Taiwan Defence and Security Report Q1 2009

Executive Summary ....................5
Taiwan Security SWOT........... 6
Taiwan Defence Industry SWOT.......................... 6
Taiwan Political SWOT .......... 7
Taiwan Economic SWOT........ 7
Taiwan Business Environment SWOT.................. 7
Political Overview........................8
Security Risk Analysis..............10
BMI’s Security Ratings .............. 10
Table: Asia Pacific Regional Security Ratings................................ 10
Table: Asia Pacific State Vulnerability To Terrorism Index ........... 11
Composite............................. 11
Regional rank....................... 11
Trend....... 11
Danger rating....................... 11
Regional Security: North And South Asia ............... 11
Taiwan’s Security Risk............... 14
Conflict Risk ......................... 14
Terrorism Risk ...................... 14
Physical Safety Risk.............. 14
Security Overview .....................15
Internal Security Situation ................................. 15
External Security Situation ................................ 15
Armed Forces And Government Spending ..........17
Armed Forces ....................... 17
Table: Regional Armed Forces, 2007 (including conscripted, ‘000) ............................ 17
Weapons Of Mass Destruction........................... 21
Market Structure........................23
Recent Changes .................... 24
Arms Trade Overview........... 24
Industry Trends And Developments ................... 24
Procurement Trends And Developments............ 26
Competitive Landscape......... 28
Table: Taiwan’s Armed Forces, 2006-2013 (‘000 personnel unless otherwise stated) .............................. 30
Table: Taiwan’s Government Defence Expenditure, 2005-2012...... 30
Key Risks To BMI’s Forecast Scenario.............. 31
Macroeconomic Forecast .................................. 31
Table: Taiwan – Macroeconomic Activity, 2004-2013 ................... 33
Company Profiles......................34
China Shipbuilding Corporation........................ 34
Aerospace Industrial Development Corporation ............................ 35
Combined Service Forces .................................. 36
Chung Shan Institute of Science and Technology............................ 36
Country Snapshot: Taiwan Demographic Data....37
Section 1: Population............ 37
Table: Demographic Indicators, 2000-2030...... 37
Section 2: Labour Market And Spending Power ............................. 38
Table: Employment Indicators, 2000-2005........ 38
Table: Consumer Expenditure, 2000-2005 (US$) ........................... 38
Table: Average Annual Manufacturing Wages, 2005-2012 ............ 38
BMI Forecast Modelling............39
How We Generate Our Industry Forecasts ........ 39
Defence Industry................... 39
Sources ......... 40