The Singaporean Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017
By: ICD Research, Published: Aug-2012
Report Code: DF0115MR
Why was the report written?
The Singaporean Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 offers the reader insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Singaporean defense industry.
What is the current market landscape and what is changing?
Singapore is the largest defense spender in South East Asia, and is among the world’s ten leading arms importers. Singapore’s small population results in a small but well-equipped army whose technological capabilities are constantly upgraded in order to compensate for its relatively small size, and to ensure that the country is adequately defended. In 2012 the country allocated 24.5% of its budget for defense expenditure and the majority of this was allocated to equipment procurement. During the review period, Singapore’s defense expenditure was equal to an average 3.8% of GDP, and it is expected to register a marginal decrease to an average 3.7% over the forecast period.
What are the key drivers behind recent market changes?
During the forecast period, Singapore is expected to spend US$56.5 billion on defense. 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. Singapore is a small and densely populated island and therefore a relatively small terrorist attack could cause significant damage to the country. The threat posed by terrorist organizations therefore forces the Singaporean Government to invest heavily in defense procurements.
What makes this report unique and essential to read?
The Singaporean defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 provides detailed analysis of the current industry size and growth expectations from 2013 to 2017, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
- Market Opportunity and Attractiveness
- The report provides detailed analysis of the current industry size and growth expectations from 2013 to 2017, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
- Procurement Dynamics
- The report includes trend analysis of imports and exports, together with their implications and impact on the Singaporean defense industry.
- Industry Structure
- The report covers five forces analysis to identify various power centers in the industry and how these are forecast to develop in the future.
- Market Entry Strategy
- The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market including key contracts, alliances, and strategic initiatives.
- Competitive Landscape and Strategic Insights
- The report helps the reader to understand the competitive landscape of the defense industry in Singapore. It provides an overview of key defense companies, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Reasons to Buy
- Low availability of production factors discourage foreign investment
- Despite a favorable and attractive foreign investment environment, foreign OEMs are discouraged from entering Singapore’s defense industry due to a shortage of production factors such as land and labor. Singapore is a small island of 710 square kilometers, which had a population of 5.16 million in 2010 and has a declining birth rate, and the combination of these factors represents a major barrier to the further industrialization of the country. Singapore’s acute land shortage is also reflected by the fact that the country is forced to purchase training space in foreign countries in order to train its armed forces.
- Decrease in defense imports in last two years is a cause of concern
- During 2007–2011, Singapore was the world’s fifth-largest arms importer, and during 2007–2009, in particular, Singapore’s arms imports registered robust growth and reached US$1698 million in 2009, a significant 341% growth from US$385 million in 2007. However, taking cue from the global slowdown, the import trend witnessed a significant decline of 44% in 2010 and by a further 3% in 2011 to reach US$920 million.