Malaysia Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2025

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Published: August 31, 2020 Report Code: GDDF0653MR-ST

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"Malaysia Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2025" report provides the market size forecast and the projected Compound Annual Growth Rate (CAGR) for the next five years. The report covers the industry analysis including the key defense expenditure drivers, key procurement programs and major challenges faced by market participants.

The Malaysian defense budget stands at US$3.7 billion in 2020. Military modernization projects, national investment in UN peacekeeping missions, and ongoing South China Sea disputes are the major drivers deciding Malaysian defense expenditure over the forecast period.

The ongoing South China Sea dispute has led the Malaysian government to focus on bolstering maritime capabilities. To do so, the Malaysian Armed Forces has laid out several initiatives; the introduction of the 15 to 5 transformation plan is one of such initiative to improve the Royal Malaysian Navy’s (RMN) readiness and presence in the seas surrounding Malaysia and expand the RMN’s fleet to a total of 55 ships by 2050. As the name suggests, the 15 to 5 transformation plan aims to bring the current RMN’s fleet of 15 classes to just five classes of New Generation Patrol Vessels, Littoral Mission Ships (LMS), Littoral Combat Ships (LCS), Multi-Role Support Ships (MRSS), and submarines.

This report offers detailed analysis of the Malaysian 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.

Ongoing South China Sea conflict and the armed forces mordernization programs are expected to drive the defense expenditure over the forecast period.

Aircraft, Armored vehicles,and naval vessels accounted for major share of defense equipment imports for Malaysia during 2015-2019.

Scope

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

– The Malaysian defense industry market size and drivers: detailed analysis of the Malaysia's defense industry during 2021-2025, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns

– Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country

– Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years

– Market opportunities:list of the top ten defense investment opportunities over the next 5 years

– Competitive landscape and strategic insights: analysis of the competitive landscape of the Malaysian 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 Malaysian defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion

– Channelize 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

Leonardo Malaysia
Sukhoi
Denel Land Systems
SME Ordnance Sdn Bhd
AIROD Sdn Bhd
Boustead Naval Shipyard
Sapura Thales Electronics Sdn Bhd
DRB Hicom Defence Technologies Sdn Bhd
Labuan Shipyard & Engineering Sdn Bhd
D’Aquarian Sdn Bhd

Table of Contents

Table of Contents

1. Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. About GlobalData

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

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. Spain and France to remain key arms suppliers to Malaysia

4.1.3. Aircraft accounted for the majority of imports during 2015-2019

4.2. Export Market Dynamics

4.2.1. Negligible 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:Medium

5.1.3. Barrier to Entry:Medium

5.1.4. Intensity of Rivalry:Medium

5.1.5. Threat of Substitution: Medium

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. Budgeting Process

6.2.2. Procurement Policy and Process

6.2.3. Entry through technology transfer programs

6.2.4. Entry through partnerships with domestic defense companies

6.2.5. Defense exhibitions can be used as a direct entry route into the Malaysian defense industry in the form of exports

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. Adverse impact of COVID-19 on Malaysian defense industry

7. Competitive Landscape and Strategic Insights

8. Business Environment

8.1. Economic Performance

8.1.1. Real GDP Growth

8.1.2. Nominal GDP Per Capita (US$)

8.1.3. Consumer Price Inflation (%)

8.1.4. Unemployment Rate

8.1.1. Public Sector Finances: Budget Surplus/Deficit (% of GDP)

9. Appendix

9.1. About GlobalData

9.2. Disclaimer

Table

List of Tables

Table1: Malaysia – Ongoing Development and Procurement Programs

Table 2: Malaysia – FutureProcurement Programs

Table 3: Top MalaysianDefenseProcurement Programs by Value (US$ Million) 2020-2025

Table 4: Malaysian Defense Expenditure (MYR Billion & US$ Billion), 2016-2025

Table 5: Malaysian GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2016-2025

Table 6: Malaysian Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025

Table 7: Malaysian Defense Capital Expenditure (MYR Billion and US$ Million), 2016-2025

Table 8: Malaysian Defense Budget Split Between Military Services (Army, Air Force, Navy and Others)(%), 2016-2025

Table 9: Malaysian Defense Budget in MYR Billion – Breakdown by Services (Army, Navy, Air Force and Others) 2016-2025

Table 10: Malaysian Defense Budget in US$ Billion – Breakdown by Services (Army, Navy, Air Force and Others) 2016-2025

Table 11: Malaysian Per Capita Defense Expenditure (US$), 2016-2025

Table 12: Malaysian Homeland Security Expenditure (MYR Billion and US$ Billion), 2016-2025

Table 13: Benchmarking with Key Markets – 2016-2020 vs 2021-2025

Table 14: Top 10 Malaysian Defense Market Sectors by Value (US$ Million),2020-2025

Table 15: Malaysian Defense Offset Regulations

Table 16: Market Entry by Key Foreign Companies

Table 17: Top 5 Defense Suppliers in the Malaysian Defense Industry – By Value (US$ Million),2020-2025

Table 18: Competitive Landscape of the Malaysian Defense Industry

Table 19: Leonardo Malaysia – Products

Table 20: Leonardo Malaysia- Alliances

Table 21: Leonardo Malaysia – Recent Contract Wins

Table 22: Sukhoi – Products and Services

Table 23: Sukhoi – Recent Contract Wins

Table 24: Denel Land Systems – Products

Table 25: Denel Land Systems – Alliances

Table 26: Denel Land Systems – Recent Contract Wins

Table 27: SME Ordnance Sdn Bhd – Products

Table 28: SME Ordnance Sdn Bhd – Alliances

Table 29: SME Ordnance Sdn Bhd – Recent Contract Wins

Table 30: SME Aerospace Sdn Bhd – Products

Table 31: SME Aerospace Sdn Bhd – Recent Contract Wins

Table 32: AIROD Sdn Bhd – Products

Table 33: AIROD Sdn Bhd – Alliances

Table 34: AIROD Sdn Bhd – Recent Contract Wins

Table 35: Boustead Naval Shipyard – Products

Table 36: Boustead Naval Shipyard – Alliances

Table 37: Boustead Naval Shipyard – Recent Contract Wins

Table 38: Sapura Thales Electronics Sdn Bhd – Products and Services

Table 39: Sapura Thales Electronics Sdn Bhd – Alliances

Table 40: Sapura Thales Electronics Sdn Bhd – Recent Contract Wins

Table 41: DRB Hicom Defence Technologies Sdn Bhd – Products

Table 42: DRB Hicom Defence Technologies Sdn Bhd – Alliances

Table 43: DRB Hicom Defence Technologies Sdn Bhd – Recent Contract Wins

Table 44: Labuan Shipyard & Engineering Sdn Bhd – Products and Services

Table 45: Labuan Shipyard & Engineering Sdn Bhd – Alliances

Table 46: Labuan Shipyard & Engineering Sdn Bhd – Recent Contract Wins

Table 47: D’Aquarian Sdn Bhd – Products

Table 48: D’Aquarian Sdn Bhd – Recent Contract Wins

Figures

List of Figures

Figure 1: Malaysian Defense Budget: 2021 and 2025

Figure 2: Malaysian Defense Imports: 2015 and 2019

Figure 3: Malaysia’s Top Five Prospective Procurements/Developments

Figure 4: Malaysian National Security Threats

Figure 5: Malaysia’s Partner Countries for Defense Cooperation and Military Training

Figure 6: Malaysian Defense Expenditure (MYR Billion), 2016-2025

Figure 7: Malaysian Defense Expenditure (US$ Billion),2016-2025

Figure 8: Malaysian GDP Growth vs Defense Expenditure as a Percentage of GDP, 2016-2025

Figure 9: Malaysian Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025

Figure 10: Malaysian Defense Capital Expenditure (MYR Billion), 2016-2025

Figure 11: Malaysian Defense Capital Expenditure (US$ Million), 2016-2025

Figure 12: Malaysian Defense Budget Split Between Military Services (Army, Air Force, Navy and Others), 2016-2025

Figure 13: Malaysian Defense Budget in US$ Billion – Breakdown by Services (Army, Navy, Air Force and Others) 2016-2025

Figure 14: Malaysian Per Capita Defense Expenditure (US$), 2016-2025

Figure 15: Malaysian Homeland Security Expenditure (MYR Billion), 2016-2025

Figure 16: Malaysian Homeland Security Expenditure (US$ Billion), 2016-2025

Figure 17: Benchmarking with Key Markets – 2016-2020vs 2021-2025

Figure 18: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion),2020 and 2025

Figure 19: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2020

Figure 20: Frigates Market Size (US$ Million), 2020-2025

Figure 21: Multirole Aircraft Market Size (US$ Million), 2020-2025

Figure 22: Underwater Combat Systems Market Size (US$ Million), 2020-2025

Figure 23: Malaysian Defense Procurements in Terms Of Their Supplier Relationships

Figure 24: MalaysianDefense Import Trend, 2015-2019(TIV Values)

Figure 25: Malaysian Defense Importsby Country, 2015-2019(TIV Values)

Figure 26: Malaysia Defense Imports by Category (%), 2015-2019

Figure 27: Industry Dynamics – Porter’s Five Forces Analysis

Figure 28: Malaysia Budgeting Process

Figure 29: Key Challenges in Malaysian Defense Market

Figure 30: Malaysia Market Share Analysis, 2020

Figure 31: Real GDP Growth, 2016-2025

Figure 32: Nominal GDP Per Capita (US$), 2016-2025

Figure 33: Consumer Price Inflation (%), 2016-2025

Figure 34: Unemployment Rate, 2016-2025

Figure 35: Malaysian Public Sector Finances: Budget Surplus/Deficit (% of GDP), 2016-2025

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