Abstract
Several  states  in  Southeast  Asia   have   long   attempted  to  produce their   own   armaments, both   to  support  national security and   to  aid in  national economic and  technological advancement. In  most cases, however, such  efforts have   been   decidedly  disappointing,  and   few local  arms  industries have  been  economically or  technologically self- sustaining. Nevertheless, we may  be witnessing a new  phase of renewed interest among  several Southeast  Asian  nations  in  expanding  their capabilities  for  indigenous  arms   manufacturing,  as  evidenced  in particular  by  new   defence-industrial  initiatives  in   Indonesia  and Malaysia. These  efforts have   been   supported by  a  long-term  growth in  defence expenditures  and   new   efforts to  utilize  industrial offsets (such  as  technology transfers and   localized production) as  a  part  of arms  acquisitions  to  build  up   local   arms   industries.  It  is  unlikely, however,  that   these  efforts alone will  suffice to  create   economically viable   local  defence industries. Consequently, countries in  the  region  will  still  have to make tough decisions about the  future course of their  defence  industrial bases.   Most  likely, they   will  have   to  either invest considerably  greater   resources  into   developing  their   defense  sectors (which may  beyond their  capacities and  which are  still  no  guarantee of  success) or else  they  have  to scale  back  their  ambitions and  choose to  concentrate  in  niche  areas   where  they   have   a  better   chance  of being  competitive in  the  global  arms  marketplace.
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