A new study reveals that several Asian countries are significantly increasing their spending on weapons and research in response to a deteriorating security environment. These nations are expanding their external industrial partnerships while also striving to enhance their own defense industries. The annual Asia-Pacific Regional Security Assessment, published on Wednesday by the London-based International Institute for Strategic Studies (IISS), emphasizes that external industrial support remains crucial, even as these countries ultimately seek self-reliance. The report notes that recent conflicts in Ukraine and the Middle East, along with escalating U.S.-China strategic competition and a declining security situation in the Asia-Pacific, may drive a surge in defense-industrial collaborations.
"Intensifying security tensions over critical flashpoints highlight the necessity for developing military capabilities to address these challenges."
Between 2022 and 2024, defense procurement and research and development spending increased by $2.7 billion, reaching a total of $10.5 billion among Southeast Asia's key nations: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
This increase occurs despite these countries maintaining an average defense expenditure of 1.5% of GDP in 2024, a figure that has remained relatively stable over the past decade.
The study, released in advance of this weekend's annual Shangri-La Dialogue defense meeting in Singapore, noted that Asia-Pacific nations continue to depend on imports for the majority of their essential weapons and equipment.
The items in question include submarines, combat aircraft, drones, missiles, and advanced electronics used for surveillance and intelligence gathering.
The informal gathering in Singapore, which brings together global defense and military officials, is likely to be overshadowed by uncertainties related to the ongoing conflict in Ukraine, security policies from the Trump administration, and rising tensions over Taiwan and the contested waters of the South China Sea.
According to the study, Saudi Arabia and the United Arab Emirates are becoming increasingly active and making significant progress in the region. Meanwhile, European companies continue to maintain a strong and growing presence through technology transfers, joint ventures, and licensed assembly agreements.
The UAE has established a diverse network of partners, including China's NORINCO, a major weapons manufacturer, and India's Hindustan Aeronautics, a key competitor.
Joint development operations can be challenging, according to the study, which highlights lessons learned from India's two-decade partnership with Russia in producing the BrahMos supersonic anti-ship missile. Although India has successfully deployed the missile, exports have faced obstacles due to the absence of a clear strategy. Deliveries to the Philippines, its first third-party customer, are not expected to begin until 2024. Additionally, strengthening ties between Russia and China may further complicate the missile's development, especially if Moscow decides to focus on its relationship with Beijing to create a hypersonic variant of the weapon.
