Investment in infrastructure in South and Southeast Asia is facing challenges due to reduced commercial bank involvement in project financing. Multilateral financial institutions and export credit agencies are now playing a bigger role. To meet the $3.6 trillion investment needed by 2020, the financing model must shift towards local market and currency financing using domestic savings. Better connectivity between the regions can boost efficiency and productivity, but obstacles like weak trade facilitation and infrastructure financing shortages need to be addressed. Public and private sector investment, along with viable credit, are crucial for improving cross-border projects. Regional funding platforms and multilateral support can help overcome these barriers.