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Malaysia Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2026

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  • 76 Pages
  • December 2021
  • Region: Malaysia
  • GlobalData
  • ID: 5546602
1h Free Analyst Time
1h Free Analyst Time

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  • Boustead Holdings
1h Free Analyst Time

Speak directly to the analyst to clarify any post sales queries you may have.

Malaysia Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2026 report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

This report offers detailed analysis of Malaysia defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In 2021, the Malaysian government allocated $3.9 billion to its total defense budget, recording a CAGR of 2.5% during 2017-21. The country’s defense budget is expected to grow at a CAGR of 5.8% over 2022-26 to reach $5 billion in 2026. The acquisition budget is anticipated to grow from $1.1 billion in 2021 to $1.8 billion in 2026 at a CAGR of 9.5%. The government has proposed a 2022 defense budget of MYR16.1 billion ($4 billion). The allocation represents an increase of 1.8% from 2021 (MYR15.9 billion). The defense budget for 2022 was tabled before parliament on October 22, 2021. The 2022 budget comprises MYR5 billion for development expenses and MYR11.1 billion for operations expenses and others.

Malaysia’s defense expenditure grew from $3.5 billion in 2017 to $3.9 billion in 2021, reflecting a CAGR of 2.5% during 2017-21. Over 2022-26, the defense budget is anticipated to reach $5 billion in 2026 from $4.0 billion in 2022, registering a CAGR of 5.8%. The increase in budget is primarily driven by the need to upgrade the country’s military, 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. With this trend expected to continue over 2022-26, the country is projected to cumulatively spend $22.1 billion over 2022-26.

Who Should Buy

  • Defence Startups, Original Equipment Manufacturers (OEMs), Defence Planners, Aerospace and Defence Integrators, Venture Capital Firms, Government Agencies, Head of Marketing, Head of Sales, CEOs and Senior Executives.
  • The concerned stakeholders can utilize the report to identify high growth segments and customize their offerings to match the project requirements.
  • The Venture Capital Firms can utilize the project details, growth rate, and market size to identify and fund high potential startups.


In particular, it provides an in-depth analysis of the following:
  • Malaysia defense budget: detailed analysis of Malaysia FY2021 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Regulation: the procurement policy and process is explained. This is coupled with an analysis of Malaysia military doctrine and strategy to provide a comprehensive overview of Malaysia military regulation.
  • Security Environment: political alliances and perceived security threats to Malaysia are examined; there help to explain trends in spending and modernization.
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Malaysia defense industry.

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of the Malaysia defense market over the next five years
  • Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Malaysia market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
  • Identify the major threats that are driving the Malaysia defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
  • Channel resources by focusing on the ongoing programs that are being undertaken by the Malaysia government
  • Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available


  • Boustead Holdings
  • Executive Summary
  • Defense Budget Assessment
  • Budgeting Process
  • Defense Market Size Historical And Forecast
  • Drivers Of Defense Expenditure
  • Analysis Of Defense Budget Allocation
  • Military Doctrine And Security Environment
  • Military Doctrine And Strategy
  • Primary Threat Perception
  • Political And Strategic Alliances
  • Geopolitical Social And Economic Scenario
  • Market Entry Strategy And Regulations
  • Procurement Policy And Process
  • Market Regulations and Market Entry Route
  • Key Challenges
  • Market Attractiveness And Emerging Opportunities
  • Market Attractiveness, 2021-2026
  • Top Defense Segments By Value
  • Import And Export Market Dynamics
  • Import Market Dynamics
  • Defense Platform Acquisitions
  • Defense Platform Acquisitions By Value
  • Maharaja Lela-class Littoral Combat Ship
  • Aludra SR-10
  • AV8 Gempita
  • Tun Fatimah class
  • Fleet Size
  • Competitive Landscape
  • Defense Companies Operating In Malaysia
  • Main Defense Companies
  • Appendix
  • About This Report
  • About Us
  • Contact the Publisher

A selection of companies mentioned in this report includes:

  • Boustead Holdings
  • Composites Technology Research Malaysia
  • DRB-HICOM Defense Technologies