Asia Expands Arms Investment Amid Rising Threats

As regional tensions deepen and global rivalries intensify, Asian nations are rapidly ramping up defense spending and weapons research to bolster national security, a new report by the IISS reveals.

Defense procurement and R&D across Southeast Asia’s six key nations—Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—jumped to $10.5 billion by 2024, up from $7.8 billion in 2022. Despite stable average military spending at 1.5% of GDP, this investment marks a decisive shift toward enhanced preparedness.

The spike, detailed in the Asia-Pacific Regional Security Assessment by the London-based IISS, precedes the Shangri-La Dialogue in Singapore where global defense officials will discuss the region’s worsening outlook.

Imports Still Dominate, But Self-Reliance Rises

While nations aspire to defense self-sufficiency, key capabilities like submarines, drones, surveillance systems, and advanced electronics remain heavily import-dependent. The report notes that “recent conflicts in Ukraine and the Middle East,” along with U.S.-China rivalry and unresolved flashpoints, are fueling defense-industrial collaboration.

Asian countries are increasingly pursuing tech transfers, local assembly, and joint ventures with Gulf, European, and Indian defense entities to bridge capability gaps.

UAE and India Emerge as Strategic Players

The UAE, through its growing ties with China’s NORINCO and India’s HAL, is developing a multi-vectored presence in Asian arms markets. This adds complexity to a field long dominated by Western suppliers.

India’s experience with Russia over the BrahMos missile program illustrates both the potential and challenges of joint development. Although the missile is in service with India, exports have been sluggish. Deliveries to the Philippines only began in 2024, and future plans may be affected by closer Russia-China cooperation.