Future of the Malaysian Defense Industry-Market Attractiveness

1
FUTURE OF THE MALAYSIAN DEFENSE INDUSTRY MARKET
FORECASTS TO 2021
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Defense Expenditure as a Percentage of GDP in
Malaysia

• As of 2016, the Malaysian government has planned
  to spend only 1.5 of GDP to the defense industry
• It marks a downfall by 2.5 as compared to the
  previous year and 0.33 from that of 2012
• The defense expenditure is prognosed to shoot up
  at a CAGR of approximately 7 from 2017 to 2021

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3
Major Investment Segments in the Malaysian
Defense Industry
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Major Players of the Malaysian Defense Industry
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Porters Five Forces Model

• Factors affecting Competitive Rivalry
• Malaysian defense industry consists of 56
  members from private as well as government
• High cost of leaving the market

• Factors affecting Substitution
• High risk of substitute performance
• High cost of changing suppliers

• Factors affecting Buyer Power
• Value of each order is high
• Difficult to find other sellers due to
  customized Research and development requirements

• 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 New Entry
• Requires time and high investments to enter the
  market
• Requires Specialist knowledge

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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
  20172021, 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
• Porters 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 countrys 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/d
  efense/future-malaysian-defense-industry/39457-16.
  html
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Contact Information

• Ankur Gupta, Head Marketing Communications, Ken
  Research
• Email id query_at_kenresearch.com
• Phone No 91-124-4230204

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