The Malaysian defense industry has been progressing but at a slow pace, specializing in manufacturing of small arms, shipbuilding and explosives. Malaysia's armed forces are predominantly composed of Malays.
Its main defense concerns are Singapore, with its large and highly mechanized army, and more recently, though to a lesser extent, Indonesia. Also important to Malaysia is the growing Chinese influence in the region of the South China Sea. Patrolling east and west Malaysia is a key function of the Malaysian Navy. Given the current economic situation and a possibility of improved relations with Indonesia, the Malaysian military will probably focus on three core strategic goals in the 10th Plan. These goals are likely to be continued modernization, improved domestic defense production capabilities - with a particular view to lowering maintenance costs on already purchased equipment by improving indigenous capacity, and a re-balancing of the forces with a focus on procuring more basic equipment, such as transport planes.
The biggest security threat to the state of Malaysia by far are Wahhabism and Shia Islam and should be kept under close watch to ensure that they do not lead to extremism following Bin Laden's death. The National Security Council (NSC) put a group of clerics on its terror watch list recently for preaching Wahhabism, a puritanical strain of Islam practiced in Saudi Arabia. Several Shia Muslims have also been detained under the Internal Security Act (ISA) for their beliefs as their teachings could potentially threaten the ethics of Islamic affairs management. Recently, both the Indonesian and Malaysian governments have outlined their desire to see multilateral discussions of traditional security issues. Despite the inherent tensions between Singapore and Malaysia, their inter-connected histories resemble the complex relationship of ‘inseparable twins’.
Bigger requirements of defense are fulfilled by the presence of multinational corporations such as EADS, BAE Systems and Eurocopter. The government has been actively engaging and marketing the Malaysian Defence Industry though exhibitions such as LIMA. The Langkawi International Maritime and Aerospace Exhibition is one of the largest defense and civil showcases in the Asia Pacific, regularly attracting the global maritime and aerospace industry to Langkawi. The LIMA show receives overwhelming support from the Government of Malaysia and works closely with the Ministry of Defense and all relevant agencies in providing the foundation for a world class event.
In this industry scenario, Taiyou Research analyzes the Defense and Security industries in Malaysia. The report covers the following:
- In order to understand the development of the Malaysian defense and security industry, it is important to take a look at the geopolitical situation in the world, particularly in South East Asia. Our research report analyzes the emergence of a new geopolitical situation in the world through a look at the new roles to be played by the United States, China, Japan, the Koreas, India, Russia, Europe, Brazil, Turkey, Iran, the Middle East, and Africa, in the coming years.
- The emergence of new great powers around the world in the face of growing global terrorism is analyzed in the report.
- An analysis of the security market in South East Asia is important in establishing the importance of Malaysia in this industry across this entire region. The geopolitical significance of South East Asia is important as there are many flashpoints in the region that could have an impact on Malaysia.
- In order to examine the defense and security industries in Malaysia, it is necessary to analyze the political landscape in Malaysia, including the major political changes on the horizon.
- Moving on to the analysis of the security industry in Malaysia, we analyze the domestic security situation as well as the external security situation. Furthermore, we analyze the impact of the Malaysian relations with China, Singapore, and Indonesia.
- We carry out a SWOT analysis of the Malaysian Security Market.
- An analysis of Malaysia’s Armed Forces is necessary in order to establish the growing importance of Malaysia in the Asian region in terms of military presence.
- Moving on to an analysis of Malaysia’s defense industry, we analyze the market profile, industry trends, competition in the industry, Malaysia’s arms trade, and procurement of arms in the industry.
- We carry out a SWOT analysis of the Malaysian Defense Industry.
- Outlook for the Malaysia Defense and Security Industry is carried out through a forecast for defense expenditure and defense trade, and a forecast for the Malaysian Armed Forces.
Taiyou Research’s report on Defense and Security in Malaysian is a complete profile of this competitive industry in Malaysia.
2. Emergence of a New Geopolitical Scenario
2.1 Global Political Overview & Outlook
2.2 Role of the US under Question
2.3 United States: Possible Loss of Superpower Status
2.4 Role of the Middle East and North Africa (MENA) & Japan
2.5 China: A Possible Challenger to the US
2.6 Role of Japan & the Koreas
2.7 Impact of the Earthquake on Japan
2.8 Emergence of India
2.9 Russia: Strategic Revival in Sight?
2.10 Europe: Suffering from the Debt Crises of 2010
2.11 Growing Threat of Terrorism
3. Emergence of a Multi-Polar World Order
3.1 Emergence of New Great Power
3.2 Possible Power Conflicts
3.3 Growing Cyber Warfare & Technological Challenges
3.4 Emerging Political Outlook & End of Globalization
4. Security Market in South East Asia
4.1 Geopolitical Significance of South East Asia
4.2 Challenges to Political Stability
4.2.1 Poor Governance
4.2.2 Rapid Population Growth
4.2.3 Organized Crime
4.2.4 Problem of Militancy
4.2.5 Problem of Piracy
4.2.6 Flashpoint: South China Sea/Spratly Islands
4.2.7 Flashpoint: Thai-Cambodian Border
4.2.8 Emergence of the New People's Army
4.2.9 Risk Factor: Future of Myanmar
4.2.10 Sino-US Rivalry
4.3 Outlook for South East Asia
5. Political Landscape in Malaysia
5.1 Major Events on the Domestic Front
5.1.1 Likelihood for General Election
5.2 Challenges to Stability
5.2.1 Clashes between Ethnic Groups
5.2.2 Decrease in Oil Reserves
5.2.3 Rise of a Credible Opposition Alliance
5.2.4 Political Defections
5.2.5 Internet-Driven Politics
5.2.6 Role of the Internal Security Act (ISA)
5.2.7 Challenge of Islamic Radicalism
5.3 Likelihood for Political Change
5.4 Political Outlook
6. Security Market in Malaysia
6.1 Domestic Security Situation
6.2 External Security
6.2.1 Territorial Disputes
6.2.2 Problem of Thai Muslim Insurgency
6.2.3 Problem of Jemaah Islamiyah
6.2.4 Issue of Piracy
6.2.5 Concerns about China’s Growing Influence in the Region
7. Malaysia Security Market: SWOT Analysis
8. Malaysia Armed Forces
8.1 Market Profile
8.2 Malaysia’s Defense Budget
8.3 Five Powers Defence Arrangements
8.4 Global Deployments
8.5 Malaysia’s Weapons of Mass Destruction
9. Malaysia Defense Industry
9.1 Market Profile
9.2 Trading of Arms
9.3 Industry Trends
9.4 Trends in Defense Procurement
10. Malaysia Defense Industry: SWOT Analysis
11. Major Industry Players
11.1 Aircraft Inspection, Repair & Overhaul Depot (AIROD)
11.2 Composite Technology Research Malaysia
11.4 European Aeronautic Defence and Space Company (EADS)
11.5 Malaysia Marine and Heavy Engineering
11.6 SME Ordnance
12. Industry Forecast
12.1 Forecast for Armed Forces
12.2 Forecast for Defense Expenditure
12.3 Forecast for Defense Import/Export
12.4 Key Challenges
13.1 Malaysia Political Landscape: SWOT Analysis
13.2 Malaysia Economic Landscape: SWOT Analysis
15. Research Methodology
- Composite Technology Research Malaysia
- European Aeronautic Defence and Space Company (EADS)
- Malaysia Marine and Heavy Engineering
- SME Ordnance