KUALA LUMPUR, Jan 21 — The government has launched the National Defence Industry Policy (NDIP), a long-term strategic plan to reduce Malaysia's dependence on external parties in matters of security and defence, while building a self-reliant, sustainable, and resilient local defence industry.
Defence Minister Datuk Seri Mohamed Khaled Nordin said the increasingly complex, fragile, and uncertain global security landscape required Malaysia to strengthen its defence capabilities by developing a strong, competitive domestic industry.
"It would be a great loss if the high allocation channelled to the Defence Ministry (Mindef) every year was not fully utilised to develop the country's defence industry that can stand on its own capabilities," he said during the NDIP's launch ceremony today, which was officiated by Prime Minister Datuk Seri Anwar Ibrahim.
Khaled added that this reflects the government's highest commitment in strengthening the country's defence industry ecosystem.
Also present were Deputy Defence Minister Adly Zahari and Army Chief Gen Datuk Azhan Md Othman.
NDIP's success depends on building a comprehensive ecosystem that encompasses government commitment, defence procurement policy reforms, effective technology transfer, and strengthened research and development (R&D).
Among the key reforms outlined were the setting of a minimum local content of 30 per cent for each defence procurement, in addition to the assertion that all maintenance, repair and overhaul (MRO) activities must be carried out by local companies, except during the warranty period, which can only be handled by original equipment manufacturers (OEMs).
“Any local company that fails to innovate, increase local content or reduce costs, their MRO contracts can be terminated because our priority is the national interest,” he said.
In terms of technology transfer, Khaled said the Industrial Collaboration Programme (ICP) will be implemented more aggressively and targetedly, with emphasis only on local companies that are truly capable of leveraging technology and producing high-value products.
He also stressed the important role of R&D as a catalyst for the growth of the defence industry, with the support of government funds and implementing the ICP, including through the Science and Technology Research Institute for Defence (STRIDE).
Along with the launch of the NDIP, Mindef also introduced the Defence Industry Portal, which provides a platform for ICP applications, R&D grants, and technology offerings related to the defence sector.
In the same development, the minister announced several national defence projects to be initiated, including the development of local defence satellites, defence laser systems, ground vehicle chassis manufacturing capabilities, weapons systems, passive radars, loitering munition systems (kamikaze drones), and defence simulators.
This is not aimed at producing a complete weapons system in a short period of time, but rather as an initial step to develop local components and services so that Malaysian companies can participate more significantly in the defence industry supply chain.
“This is a strategic investment for the sake of the sovereignty, security, and future of the country,” Khaled said.
