Temasek-backed Sembcorp Industries is planning to invest S$700m (€482m) to develop green industrial parks over the next three years in fast-growing Southeast Asian economies.

The group’s urban business has developed 21 industrial parks, spanning over 14,000ha in key markets including Vietnam, Indonesia and China. It said it planned to accelerate development and expand its land bank from 14,000ha to 18,000ha by 2028.

Under its new urban strategy, Lee Ark Boon, Sembcorp’s urban division’s CEO said the group would increase its industrial properties to 1.5m sqm by 2028 from 100,000sqm.

“The urban business will continue to grow its presence in Vietnam and Indonesia, explore new markets and optimise its operations in China to improve returns,” he said.

In Indonesia, the company has recently signed preliminary agreements to develop low-carbon industrial parks in Batam, south of Singapore, catering to manufacturing and data centres industries.

Lee said Vietnam and Indonesia offered compelling growth opportunities with their strong GDP growth prospects and growing manufacturing industry. The countries also had increasing domestic consumption driven by urbanisation and a rising middle class.

“Industrial park growth in Vietnam and Indonesia remains strong, driven by strong foreign direct investment, supply chain diversification as well as favourable government policies,” said Lee.

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