. Or Indonesia and the Philippines, where marine plastic leakage is among the highest globally, largely due to the logistical challenges of collecting waste across thousands of islands. Tokyo's approach shows what's possible with a combination of policy, infrastructure, corporate responsibility and public cooperation. It's not just about building recycling plants – it's about building habits. Mindset shift that makes it work Perhaps Tokyo's greatest environmental innovation isn't technological or architectural – it's psychological. Japan's environmental policies don't always land smoothly. Businesses worry about costs. Citizens worry about inconvenience. But once new rules are implemented, many discover that they improve quality of life or even reduce operational expenses. Over time, resistance turns into acceptance – and eventually into pride. That kind of collective mindset shift is the secret ingredient missing from many South-East Asian efforts. Infrastructure projects and regulations can only go so far without public buy-in. Tokyo's experience proves that when residents are on board, even seemingly drastic environmental measures can succeed – and even thrive. Lessons for South-East Asia Cities like Jakarta, Bangkok, Kuala Lumpur, Manila and Ho Chi Minh City are facing rising environmental threats: floods, pollution, waste and extreme heat. And they're doing so with fewer resources and in more complex social contexts than Tokyo. Still, the Japanese capital's experience offers a toolkit that can be adapted – a hybrid of engineering and behaviour change, of big infrastructure and small daily acts. Whether it's building stormwater megastructures beneath your feet or planting rooftop forests above your head, Tokyo is proving that a dense, bustling city can still be liveable, breathable and resilient. It's a message South-East Asia might find worth listening to – before the next monsoon or smog crisis hits. — AFP
Time of India
a day ago
- Business
- Time of India
Nandan Nilekani appointed Chief Mentor for India Energy Stack Task Force
As reported by ET earlier, the Ministry of Power confirmed on Saturday the appointment of Infosys co-founder Nandan Nilekani as the Chief Mentor of a newly formed Task Force to develop the India Energy Stack . The move aims to form a Digital Public Infrastructure (DPI) designed to standardise and modernise operations across the sector. ET had earlier reported the news on June 18. The initiative has been approved under the Revamped Distribution Sector Scheme (RDSS), with REC Ltd. as the Programme Nodal Agency and FSR Global as Knowledge Partner, said an official memo. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo In a major push to digitise India's power sector, India Energy Stack aims to create a unified digital architecture that will enable interoperability and data-driven innovation across generation, transmission, distribution, and consumer services. "A correction of up to 25% in generation, transmission and distribution costs is the desired outcome of this exercise," an official aware of the project had told ET earlier this month. Live Events Nilekani, who previously spearheaded the Aadhaar project as Chairperson of the Unique Identification Authority of India (UIDAI), will guide the Task Force in charting a roadmap for the Energy Stack and preparing the scope for a Utility Intelligence Platform to enhance efficiency and transparency. Alongside tech entrepreneur, the Task Force includes several distinguished experts and senior officials: Dr Ram Sewak Sharma , Chairperson, former CEO of the National Health Authority and ex-Chairman of TRAI. Pradeep Kumar Pujari , Vice Chair, Distinguished Fellow at FSR Global and former Chairman, CERC. Pramod Verma , Chief Architect of FIDE and former Chief Architect of Aadhaar. Ghanshyam Prasad , Chairperson, Central Electricity Authority. Alok Kumar , Director General, AIDA. Jitendra Srivastava , CMD, REC. SK Soonee , Founder and former CMD of Grid India. According to the government notificiation, representatives from major DISCOMs, including CMDs of MSEDCL and GUVNL, will also participate in shaping the initiative.
The Star
3 days ago
- The Star
Errant MBPJ staff to be dealt with
PETALING Jaya City Council (MBPJ) officers have been warned to expedite handling ratepayers' complaints or be given show-cause letters. Petaling Jaya mayor Mohamad Zahri Samingon said this was to tackle delays as well as boost accountability within MBPJ amid growing public discontent, especially with the increase in assessment rates this year. He said officers must address complaints lodged through the Public Complaints Management System (Sispaa) in a speedy manner. 'For example, if the complaint was lodged in March and if in June there is no response, I will issue the letter. 'The staff will have seven days to show reasons as to why they didn't take any action or reply to the complaint. 'The staff must provide answers and if I cannot accept their reasoning, I will take disciplinary action,' Mohamad Zahri said at the city council's full board meeting at MBPJ headquarters. He said this in response to Zone 19 councillor Nalina Nair's meeting postponement speech highlighting the lack of response by MBPJ to a complaint about a collapsed drain in SS20. Mohamad Zahri: Staff have seven days to answer show-cause letter. Mohamad Zahri said staff must acknowledge and reply to the complaint and not keep silent. 'People become angry because there is no reply to their complaints. 'We also need to give a reasonable time estimate as to when the problem will be resolved,' he added. At the meeting, Nalina said the collapsed drain in Jalan SS20/6 resulted in a deep hole on the walkway, which was dangerous. The first complaint, she said, was made by residents in February this year, but there was no response, and in April, when councillor Yip Sean Yi followed up, again no clear answer was provided. 'On June 12, I raised this matter in the Infrastructure, Traffic and Public Facilities committee meeting, but was told that the department had not been to the location to assess the problem or propose a solution. 'On June 17, this matter was brought up again but the answer received was still lacklustre. 'Finally, after a few councillors and I went to the location, took photos and forwarded the complaints in the Councillor Complaints Whatsapp group, action was taken the next day.' Nalina stressed that the increase in assessment rates meant that people expected faster, more transparent and more effective work from MBPJ. 'Their complaints must be answered promptly and repair works carried out properly with continuous monitoring,' she said. She cited another example of a complaint regarding a broken bench at a park in Section 1. 'The usual answer given in meetings is that there is no allocation, whereas small works to remove dangerous objects from public areas do not require large expenditure. The collapsed drain in Jalan SS20/6 resulted in a deep hole on the walkway. — Courtesy photos 'We need to rethink the process of budget management, contractor appointment, and work implementation so that the effectiveness of the work can be improved and allocation used wisely,' she added. On the issue of dengue cases in Petaling Jaya, Mohamad Zahri said a total of 1,194 cases had been reported as of June 7, which was an 18% increase compared to the previous week. 'Currently, 19 outbreak localities have been identified, including two hotspots, reflecting the urgent need to improve comprehensive dengue prevention and control. 'Among the main contributing factors to the increase in dengue cases are low environmental cleanliness, illegal gardens, empty houses and abandoned reserve lands. 'This situation is further exacerbated by the careless attitude of a few communities who are less aware of the dangers of dengue,' he said in his speech at the meeting. Mohamad Zahri said Petaling district was among areas with the highest cases in Selangor, while Damansara Damai was the main contributor to cases under MBPJ's jurisdiction. 'In this area, there are 15 high-rise housing clusters comprising 14,477 residential units, with high population density becoming a risk factor for dengue transmission,' he said.
Arabian Business
4 days ago
- Business
- Arabian Business
Teneo expands regional presence with new Capital Projects & Infrastructure arm
Global advisory firm Teneo continues to bet big on the Middle East and has launched a Capital Projects & Infrastructure (CP&I) business in the region. The New York-based firm announced that the CP&I's launch team will be led by Stelios Thrasyvoulou, who has joined the company as a Senior Managing Director, along with nine new professionals. Stelios has over 20 years of experience in the region's construction and capital project space. He moves to Teneo from Deloitte, having spent 17 years as an executive director in a leading contracting business in the UAE and broader region. Teneo expands Middle East CP&I advisory The CP&I business will advise clients across the construction, real estate development and capital projects sector from offices in Abu Dhabi and Dubai in the UAE, Riyadh in Saudi Arabia, and Doha in Qatar. This includes offering independent and specialist advice on all aspects of capital projects, ranging from feasibility studies and project initiation, program planning and procurement, PMO function, project financing, claims and change management, project governance and controls, and project reviews and operational performance enhancement. The new CP&I team will join Teneo's regional Financial Advisory business, headed by Matthew Wilde and Elie Fakhoury, and report to Daniel Butters, CEO of Teneo's global Financial Advisory business. Butters commented: 'We are extremely excited to welcome the CP&I team to our business as we continue to expand our already successful Financial Advisory offering in the region. 'Stelios and the senior leadership team have a powerful proposition for the CP&I sector which is a vital sector in the region. They bring deep sector experience and an independent mindset to the full range of project-related challenges including, for example, those that require private sector funding or participation and many that will require reshaping in light of ongoing macroeconomic and geopolitical events. This matches perfectly with our strategy and offering for some of the region's biggest businesses and sovereign wealth funds.' Thrasyvoulou added: 'I am deeply honoured and excited to be joining Teneo and looking forward to working closely with the talented and experienced leadership team. 'Our vision is to develop best-in-class CP&I advisory services and work hand-in-hand with our clients in the region to provide holistic and practical solutions to complex construction project challenges, utilising deep sector knowledge and experience.' Teneo now has over 130 employees in the region working across five business segments – Strategy & Communications, Financial Advisory, Management Consulting, Risk Advisory and People Advisory.
