Smarter Infrastructure Management For East Asia’s Sustainable Future
This article is based on an original piece by Oksana Nazmieva, Principal Financial Management Specialist at the Asian Development Bank, and draws on insights from the November 2025 knowledge-sharing session, Managing Public Investments for Sustainable Development: Focus on East Asia, hosted by ADB’s Financial Management Division. The session highlighted the critical role of strategic public asset management in safeguarding long-term growth across East Asia.
Public infrastructure remains the backbone of national development. Roads, water systems, bridges, schools, and the vast range of public facilities underpin economic activity and social well-being. Yet infrastructure only fulfils its promise when it is planned, maintained, and monitored throughout its life. Without solid maintenance, assets deteriorate faster than anticipated, draining public budgets and weakening service delivery.
Asset management provides the structured approach needed to ensure infrastructure stays productive, resilient, and aligned with long-term development goals. As East Asian economies continue to scale up public investment, integrating asset management into fiscal and investment systems is becoming a defining feature of successful policy reform.
The Long-Term Value Of Public Assets
Public assets are more than physical structures. They reflect decades of national priorities, community needs, and fiscal decisions. They also represent a country’s commitment to economic mobility and social cohesion.
When properly managed, those assets generate value long after construction:
- They extend the lifespan of critical infrastructure.
- They reduce long-term maintenance and replacement costs.
- They support transparent decision-making.
- They improve service delivery and reinforce public confidence.
Strong asset management systems help governments know precisely what they own, how assets perform, and where maintenance is most needed. As Oksana Nazmieva noted: “Effective public asset management systems help governments know what they own, plan maintenance, make transparent investment decisions, and strengthen fiscal discipline.”
This shift represents a move from simple accounting to true accountability, ensuring public investment is managed with long-term value in mind rather than short-term project completion.
Ending The Build-And-Neglect Cycle
A recurring issue in public infrastructure is the build-and-neglect cycle. Governments build new facilities, but maintenance budgets remain thin or inconsistent. The result is deteriorating roads, strained water systems, and overburdened public services. Efficient public asset management prevents this cycle by embedding maintenance into institutional processes from the outset.
The failure to plan for long-term operation can lead to:
- Higher lifecycle costs.
- Emergency repairs that exceed planned budgets.
- Reduced reliability of public services.
- Growing public dissatisfaction.
When maintenance is integrated into fiscal planning from the beginning, infrastructure continues serving communities long after construction ends.
Progress Across East Asia
East Asian governments are developing more structured approaches to public asset management, drawing heavily from international frameworks and digital transformation programmes.
The People’s Republic of China
In the People’s Republic of China, provinces such as Shandong have implemented asset management frameworks within major urban transport projects. Digital tools, maintenance planning systems, and real-time monitoring are now embedded into project cycles. This focus helps reduce operational inefficiencies, lower emissions, and create cleaner, better-managed transport corridors.
As part of broader reforms, provinces have experimented with predictive maintenance technologies. Asset life cycles are assessed using digital maps, sensors, and performance dashboards, allowing officials to prioritise repairs and investments based on real conditions rather than assumptions.
Fujian Province
In Fujian, asset management has been incorporated into large-scale river basin and water resource projects. Institutions now track assets across sectors and manage them within integrated digital systems. These tools help officials evaluate long-term needs, balance investment across regions, and allocate budgets with greater transparency.
Nazmieva highlighted this shift: “Officials are integrating asset management into river basin projects to strengthen institutions, track assets across sectors, and base investment decisions on data rather than assumptions.”
This approach ensures water infrastructure remains resilient to climate pressures, population growth, and rising service demand.
Mongolia’s National Registry Integration
Mongolia is advancing asset management by linking its national property registry to its public investment platform. This prevents new projects from being treated as isolated expenditures and instead places them within a unified national financial management system.
The integration ensures:
- New assets are catalogued from day one.
- Maintenance responsibilities are clearly defined.
- Funding requirements feed into long-term fiscal frameworks.
This strategic link supports transparency and prevents the loss of institutional knowledge when projects change hands.
Strengthening Fiscal Discipline And Development Outcomes
The connection between successful infrastructure and sound public finance is straightforward. Strong asset management improves the productivity of public spending by extending the lifespan of infrastructure, maximising investment returns, and reducing wasteful expenditures.
According to Nazmieva: “Well-managed public assets extend the life of infrastructure, reduce costs, and improve services.”
Governments that maintain strong asset management frameworks typically observe:
- Improved fiscal discipline.
- More predictable budget planning.
- Enhanced public trust through transparent reporting.
These improvements contribute to broader development outcomes, ensuring national resources are directed where they have the greatest long-term impact.
Digital Transformation And Data-Driven Decisions
A defining trend across East Asia is the adoption of digital tools to support public asset management. Technologies such as geospatial mapping, digital twins, remote sensors, and maintenance management software are steadily transforming how governments monitor, assess, and intervene.
Key benefits include:
- Accurate assessment of asset conditions.
- Better forecasting of maintenance needs.
- Clearer visualisation of infrastructure networks.
- Enhanced integration between financial systems and public works departments.
ADB programmes have encouraged governments to integrate digital dashboards into their investment pipelines. This shift improves communication between ministries, reduces duplication, and supports data-driven decision-making.
Managing Public Assets Is Managing Development
East Asia’s future depends not only on new investment but also on preserving the value of what already exists. Sustainable development requires infrastructure that can withstand economic shocks, climate pressures, and changing demands.
Nazmieva explained this succinctly: “Managing public assets is managing development itself: linking fiscal discipline with real-world results.”
Every repaired road, modernised bridge, or upgraded water network forms part of a wider foundation for long-term growth. As governments refine asset management frameworks, they are laying down the pathways for a more stable and resilient future.
An Eye On Regional Priorities
Emerging challenges, including climate change and urban expansion, underscore the importance of strong asset management. Floods, heatwaves, and extreme weather events threaten poorly maintained infrastructure. Meanwhile, expanding cities require continuous upgrades to utilities and transport networks.
A coordinated regional approach will help governments pool knowledge, adopt best practices, and ensure investment benefits are shared across borders.
Building A Stronger Future
East Asia’s infrastructure story is evolving. Policymakers recognise that sustainable growth does not come solely from new projects but from preserving and optimising the assets already in place.
By incorporating asset management into public investment systems, governments are shaping a stronger, more resilient economic future. The decisions made today on monitoring, maintenance, and data integration will determine how communities thrive for decades to come.
