The report also considers Malaysia's geopolitical challenges, with the South China Sea remaining unstable and territorial disputes there creating friction between the Association of South East Nations (ASEAN) and China. Malaysia continues to stay on the sidelines of this dispute, though it could yet play a significant role in finding a solution. Malaysia also continues to balance its relations with China and the US, striving to maintain strong ties with both and downplaying the threat to stability that some governments think that China might pose.
Full Report Details at
In addition, the report examines the trends witnessed in the country's current and future defence procurement, and order of battle across its armed forces. The intention is to provide a clear and concise discussion of these issues. The report's general conclusion is that Malaysia has a good opportunity to attract overseas interest in its defence sector, with programmes such as the procurement of a new multirole fighter aircraft making Malaysia a desirable partner as international aerospace companies compete for orders.
But at the same time, Malaysia is not making any particular effort to increase its defence budget, as some other countries in the region are doing. As a result, Kuala Lumpur's procurement options will remain curtailed. This could become a political and strategic problem over time, as neighbours like Indonesia begin to grow their defence budget and update their military capabilities. However, so far Kuala Lumpur has not reacted to the military expansion occurring elsewhere in the region.
Over the last quarter BMI has revised the following forecasts/views:
* BMI has reviewed the announcement of the new law - the Security Offences (Special Measures) Bill - being proposed as a replacement for the Internal Security Act. At the time of writing the law was expected to be passed imminently. While the new legislative package is welcome politically and long overdue, its security implications are as yet unclear. The government also announced in April that it plans to review the Sedition Act, another piece of legislation that has been used to suppress political opponents.
* Malaysia's procurement priorities are updated in light of the recent Defence Services Asia exhibition, held in Kuala Lumpur in April.
* The role of overseas defence companies in Malaysia is also reviewed, with the upcoming multirole combat aircraft competition attracting foreign interest and inspiring related industry collaborations. The main contenders for the order - BAE Systems, Boeing and Dassault - have also been active in Malaysia as they jockey for position ahead of the initiation of the formal procurement process later this year.
This quarter's report also discusses tensions in the South China Sea, and debates Malaysia's stance on regional territorial disputes. Despite being one of the claimants to South China Sea islands, Malaysia has so far succeeded in staying out of the confrontations that have soured China's relations with the Philippines and Vietnam.
Partial Table of Contents:
- Malaysia Security SWOT
- Malaysia Defence Industry SWOT
- Malaysia Political SWOT
- Malaysia Economic SWOT
- Malaysia Business Environment SWOT
Global Political Outlook
- Major Risks Looming In 2012-2013
- Global Flashpoints:
- Table: Election Timetable, Q212-Q113
- Wild Cards To Watch
South East Asia Security Overview
- South East Asia In A Global Context
- Challenges And Threats To Stability And Security
- Main Islamist Militant Groups In South East Asia
- Sino-US Rivalry In South East Asia
Security Risk Analysis
- Table: Asia Pacific Regional Security Ratings
- Table: Asia Pacific State Vulnerability To Terrorism Index
- Malaysia's Risk Ratings
- Domestic Politics
- Long-Term Political Outlook
- Internal Security Situation
- Table: Insurgent Groups
- External Security Situation
- Territorial Disputes
- Insurgent And Terrorist Activity
- Table: Piracy Attacks And Attempted Attacks, 1996-2006
- Bilateral And Multilateral Relations
Armed Forces And Government Spending
- Armed Forces
- Defence Budget
- International Deployment
- Weapons Of Mass Destruction
- Industry Trends And Developments
- Arms Trade Overview
- Procurement Trends And Developments
Industry Forecast Scenario
- Armed Forces
- Table: Malaysia's Armed Forces, 2000-2008 ('000 personnel, unless otherwise stated)
- Table: Malaysia's Available Manpower For Military Services, 2009-2016 (aged 16-49, unless otherwise stated)
- Defence Expenditure
- Table: Malaysia's Defence Expenditure, 2009-2016
- Table: Malaysia's Defence Expenditure Scenario - Changing % Of GDP, 2009-2016 (US$mn)
- Defence Trade
- Table: Malaysia's Defence Exports, 2009-2016 (US$mn)
- Table: Malaysia's Defence Imports, 2009-2016 (US$mn)
- Table: Malaysia's Defence Trade Balance, 2009-2016 (US$mn)
- Key Risks To BMI's Forecast Scenario
- Macroeconomic Outlook
- Table: Malaysia - Economic Activity, 2011-2016
- Composite Technology Research Malaysia (CTRM)
Full Table of Contents is available at:
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