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Future of the Malaysian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

Future of the Malaysian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

  • March 2019
  • 126 pages
  • ID: 1163754
  • Format: PDF
  • GlobalData


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Future of the Malaysian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

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.

The report "Future of the Malaysian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", 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.

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

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.

Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Malaysian defense industry market trends for the coming five years.
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period.
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector.
- A deep qualitative analysis of the Malaysian defense industry covering sections including demand drivers, key trends and latest industry contracts.

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