Malaysia Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

Malaysia Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028 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.

In 2023, the Malaysian government allocated $4 billion to its total defense budget, recording a CAGR of 5.5% during 2019-23. The country's defense budget is expected to grow at an estimated CAGR of 8.4% over the forecast period to reach $6.2 billion in 2028. The acquisition budget for 2023 is $1.4 billion and is anticipated to be $2.1 billion in 2028, growing at a CAGR of 9% over the forecast period. During the historic period, Malaysia spent $18 billion, whereas over the forecast period, it is expected to spend $26.6 billion. Malaysia's prime minister and finance minister, Anwar Ibrahim said in his budget speech that the large increase in development spending is meant to improve the readiness of the Malaysian Armed Forces (MAF).

Malaysia's defense expenditure was $3.3 billion in 2019. It grew moderately to reach $4 billion in 2023, reflecting a CAGR of 5.5% during 2019-23. Over 2024-28, the defense budget is anticipated to increase from $4.5 billion in 2024 to $6.2 billion in 2028, registering a CAGR of 8.4%. 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 disputes 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 2024-28, the country is projected to cumulatively spend $26.6 billion over 2024-28. Naval vessels and surface combatants is expected to emerge as the leading sector over 2023-28, followed by tactical communication systems and military fixed-wing aircraft.

Scope

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 particular, it provides an in-depth analysis of the following:

• Malaysia defense budget: detailed analysis of Malaysia 2023 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 procurement regulation.
• Security Environment: political alliances and perceived security threats to Malaysia are examined; there help to explain trends in spending and modernisation.
• Competitive landscape and strategic insights: analysis of the competitive landscape of Malaysia's defense industry.

Reasons to Buy

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• 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