Regional Defence Spending Expected to
Double (11 Nov 2003)
Defence spending in the Asia-Pacific is expected to double by
2009. This is due to the acquiring of new naval ships to combat
growing regional hostilities and to defend natural resources.
This is a contrast to Europe who is expected to decrease its
US$13 billion annual spending by up to 25 per cent within the
same time frame.
Mr. Robin Keil, senior vice-president of US-based naval analysts
AMI International cited, "As far as new ship construction
is concerned, the Asia-Pacific is going to be a more important
market than Europe." Asia-Pacific is expected to invest a
total of US$14 billion (S$24 billion) annually.
He said that Japan, South Korea, India and China would lead
the Asia-Pacific's increased naval spending while other countries
with smaller naval budgets are also expected to increase.
Mr. Keil added that this increased spending would not affect
the military balance in the region, as countries will spend approximately
2 per cent of their gross national product on defence.