subject: The Malaysian Defense Sector Market Opportunities And Entry Strategies --- Aarkstore Enterprise [print this page] Summary Summary
This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs
(original equipment manufacturers) to gain a market share in the Malaysia defense industry. In
particular, it offers in-depth analysis of the following:
Market opportunity and attractiveness: detailed analysis of the current industry size and
growth expectations during 20102015, including highlights of the key growth stimulators. It also
benchmarks the industry against key global markets and provides detailed understanding of
emerging opportunities in specific areas.
Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the Malaysia defense industry.
Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives.
Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry in Malaysia. It provides an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and
availability, labor force, demographics, and political and social risk.
Scope
analysis of Defense industry market size from 2004 through 2009 and forecasts till 2015
analysis of defense budget allocation
Benchmarking with key global markets
Market opportunities
Defense procurement dynamics
Industry dynamics
Market entry strategy
Competitive landscape and strategic insights
Business environment and country risk
Reasons To Buy
Gain insight into Malaysia defense industry with current, historic and forecast market values
Get insight on market opportunity and attractiveness
Get insight on industry procurement dynamics
Gain insight on industry structure
Gain insight into the regulations governing the Malaysia defense industry and the potential market entry strategies with an expert analysis of the competitive structure
Identify top companies of the Malaysia defense industry along with profiles of all those companies
Key Highlights
Malaysian military expenditure recorded a CAGR of 6.62% during the review period, and is expected to grow at a CAGR of 8.65% during the forecast period, to reach US$5.4 billion by 2015. The countrys defense expenditure is anticipated to continue to increase, due its geographical location in an unstable region, its involvement with Singapore in competitive arms procurement, a strained relationship with Indonesia and its involvement in peacekeeping missions. Furthermore, in order to compensate for historically low levels of defense expenditure, the country is expected to allocate increased levels of investment to the defense sector in order to modernize its armed forces.
In 2009, capital expenditure accounted for 22% of the total defense budget, while revenue expenditure accounted for 78%. However, during 201215, the capital expenditure share of the total defense budget is expected to increase to an average of 24%, due to anticipated improvements in the Malaysian economy, which will in turn enable the government to undertake acquisitions of modern defense equipment during the same period.
Keywords
Defense, Malaysia, AgustaWestland Malaysia Sdn Bhd, SME Ordnance Sdn Bhd , SME Aerospace Sdn Bhd, Aircraft Inspection Repair & Overhaul Depot (AIROD) Sdn Bhd, Boustead Naval Shipyard, Zetro Aerospace Corporation Sdn Bhd, Sapura Thales Electronics Sdn Bhd, DRB Hicom Defence Technologies Sdn Bhd, MMC Defence Sdn Bhd, Composite Technology Research Malaysia Sdn Bhd, Labuan Shipyard & Engineering Sdn Bhd, D Aquarian (M) Sdn Bhd
Table of Contents :
"1 Introduction
1.1 About this Report
1.2 Definitions
1.3 Methodology
1.3.1 Secondary research
1.3.2 Primary research
1.3.3 Conventions
1.4 ICD Research Intelligence Terrorism Index
1.5 About ICD Research Defense Intelligence Center
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Industry Size - Review and Forecast
3.1.1 Malaysian defense expenditure expected to grow at a CAGR of 8.65% during the forecast period
3.1.2 Defense expenditure will be driven by an unstable location, competitive arms acquisitions, a strained relationship with Indonesia, peacekeeping missions and historically low levels of expenditure
3.2 Analysis of Defense Budget Allocation
3.2.1 Share of capital expenditure expected to marginally increase during the forecast period
3.2.2 Defense expenditure is closely correlated to Malaysian economic growth
3.3 Homeland Security Market Size and Forecast
3.3.1 The countrys homeland security market is expected to increase at a CAGR of 8.62% during the forecast period
3.3.2 Homeland security expenditure anticipated to be driven by religious tensions and criminal activity
3.4 Benchmarking with Key Global Markets
3.4.1 Malaysian defense expenditure expected to remain low in comparison with global military expenditure
3.4.2 On a global scale, Malaysian defense expenditure is comparatively low
3.4.3 Malaysia ranked twelfth among top arms importing countries during 200509
3.4.4 Military expenditure as a percentage of GDP expected to decline to reduce overall budget deficit
3.4.5 Malaysia faces moderate terror threat
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Demand for maritime defense equipment expected to increase
3.5.2 Air defense systems will experience a surge in demand
3.5.3 Demand for armored vehicles predicted to increase
3.5.4 Demand is expected to increase for technology that caters to border security
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Lack of domestic defense capabilities to drive imports
4.1.2 Defense imports significantly increased in 2009
4.1.3 Russia and European countries emerge as significant arms suppliers
4.1.4 Ships and aircrafts constitute the majority of Malaysian defense imports
4.2 Export Market Dynamics
4.2.1 Malaysia has limited export capabilities
5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: low to high
5.1.2 Bargaining power of buyer: high to low
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 Government encourages offsets in order to develop the domestic defense industry
6.2 Market Entry Route
6.2.1 Partnerships with domestic defense firms or the establishment of a wholly owned subsidiary constitute preferred entry routes
6.2.2 Defense exhibitions provide straightforward entry route for foreign OEMs
6.3 Key Challenges
6.3.1 Limited defense budget discourages investors from market entry
6.3.2 Corruption and lack of transparency deter defense sector growth
6.3.3 Project delays restrict investors
6.3.4 Local representatives limit the growth of the domestic defense industry
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 AgustaWestland Malaysia Sdn Bhd: financial analysis
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 Ordnance Sdn Bhd: financial analysis
7.3.7 SME Aerospace Sdn Bhd: overview
7.3.8 SME Aerospace Sdn Bhd: products and services
7.3.9 SME Aerospace Sdn Bhd: recent announcements and strategic initiatives
7.3.10 SME Aerospace Sdn Bhd: alliances
7.3.11 SME Aerospace Sdn Bhd: recent contract wins
7.3.12 SME Aerospace Sdn Bhd: financial analysis
7.3.13 AIROD Sdn Bhd: overview
7.3.14 AIROD Sdn Bhd: products and services
7.3.15 AIROD Sdn Bhd: recent announcements and strategic initiatives
7.3.16 AIROD Sdn Bhd: alliances
7.3.17 AIROD Sdn Bhd: recent contract wins
7.3.18 AIROD Sdn Bhd: financial analysis
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 announcements and strategic initiatives
