The Asian perspective: Asia continues to offer an example of a growing defence market, despite the fact that many of the major nations are still emerging from economic recession. (Complete Guide).

India announced that its 2002-2003 defence budget would amount to $14 billion, of that total some $4 billion will be used for direct procurements from overseas, with an additional $1 billion worth of spending from Indian industry for defence components. China announced its 2002 defence budget at $20 billion, a rise of 17.6 per cent from the previous year, although many analysts believe that actual defence spending is more likely to be over $50 billion.

Although both China and India have extensive indigenous defence industries, both have been major purchasers of equipment, with Russia being a key supplier. Major acquisitions from Russia by India include Sukhoi Su-30MKI combat aircraft, three Project 1135.6 class frigates, T-90 tanks, the Antey-2500 air defence system, Rubin Kilo class submarines and many more contracts in the pipeline. China has purchased Sukhoi Su-27SK and Su-30MKI combat aircraft, two Sovremenny class destroyers (Project 956E) with an additional two on order, S-300 missile systems and submarines from Rubin.

India has also sought to broaden its acquisition options beyond Russian equipment and has often turned to Israel and South Africa for equipment. More recently, its links with France have led to major contracts, earlier this year the Type 75 submarine programme was won by the DCN Scorpene design. This will see six submarines acquired in a contract worth $1.8 billion, with the majority of the build taking place at Mazagon Docks in India. India will also be receiving another ten Dassault Mirage 2000 aircraft to add to its existing Mirage 2000H/TH fleet.

The Republic of Korea is another country that is in the process of major defence acquisitions. Economic problems have delayed many programmes but with an improvement in circumstances, a number of major deals are likely. The most visible contract at the beginning of the year was the Republic of Korea Air Force (Rokaf) F-X fighter programme. Until recently this controversial $ 4+ billion programme for 40 aircraft had come down to a contest between Boeing and Dassault, but was finally won by the F-15K. The Rokaf is also due to announce the winner of the Sam-X competition between the Raytheon Patriot and the Russian S-300 air defence systems, this should be valued in the $ 1 billion range.

Korea's Navy is also engaged in a major programme with the selection of a combat system for its new class of three KDX-3 anti-air warfare destroyers. The favoured system for the Korean requirement still appears to be the Lockheed Martin Aegis system and this is being offered by the US under a $1.2 billion programme. Korea has further plans for a massive boost to its capabilities over the next decade.

In Southeast Asia, the procurement tempo slowed in the late 1990s due to the recession, with Singapore being the exception, acquiring, amongst other equipment, frigates from DCN and Boeing Apache attack helicopters. Neighbour Malaysia is now back on the procurement trail with a tank programme that is due to be awarded to Poland for the PT-91 Tvardy and a submarine programme with DCN. Malaysia's short-range air defence programme, on the other hand, was recently awarded to MBDA and involves the Jernas.