Market Research and Other Other Regional Defense Updates:
Afghanistan | Australia | Brunei | Bangladesh | China | India | Indonesia | Japan | Malaysia | Myanmar |
North Korea | Pakistan | Philippines | Singapore | South Korea | Sri-Lanka | Taiwan | Thailand | Vietnam.
- Franco-German Alliance – First Step on a 20-Year MGCS Development May 25, 2020 Germany and France began to harmonize requirements and concepts, with the intention to formalize joint system architecture for their future main battle tank, currently known as the ‘Main Ground Combat System’ (MGCS). This future combat system is expected to succeed the Bundeswehr’s Leopard 2 and the French Army’s Leclerc beginning in 2035.
- Milrem Robotics Introduces a 12-ton Robotic Vehicle for Mechanized, Armored Warfare May 25, 2020 Milrem Robotics company from Estonia has developed a Robotic Combat Vehicle (RCV) known as Type-X, introducing new and exciting manned-unmanned capabilities to modern combat. “Milrem Robotics plans to complete the vehicle prototype by the end of the 3rd quarter of 2020 and begin mobility testing in October.” Kuldar Väärsi, Milrem CEO said.
- Hidden Gems in US-Israeli Defense Industrial Cooperation May 22, 2020 Suffering in silence under the crisis triggered by COVID 19 is not the way to respond to the dramatic market changes unfolding. Guest author Joel Alon outlines some of the positive prospects hiding in this dire situation, presenting new opportunities for Israel’s struggling defense industries.
- A European Team Integrates Aircraft Radar, Radio & ECM Into One Unit May 20, 2020 The Spanish electronics consortium Indra announced it will lead the CROWN research and development project to develop and equip European fighters and other aircraft with a combined, software-defined radar, communications, and electronic defense enabling future aircraft to dominate the radioelectronic space.
- Next Gen Jammer Nears Flight Testing May 19, 2020 The U.S. Navy recently completed a portion of developmental testing of the Next Generation Jammer Mid-Band (NGJ-MB) electronic warfare (EW) pod. Moving to flight testing with Air Test and Evaluation Squadron (VX) 23 by late June or early July 2020, the program is scheduled to reach Milestone C by the end of this fiscal year and expected to become operational in 2023.
- U.S. Army to Test 120mm Semi-Automatic Mortars from Finland May 19, 2020 Patria and the U.S. Army have entered into an agreement for a feasibility study of incorporating a turreted, breech-loaded 120 mm mortar weapon system in U.S. mortar carriers. The evaluation will assess the integration of carrier weapon platforms and fire control systems and the use of current U.S. 120 mm mortar ammunition in a breech-loaded system.
- Hermes 900 to Assume SaR Missions in the South China Sea May 7, 2020 Elbit Systems has recently delivered Unmanned Aerial Systems equipped for maritime search and rescue to an undisclosed customer in South-East Asia. In this configuration, the Hermes 900 is equipped with detection and identification systems, precision dispatch capability, and up to four inflatable life rafts, each can rescue six survivors. This configuration enables the drone to perform long-range maritime Search and Rescue (SaR) missions, and deliver life-saving assistance quickly upon detection of survivors.
- IAI To Produce, Market Zibar Offroad Vehicles May 7, 2020 IAI acquires the manufacturing operations of the Zibar offroad tactical vehicle, designed and built by Israeli offroad entrepreneur Ido Cohen. The Z family activities being acquired include the Zibar, Zmag – a light version of the platform, and ZED – the armored off-road vehicle. IAI ELTA will design and produce the vehicles in its manufacturing site in Beer Sheva, where RAM vehicles are currently built. The company plans to adapt and configure the vehicles for military and homeland defense applications, and now, acting as the vehicle design authority will be well-positioned to address specific customer requirements.
- Greece Leases Heron Drones from Israel May 6, 2020 Greece is leasing Heron I unmanned aerial systems (UAS) from Israel for a three-year service. the drones will be configured for maritime surveillance missions and will operate from the island of Crete. The Herons will be tasked primarily with maritime surveillance and border security. The Heron regularly operates in the region, since the drone was cleared to operate in civil airspace by Israel’s Civil Aviation Authority in 2007.
- Loyal Wingman Prototype Rolls Out in Australia May 5, 2020 The unmanned Loyal Wingman aircraft was unveiled in Australia yesterday. The aircraft is the first of three prototypes built under the Australian Loyal Wingman program. The Loyal Wingman prototype now moves into ground testing, followed by taxi and a first flight later this year.
Research Focus: Singapore Defense Market
The Singapore Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016
Singapore has the largest defense expenditure in South East Asia, and, in 2008, the country had the world’s fourth-largest per capita defense expenditure, behind only Israel, the US and Oman. The country’s defense expenditure is high due to the small size of the country’s armed forces and consequent ever-present requirement to upgrade the country’s defense equipment and procure advanced technology in order to compensate for the country’s lack of manpower.
The full 151 page report (dated December 2011) is available from Defense-Update ICD for $1,250.-
Singapore has the largest defense expenditure in the South East Asian region, and the country’s defense spending is expected to increase substantially by 2016. The country’s defense expenditure is primarily driven by the threat of terrorist organizations such as Jemaah Islamiah, and the country’s focus on the protection of important trade routes, such as the Strait of Singapore and the Strait of Malacca, from the threat of piracy. Singapore’s army is relatively small, resulting in the country using technology as a force multiplier, another factor which increases its defense expenditure. The country’s small size also renders it unable to provide adequate training facilities for its armed forces personnel. As such, the country relocates army training facilities to foreign countries, a decision that creates the need to purchase training stations and detachments overseas.
From 2011 to 2016, (the forecast period), Singapore is expected to invest in advanced technology for its armed forces, including purchases in areas such as such as stealth technology, unmanned technology and precision guided systems. Homeland security expenditure is also expected to increase the demand for CCTV, advanced electronic systems and biometric checking.
As Singapore is investing in advanced technology for its armed forces, it requires technology transfer agreements for all defense procurements in order to ensure future repair and maintenance and to enable the customization of equipment in accordance with the country’s needs. Additionally, Singapore’s FDI (Foreign Direct Investment) policy allows foreign defense companies to establish a fully-owned subsidiary in the country and, in order to further encourage investment, favorable tax laws also exist for foreign companies.
Singapore procures the majority of its defense equipment from foreign companies, with its defense imports driven by the country’s policy of utilizing technology to improve the efficiency of its armed forces. Some of Singapore’s major defense imports include arms, ships, missile systems and armored vehicles. Historically, the largest supplier of arms to Singapore was the US; however, from 2005 to 2010 (the review period), countries such as France and Germany have made substantial inroads into the country’s defense industry.
The Singaporean Government prefers technology transfer agreements for defense equipment acquisitions, and, as a result, this is the most common route for original equipment manufacturers (OEMs) to enter the domestic defense industry. In order to procure spare parts and other common equipment, the government also has an online portal, the Ministry of Defense Internet Procurement System (MIPS), through which registered suppliers are issued with a smart card, and only such companies are allowed to enter the bidding process for defense equipment. Defense suppliers obtain a smart card through registration with the defense ministry. Additionally, Singapore has devised an innovative procurement method through lease-to-own arrangements, a policy that substantially reduces initial capital investment, gives Singapore early access to advanced defense equipment and reduces Foreign Military Sales (FMS) commission. Foreign OEMs can therefore enter Singapore’s defense industry by offering equipment through lease-to-own arrangements.
Singapore is a relatively small country, with a total land mass of 710 square kilometers. The size of the country limits the land available for the establishment of manufacturing facilities, a factor which acts as a barrier for foreign companies considering investing in Singapore. The country’s declining birth rate, small population and resultant labor shortage also act as barriers to entry. The country’s acute land shortage is reflected by the fact that the Singaporean Government trains military personnel at foreign facilities.
For more information on “The Singapore Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016″ (product ID: # Defense-Update DF0074MR Request for Quotation). The report is available in electronic form from ICD. Single User License costs: $1,250.-
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