Business Monitor International


Malaysia Defence & Security Report

Published 22 July 2014

  • 89 pages
 
$1,295.00
Malaysia Defence & Security Report

Malaysia has enjoyed a relatively stable post-election period; a  sweeping victory for Prime Minister Najib Razak's political allies within the United Malays National Organisation (UMNO) following the latest party election suggests that we could see further progress on fiscal reforms in 2014. This should help cement internal stability. Externally, the country faces tensions over China's activities and territorial disputes in the South China Sea region; some Islamist groups are also operating in Malaysia and neighbouring states. While Malaysia has undergone recently military build-up on the back of the South China Sea conflict, overall defence spending and procurement has been relatively static, with the 2014 budget seeing a cut in money available for military development.

Malaysia's regional security situation also remains generally benign; the country is also enjoying a burgeoning defence relationship with the United States. A January 2014 meeting in Washington between the country's two defence ministers should likely result in more joint-forces exercises.

The Washington meeting in January this year may go some way to resolving the fallout from US President Barack Obama 's failure to travel to South East Asia in October 2013 on what should have been a four-nation tour kicking off with a state visit to Malaysia. Obama pledged that he would still visit Malaysia during his presidency. While it can hardly be claimed that Obama's failure to come to the region has fatally damaged the US strategic 'pivot' to Asia, his signature foreign policy, it certainly has weakened the US's image as a country that can get things done in the region vis-a-vis China. The full implications of this for Malaysia and the region could take some time to emerge, however, and the US continues to stress its commitment to the Asia-Pacific despite political gridlock at home.

Malaysia's relations with neighbours Thailand, Singapore and Indonesia are cordial, and China's territorial disputes with...

Table of Contents

BMI Industry View
7
SWOT
9
Malaysia Security SWOT
9
Malaysia Defence SWOT
12
Political
14
Economic
16
Business Environment
18
Industry Forecast
20
Defence Budget
20
Table: Defence Expenditure (Malaysia 2011-2018)
20
Armed Forces
21
Table: Armed Forces Personnel (Malaysia 2004-2011)
21
Table: Manpower Available For Military Service (Malaysia 2011-2018)
23
Defence Sector Production
23
Table: Defence Trade Balance (Malaysia 2011-2018)
26
Imports
26
Table: Defence Imports (Malaysia 2011-2018)
26
Exports
27
Table: Defence Exports (Malaysia 2011-2018)
28
Key risks to our forecast
28
Macroeconomic Forecasts
30
Economic Analysis
30
Table: Malaysia - Economic Activity
36
Industry Risk Reward Ratings
37
Asia Security Risk Ratings
37
Table: Asia Pacific Security Risk Ratings
37
Table: Asia Pacific State Vulnerability To Terrorism Index
38
Malaysia Security Risk Ratings
39
Market Overview
40
Malaysia Defence Market Overview
40
Armed Forces
40
Domestic Industries
42
Imports
42
Corruption Scandals
47
Malaysia Security Overview
49
Domestic Threats
49
Regional Threats
51
International Threats
53
Company Profile
56
AIROD
56
Composite Technology Research Malaysia (CTRM)
57
Deftech
59
EADS
61
Malaysia Marine and Heavy Engineering (MMHE)
63
SME Ordnance
65
Regional Overview
66
Political Risk Analysis
66
Global Industry Overview
79
Global Political Outlook
79
Methodology
85
Industry Forecast Methodology
85
Sector-Specific Methodology
86
Sources
87
Security Risk Ratings Methodology
87
Table: Indicators And Weighting
88

The Malaysia Defence & Security Report features Business Monitor International (BMI)'s independent forecasts for national and international security, the defence industry, military expenditure, employment in arms production, and arms imports and exports, as well as examining industry trends and prospects, national and multinational arms producers and the regulatory environment.

BMI's Malaysia Defence & Security Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Malaysian defence and security industry.

Key Benefits

  • Benchmark BMI's independent defence and security industry forecasts on Malaysia to test other views - a key input for successful budgetary and strategic business planning in the Malaysian defence and security market.
  • Target business opportunities and risks in the Asia defence and security sector through reviews of latest industry trends, regulatory changes and major deals, projects and investments in Asia.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

Global and Regional Political Outlooks

A strategic overview of the world's major political risks, identifying countries facing leadership successions and nations at risk of upheaval, inter-state conflict or separatism and insurgencies, plus a summary of the world's 'wild card' low-probability high-impact risks.

SWOT Analysis

Snapshot evaluation of the major issues affecting the defence and security sectors, economy and politics, with issues subdivided into 'Strengths', 'Weaknesses', 'Opportunities' and 'Threats'.

Political Risk Assessment

Drawing on BMI's heritage of more than 25 years of Country Risk analysis, this comprehensively evaluates the key risks to domestic politics and foreign relations, focusing on issues most likely to affect either domestic security or the defence sector.

Security Risk Analysis

BMI's proprietary Security Risk Rankings provide a reliable - and country comparable - guide to conflict, terrorism and criminal risk, backed up by our analyst's latest assessment of each component. Furthermore, drawing on our country risk expertise, we assess the state's vulnerability to a serious - or prolonged - terrorist campaign.

Armed Forces Spending/Expenditure

The reports contain a detailed breakdown of areas of expenditure by the armed forces, these include spending on international deployments, WMDs and missile defence systems as well as individual breakdowns of the cost-per-soldier.

Domestic Security Overview

The domestic security overview lists the various potential internal security threats facing a country, ranging from internal security issues such as terrorism, cyber terrorism, crime and drugs, to external security issues including general defence procedures and potential threats from specific countries.

BMI Industry Forecast Scenario

Historic data series and forecasts to end-2018 for key industry indicators supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

Budgets & Expenditure: Defence expenditure (local currency and US$bn); defence expenditure (% of total budget); defence expenditure (% of GDP); defence expenditure per capita, US$; defence budget (local currency and US$bn).

Employment: Employment in arms production (`000s); employment in arms production (% of labour force).

Macroeconomic: BMI's forecasts and analysis of all headline macroeconomic indicators, including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Domestic Security Overview

The reports also provide a regional overview which details specific issues and flashpoints affecting , along with potential risks in the coming year.

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