Throughout history, a region or country’s economic growth has often been followed by a rise in defence spending.
Asia-Pacific as a region is witnessing this phenomenon currently.
In fact, it is the only region in the world that has seen a steady rise in defence spending over the past five years and the trend is likely to continue at the Singapore Airshow, which gets under way this week.
“The centre of gravity of defence expenditure is expected to continue to shift towards Asia-Pacific in 2014, following the trend of economic expansion,” says Paul Burton, a director at IHS Defence.
The company expects Asia-Pacific to account for nearly 28% of global defence spending by 2020, up from 24% last year.