14 Jul 17. Report: Argentina’s defence expenditure to reach $10.5bn by 2022. The Argentine defence budget expenditure is projected to grow at a compound annual growth rate (CAGR) of 13.75% to reach $10.5bn by 2022, according to a report by GlobalData.
Titled ‘Future of the Argentina Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report attributes the growth to the modernisation and procurement programmes of the armed forces, as well as the Falkland Islands territorial dispute with the UK.
Argentina’s capital expenditure on defence stands at $1.5bn in 2017 and is forecast to grow at a CAGR of 10.58% to $2.3bn in 2022. The growth in capital expenditure has been primarily due to the procurement of advanced defence equipment and the improvement of defence manufacturing capabilities. Aircraft accounted for the biggest share of arms imports at 72% from 2012 to 2016.
Weapon modernisation, another area of focus for Argentina, is expected to contribute to increasing imports, according to the report. In addition, the submarine and multi-role aircraft sectors are expected to offer increasing opportunities for equipment suppliers. The report also claims that Argentina’s domestic manufacturing capabilities are limited to trainer aircraft, transport aircraft, submarines and small arms. The country is, therefore, focusing on the development of an indigenous defence industrial base to minimise its dependency on foreign suppliers. It is also undertaking joint agreements and projects in order to boost its indigenous manufacturing capabilities.
With these trends anticipated to continue in the future, the country is expected to spend a total of $42.3bn during 2018–2022, with an averaging GDP of 1.1%. Revenue expenditure is also expected to increase at a CAGR of 14.73%, according to the report.
Argentina’s Mirage fighters were decommissioned in 2015, creating a gap for fighter aircraft. The army has expressed interest in ordering 20 units of either J-20 or JF-17/FC-10 Thunder aircraft, while the Navy plans to acquire five units of Chinese P18 corvettes. With the country facing economic turmoil, the procurement decision has been deferred. Argentina, however, plans to place an order for fighters and corvettes in the future once the economy stabilises. (Source: army-technology.com)
14 Jul 17. Malaysia shelves plan to buy new fighter jets: defence source. Malaysia has put on hold a $2bn (£1.5bn) plan to replace its ageing fleet of combat aircraft, looking instead to upgrade its aerial surveillance capabilities to confront the growing threat of militancy inspired by the Islamic State group, a source with knowledge of the matter said.
Southeast Asia’s third-largest economy has for several years been weighing the competing merits of France’s Rafale jet and the Eurofighter Typhoon, built by Britain’s BAE Systems, as it looks to buy up to 18 jets to replace its Russian MiG-29 fighters – nearly half of which are grounded.
The Rafale fighter – built by Dassault Aviation SA – was until recently seen as the frontrunner, with the support of key officials in Malaysia’s defence ministry.
But Malaysia has shelved those plans for now as it looks to boost aerial surveillance that will be critical in its fight against militancy, a defence ministry source told Reuters.
The decision comes as Islamist fighters continue to battle security forces in Marawi in the southern Philippines. Malaysia and Indonesia, which share the nearby island of Borneo, are working with the Philippines to conduct air and maritime patrols along their shared borders in the Sulu Sea.
“With regards to Rafale, France is still pushing for it as evidenced during the recent air show in Paris,” said the source, on condition of anonymity as he was not authorised to speak to media on the discussions.
“However, due to the current situation, Malaysia is focusing more on maritime patrol aircraft rather than multi-role combat aircraft.”
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