Taiwan Defence and Security Report Q4 2009

Executive Summary ....................5
SWOT Analysis............................6
Taiwan Security SWOT........... 6
Taiwan Defence Industry SWOT....................................................... 7
Taiwan Political SWOT .......... 8
Taiwan Economic SWOT........ 9
Taiwan Business Environment SWOT............................................. 10
Political Overview......................11
Domestic Political Outlook........ 11
Foreign Policy Outlook......... 13
Security Risk Analysis..............15
BMI’s Security Ratings .............. 15
Table: Asia Pacific Regional Security Ratings................................ 15
Table: Asia Pacific State Vulnerability To Terrorism Index ........... 16
Taiwan’s Security Risk............... 17
Conflict Risk ......................... 17
Terrorism Risk ...................... 17
Physical Safety Risk.............. 17
City Terrorism Rating................ 18
Table: BMI’s Asia City Terrorism Index......................................... 19
North and South Asia Security Overview ..........................................20
Security Overview .....................25
Internal Security Situation .... 25
External Security Situation ... 25
Armed Forces And Government Spending .......................................27
Armed Forces ....................... 27
Table: Regional Armed Forces, 2007 (including conscripted, ‘000) ......................................................... 27
Weapons of Mass Destruction......................................................... 32
Market Structure........................34
Recent Changes .................... 35
Arms Trade Overview........... 35
Industry Trends and Developments................................................. 35
Procurement Trends and Developments ......................................... 37
Competitive Landscape......... 39
Industry Forecast Scenario .......41
Table: Taiwan’s Armed Forces, 2006-2013 (‘000 personnel unless otherwise stated) .............................. 42
Table: Taiwan’s Government Defence Expenditure, 2005-2012...... 42
Key Risks to BMI’s Forecast Scenario............................................ 43
Macroeconomic Forecast ..... 44
Table: Taiwan - Economic Activity................................................. 46
Company Profiles......................47
China Shipbuilding Corporation..................................................... 47
Aerospace Industrial Development Corporation ............................ 48
Combined Service Forces ..... 49
Chung Shan Institute of Science and Technology............................ 49
Country Snapshot: Taiwan Demographic Data.................................50
Section 1: Population............ 50
Table: Demographic Indicators, 2000-2030................................... 50
Section 2: Labour Market And Spending Power ............................. 51
Table: Employment Indicators, 2000-2005..................................... 51
Table: Consumer Expenditure, 2000-2005 (US$) ........................... 51
Table: Average Annual Manufacturing Wages, 2005-2012 ............ 51
BMI Methodology ......................52
How We Generate Our Industry Forecasts ..................................... 52
Defence Industry................... 52
City Terrorism Rating........... 53
Table: Methodology.............. 55
Sources ...................................... 56