Myanmar’s annual military budget is expected to increase from $2.4bn in 2017 to $3.1bn by 2022, marking a compound annual growth rate of 4.84%, according to a report by Strategic Defence Intelligence (SDI).
Titled ‘Future of Myanmar Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report forecasts the future trends in Myanmar defence industry.
The average capital expenditure allocation from 2018 to 2022 is expected to be 41.7%, whereas the revenue expenditure allocation is anticipated to be 58.3% of the defence budget.
Myanmar's defence spending growth is anticipated to be driven by procurement of advanced defence equipment and investment on initiatives to raise the country’s indigenous defence capabilities.
The Myanmar Government intends to acquire submarines, multi-role aircraft and corvettes as part of the modernisation of the Myanmar Navy. The modernisation of armed forces is expected to drive arms imports of multi-role combat aircraft, submarines, corvettes, torpedoes, patrol boats and fast-attack craft during the forecast period.
The report also claims that the country's relatively underdeveloped, indigenous defence industry increases its dependence on imports, which creates opportunities for foreign original equipment manufacturers (OEMs).