Although the South East Asian countries have been overshadowed by the Chinese growth miracle, their own growth history is none the less impressive, having averaged 5 % growth over the past decade.
Around a tenth of the world’s population live in the area, with Indonesia being the largest economically, representing about a third of the regions’ value creation. The South East Asian countries’ economic performance remains very dependent on exports but domestic sources of growth - particularly private consumption- will increasingly play a growing role in the coming years.
Rapid growth in intra-regional exports suggests the emergence of a new regional market for goods and services, building on the growth of mainland China and increasingly also on the growing affluence in other large emerging markets such as India and parts of South East Asia.
The Asian Development Bank estimates that the exported value to mainland China from Malaysia, Philippines, Singapore, and Thailand has increased fivefold over the past 15 years at the expense of the United States and the EU. This is exemplified by the autoproduction in the region. Up to 95% of cars sold in South East Asia are produced within the region.
The largest producers are Thailand and Indonesia, with a fair share of the manufacturing destined for exports, primarily to Oceania, Middle East and South America which in total represent 75% of all South East Asia exports of light vehicles.
The global exports are primarily being driven by Thailand, where exports are expected to grow by 7% per year from 2012-18 driven by the likes of Toyota, Renault/Nissan, Mitsubishi and Ford.The South East Asia region is expecting continued strong activity in the construction sector, as well as mining opportunities in selected countries and attractive development for the agricultural industry.
These factors all contribute to driving the demand for heavy equipment in the region. Indonesia represents 2/3 of total construction spending in South East Asia and is expected to see 5% annual growth in 2013- 18.The imports of heavy equipment into the region have consequently been growing strongly, particularly for construction and earthmoving equipment, with 7% yearly in 2010-12 and a healthy outlook going forward.
WWL In South East Asia
- Ocean services linking South East Asia’s countries with each other as well as with North Asia, Europe and North and South America.
- Vehicle processing and Yard management in Thailand.
- Inland distribution in Thailand.