Transcript Future of the Malaysian Defense Industry * Market

FUTURE OF THE MALAYSIAN DEFENSE INDUSTRY : MARKET
FORECASTS TO 2021
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Defense Expenditure as a Percentage of GDP in Malaysia
of 2016, the Malaysian
government has planned to
spend only 1.5% of GDP to
the defense industry
Defense Expenditure as a
Percentage of GDP
• As
3.5
3
•It marks a downfall by 2.5%
as compared to the previous
year and 0.33% from that of
2012
(Percentage)
2.5
2
1.5
1
0.5
0
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
• The defense expenditure is
prognosed to shoot up at a
CAGR of approximately 7%
from 2017 to 2021
Defense Expenditure
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Major Investment Segments in the Malaysian Defense Industry
Corvettes
Forecasted
Major
Investment
Areas
Armored
Personal
Carrier
Multi-role
Aircraft
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Major Players of the Malaysian Defense Industry
SME Ordnance
AgustaWestland
(Artillery
Industry)
(Helicopter
Industry)
AIROD
Sukhoi
(Aircraft
Maintenance
Industry)
(Aerospace
Industry)
Boustead Naval
Shipyard
(Naval Fleet
Maintenance)
Major
Players
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Denel Land
Systems
(Artillery
Industry)
Porter’s Five Forces Model
Rivalry
Among
Existing
Competitors
Factors affecting Substitution:
• High risk of substitute
performance
• High cost of changing suppliers
Threat of
Substitution
Factors affecting Supplier Power:
• Limited number of suppliers
• Difficult to substitute for suppliers due
to delicate political supplies
• High cost of changing suppliers
Factors affecting Competitive Rivalry:
• Malaysian defense industry consists of 56
members from private as well as government
• High cost of leaving the market
Porter’s Five
Forces Model
(Malaysian
Defense Industry)
Bargaining
Power of
Suppliers
Bargaining
Power of
Buyers
Threat of
New
entrants
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Factors affecting Buyer
Power:
• Value of each order is
high
• Difficult to find other
sellers due to
customized Research
and development
requirements
Factors affecting New Entry:
• Requires time and high
investments to enter the market
• Requires Specialist knowledge
Malaysian Government and the Defense Industry
• Malaysian Defense Industry Council
(MDIC), a legal body,
• is spearheaded by the Malaysian
defense minister
• it is assigned the task of organized
development of defense Industry
and is composed of both
government and private players
• renamed as Malaysian Industry
Council for Defense Enforcement
and Security (MIDES) in 2010
• Malaysian
government has six
procurement programmes put in place
for different segments
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Conclusion
•
Considering the macroeconomic scenario, planned expenditure on defense, governmental
regulations and the structure and dynamics of the industry, this segment undeniably
promises bright growth prospects till 2021
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Scope of the Report
•
•
•
•
•
•
Defense industry market size and drivers: detailed analysis of the defense industry during
2017–2021, including highlights of the demand drivers and growth stimulators
Budget allocation and key challenges: insights into procurement schedules formulated
within the country and a breakdown of the defense budget with respect to the army, navy,
and air force
Porter’s Five Force analysis of the defense industry: analysis of the market characteristics by
determining the bargaining power of suppliers, buyers, threat of substitution, intensity of
rivalry, and barriers to entry
Import and Export Dynamics: analysis of prevalent trends in the country’s imports and
exports over the last five years
Market opportunities: details of the top five defense investment opportunities from 2016 to
2026
Competitive landscape and strategic insights: including an overview of key players, together
with insights such as key alliances, strategic initiatives, and a brief financial analysis
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To know more on the coverage, click on the link below:
• https://www.kenresearch.com/defense-and-security/defense/future-malaysian-defenseindustry/39457-16.html
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Contact Information
Ankur Gupta, Head Marketing &
Communications, Ken Research
Email id: [email protected]
Phone No: +91-124-4230204
Ken Research Pvt. Ltd.