The anticipated 25% increase in defense budgets across Southeast Asia by 2025 marks a decisive shift in the region's security landscape, driven by escalating geopolitical tensions, particularly related to China's assertiveness in the South China Sea. Historical underinvestment in military capabilities, characterized by significant budget increases—such as Indonesia's and Vietnam's—reflects a normalization of defense postures after decades of prioritizing economic growth. Key drivers include the need for territorial integrity, enhanced military modernization, and economic growth, which collectively underscore a commitment to credible deterrence. As countries prioritize military modernization, particularly in naval and air capabilities, there is potential for improved regional security through interoperability and cooperation. However, concerns persist regarding the risk of an arms race and the impact of increased military spending on domestic priorities. Ultimately, while enhanced milit