DUBLIN--(BUSINESS WIRE)--The "Future of the Malaysian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023" report has been added to ResearchAndMarkets.com's offering.
The defense budget of Malaysia for the year 2018 is around US$4 billion, which decreased from US$5 billion in 2014 at a CAGR of about -4.9% during the historic period. One of the major causes for this falling defense budget has been the lower percentage allocation of GDP towards 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. This is part of attempts being made by the Malaysian government to bring in economic reforms and stabilize the economy.
Malaysia has also released its 11th growth plan, wherein plans for achieving economic growth have been well drafted. It is expected that with the implementation of the plans the country's GDP will rise. The GDP of the country is forecasted to grow at a CAGR of over 9% and reach a value of around US$530 billion by 2023.
The modernization and procurement programs of the armed forces, the country's participation in UN peacekeeping missions, and territorial disputes with neighboring countries such as Brunei over Limbang, Louisa, and Mariveles, Indonesia over Ambalat, the Philippines over Ardasier and Erica, and Thailand over Ko Kra and Ko Losin, drove the 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$83.9 billion over 2019-2023.
The capital expenditure allocation, which stood at an average of 21% during the historic period, is expected to increase slightly to reach an average of about 21.2% over the forecast period, primarily due to the procurement of aircrafts, corvettes, and armored vehicles. Revenue expenditure is projected to remain at an average of over 78% over the forecast period which will be directed towards additional recruitment, training, and development programs for military personnel.
Malaysia's homeland security (HLS) budget stands at around US$2.5 billion in 2018, and is estimated to reach about US$2.9 billion by 2023 at a growth rate of over 2.4% over 2019-2023. This expenditure is primarily driven by the need to curb drug smuggling, illegal immigration, and increasing criminal activities in the country.
- Leonardo Malaysia
- Denel Land Systems
- SME Ordnance Sdn Bhd
- SME Aerospace 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
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk
For more information about this report visit https://www.researchandmarkets.com/research/rgh5wg/malaysian_defense?w=4