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Asia-Pacific Defense Outlook 2016
Report finds accelerating naval buildup, growing vulnerability of Asia-Pacific’s “Cyber Five” nations
Singapore, 24 February 2016 — An accelerating naval buildup, accompanied by sharp increases in the vulnerability of developed economies to cyberattack, is re-shaping the defense environment in the Asia-Pacific region, according to the 2016 Asia-Pacific Defense Outlook released today by Deloitte Touche Tohmatsu Limited (DTTL).
“We're seeing a huge shift in defense focus across the region as more than half of global container traffic now moves through Asia-Pacific waters, and regional navies are building up to defend these economic lifelines”, said report author Jack Midgley, Director with Deloitte Tohmatsu Consulting in Tokyo. “The same economic growth driving the naval buildup is also creating new kinds of vulnerability to cyberattack, particularly in the advanced economies of South Korea, Australia, New Zealand, Japan and Singapore – the Asia-Pacific “Cyber Five”.
Deloitte’s second Asia-Pacific Defense Outlook examines policies, practices and trends affecting the defense budgets and strategies of 20 Asia-Pacific nations whose combined defense budgets will account for nearly one-third of global defense budgets by 2020. This year’s report explains why the Asia-Pacific economies are projected to drive sixty percent of the global increase in defense acquisition, research and development and thirty percent of the total global defense acquisition budget over the next five years.
"Asia-Pacific countries are growing defense spending slower than their overall economic growth rates. Governments are making clear decisions to shift public spending toward non-defense priorities, and defense capital programs increasingly emphasize local job creation and industrial development,” added Midgley.
Key Report Highlights:
- The “Cyber Five” -- South Korea, Australia, New Zealand, Japan and Singapore -- appear nine times more
vulnerable to cyberattack than other Asian economies.
- More than 50% of global container traffic now moves through Asia-Pacific. Naval budgets are projected to increase by 60% through 2020, as navies respond. China will build 30 new submarines and one new aircraft carrier.
- Total worldwide incidents of piracy declined by 45 percent from 2010 to 2014, but incidents in Asia-Pacific increased by nearly 30 percent.
- Fewer than 20 percent of global deaths from terrorism occur in Asia-Pacific. Ninety percent of these deaths are in Pakistan, India, Philippines and Thailand.
The full 2016 Deloitte Asia-Pacific Defense Outlook report with infographics can be found here.
About Deloitte’s Global Defense Outlook
The Global Defense Outlook (GDO) examines policies, practices and trends affecting the defense budgets and strategies of the 50 nations whose combined defense budgets total over 95% of global defense spending (the “Top 50”). Publicly-available information, commercially-sourced data, interviews with officials in government and industry, and analyses by Deloitte’s global network of defense-oriented professionals were applied to develop the insights presented in the Global Defense Outlook. This is an independently-written report and the data and conclusions herein have not been submitted for review or approval by any government organization, corporation or other institution.