[Asia Report] Myanmar Earthquake: A Turning Point for Safety Awareness in Southeast Asia

Low-Cost Construction and Safety Negligence Exposed by Major Earthquake
Structural Vulnerabilities Revealed
Southeast Asian Market on the Verge of Qualitative Change

Due to the magnitude 7.7 earthquake that occurred on March 28, buildings across Myanmar collapsed, resulting in over 3,400 deaths and thousands of displaced people. The photo shows the destroyed Buddhist temple in Inn Wa, on the outskirts of Mandalay, Myanmar, on the 6th (local time). Photo by AFP

The magnitude 7.8 earthquake that struck central Mandalay, Myanmar on March 28, 2025, was not merely a natural disaster. This event has highlighted the fragile infrastructure realities across Southeast Asia and prompted a reexamination of the construction industry's direction.

Mandalay is historically a geopolitical hub connecting China, India, and Southeast Asia. Once the thousand-year capital of the Burmese dynasty, it is renowned for its splendid Buddhist heritage sites. The recent earthquake caused tens of thousands of casualties, and it appears that most of the living spaces of approximately 1.2 million Mandalay residents were destroyed. According to Myanmar's Ministry of Urban Development, a significant number of collapsed buildings did not meet seismic design standards. This tragedy was caused by Southeast Asia's characteristic low-cost construction and lack of safety awareness.

Such poor social infrastructure is not a problem unique to Myanmar, born from prolonged military dictatorship and a backward economic system. Bangkok, Manila, and Jakarta also have unstable geological structures and inconsistent building regulations, making such disasters likely to recur at any time. Although there are exemplary cases like Singapore and Malaysia, the structural vulnerability of construction safety in most Southeast Asian countries remains a challenge that all ASEAN nations must overcome in the future.

Fragile Construction Infrastructure in Southeast Asia

Unlike Myanmar, where media coverage is limited, the shock was more pronounced in Bangkok, an international city located 1000 km from the epicenter. Notably, the 33-story Audit Office building, constructed by 'China Railway No.10' in downtown Bangkok, completely collapsed, resulting in 18 casualties. According to the Thai Steel Association, the 'Sky' brand rebar used in construction fell below standards in both tensile strength and chemical composition. The poor quality of Chinese materials was identified as the direct cause, prompting the Thai government to comprehensively review safety standards for high-rise buildings.

On the other hand, most other high-rise buildings withstood the quake without major damage. Contrasting with the Audit Office building collapse, the 'Sathon Unique Tower' in Bangkok's Sathon district drew particular public attention. Construction began in the early 1990s but was halted at 49 floors due to the International Monetary Fund (IMF) foreign exchange crisis, leaving the building unfinished. Nevertheless, it withstood the earthquake without significant shaking. The construction company that built the building's framework was none other than South Korea's Samsung C&T Corporation.

This case symbolically demonstrates the durability and quality of Korean construction technology. In fact, Korea's entry into the Southeast Asian construction market dates back a long time. In 1966, Hyundai Engineering & Construction won a contract to build a 98 km highway connecting Pattani and Narathiwat in southern Thailand, marking the first overseas market entry by a Korean construction company. Even after more than half a century, the 'Narathiwat Highway' remains a symbol of Korean civil engineering technology locally.

Since then, Korean companies have participated in major projects such as Singapore's MRT, Malaysia's Petronas Twin Towers, and Marina Bay Sands, building trust through quality, technology, and sincere construction. Notably, Samsung C&T's construction of the Petronas Towers, Ssangyong Engineering & Construction's leadership in Marina Bay Sands, and GS Engineering & Construction's experience with Singapore's subway demonstrate the depth and authenticity of Korean technology in Southeast Asia.

Southeast Asia is already one of the fastest-growing construction markets in the world. Jakarta's skyline is filled with the sounds of cranes and jackhammers. Vietnam and Indonesia are attracting billions of dollars in foreign investment alongside urbanization. The Asian Development Bank (ADB) estimates that approximately $2 trillion in infrastructure investment will be needed in the region by 2030.

Qualitative Changes in the Southeast Asian Construction Market

Competition in this vast market is intensifying. China leads large-scale projects through the Belt and Road Initiative (BRI), leveraging cheap labor and state financing. Meanwhile, Korea and Japan target the premium market with seismic design, smart technologies, and eco-friendly construction. Europe is quietly expanding its presence in renewable energy and digital infrastructure sectors.

The Ho Chi Minh City subway construction in Vietnam exemplifies this competition. Initially funded by Japanese capital, Korean and Chinese companies also participated, resulting in simultaneous competition in technology and pricing. Nguyen Van Tuan, an urban planning expert in Hanoi, states, "China has strengths in cost efficiency, while Korea and Japan excel in quality and maintenance stability."

After the earthquake, Southeast Asian countries are reprioritizing infrastructure policies. Demand for seismic design, AI-based structural monitoring, and high-strength materials is surging. These are areas where Korean companies hold comparative advantages.

Geopolitical competition surrounding Myanmar's reconstruction is also intensifying. China was the first to offer emergency aid and reconstruction loans. Its close existing ties with the Myanmar military cannot be overlooked. However, Korea can aim for a mid- to long-term partnership market through technological prowess, transparent construction, and ESG-based sustainable development strategies. The earthquake has also turned on a green light for Korean market entry into Thailand, which suffered extensive damage. Projects desiring Korean construction expertise are abundant throughout Southeast Asia. Modern, safe city models are emerging across the region, such as Singapore's Punggol Digital District and Indonesia's Nusantara capital project. AI traffic control, energy efficiency, and water resource management systems are becoming standards in urban construction.

Financial flows are also changing. Although China remains the largest lender, countries like Thailand and Vietnam are gradually expanding cooperation with Japan, Korea, and the EU. The United States is also increasing its influence through the Development Finance Corporation (DFC). All these trends present opportunities for the Korean construction industry. Beyond simple construction, Korea’s role as a partner equipped with technology, philosophy, and trust is growing in Southeast Asia’s reconstruction and future urbanization.

The 2025 Myanmar earthquake is a horrific tragedy but also a turning point for safety awareness, administrative standards, and the restructuring of the construction industry across Southeast Asia. Will the region continue to choose cheap construction linked to corruption, or opt for sustainable safety?

Jung Ho-jae, Secretary General, Asia Vision Forum