South China Sea Drives Regional Choices

The defense priority for Southeast Asian countries is monitoring and protecting their territories in the South China Sea in response to China's increased assertiveness and claims to this region.
Chinese submarines, ships and aircraft patrol the area now, and many Southeast Asian nations fear China will build military installations on the islands, atolls and reefs, paving the way for it to exploit the oil and gas reserves under the seabed. China already has a permanent fort on Mischief Reef in the South China Sea.
The fact that China has such a large military has led all the coastal Southeast Asian nations—with the exception of Singapore—to conclude that they are inadequately equipped to protect their interests in the South China Sea. Each is now racing to invest in new fighters that will remain their mainstays beyond 2020. The importance of airborne early warning (AEW) aircraft and networked fighters has also caught on.
Singapore, which has the largest defense budget of any Southeast Asian nation, has Gulfstream G550s equipped with ELTA Systems' AEW mission suite. Its fighters include Lockheed Martin F-16s and Boeing F-15s. It is planning to modernize the F-16s and is expected to choose the “V” upgrade Lockheed Martin unveiled at the Singapore Airshow last month. This includes active, electronically scanned array (AESA) radar as well as data links allowing the F-16V to communicate with Lockheed Martin F-35s and F-22s. Singapore became a security cooperation participant on the F-35 program in 2003 and is expected to order the aircraft eventually.
No other Southeast Asian nation can afford all the equipment Singapore has, but some are seeking to develop similar capabilities. Thailand operates one Saab Erieye AEW aircraft and has one more on order. It has also received six Saab Gripen JAS 39C/Ds and ordered six more; first deliveries of the second tranche will start early next year. Equipment on its Gripens include Ericsson/GEC-Marconi PS-05/A pulse-doppler radar, RBS15 anti-ship missiles and the EWS 39 electronic warfare suite, the same suite used by the Swedish air force.
Thailand is widely expected to order another six Gripen fighters, bringing its fleet of the aircraft to 18. The country purchased Gripens to replace its Northrop F-5s based at Surat Thani air base because it is convinced of the merits of networked fighters. The Swedes argue that having better intelligence on your enemy's whereabouts—through the use of Saab AEW—allows you to place fighters more effectively, creating an opportunity to defeat a larger enemy.
The networked solution is also being taken to the next level. Saab owns 40% of Thai company Avia Satcom, which has been tasked with developing a national tactical data link that will cover the AEW aircraft, Gripens and F-16s as well as the navy's aircraft and ships. The Saab Erieye also works with Link 16, so it can feed data to U.S. platforms such as F-16s, but the advantage for Thailand in having a national data link is its control over the encryption.