Noticeable modernization trends in Southeast Asia are acquiring of technological sophistication, such as guided munitions, and investment in command, control, communications and computer processing, as well as intelligence, surveillance, reconnaissance systems (C4ISR).
Navies tend to cover its lack of mine counter-measures, maritime surveillance, offshore patrol and anti-submarine capabilities.
Even though the proportion of military spending to each country's GDP remained constant and still did not fit the definition of arms race, the action-reaction pattern and low trust among the nations with lack of regional dispute resolution mechanisms meaning that there could be a risk of misunderstanding in the future.
[25]: 21–3 Indonesia saw the necessity to modernize its armed forces from Communist takeover of Vietnam in 1975 and the poor performance in its invasion of East Timor in 1976.
After the declaration of EEZ in the 1980s, the modernization process has concentrated on improving maritime security by developing its naval, air force, and rapid deployment capabilities, considering its geographical features as a large archipelago, sea lanes and waterways.
The average annual spending in the 1990s was about 1.5% of its GDP, the lowest compared to its neighbors, showing its priority on economic development and declining status of the military in the post-Suharto era.
[25]: 23–5 Its long-term plans include up to 230 new combat aircraft, several dozen frigates and up to 12 submarines by 2030, even though it seems not possible given the current spending rate.
[25]: 26–7 In 2016, the country is the strongest military in SEA, its inventory include some of the most modern weapons from the West and Russia, including Russian Sukhoi-27/30 jets, American F-16s, German Type 209 submarines, Leopard II RI main battle tanks, and Ukrainian BTR-4M amphibious armored personnel carriers.
[26]: 27–8 The Malaysian Armed Force was experienced in counter-insurgency and jungle warfare from multi-decade long Communist insurgency.
Recognizing its vulnerabilities from its long coastlines and offshore oil and gas fields as well as regional situations, the country began military build-up program PERISTA in 1979.
Apart from being halted in 1997 economic crisis and its aftermath, the modernization was continuous and show determination of develop all-round capabilities and counter Singaporean build-up.
It remained focus on naval buildups, and it published a long-term plan for improving air force capabilities.
The military junta then underwent a modernization program aimed at covering its obsolete weapons and increase the manpower.
Its spending is likely to have decreased after civilian government since 2015, and Western countries enforced arms embargo is gradually lifted in practice.
After the decreased US aid and conflict in the Spratly Islands, Military Modernization Bill was signed into law in 1995, but the actual program was launched in 1999, partly due to the economic crisis.
Its leadership considered the armed forces necessary to act as a deterrent, given the country's status as a city-state in a volatile region.
It had been the region's largest arms importer, and was ranked top four in Global Militarization Index by Bonn International Center for Conversion since 2007.
The country has a well-developed arms industry with the ability to produce locally-made armoured vehicles, artillery and ships, some of which also exported.
Domestic factors also played a role: it faced multi-decade long Communist insurgency and infighting in and among its uniformed units vying for more resources.
The purchase of an aircraft carrier Chakri Naruebet indicated its ambition of developing a blue-water capabilities, even though prestige was also a contributing factor.
[24]: 34 Domestic political factors also played a role in the allocation of budget when the civilian government repay the navy who did not join the military junta of 1991.
However, when the Soviet Union who long supplied it with ammunition and equipment cut off its support, and the stalemate of Cambodian Civil War prompted its leadership to demobilize and shift away from forward deployment.