AFP, SINGAPORE (AFP) Nov 10, 2003-Asian governments are set to dramatically increase their maritime defence forces with growing economies, regional tensions and terrorism to drive the surge, defence industry experts said here Monday.
Governments in the Asia Pacific will spend a combined 14 billion US dollars on new naval ships in 2009, double the figure for this year, according to Robin Keil, senior vice president with US-based naval analysts AMI International.
Keil said the increase will come as Europe cuts its spending on naval ship construction by 20 to 25 percent.
“As far as new ship construction is concerned, the Asia Pacific is going to be a more important market than Europe,” Keil said.
Keil was speaking to the media one day before the opening of the week-long International Maritime Defence Exhibition and Conference, which has attracted participants from 34 countries, in Singapore.
Sixteen warships from 10 countries will be present at the Changi Naval Base as part of the exhibition, with major defence industry suppliers such as France and England sending official delegations.
Keil said Japan, South Korea, China and India would be the main drivers of the region's increased naval spending, although other countries with smaller budgets will follow the trend.
The British-government's Defence Export Services Organisation (DESO), which facilitates the sale of British defence products, backed Keil's assessment.
“We see the ASEAN (Association of Southeast Asian Nations) and the Asian markets as enormous for the future,” DESO head Alan Garwood said.
Keil said one of the reasons governments would spend more on naval ships was to counter the threats of pirates, insurgent groups and terrorists roaming across Asian waters.
But, in what is still a region of strong nationalism, instability and distrust, Keil said the biggest drivers of growth were traditional military factors amid growing economies.
“Largely it's for self defence and to feel comfortable that they can respond with whatever happens in the world. It's how much you have to invest to feel secure,” he said.
“Countries will spend approximately two percent of their gross national product on defence.
“So therefore if your gross national product keeps increasing, you will have more money to invest in defence and therefore the ships and whatever else you need.”
Keil said the increased spending on naval ships would not alter the military balance in the region.
“It really isn't going to change. It's what people are doing to maintain the status quo. It's what South Korea feels it needs to do to make certain it will not be infringed upon by North Korea or China,” he said, citing one example of the region's long-standing tensions.
For international naval ship suppliers, the Asia Pacific is set to be a boom as the European market shrinks, Keil said, saying the market there was expected to drop to under 10 billion dollars annually from 13 billion this year.
“They are regarding themselves almost as one. And therefore they say why do I need to have all types of ships and so many of them because I am never going to operate by myself again,” Keil said.
