Singapore Defense Market Worth US$13.4 Billion by 2018 Says a New Research Available at MarketReportsOnline.com
Dallas, Texas (PRWEB) September 19, 2013 -- Singapore's army is considered to be the most advanced military force in Southeast Asia, and the country’s military expenditure, which stands at US$9.9 billion in 2013, grew at a CAGR of 6.75% between 2007-2012. Threats presented by terrorist organizations, such as Jemaah Islamiah, the acquisition of automated equipment and overseas training for its armed forces are expected to drive the growth in country’s defense expenditure. In addition to this, Singapore has been actively participating in international peace-keeping and relief operations. Owing to these factors, Singaporean defense expenditure is projected to register a CAGR of 6.21% during the forecast period (2012-2018), according to the new report: Future of the Singaporean Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018.
Terrorist organizations drive defense expenditure
The country’s defense expenditure is high due to threats posed by terrorist organizations, pirates, and the small size and costly training needs of the country’s army. These factors require the government to acquire advanced weaponry in order to protect against existing, and potential security threats. Threats from Terrorist organizations, such as the Al-Qaeda-linked Jemaah Islamiah (JI), and other regional terrorist groups, pose a constant threat to Singapore’s national security. The main threat, JI, is an extremist group that operates in the south-east Asian region, with the desired aim of creating an idealized Islamic state; this would consist of Indonesia, Malaysia, Singapore, the southern Philippines, and southern Thailand. As a small and densely populated island, a relatively small terrorist attack could cause significant damage to the country. The threat posed by terrorist organizations therefore compels the Singaporean Government to invest heavily in defense procurements.
Key Homeland Security Drivers
Cyber Threats
The majority of the financial institutions operating in South Asia have their headquarters in Singapore, which makes it imperative that the government improves the levels of cyber security in the country; it is expected that Singapore will spend 1-2% of its current defense budget on cyber security. In 2013, Singapore launched a five-year cyber security master plan, to develop the country into a trusted ‘infocomm’ hub by 2018. As a result, the Singaporean military has set up a new Cyber Defence Operations Hub, with the aim of guarding the country’s systems against virtual attack, by consolidating cyber-security efforts. Singapore has made efforts to promote cyber security measures through leveraging publicity channels; these include road shows and educational programs. The MINDEF is expected to invest US$215.0 million in cyber security measures by 2023 says the report Future of the Singaporean Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018, available for purchase at http://www.marketreportsonline.com/contacts/purchase.php?name=272624.
The Singaporean Government is primarily focused on the acquisition of technologically advanced defense equipment and trades with foreign OEMs in order to secure technology transfers, and training provisions for personnel. This has become a key consideration when procurement decisions are made. In accordance with the industrial co-operation programs which guide all government procurements, technology transfers to the country must be executed in order to develop Singapore’s domestic defense industry and train defense personnel to adapt to the new technologies acquired.
The Singaporean Government has introduced an innovative procurement method, known as lease-to-own arrangements, which is an agreement whereby the buyer leases the equipment, with a purchase date specified after a given period of time. The government enters into lease-to-own arrangements directly with defense contractors, and the arrangements provide foreign OEMs with an alternative entry strategy, as such companies can offer advanced equipment under such terms.
According to SIPRI, Singapore is now the world’s 20th biggest arms exporter and registered a trend-indicator value (TIV) of 12 million in 2011 to 76 million in 2012 in terms of volume of exports of major conventional weapons. During the period 2008-2012, Thailand was the largest importer of Singaporean defense goods, accounting for 55.9% of total defense exports, which was largely attributed to the signing of a deal worth US$160.0 million for the endurance amphibious assault landing ship, which was delivered in 2012.
Companies covered under the competitive landscape and strategic insights section of table of contents for the report Future of the Singaporean Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 (http://www.marketreportsonline.com/272624-toc.html) include Boeing, Thales, Lockheed Martin, Singapore Technologies Aerospace, Singapore Technologies Marine, Singapore Technologies Electronics and Singapore Technologies Kinetics.
Other new reports available:
Future of the Greek Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 research report is available at http://www.marketreportsonline.com/272918.html.
Future of the Colombian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 research report is available at http://www.marketreportsonline.com/269561.html.
Future of the US Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 research report is available at http://www.marketreportsonline.com/269560.html.
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MarketReportsOnline.com is an online database of regional industry research reports, company profiles and SWOT analysis studies for multiple industries and organizations.
Priyank Tiwari, Market Reports Online, http://www.marketreportsonline.com/, +1 (888) 391-5441, [email protected]
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