Future of the Malaysian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2020

Table Of Contents
1 Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. SDI Terrorism Index
1.5. About Strategic Defence Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. The Malaysian defense budget is expected to reach US$7.3 billion by 2020, at a CAGR of 5.89%
3.1.2. Modernization of the armed forces, participation in UN peacekeeping operations, and territorial disputes are the major drivers of the Malaysian defense industry
3.1.3. Defense budget as a percentage of GDP will remain at an average of 1.3% over the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Capital expenditure allocation is expected to increase over the forecast period
3.2.2. The Malaysian MoD is to increase capital expenditure at a CAGR of 9.49% over the forecast period
3.2.3. Other Defense accounted for the largest percentage share of the overall Malaysian defense budget
3.2.4. Army expenditure to grow at a modest pace over the forecast period
3.2.5. Naval expenditure expected to grow at a CAGR of 5.28% during the forecast period
3.2.6. Air force expenditure expected to increase over the forecast period
3.2.7. Per capita defense expenditure expected to increase during the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Malaysian homeland security expenditure is expected to grow at a CAGR of 6.15% over the forecast period
3.3.2. The homeland security expenditure in Malaysia is mainly driven by border security and rising criminal activities
3.3.3. Malaysia is at a “some risk” of terrorism
3.3.4. Malaysia has a terrorism index score of “0.5”
3.4. Benchmarking with Key Global Markets
3.4.1. Malaysian defense expenditure is expected to increase over the forecast period
3.4.2. Malaysian defense expenditure is relatively smaller than other Asian countries
3.4.3. The Malaysian defense budget as a percentage of GDP is expected to decline over the forecast period
3.4.4. Iraq, Pakistan, and Afghanistan are the most terror-prone countries
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Corvettes
3.5.2. Multi-Role Aircraft
3.5.3. Armored Personnel Carrier (APC)
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. Germany and France to remain the key arms suppliers to Malaysia
4.1.3. Ships accounted for the majority of imports during 2010-2014
4.2. Export Market Dynamics
4.2.1. No defense exports for Malaysia
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low
5.1.2. Bargaining power of buyer: high
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: medium to high
5.1.5. Threat of substitution: high
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. Entry through technology transfer program
6.2.2. Entry through partnerships with domestic defense companies
6.2.3. Defense exhibitions can be used as a direct entry route into the Malaysian defense industry
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
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Foreign Companies
7.2.1. AgustaWestland Malaysia Sdn Bhd: Overview
7.2.2. AgustaWestland Malaysia Sdn Bhd: Products and services
7.2.3. AgustaWestland Malaysia Sdn Bhd: Recent announcements and strategic initiatives
7.2.4. AgustaWestland Malaysia Sdn Bhd: alliances
7.2.5. AgustaWestland Malaysia Sdn Bhd: recent contract wins
7.2.6. Sukhoi: Overview
7.2.7. Sukhoi: Products and services
7.2.8. Sukhoi: recent contract wins
7.2.9. Denel Land Systems: Overview
7.2.10. Denel Land Systems: Products and services
7.2.11. Denel Land Systems: recent contract wins
7.3. Key Public Sector Companies
7.3.1. SME Ordnance Sdn Bhd: overview
7.3.2. SME Ordnance Sdn Bhd: products and services
7.3.3. SME Ordnance Sdn Bhd: Recent announcements and strategic initiatives
7.3.4. SME Ordnance Sdn Bhd: Alliances
7.3.5. SME Ordnance Sdn Bhd: recent contract wins
7.3.6. SME Aerospace Sdn Bhd: Overview
7.3.7. SME Aerospace Sdn Bhd: Products and services
7.3.8. SME Aerospace Sdn Bhd: Recent announcements and strategic initiatives
7.3.9. SME Aerospace Sdn Bhd: Recent contract wins
7.3.10. AIROD Sdn Bhd: Overview
7.3.11. AIROD Sdn Bhd: Products and services
7.3.12. AIROD Sdn Bhd: Recent announcements and strategic initiatives
7.3.13. AIROD Sdn Bhd: Alliances
7.3.14. AIROD Sdn Bhd: Recent contract wins
7.4. Key Private Sector Companies
7.4.1. Boustead Naval Shipyard: Overview
7.4.2. Boustead Naval Shipyard: Products and services
7.4.3. Boustead Naval Shipyard: Recent contract wins
7.4.4. Sapura Thales Electronics Sdn Bhd: Overview
7.4.5. Sapura Thales Electronics Sdn Bhd: Products and services
7.4.6. Sapura Thales Electronics Sdn Bhd: Recent announcements and strategic initiatives
7.4.7. Sapura Thales Electronics Sdn Bhd: Alliances
7.4.8. Sapura Thales Electronics Sdn Bhd: Recent contract wins
7.4.9. DRB Hicom Defence Technologies Sdn Bhd: Overview
7.4.10. DRB Hicom Defence Technologies Sdn Bhd: Products and services
7.4.11. DRB Hicom Defence Technologies Sdn Bhd: Recent announcements and strategic initiatives
7.4.12. DRB Hicom Defence Technologies Sdn Bhd: Alliances
7.4.13. DRB Hicom Defence Technologies Sdn Bhd: Recent contract wins
7.4.14. Labuan Shipyard and Engineering Sdn Bhd: overview
7.4.15. Labuan Shipyard and Engineering Sdn Bhd: products and services
7.4.16. Labuan Shipyard and Engineering Sdn Bhd: recent announcements and strategic initiatives
7.4.17. Labuan Shipyard and Engineering Sdn Bhd: alliances
7.4.18. Labuan Shipyard and Engineering Sdn Bhd: recent contract wins
7.4.19. D' Aquarian Sdn Bhd: Overview
7.4.20. D'Aquarian Sdn Bhd: Products and services
7.4.21. D'Aquarian Sdn Bhd: Recent contract wins
8 Business Environment and Country Risk
8.1. Demographics
8.1.1. Total Rural population
8.1.2. Total urban population
8.1.3. Number of households
8.2. Economic Performance
8.2.1. GDP per capita at constant prices
8.2.2. GDP at current prices (US$)
8.2.3. Exports of goods and services (current US$ Billion)
8.2.4. Imports of goods and services (current US$ Billion)
8.2.5. Gross national disposable income (US$ billion)
8.2.6. Manufacturing Output (US$ Billion)
8.2.7. Consumer price index
8.2.8. Wholesale price index
8.2.9. LCU per EUR (period average)
8.2.10. LCU per US$ (period average)
8.2.11. Lending Rate (%)
8.2.12. Deposit rate (%)
8.2.13. Real interest rate (%)
8.2.14. Market capitalization of listed companies (US$ billion)
8.2.15. Market capitalization of listed companies (% of GDP)
8.2.16. Total Government cash surplus/deficit (LCU billion)
8.2.17. Government cash surplus/deficit as a percentage of GDP (LCU)
8.2.18. Central government debt (LCU billion)
8.2.19. Central government debt as a percentage of GDP (LCU)
8.2.20. Goods exports as a percentage of GDP
8.2.21. Goods imports as a percentage of GDP
8.2.22. Goods balance as a percentage of GDP
8.2.23. Services imports as a percentage of GDP
8.2.24. Service exports as a percentage of GDP
8.2.25. Services balance as a percentage of GDP
8.2.26. Foreign direct investment, net (BoP, current US$ billion)
8.2.27. Net foreign direct investment as a percentage of GDP
8.2.28. International reserves, including gold (US$ billion)
8.3. Energy and utilities
8.3.1. Total Conventional Thermal Electricity Net Generation (Billion kWh)
8.3.2. Hydroelectricity Net Generation (Billion kWh)
8.3.3. Total Conventional Thermal Electricity Installed Capacity (Million kW)
8.3.4. Proved Reserves of Natural Gas (Trillion Cubic Feet)
8.3.5. Total Petroleum Consumption (Thousand Barrels Per Day)
8.3.6. Crude Oil Proved Reserves (Billion Barrels)
8.4. Infrastructure Quality and Availability
8.4.1. Rail lines (total route-km)
8.4.2. Air transport, freight (million ton-km)
8.4.3. Overall construction (US$ million)
8.5. Technology
8.5.1. Mining, Manufacturing, Utilities Output (USD Bn)
8.5.2. Patents Granted
8.6. Telecommunication
8.6.1. Telephone lines (in mn)
8.6.2. Telephone lines Penetration Rate (per 100 people)
9 Appendix
9.1. About SDI
9.2. Disclaimer
List Of Tables
Table 1: Malaysian Defense Expenditure (US$ Billion), 2011-2015
Table 2: Malaysian Defense Expenditure (US$ Billion), 2016-2020
Table 3: Malaysian Defense Expenditure (in MYR Billion), 2011-2015
Table 4: Malaysian Defense Expenditure (in MYR Billion), 2016-2020
Table 5: Malaysian GDP Growth vs. Defense Expenditure and Growth vs. Defense Expenditure as Percentage of GDP, 2011-2015
Table 6: Malaysian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2016-2020
Table 7: Malaysian Defense Budget Split Between Capital and Revenue Expenditure (%), 2011-2015
Table 8: Malaysian Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2020
Table 9: Malaysian Defense Capital Expenditure (US$ Billion), 2011-2015
Table 10: Malaysian Defense Capital Expenditure (US$ Billion), 2016-2020
Table 11: Malaysian Capital Expenditure (in MYR Billion), 2011-2015
Table 12: Malaysian Capital Expenditure (in MYR Billion), 2016-2020
Table 13: Malaysian Defense Budget Split Between Army, Navy, Air Force and Others, 2011-2015
Table 14: Malaysian Defense Budget Split Between Army, Navy, Air Force and Others, 2016-2020
Table 15: Malaysian Defense Expenditure budget for Army (US$ billion), 2011-2015
Table 16: Malaysian Defense Expenditure budget for Army (US$ billion), 2016-2020
Table 17: Malaysian Defense Expenditure budget for Army (MYR billion), 2011-2015
Table 18: Malaysian Defense Expenditure budget for Army (MYR billion), 2016-2020
Table 19: Malaysian Defense Expenditure for Navy (US$ Million), 2011-2015
Table 20: Malaysian Defense Expenditure for Navy (US$ Million), 2016-2020
Table 21: Malaysian Defense Expenditure for Navy (MYR Billion), 2011-2015
Table 22: Malaysian Defense Expenditure for Navy (MYR Billion), 2016-2020
Table 23: Malaysian Defense Expenditure for Air Force (US$ Million), 2011-2015
Table 24: Malaysian Defense Expenditure for Air Force (US$ Million), 2016-2020
Table 25: Malaysian Defense Expenditure for Air Force (MYR Billion), 2011-2015
Table 26: Malaysian Defense Expenditure for Air Force (MYR Billion), 2016-2020
Table 27: Malaysian Per Capita Defense Expenditure (US$), 2011-2015
Table 28: Malaysian Per Capita Defense Expenditure (US$), 2016-2020
Table 29: Malaysian Homeland Security Expenditure (US$ Billion), 2011-2015
Table 30: Malaysian Homeland Security Expenditure (US$ Billion), 2016-2020
Table 31: Malaysian Homeland Security Budget (MYR Billion), 2011-2015
Table 32: Malaysian Homeland Security Budget (MYR Billion), 2016-2020
Table 33: Benchmarking with Key Markets - 2011-2015 vs. 2016-2020
Table 34: SDI Terrorism Index
Table 35: Malaysian Defense Offset Regulations
Table 36: Market Entry by Key Foreign Companies
Table 37: Malaysian Defense Industry Capability
Table 38: AgustaWestland Malaysia Sdn Bhd - Product Focus
Table 39: AgustaWestland Malaysia Sdn Bhd - Alliances
Table 40: AgustaWestland Malaysia Sdn Bhd - Recent Contract Wins
Table 41: Sukhoi - Product Focus
Table 42: Sukhoi - Recent Contract Wins
Table 43: Denel Land Systems - Product Focus
Table 44: Denel Land Systems - Recent Contract Wins
Table 45: SME Ordnance Sdn Bhd - Product Focus
Table 46: SME Ordnance Sdn Bhd - Alliances
Table 47: SME Ordnance Sdn Bhd - Recent Contract Wins
Table 48: SME Aerospace Sdn Bhd - Product Focus
Table 49: SME Aerospace Sdn Bhd - Recent Contract Wins
Table 50: AIROD Sdn Bhd - Product Focus
Table 51: AIROD Sdn Bhd - Alliances
Table 52: AIROD Sdn Bhd - Recent Contract Wins
Table 53: Boustead Naval Shipyard - Product Focus
Table 54: Boustead Naval Shipyard - Recent Contract Wins
Table 55: Sapura Thales Electronics Sdn Bhd - Product Focus
Table 56: Sapura Thales Electronics Sdn Bhd - Alliances
Table 57: Sapura Thales Electronics Sdn Bhd - Recent Contract Wins
Table 58: DRB Hicom Defence Technologies Sdn Bhd - Product Focus
Table 59: DRB Hicom Defence Technologies Sdn Bhd - Alliances
Table 60: DRB Hicom Defence Technologies Sdn Bhd - Recent Contract Wins
Table 61: Labuan Shipyard and Engineering Sdn Bhd - Product Focus
Table 62: Labuan Shipyard and Engineering Sdn Bhd - Alliances
Table 63: Labuan Shipyard and Engineering Sdn Bhd - Recent Contract Wins
Table 64: D'Aquarian Sdn Bhd - Product Focus
Table 65: D'Aquarian Sdn Bhd - Recent Contract Wins
List Of Figures
Figure 1: Malaysian Defense Expenditure (US$ Billion), 2011-2015
Figure 2: Malaysian Defense Expenditure (US$ Billion), 2016-2020
Figure 3: Malaysian Defense Expenditure (in MYR Billion), 2011-2015
Figure 4: Malaysian Defense Expenditure (in MYR Billion), 2016-2020
Figure 5: Malaysian GDP Growth vs. Defense Expenditure and Growth vs. Defense Expenditure as Percentage of GDP, 2011-2015
Figure 6: Malaysian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2016-2020
Figure 7:Malaysian Defense Budget Split Between Capital and Revenue Expenditure (%), 2011-2015
Figure 8: Malaysian Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2020
Figure 9: Malaysian Defense Capital Expenditure (US$ Billion), 2011-2015
Figure 10: Malaysian Defense Capital Expenditure (US$ Billion), 2016-2020
Figure 11: Malaysian Capital Expenditure (in MYR Billion), 2011-2015
Figure 12: Malaysian Capital Expenditure (in MYR Billion), 2016-2020
Figure 13: Malaysian Defense budget Split Between Army, Navy, Air Force and Others, 2011-2015
Figure 14: Malaysian Defense Budget Split Between Army, Navy, Air Force and Others, 2016-2020
Figure 15: Malaysian Defense Expenditure budget for Army (US$ billion), 2011-2015
Figure 16: Malaysian Defense Expenditure budget for Army (US$ billion), 2016-2020
Figure 17: Malaysian Defense Expenditure budget for Army (MYR billion), 2011-2015
Figure 18: Malaysian Defense Expenditure budget for Army (MYR billion), 2016-2020
Figure 19: Malaysian Defense Expenditure for Navy (US$ Million), 2011-2015
Figure 20: Malaysian Defense Expenditure for Navy (US$ Million), 2016-2020
Figure 21: Malaysian Defense Expenditure for Navy (MYR Billion), 2011-2015
Figure 22: Malaysian Defense Expenditure for Navy (MYR Billion), 2016-2020
Figure 23: Malaysian Defense Expenditure for Air Force (US$ Million), 2011-2015
Figure 24: Malaysian Defense Expenditure for Air Force (US$ Million), 2016-2020
Figure 25: Malaysian Defense Expenditure for Air Force (MYR Billion), 2011-2015
Figure 26: Malaysian Defense Expenditure for Air Force (MYR Billion), 2016-2020
Figure 27: Malaysian Per Capita Defense Expenditure (US$), 2011-2015
Figure 28: Malaysian Per Capita Defense Expenditure (US$), 2016-2020
Figure 29: Malaysian Homeland Security Expenditure (US$ Billion), 2011-2015
Figure 30: Malaysian Homeland Security Expenditure (US$ Billion), 2016-2020
Figure 31: Malaysian Homeland Security Budget (MYR Billion), 2011-2015
Figure 32: Malaysian Homeland Security Budget (MYR Billion), 2016-2020
Figure 33: SDI Terrorism Heat Map, 2015
Figure 34: SDI Terrorism Index, 2014
Figure 35: Benchmarking with Key Markets - 2011-2015 vs. 2016-2020
Figure 36: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2015 and 2020
Figure 37: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2015
Figure 38: Corvettes Market Size (US$ Million), 2015-2025
Figure 39: Multi-role Aircraft Market Size (US$ Million), 2015-2025
Figure 40: Armored Personnel Carrier Market Size (US$ Million), 2015-2025
Figure 41: Malaysian Defense Import Trend, 2010-2014 (TIV values)
Figure 42: Malaysian Defense Import by Country, 2010-2014 (TIV values)
Figure 43: Malaysia Defense Imports by Category (%), 2010-2014
Figure 44: Industry Dynamics - Porter's Five Forces Analysis
Figure 45: Malaysian Rural population (In million), 2015-2024
Figure 46: Malaysian Urban population (In million), 2015-2024
Figure 47: Malaysia - Number of Households (Million), 2008-2017
Figure 48: Malaysian GDP Per Capita at Constant Prices (US$), 2015-2024
Figure 49: Malaysia - GDP at Current Prices (US$ Billion), 2015-2024
Figure 50: Malaysian Exports of goods and services (US$ Billion), 2003-2012
Figure 51: Malaysian Imports of goods and services (US$ Billion), 2003-2012
Figure 52: Malaysian Gross national disposable income (US$ billion), 2003-2012
Figure 53: Malaysian Manufacturing Output (US$ Billion), 2004-2012
Figure 54: Malaysian Consumer price index, 2015-2024
Figure 55: Malaysian Wholesale price index, 2003-2012
Figure 56: Malaysia LCU per EUR (period average), 2015-2024
Figure 57: Malaysia LCU per US$, 2015-2024
Figure 58: Malaysian Lending Rate (%), 2003-2012
Figure 59: Malaysian Deposit rate (%), 2003-2012
Figure 60: Malaysian Real interest rate (%), 2003-2012
Figure 61: Malaysian market capitalization of listed companies (US$ billion), 2003-2012
Figure 62: Malaysian market capitalization of listed companies (% of GDP), 2002-2011
Figure 63: Malaysian Total Government cash surplus/deficit (LCU billion), 2003-2011
Figure 64: Malaysian Government cash surplus/deficit as % of GDP (LCU), 2002-2011
Figure 65: Malaysian - Central government debt (LCU billion), 2002-2011
Figure 66: Malaysian Central government debt as % of GDP (LCU), 2002-2011
Figure 67: Malaysia - Goods exports as a % of GDP (%), 2002-2011
Figure 68: Malaysia - Goods imports as a % of GDP (%), 2002-2011
Figure 69: Malaysian Goods balance as a % of GDP (%), 2002-2011
Figure 70: Malaysian Services imports as a % of GDP (%), 2002-2011
Figure 71: Malaysia Service exports as a % of GDP (%), 2002-2011
Figure 72: Malaysia - Services balance as a % of GDP (%), 2002-2011
Figure 73: Malaysia - Foreign direct investment, net (BoP, current US$ billion), 2002-2011
Figure 74: Malaysian Net foreign direct investment as % of GDP, 2002-2011
Figure 75: Malaysian International reserves, including gold (US$ billion), 2002-2011
Figure 76: Malaysia - Total Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2002-2011
Figure 77: Malaysian Hydroelectricity Net Generation (Billion Kilowatt hours), 2002-2011
Figure 78: Malaysian Total Conventional Thermal Electricity Installed Capacity (Million Kilowatts), 2001-2010
Figure 79: Malaysian Proved Reserves of Natural Gas (Trillion Cubic Feet), 2004-2013
Figure 80: Malaysian Total Petroleum Consumption (Thousand Barrels Per Day), 2003-2012
Figure 81: Crude Oil Proved Reserves (Billion Barrels), 2004-2013
Figure 82: Malaysian Rail lines (total route-km), 2002-2011
Figure 83: Malaysian Air transport, freight (million ton-km), 2002-2011
Figure 84: Malaysia - Overall construction (US$ million), 2007-2016
Figure 85: Malaysian Mining, Manufacturing, Utilities Output (USD Bn), 2003-2012
Figure 86: Malaysian Patents Granted, 2003-2012
Figure 87: Malaysian Telephone lines, 2003-2012
Figure 88: Malaysian Telephone lines Penetration Rate (per 100 people), 2003-2012

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