Myanmar to spend US$12B on defense related activities over the forecast period, according to a new study on ASDReports

Monday 28 July 2014, Amsterdam

Report description overview:

The new report now available on ASDReports, provides readers with a detailed analysis of both historic and forecast Myanmarese defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news. Gain an understanding through analysis of factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

The difference:

• Gain access to in-depth analysis of budget allocation and key challenges, along with the key drivers of the industry and challenges faced by the defense market participants within the country.
• Provides detailed profiles of the top domestic and foreign defense manufacturers with information on products, alliances, recent contract wins, and financial analysis, providing the user with a total competitive landscape of the sector.
• This report will give the user confidence to make the correct business decisions based on detailed analysis of the Myanmarese defense industry market trends for the coming five years.

Report Highlight:
The entire South East Asian region is currently going through a sustained period of growth. Even though Myanmar is not a front runner in this phase of economic prosperity, the shift from an autocratic military rule to a semi-civilian government which encourages free trade, is expected to have a positive bearing on the military sector. The need to modernize its military and desire to create robust military deterrence capabilities is expected to drive the country’s defense spending over the forecast period.

Defense imports are expected to be robust during the forecast period Myanmar’s defense imports have been high over the last few years primarily due to an underdeveloped domestic defense manufacturing sector. Even though the country has recently started manufacturing small arms, ordnance, and frigates, it relies mostly on technology transfers from countries such as China, India, and Russia to develop its industry. Advanced equipment such as fighter aircraft and submarines are provided by Russia (MiG-29 fighter aircraft), China (JF-17 fighter aircraft), and India (submarines). Over 2009-2013, fighter aircraft has emerged as the most popular defense import followed by naval vessels, armored vehicles, and missiles. The forecast period is expected to witness a similar trend but with the addition of submarines, sonars, and helicopters.

However, limited budget and a relatively closed economy act as major roadblocks for the growth of the sector. Myanmar, which was under an autocratic army rule for almost half a century, has only recently begun the process of transforming into a semi-civilian government. Even though the country’s defense market presents opportunities for foreign suppliers, the scale of budget allotted for capital procurements is much less as compared to its neighbors and other South East Asian countries.