Malaysia Defence and Security Report Q1 2009

Executive Summary ....................6
Malaysia Security SWOT........ 6
Malaysia Defence Industry SWOT....................... 7
Malaysia Political SWOT ....... 7
Malaysia Economic SWOT .................................. 8
Malaysia Business Environment SWOT............... 8
Political Overview........................9
Security Risk Analysis..............12
BMI’s Security Ratings .............. 12
Table: Asia Pacific Regional Security Ratings................................ 12
Table: Asia Pacific State Vulnerability To Terrorism Index ........... 13
Composite............................. 13
Regional Rank ..................... 13
Trend....... 13
Danger Rating...................... 13
Regional Security: South East Asia Trends And Developments ....... 13
Inter-State Conflicts.............. 14
Internal Conflicts .................. 15
Malaysia’s Risk Ratings............. 16
Terrorism Risk Ratings ......... 16
Conflict Risk Ratings ............ 16
Physical Safety Risk Ratings .............................. 17
Security Overview .....................18
Internal Security Situation ......... 18
Table: Insurgent Groups....... 18
External Security Situation ........ 18
Territorial Disputes .............. 18
Insurgent and Terrorist Activity......................... 19
Piracy ................................... 20
Table: Actual and Attempted Piracy Attacks...... 21
Bilateral And Multilateral Relations.................. 21
Armed Forces And Government Spending ..........23
Armed Forces ....................... 23
Multilateral And Bilateral Defence Relations................................. 24
Table: Regional Armed Forces, 2007 (including conscripted, ‘000) ............................ 25
International Deployment .................................. 26
Weapons Of Mass Destruction........................... 26
Market Overview........................28
Industry Trends And Developments ................... 29
Arms Trade Overview........... 29
Procurement Trends And Developments............ 30
Industry Forecast Scenario .......32
Army Enlargements............... 32
Table: Malaysia’s Armed Forces, 2005-2013 (‘000 personnel)...... 32
Table: Malaysia’s Government Defence Expenditure, 2005-2013................................ 33
Key Risks To BMI’s Forecast Scenario.............. 34
Macroeconomic Forecast Scenario ................... 34
Table: Malaysia – Macroeconomic Activity, 2004-2013................. 38
Company Profiles......................39
Deftech.................................. 39
Malaysia Shipyard and Engineering.................. 40
SME Ordnance ..................... 40
Composite Technology Research Malaysia........ 41
Airod........ 42
EADS ....... 43
Country Snapshot: Malaysia Demographic Data..............................44
Section 1: Population............ 44
Table: Demographic Indicators, 2005-2030...... 44
Table: Rural/Urban Breakdown, 2005-2030 ..... 45
Section 2: Education And Healthcare................ 45
Table: Education, 2000-2003 ............................ 45
Table: Vital Statistics, 2005-2030...................... 45
Section 3: Labour Market And Spending Power ............................. 46
Table: Employment Indicators, 2001-2006........ 46
Table: Consumer Expenditure, 2000-2012 (US$) ........................... 46
Table: Average Annual Manufacturing Wages, 2000-2012 ............ 47
BMI Forecast Modelling............48
How We Generate Our Industry Forecasts ........ 48
Defence Industry................... 48
Sources ......... 49