A snapshot of business potential in Southeast Asia - Part One

December 10, 2006 Analysts are predicting that Asia Pacific will be the region with the largest investments in naval technology over the next decade, divided into two markets; the naval market and the maritime security market, which includes the budgets for coast guards and agencies whose work is related to the sea.

The rise of terrorism, especially the potential threat to world trade on the Malacca Straits is beginning to change the way Malaysia, Singapore and Indonesia view security over its waters. All three countries realise the importance of the Straits to international trade and the economies of regions that service the industry.

Efforts are now being made by the three countries to work together to secure the Malacca Straits from potential threats. Not only have the countries agreed on joint patrols, Malaysia and Indonesia have also begun looking at new technologies that could be used to monitor the Straits. Singapore, which has by far the most sophisticated equipment, has recently invested in unmanned surface vehicles to provide additional protection and firepower. The Israeli-made unmanned surveillance vessels will be used by the military, and to carry out patrols in strategically important waters.

Aside from this, the republic has also embarked on a programme to improve sub-surface security and security at its ports.

Similarly, Malaysia is also in the midst of modernising its navy and strengthening the newly created Malaysian Maritime Enforcement Agency. The recent availability of funds for capital purchase have seen the RMN invest heavily in new capabilities. These include the French Scorpene submarines, Super Lynx and Fennec helicopters, vessel modernisation programmes and most recently the purchase of two new Jebat-Class frigates.

The Super Lynx helicopters from AgustaWestland and the Eurocopter Fennec helicopters have already entered into service and there is a possibility that the RMN may purchase additional Super Lynx helicopters for the two new frigates. Aside from the limited patrol capability provided by the helicopter, the Malaysian government is also planning to invest in Airborne Early Warming and Command aircraft to extend its surveillance range.

The MMEA, which operates a mix of old and new vessels, is also expected to receive funds in the next five years for fleet modernisation and upgrades. And because the MMEA has also been tasked with Search and Rescue services, the service may also operate SAR helicopters.