24 defence deals worth RM3.5bil inked to cut reliance on foreign tech

 The defence ministry says the close collaboration between the public and private sectors aligns with the evolving dynamics of global security challenges.

The defence ministry said the strategic initiatives mark a shift in focus from maintenance, repair and overhaul towards high-value manufacturing and technological innovation. (Bernama pic)

PETALING JAYA:

 The defence ministry has formalised 24 strategic defence initiatives worth RM3.54 billion aimed at reducing Malaysia’s reliance on foreign defence technology.

The 24 strategic initiatives were signed today during the Defence Services Asia exhibition and the National Security Asia 2026 trade show in Kuala Lumpur.

They included 12 procurement contracts, four letters of intent, and eight industrial collaboration programmes (ICPs).

“This strategic step aims to reduce Malaysia’s dependence on foreign technology through close collaboration between the public and private sectors,” the ministry said in a statement.

“The current focus has shifted from maintenance, repair and overhaul (MRO) alone towards high-value manufacturing and technological innovation to address an increasingly complex strategic environment.”

Bernama quoted defence minister Khaled Nordin as saying the ICPs, worth RM1.4 billion, were awarded to four local companies: BHIC Submarine Engineering Services Sdn Bhd, Lumut Naval Shipyard Sdn Bhd, Labuan Shipyard Sdn Bhd, and Preston Shipyard Sdn Bhd.

He said the ICPs aimed to facilitate the transfer of knowledge and technology from original equipment manufacturers to qualified local companies, with a focus on enhancing warship MRO capabilities.

“Once they have acquired the capabilities, there will be no need for our warships to be sent abroad for MRO,” he said.

The ICPs are expected to generate economic growth and promote long-term autonomy in artificial intelligence investment and innovation, while driving Malaysia towards becoming a regional defence hub.

They will also create high-skilled job opportunities, raise the value of Malaysian defence exports, and boost national defence readiness through self-reliance.

“The signing of the initiatives reflects the government’s proactive approach in strengthening national defence capabilities through procurement based on readiness, deterrence and long-term capacity development.

“These efforts are aligned with the evolving dynamics of global security challenges,” the ministry said. - FMT