With the growing importance of maritime commerce in an increasingly complex and volatile security landscape, as well as having naval fleets due for renewal, Asia Pacific navies are continuing their drive to improve defence capabilities. According to “Asia-Pacific Defense Outlook 2016” report by Deloitte, naval budgets are projected to grow by more than 60% above their 2010 levels by 2019.

While the Asia Pacific’s growth prospects face a challenging economic backdrop of slowing global trade, the region continues to be the growth engine of the world economy with maritime commerce remaining a key driver. And while potential security issues in other regions may be primarily land-based, the major challenges to peace and security in the Asia Pacific region are increasingly located at sea. Smuggling, piracy and other illicit activities with potential links to terrorism require close attention; tensions in North East Asia and territorial disputes in the South China Sea continue to dominate the headlines. With such a complex defence and maritime security landscape, coupled with the need for naval fleet renewal, it is evident why military outlays in Asia and Oceania grew 5.4% in 2015, outpacing the 1% rise globally.1

1 According to Stockholm International Peace Research Institute.
2 Based on the “The Gobal Submarine Market 2016-2026” report by Strategic Defence Intelligence (SDI).
3 IHS; issued June 1, 2016

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