'War and terror threats send Asian defense spending soaring'

'War and terror threats send Asian defense spending soaring'

Agencies , Langkawi, Malaysia

Asia is expected to spend US$70 billion on defense imports between 2002 and 2006 because of the increasing threats of war and terrorism, Malaysian Prime Minister Mahathir Mohamad said on Tuesday.

Mahathir was speaking at the official opening of the Langkawi International Maritime and Aerospace Exhibition (Lima) on this northern island, which has drawn some 600 companies from 25 countries.

"A wave of uncertainty has swept across the world, brought about by the increasing threat of terrorism and military action," said Mahathir. "Both have destabilizing effects on all countries."

"According to forecasts, the total market for defense exports to Asia alone is predicted to rise to $70 billion between 2002 and 2006. And it is expected to continue to rise."

Mahathir said that in Southeast Asia air and maritime defenses were particularly important "because most of the countries are made up of huge archipelagos with long coastlines and innumerable islands to be secured."

Jean-Pierre Buleon, director for the French Defense Ministry's international relations in America, Africa and Asia, said the market should expand once cash-strapped countries like Thailand and Indonesia are able to boost their military expenditure.

"Clearly now the region needs to increase its defense capabilities," Buleon told The Associated Press. "Some countries can afford it now, some cannot."

Malaysia itself embarked on a major arms spree recently, agreeing to buy Russian fighter jets for $900 million, French submarines for $972 million, British and Russian missile systems for $364 million and Polish attack tanks worth $368 million.

Mahathir said Malaysia had built a series of radar stations along the western coast to enable it to monitor traffic along the Strait of Malacca, as well as deployed more patrol boats and aircraft for surveillance.

"But there is a financial limit to what Malaysia can do to protect international shipping which passes through the straits in increasing numbers," he said.

"The world and in particular the nations whose ships make use of this waterway should also help in securing the passage," he said.

It was unclear exactly what help Mahathir was looking for, as both the United States and Japan have reportedly offered assistance in patrolling the 800-kilometer (500-mile) waterway without success.

International arms exporters are displaying their aircraft, ships, tanks and other weaponry at the five-day show. The 600 exhibitors include Boeing and Lockheed of the United States, BAE Systems of Britain, and several Russian and French manufacturers.

The biennial exhibition was launched a decade ago as Southeast Asian countries, flush with cash from their then-booming economies, went on a defense spending spree and triggered a regional arms race. Spending was deferred during the 1997-98 Asian financial crisis but picked up as economies rebounded.

Alan Garwood, the head of the British Defense Ministry's export services, said Southeast Asia has become a crucial market for defense manufacturers, with Malaysia and Singapore considered the current big spenders.

"We are very busy all around the region, with a lot of negotiations going on with virtually every country," Garwood said.

Malaysia's Marine Police Commander Muhamad Muda told AFP recently that while the exchange of intelligence and experience were always welcome, "We don't need foreign ships to come into Malaysian waters for joint patrols. I don't think our government would like that kind of thing."

The Malacca Strait, a narrow waterway slicing Indonesia's sprawling Sumatra island from mainland Southeast Asia, is one of the busiest shipping lanes in the world, funneling 50,000 vessels a year between the biggest economies of the West and the East.

A hunting ground for pirates from ancient times until today, it carries a third of global trade and more than 10 billion barrels per day of oil to Japan, South Korea, China and other Pacific Rim countries.

It has also recently been the focus of fears that terrorists might try to hijack an oil tanker for use as a monstrous bomb, after the discovery of videos in an al-Qaeda hideout in Afghanistan showing Malaysian boats on patrol in the strait.