January 2012

In This Issue
01 - UNITED STATES: 2012 Defense Budget Approved, 2013 and Beyond Uncertain 03 - MALAYSIA: Navy and Coast Guard Update 05 - BRAZIL: Frigate and OPV Requirements Expanding 06 - EGYPT: In the Market for Tank Landing Ships (LSTs) 07 - INDIA: Additional OPVs for Coast Guard 07 - COLOMBIA: Navy and Coast Guard Expand Patrol Vessel Programs 08 - PAKISTAN: Frigate and AOR Orders in the Near Term 10 - PHILIPPINES: New Coast Guard Requirements 11 - SRI LANKA: Considering Indian OPVs 12 - AUSTRALIA: Interim Transport Ship Sought 12 - INDONESIA: South Korean Type 209 Selected 13 - INTERNATIONAL: 2011 Contract Awards Update 14 - INTERNATIONAL: Defense Budget Tracking for 2012/13 14 - INTERNATIONAL: World Missile Developments 15 - INTERNATIONAL: Unmanned Developments 18 - VARIOUS: Did You Know? 19 - AMI: Analytical Services Access to Analysts 19 - AMI: Documents Available For Download 20 - AMI: Contacting AMI 20 - AMI: Email Directory US Defense Budget Division of Funds

2012 Defense Budget Approved, 2013 and Beyond Uncertain

On 31 December 2011, US President Obama signed the 2012 defense budget into law (took effect on 01 October 2011). US$553.1B was requested by the Department of Defense, which excludes funding that is directly related to overseas contingency operations (OCO). US$117.8B was to be set aside for OCO requirements (US$41.5B lower than the FY2011). The base line was slightly modified by the Congressional Budget Office (CBO) in their proposal, while OCO funding was slashed by 74-percent (due to Iraq drawdown). The overall budget signed into law by the President is approximately US$9B less than the FY2012 budget proposed by the US Congress. Although the overall defense budget is 4.2% less than the last full year budget in 2010, the base budget for 2012 is actually 3% higher than the 2010 budget. Of this amount, approximately US$113B has been allocated for procurements (roughly 21% of the total base) with the US Navy (USN) receiving approximately 29%, of which US$14.6B is for ship construction (SCN budget).