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The article explores South China Sea dispute as the main driver for defense acquisition in Southeast Asia. The Chinese Government has claimed most of South China Sea, which includes vital sea lanes and rich deposits of oil and gas. Vietnam and the Philippines formed a defense cooperation agreement and closer defense ties with the U.S. due to China's activities in the area. Eighteen new aircraft will be bought by Malaysia to replace its MiG-29s while Vietnam acquired six Kilo-class submarines.

The article highlights the next round of air force procurement by Singapore, in which Airbus Military is one of the main beneficiaries. A total of 12.1 billion Singaporean dollars will be allocated for the 2011 defense budget, which according to analysts makes Singapore as the second country that spends more on defense per capita after Israel. Aerial refueling tankers are the top priority in the acquisition with the Airbus Military A330 Multi-Role Tanker Transport as the front-runner.