Mar 22, 2019   SOURCE: BusinessWire

The Future of the Malaysian Defense Industry to 2024 - Malaysia's Defense Budget for 2019 is $3.4 Billion, which Decreased from $4.6 Billion in 2015 - ResearchAndMarkets.com

The "Future of the Malaysian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024" report has been added to ResearchAndMarkets.com's offering.

The report provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies and key news.

In particular, it provides an in-depth analysis of the following:

  • The Malaysian defense industry market size and drivers: detailed analysis of the Belgian defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's expenditure and modernization patterns.
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.
  • Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years.
  • Market opportunities:list of the top ten defense investment opportunities over the next 5 years.
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Belgian defense industry.

Malaysia, as per its 11th growth plan (2016-2020), has plans to focus on providing people with wellbeing and a sense of security. Malaysia's defense budget for 2019 is US$3.4 billion, which decreased from US$4.6 billion in 2015 at a CAGR of -6.79% during the historic period. One of the major causes of this falling defense budget has been the lower percentage allocation of GDP towards the defense sector. Malaysia has also postponed some of its new procurement programs and is increasingly favoring the modernization of its current equipment to cut costs. The Malaysian government is attempting to implement substantial financial changes in an endeavor to bring balance to the economy.

Malaysian defense expenditure is expected to register a CAGR of 1.61% over the forecast period and reach a value of US$3.7 billion in 2024. The military's modernization projects, the nation's investment in UN peacekeeping missions, and regional debates with neighboring nations, for example, Brunei over Limbang, Louisa, and Mariveles, Indonesia over Ambalat, the Philippines over Ardasier and Erica, and Thailand over Ko Kra and Ko Losin, were the major drivers deciding Malaysian defense expenditure during the historic period. With this trend expected to continue over the forecast period, the country is projected to cumulatively spend US$18 billion over 2020-2024.

Due to the completion of some contracts in 2018-2019, procurements are expected to be lower in the short term. However, procurement levels will increase soon and this is expected to continue over the forecast period. For example, the Royal Malaysian Navy (RMN) has awarded a contract to the South Korean shipyard, Daewoo Shipbuilding & Marine Engineering (DSME), to build six missile surface corvettes which will be built and assembled in South Korea from 2018 onwards. Furthermore, as part of the 14th and 15th Malaysia Plan, the government plans to acquire two submarines by 2040 in accordance with the government's "15 to 5" Transformation Plan, despite the fact that the course of events might be overhauled.

Malaysia's homeland security (HLS) budget stands at US$2.8 billion in 2019, and is expected to reach US$3 billion in 2024 with a growth rate of 1.73% over 2020-2024. This expenditure is primarily driven by the need to curb drug smuggling, illegal immigration, and increasing criminal activities. The capital expenditure allocation, which stood at an average of 21.9% during the historic period, is expected to increase to reach an average of 22.9% over the forecast period.

Companies Mentioned

  • Leonardo Malaysia
  • Sukhoi
  • Denel Land Systems
  • SME Ordnance Sdn Bhd
  • AIROD Sdn Bhd
  • Boustead Naval Shipyard
  • Sapura Thales Electronics Sdn Bhd
  • DRB Hicom Defence Technologies Sdn Bhd
  • Labuan Shipyard & Engineering Sdn Bhd
  • D'Aquarian Sdn Bhd

Key Topics Covered

1. Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. About the Author

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

3.1. Current Market Scenario

3.1.1. Primary Threat Perception

3.1.2. Military Doctrine & Strategy

3.1.3. Equipment of the Malaysian Military

3.1.4. Procurement Programs

3.1.5. Top Procurement Programs by Value (US$ Million) 2019-2024

3.1.6. Social, Political, and Economic Environment and Support for Defense Projects

3.1.7. Political and Strategic Alliances

3.2. Defense Market Size Historical and Forecast

3.2.1. The Malaysian defense budget is expected to reach US$3.7 billion by 2024, at a CAGR of 1.61%

3.2.2. Modernization of the armed forces, participation in UN peacekeeping operations, and territorial disputes are the major drivers of the Malaysian defense industry

3.2.3. Defense budget as a percentage of GDP will average 0.96% over the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. Capital expenditure allocation is expected to increase slightly over the forecast period

3.3.2. Malaysian capital expenditure on defense is expected to grow at a CAGR of 2.58% over the forecast period

3.3.3. Revenue expenditure forecast to increase at a CAGR of 1.32% over 2020-2024

3.3.4. Malaysia's defense expenditure allocation on others is expected to remain highest over the forecast period

3.3.5. Budget allocation on others is expected to remain highest over the forecast period

3.3.6. Per capita defense expenditure is expected to increase during the forecast period

3.4. Homeland Security Market Size and Forecast

3.4.1. Malaysian homeland security expenditure is expected to grow at a CAGR of 1.73% over the forecast period

3.4.2. The homeland security expenditure in Malaysia is mainly driven by rising criminal activities and natural disasters

3.5. Benchmarking with Key Global Markets

3.5.1. Malaysian defense expenditure is expected to increase over the forecast period

3.5.2. Malaysian defense expenditure is lower than other Asian countries

3.5.3. The Malaysian defense budget as a percentage of GDP is expected to decline over the forecast period

3.6. Market Opportunities: Key Trends and Growth Stimulators

3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - 2019-2024

3.6.2. Frigates

3.6.3. Physical Security

3.6.4. Corvettes

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Malaysian defense imports are expected to increase over the forecast period

4.1.2. Spain and France to remain the key arms suppliers to Malaysia

4.1.3. Aircraft accounted for the majority of imports during 2013-2017

4.2. Export Market Dynamics

4.2.1. Negligible defense exports for Malaysia

5. Industry Dynamics

6. Market Entry Strategy

6.1. Market Regulation

6.1.1. The Malaysian defense industry is largely driven by the government's offset policy

6.2. Market Entry Route

6.2.1. Budgeting Process

6.2.2. Procurement Policy and Process

6.2.3. Entry through technology transfer programs

6.2.4. Entry through partnerships with domestic defense companies

6.2.5. Defense exhibitions can be used as a direct entry route into the Malaysian defense industry in the form of exports

6.3. Key Challenges

6.3.1. Negligible defense exports pose a challenge for domestic defense companies

6.3.2. Limited defense budget discourages investors from market entry

6.3.3. Corruption and a lack of transparency impede the growth of Malaysia's defense industry

6.3.4. Malaysia's new economic policy (NEP) limits the entry of foreign investors

6.4. Competitive Landscape and Strategic Insights

6.4.1. Competitive Landscape Overview

6.4.2. Malaysia's Market Share Analysis, 2019-2024

6.5. Key Foreign Companies

7. Business Environment and Country Risk

7.1. Economic Performance

7.1.1. Nominal GDP per Capita

7.1.2. GDP at Current Prices (US$)

7.1.3. Exports of Goods and Services (Current LCU Billion)

7.1.4. Imports of Goods and Services (Current LCU Billion)

7.1.5. Gross National Disposable Income (US$ Billion)

7.1.6. LCU per US$ (Period Average)

7.1.7. Market Capitalization of Listed Companies (US$ Billion)

7.1.8. Market Capitalization of Listed Companies (% of GDP)

7.1.9. Government Cash Surplus/Deficit (% of GDP) (LCU)

7.1.10. Goods Exports (% of GDP)

7.1.11. Goods Imports (% of GDP)

7.1.12. Services Imports (% of GDP)

7.1.13. Service Exports (% of GDP)

7.1.14. Foreign Direct Investment, Net (BoP, current US$ Billion)

7.1.15. Net Foreign Direct Investment (% of GDP)

7.1.16. Mining, Manufacturing, Utilities Output (LCU Billion)

For more information about this report visit https://www.researchandmarkets.com/research/zc458m/the_future_of_the?w=4