Business Monitor International


Malaysia Defence & Security Report

Published 06 February 2014

  • 89 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$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. However, overall defence spending and procurement has been relatively static, which 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.

Malaysia's relations with neighbours Thailand, Singapore and Indonesia are cordial, and China's territorial disputes with a number of countries in the region has so far had relatively little impact on Malaysia, although this does not rule out the possibility of more serious tensions in the future. A visit last year by the Chinese premier resulted in the signing of a new strategic pact between Malaysia and China, it what was interpreted as a reward to Malaysia's calm response - which has contrasted with that of other Southeast Asian countries - to China's regional activities. Malaysia already engages in defence industry collaboration with China, especially in the area of missile technology, and these joint efforts are now likely to deepen, with Malaysian industry the likely beneficiary.

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 Southeast Asia in October 2013 on what should have been a four-nation tour...

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: Malaysia's Defence Expenditure, 2011-2018
20
Armed Forces
21
Table: Malaysia's Armed Forces, 2002-2010 ('000 personnel, unless otherwise stated)
21
Table: Malaysia Manpower Available For Military Service, 2010-2017
23
Defence Sector Production
23
Table: Malaysia's Defence Trade Balance, 2010-2017 (US$mn)
26
Imports
26
Table: Malaysia's Defence Imports, 2010-2017 (US$mn)
26
Exports
27
Table: Malaysia's Defence Exports, 2010-2017 (US$mn)
28
Key risks to our forecast
29
Macroeconomic Forecasts
30
Table: Malaysia - Economic Activity
33
Industry Risk Reward Ratings
34
Asia Security Risk Ratings
34
Table: Asia Pacific Regional Security Ratings
34
Table: Asia Pacific State Vulnerability To Terrorism Index
35
Malaysia Security Risk Ratings
35
Market Overview
37
Malaysia Defence Market Overview
37
Armed Forces
37
Domestic Industries
39
Imports
39
Corruption Scandals
44
Malaysia Security Overview
46
Domestic Threats
46
Regional Threats
48
International Threats
50
Company Profile
52
AIROD
52
Composite Technology Research Malaysia (CTRM)
53
Deftech
55
EADS
57
Malaysia Marine and Heavy Engineering (MMHE)
59
SME Ordnance
61
Regional Overview
62
Political Risk Analysis
62
Global Industry Overview
75
Global Political Outlook
75
Table: Election Timetable, 2014
79
Methodology
85
Industry Forecast Methodology
85
Sector-Specific Methodology
86
Sources
87
Risk/Reward Rating Methodology
87
Sector-Specific Methodology
87
Table: Security Risk/Reward Ratings Indicators
88
Table: Weighting Of Indicators
89

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 Malaysian defence and security sector through reviews of latest industry trends, regulatory changes and major deals, projects and investments in Malaysia.
  • 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 Ratings 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-2017 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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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc