SE Asia arms spending to surge this year amid lack of conventional threats

He said the company forecast the market value of defence spending would reach US$180 billion (Bt5.7 trillion) in Asia-Pacific countries this year, up 5.2 per cent from $171 billion last year. Southeast Asia spent $30 billion, accounting for 16.67 per cent of the entire Asia-Pacific, excluding China and South Asia. 
“Thailand is a potential market for our business, especially because the country has a policy to modernise its air force fleet. This is like other countries in Southeast Asia, especially Indonesia, Singapore, the Philippines and Malaysia,” he said.
Thailand is currently ruled by a military junta after having experienced two coups in less than a decade and its defence budget has increased sharply since the 2006 coup from Bt86 billion in 2006 to Bt222 billion in 2018 fiscal year, or 7.7 per cent of the total national budget, according to government budget. 
Hardware procurements were priority for governments over the past decade although country is relatively free from major conventional security threats, analysts said. 
Submarines, missiles, tanks and jet fighters are favourite items for Thailand and the major suppliers include China, the United States, Ukraine and South Korea. The latest deal was a Bt8.8-billion purchase of eight T-50 Golden Eagle fighters from Korea Aerospace Industries (KAI). 
The Royal Thai Air Force took delivery of the first two KAI T-50 Golden Eagles lead-in fighter trainers last month.
Honeywell Aerospace is a manufacturer of aircraft engines and avionics, with defence and space technology among its businesses.
According to an IHS Jane report, global defence spending will grow for the fifth consecutive year, reaching $1.67 trillion in 2018 and overtaking the previous post-Cold War record of $1.63 trillion seen in 2010.
“We cannot says why the defence budget spending in Asia-Pacific, especially Southeast Asia, is rising this year compared with last year, but we are seeing strong growth demand with the development and production of ground combat and support vehicles,” Van Luven said.
Thailand needs equipment to modernise F-16 Fighting Falcon aircraft, C-130 Hercules Transport Aircraft and the T-50 Combat Trainer/FA-50 Lighting Attack Aircraft, while Singapore needs to focus on F-16s and F-15 Eagles and Indonesia has C-130s and F-16s.