“In an era of unpredictable geopolitics, global defence spending is on the rise. Historically, global defence spending has averaged 4.5% of GDP pre 1990 and 2.4% since then,” Guha and Seet write in their March 14 report.
Investors looking to capitalise on emerging tailwinds in the defence sector may consider positioning themselves in Singapore Technologies Engineering (ST Engineering) and Addvalue Technologies.
These companies are likely to be key beneficiaries of the rise in global defence spending and increasing use of unmanned systems such as drones for warfare, say Maybank Securities analysts Krishna Guha and Jarick Seet.
