In reaction to a worsening security climate, Asian nations are spending a lot more money on military research and weapons acquisition. Global conflicts, regional flashpoints, and growing strategic rivalry—especially between the US and China—are the main causes of this trend.
A sense of fear is being exacerbated by the ongoing crises in the Middle East and Ukraine, the escalating competition between the United States and China, and the ongoing disputes in the Asia-Pacific region, including those involving Taiwan and the South China Sea. In order to counter possible threats, these reasons have led Asian countries to improve their military capabilities.
Even while the region’s nations strive for increased independence, outside industrial alliances are still crucial. Technology transfer, joint ventures, and licensed assembly agreements with foreign partners are essential for obtaining cutting-edge military equipment and expertise, according to the International Institute for Strategic Studies (IISS).
The top countries in Southeast Asia—Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—increased their combined defense procurement and R&D spending by $2.7 billion between 2022 and 2024, bringing their total spending to $10.5 billion. The average defense expenditure as a percentage of GDP has stayed constant at about 1.5% over the past ten years, notwithstanding this dramatic increase.
Dependency on Imports and Priorities
The majority of Asia-Pacific countries still rely significantly on imports for essential military hardware, despite initiatives to develop their own defense sectors. These consist of modern electronics for surveillance and intelligence collection, drones, missiles, combat aircraft, and submarines.
Participation of Gulf States: Saudi Arabia and the United Arab Emirates are becoming more involved in the area and forming a variety of alliances. For instance, the UAE’s cooperation with India’s Hindustan Aeronautics and China’s NORINCO demonstrates a practical way to obtaining military technology.
European and Asian Partnerships: Through technology transfers and cooperative projects, European defense companies are extending their reach in Asia, thereby boosting the defense-industrial activity in the region.
India and Russia’s two-decade partnership on the BrahMos supersonic anti-ship missile serves as an example of the difficulties involved in collaborative development. Even though Indian forces can use the missile, export attempts have been sluggish, and the Philippines won’t receive its first supplies until 2024. Russia’s improved relations with China may complicate future developments, particularly if Moscow gives Beijing priority over other countries in the development of hypersonic missiles.
With half of all regional military spending going toward modernization, China continues to be Asia’s biggest military spender.
While Taiwan continues to raise spending and invest in domestic capabilities in the face of increased cross-strait tensions, Japan’s defense budget experienced a historic 21% increase in 2024.
To increase domestic manufacturing and lessen dependency on imports, India, the fifth-largest military spender in the world, is increasing its defense budget and enlisting more private business.
As countries react to a deteriorating security posture, Asia’s defense scene is changing quickly. To improve military capabilities, the region is seeing a boom in foreign industrial alliances, R&D investment, and weapons procurement.
Even as they negotiate the complexity of regional and international security dynamics, many Asian nations’ long-term goal is to become more self-reliant in their defense production, even as external cooperation is still essential.
