Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. At Caterpillar, our goal is to help our customers be more successful working with us, than they can be working with anyone else. For that reason, we have developed a global reach and presence that is unmatched in the industry. We want to be where our customers are. We serve customers in more than 190 countries around the globe with more than 300 products. Our manufacturing, marketing, logistics, service, R&D related facilities, along with our dealer locations, total more than 2.700 locations worldwide.1
Caterpillar has been active in the ASEAN region for decades and has had a dedicated and permanent presence for over 50 years.2 Today, we are more committed to Southeast Asia than ever. In the region, we currently have a workforce of over 11,000 employees (2,000 Caterpillar Employees, plus 9,000 Cat Dealer Employees). We are growing. In fact, the region is so full of opportunity, that our main challenge is keeping up with the massive growth.
At Caterpillar, our customers are involved in mining, infrastructure development, energy, transportation and more. Due to the industry sectors we serve, we see huge potential in Southeast Asia for a variety of reasons.
Firstly, the population is growing rapidly. Currently, it shows that the ASEAN workforce has more than 300 million people in 2022.3
Secondly, the demographic trends are favourable. Currently, about 50% of the population is aged 304 and younger and there is ample growth in quality jobs that will help improve overall productivity rates, making the region much more competitive in the global economy.
Thirdly, the market has tremendous potentials and opportunities. It is a significant exporter of a variety of goods and is the largest mining export market in the world. Productivity is increasing and so is foreign investment. All of these factors help create demand for Caterpillar products.
We currently have manufacturing facilities in Jakarta and Batam Indonesia and are building facilities in Thailand. We have a remanufacturing facility in Singapore, distribution centres in Singapore, Malaysia, Thailand and the Philippines. Our regional footprint is strong and we will continue to explore ASEAN markets for additional manufacturing capacity.
As a Region, ASEAN provides many opportunities. At the same time, each country is highly disctinct. For example, Singapore is a worldwide centre for ship building, so a big part of Caterpillar’s business is related to the marine and offshore oil & gas industry.
In Malaysia, Caterpillar’s business focus is mainly on quarry aggregates and forestry. As the country is increasingly looking into offshore exploration and production, there are growing opportunities in the oil & gas industry.
In the next ten years, we expect the Vietnam will begin to emerge. Today, we are seeing strong investment and infrastructure development. It is a country rich in resources with a great coastline. Vietnam’s vast, untapped resources bode very well for the growth and expansion of our mining business.
Thailand is a growing manufacturing area for Caterpillar. We are constructing facilities to build underground mining equipment and medium track-type tractors in the Rayong Province of Thailand. The total investment for the two new facilities is around US$300 million and both facilities will employ nearly 2,000 people by 2013. These factories will become a hub for the Region, as 95% of the facilities production will be exported from Thailand, to our customer is Africa/Middle East and Asia-Pacific regions.
Indonesia is a rare in offering extremely good opportunities across every single industry in which Caterpillar serves, whether it is palm oil plantations, forestry or virgin timber. However, the greatest opportunity in Indonesia lies in mining – coal, tin, gold, copper, nickel & oil and gas. Beyond the basic business needs, mining also creates derivative demands for construction products in the small town which spring up close to mines in need of electricity, water, roads, schools & hospitals. For all of these reasons, Indonesia is also a rapidly expanding market offering huge opportunities.
Each country in the Region offers its unique challenges and opportunities. Together, with our dealers, Caterpillar is committed to helping our customer across the Region to succeed. The future is bright for ASEAN.
First published in Investing in ASEAN 2012-2013, Allurentis Limited
- https://www.caterpillar.com/en/brands/cat/products.html#:~:text=Cat equipment sets the standard,with durable and reliable equipment ↩︎
- https://www.caterpillar.com/en/news/caterpillarNews/global-footprint/caterpillarcelebrates50yearsinsingapore.html ↩︎
- https://www.aseanstats.org/wp-content/uploads/2023/12/ASYB-2023-v1.pdf ↩︎
- https://www.aseanstats.org/wp-content/uploads/2023/12/ASYB-2023-v1.pdf ↩︎
