December 24, 2014

"With record-low oil prices, oil-importing countries in East and Southeast Asia are not only expecting positive net effects on their economy, but are now also able to top up their military and defence budgets at a faster pace than originally planned. In particular, key markets in the region such as China, Indonesia, Malaysia and South Korea are all seen to positively adjust their defence spending to the windfall of saved money from hydrocarbon imports, according to US-based industry data analyst firm IHS.

This development comes on top of already strong defence expenses over the past years. In April 2014, the Stockholm International Peace Research Institute (SIPRI) said in its annual global military spending report that military expenditures in Southeast Asia (with the exception of Cambodia. Laos, Myanmar and Brunei) have climbed steadily, from 14.4bn in 2004 to 35.5bn in 2013, a 147% increase within a decade, and between 2012 and 2013 alone, regional military expenditures increased by 10%. SIPRI estimated that expenditures are likely to surpass 40bn by 2016. As for China, military expenditure has increased from 40bn in 2004 to 188bn in 2013, a five-fold increase in a decade."

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http://www.menafn.com/1094054019/Low-oil-prices-help-Asian-nations-top-up-their-defence-budgets