KUALA LUMPUR: Malaysia’s defence future is shifting to self-reliance, with Defence Minister Datuk Seri Mohamed Khalid Nordin yesterday urging all stakeholders to back the National Defence Industry Policy (NDIP) as a bold roadmap for local innovation and national security.
Speaking at the policy’s launch ceremony, he said the initiative is aimed at reducing reliance on foreign suppliers and securing a steady, reliable supply of defence equipment, calling it a strategic investment in the nation’s sovereignty, security and future.
“The success of NDIP depends on a fully integrated defence ecosystem, including the government’s clear and unwavering commitment to developing the national defence industry, given the scale of procurements and budget allocations involved,” he added.
Under the policy, defence procurement would require at least 30% local content while maintenance, repair and overhaul activities must be handled by local companies, except during warranty periods when original equipment manufacturers are allowed to step in.
“Local companies must demonstrate innovation and improvements that increase local content and reduce costs.
“Failure to meet these standards would result in the termination of contracts, with tenders reopened to allow capable local firms to participate.”
Speaking on technology transfer, Mohamed Khaled said the Industrial Collaboration Programme (ICP) would be implemented more aggressively and with sharper targeting, focusing only on local companies capable of leveraging technology and producing high-value defence products.
He emphasised the critical role of research and development in driving the defence industry, with government funding and the ICP, including through the Science and Technology Research Institute for Defence, acting as key enablers.
“Today also marks the launch of the Defence Industry Portal, offering three main services: ICP applications by companies seeking technology, research and development applications by local companies for product innovation, and technology offerings for the defence sector.”
He highlighted several national defence projects under NDIP, including the development of a local satellite to take over national defence satellite services once the current contract expires in 2029, a national laser defence system, and the capability to assemble and manufacture land vehicle chassis systems.
Additional projects include the assembly, repair and production of various weapons systems, the manufacture of passive radar systems, the development of Loitering Munition Systems or kamikaze drones, and the creation of defence simulators, he said.
“It would be highly wasteful if the substantial annual allocations to the Defence Ministry were not harnessed to build a self-reliant, sustainable and resilient national defence industry.
“We can no longer depend entirely on external parties to guarantee the nation’s security and defence. It is with this awareness that NDIP was formulated and launched.”
