Arms exports to Asia-Pacific region increase

The Asia-Pacific region has in recent years become the world’s largest market for arms, overtaking the Near East. According to CRS, during the period 2002-2005, the Asia-Pacific accounted for nearly half, or US$43.6 billion worth, of all arms transfer agreements made with the developing world.

In terms of deliveries, Asia was still number two in 2002-2005, at 38 percent (US$30.7 billion). Nevertheless, six Asian-Pacific countries – China, India, South Korea, Pakistan, Malaysia and Taiwan – were among the top ten arms importers during this same period.

The Southeast Asian arms market is particularly noteworthy. While it is relatively small – collectively worth around US$2 billion annually – it is also one of more truly open and competitive markets when it comes to arms sales.

Compare this to China or India, which mostly buy from Russia or Japan or Taiwan, which are more or less captive markets of the US defense industry. While the US, for example, dominates Southeast in the sale of fighter aircraft (e.g., F-15s to Singapore, F-16s to Indonesia, Singapore and Thailand, F/A-18s to Malaysia), the United Kingdom has scored particular success in exporting its Hawk trainer jet to Malaysia and Indonesia.

Germany, meanwhile, has sold submarines to Indonesia and corvettes to Malaysia and Singapore; France, frigates to Singapore and antiship cruise missiles to Indonesia, Malaysia, Singapore and Thailand; Russia, Su-30 fighters to Malaysia, Indonesia and Vietnam; and Sweden, submarines to Singapore. Malaysia and Singapore constitute the largest arms buyers in Southeast Asia; during 2002-2005, for example, Kuala Lumpur placed orders for US$2.8 billion worth of arms.

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