Malaysia Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030
Description
Malaysia Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030
Summary
Malaysia Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030 report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.
In 2025, the Malaysian government allocated $4.8 billion to its total defense budget, reflecting a compound annual growth rate (CAGR) of 6.0% for 2021-25. The defense budget is projected to grow at an estimated CAGR of 8.2% during 2026-30, reaching $7.2 billion by 2030. The acquisition budget is valued at $1.4 billion in 2025 and is forecast to rise to $2.5 billion in 2030, a CAGR of 11.9% over the forecast period. Concurrently, RDT&E funding stood at $13 million in 2025 and is expected to increase to $27 million by 2030.
Over the historic period (2021-25), Malaysia’s total defense spending amounted to $20.5 billion; over the forecast period (2026-30), it is expected to total $31.1 billion. Prime Minister and Finance Minister Anwar Ibrahim said in his budget speech that the significant increase in development spending is intended to improve the readiness of the Malaysian Armed Forces (MAF).
Key Highlights
This report offers a detailed analysis of Malaysia's defense market, with market size forecasts covering the next five years. It also offers insights into the strategy, security environment and defense market dynamics of the country. Various sections covered in the report are as follows -
Summary
Malaysia Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030 report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.
In 2025, the Malaysian government allocated $4.8 billion to its total defense budget, reflecting a compound annual growth rate (CAGR) of 6.0% for 2021-25. The defense budget is projected to grow at an estimated CAGR of 8.2% during 2026-30, reaching $7.2 billion by 2030. The acquisition budget is valued at $1.4 billion in 2025 and is forecast to rise to $2.5 billion in 2030, a CAGR of 11.9% over the forecast period. Concurrently, RDT&E funding stood at $13 million in 2025 and is expected to increase to $27 million by 2030.
Over the historic period (2021-25), Malaysia’s total defense spending amounted to $20.5 billion; over the forecast period (2026-30), it is expected to total $31.1 billion. Prime Minister and Finance Minister Anwar Ibrahim said in his budget speech that the significant increase in development spending is intended to improve the readiness of the Malaysian Armed Forces (MAF).
Key Highlights
- Drivers of Defense expenditure include Military modernization, and Uncertain security environment.
- Major ongoing procurement program include procurement of AW149, FA-50, Maharaja Lela-class littoral combat ships (LCS)
This report offers a detailed analysis of Malaysia's defense market, with market size forecasts covering the next five years. It also offers insights into the strategy, security environment and defense market dynamics of the country. Various sections covered in the report are as follows -
- Defense Budget Assessment: This chapter covers the defense budgeting process, market size forecasts, drivers of expenditure, and allocation analysis. It also examines key market trends and insights.
- Military Doctrine and Security Environment: Detailed analysis of military doctrine, strategic alliances, geopolitical dynamics, and the political, social, and economic factors influencing the security environment.
- Market Entry Strategy and Regulations: This section elaborates on essential aspects of procurement policy and market regulations, market entry routes, key defense procurement bodies and major deals.
- Market attractiveness and emerging opportunities: It evaluates the attractiveness of various defense sectors, indicating cumulative market value, and highlights the top sectors and defense segments by value in the country.
- Defense Platforms Import and Export Dynamics: Provides an understanding of the defense platform imports and exports of the country from 2016 to 2024. Both imports and exports of the country are provided in terms of value ($M) and volume (units), categorized by country and sector.
- Defense Platform Acquisitions: It offers an overview of defense platform acquisitions by value. It lists current defense procurement schedules for the major ongoing and planned military platforms that have been formulated in the country and elaborates on the reasons leading to the procurement of the same.
- Fleet Size: Outlines the current fleet sizes of the Army, Air Force, and Navy, detailing the year of acquisition, units in service, and the prime contractor for the equipment.
- Competitive Landscape: Profiles the main defense companies operating in the country, offering insights into their business overviews, latest contracts, and financial results.
- Determine prospective investment areas based on a detailed trend analysis of the Malaysia defense market over the next five years
- Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Malaysia market and identify the opportunities offered.
- Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
- Identify the major threats that are driving the Malaysia defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
- Channel resources by focusing on the ongoing programs that are being undertaken by the Malaysia government
- Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available
Table of Contents
82 Pages
- Executive Summary
- Defense Budget Assessment
- Budgeting Process
- Defense Market Size Historic And Forecast
- Drivers Of Defense Expenditure
- Analysis of Defense Expenditure Allocation
- Analysis Of Defense Budget Allocation
- Military Doctrine And Security Environment
- Military Doctrine And Strategy
- Strategic Alliances and Geopolitics
- Political, Social and Economic Scenario
- Market Entry Strategy And Regulations
- Defense Procurement Bodies
- Funding Opportunities
- Trade Associations and Defense Clusters
- Types of Contracts and Opportunities
- Procurement Policy and Market Regulations
- Market Entry Routes
- Key Challenges
- Major Deals and M&A
- Market Attractiveness And Emerging Opportunities
- Market Attractiveness By Defense Sector
- Top Sectors in the Malaysia Defense Market
- Top Defense Segments By Value
- Defense Platforms Import and Export Dynamics
- Defense Platforms Import Dynamics
- Defense Platform Acquisitions
- Defense Platform Acquisitions By Value
- AW149
- FA-50
- Maharaja Lela-class Littoral Combat Ship
- Cheongung II
- Communication Satellite - Procurement
- Fleet Size
- Army
- Air Force
- Navy
- Competitive Landscape
- Defense Companies Operating In Malaysia
- Appendix
- About This Report
- About Us
- Contact Us
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